How to Invest in Gold for Beginners?

Are you still taking tiny baby steps towards investment? If you are, then you must know that these tiny steps also count. You couldn’t possibly start missing out on the amazing returns and rewards that you get from there, could you? While your tiny baby steps need to contain investments of all types, have you considered investing in gold? If you haven’t, the first piece of advice would be to start investing soon. On the other hand, if you have started already, that’s great news. So, for the starters who have been thinking about it – here’s how you get started. 

How to Get Started?

Gold is one of the most well-known forms of currency in the world. It transcends cultural boundaries, and gold has played numerous roles throughout history, from currency to essential materials in electronics to artisanal jewelry. Gold retains its allure as a one-of-a-kind asset that provides an alternative to traditional stock and bond markets for many investors today.

Here are a few methods that will help you to get started:

a) Physical Gold

Purchasing gold bullion is the most common way to invest in physical gold. Gold bullion is investment-grade gold that is typically in the form of ingots, bars, or coins.

Gold for investment purposes is always at least 99.5 percent pure:

  • The manufacturer’s name, weight, and purity will be stamped on gold bars. Gold bars are typically available in sizes ranging from 1/10 troy ounce (one troy ounce = 31.1 grams) to one kilogram.
  • Gold coins are available in a wider variety of shapes and sizes. However, keep in mind that you may have to pay extra for design elements like engravings or collector value. Some coins are also legal tender in their respective countries.

So, go ahead – look up for the price of 1 gram gold in Bangalore, Mumbai, or wherever you put it up. 

Some banks and brokers offer physical gold for sale. Make sure to only buy gold from reputable sellers. It is generally preferable to buy gold bullion from reputable local dealers rather than online.

b) Invest in Gold Futures

Gold futures are an excellent path to speculate on the price of gold rising or even falling, and you can even take physical delivery of gold if you so desire, though physical delivery is not what motivates speculators.

The greatest advantage of using futures to invest in gold is the enormous amount of leverage available. In other words, you can own a large number of gold futures contracts for a relatively small amount of money. If gold futures move in your favour, you could make a lot of money very fast.

However, the leverage for investors in futures contracts cuts both ways. If gold falls in value, you’ll be forced to put up large sums of money to keep the contract open (called margin), or the broker will close the position, and you’ll lose money. So, while the futures market allows you to make a lot of money, it also allows you to lose it quickly. In general, the futures market is for sophisticated investors, and you’ll need a broker who supports futures trading, which not all major brokers do.

c) Stock Mining

Another method that you can profit from shooting up gold prices is to own the mining companies that produce it. This may be the best option for investors because they can profit from gold in two ways. First, as the price of gold rises, so do miners’ profits. Second, the miner can increase production over time, creating a double-whammy effect.

Risks: When investing in individual stocks, you must thoroughly understand the business. There are a number of extremely risky miners out there, so choose a proven player in the industry with caution. Small miners and those without a producing mine should probably be avoided. Finally, mining stocks, like all stocks, can be volatile.

The Perks that Tag Along

There are varied benefits to investing in gold, and the major ones are:

1) Fewer Risks – More Rewards

India is a developing country. That means it has one of the largest millennial populations. They understand the intricacies of the digital market and, as a result, are better prepared to make digital investments than e-gold investments.

Having digital gold allows investors to check the purity of assets without having to travel to jewellers. A significant number of fintech firms offer investors the ability to validate the purity of gold and receive real-time market prices if the investors choose to liquidate them at any time.

2) Security is Under Cover

Purchasing gold is always a safe bet in terms of investment. In an emergency situation where there is no other source of income, one can always sell it and get the money. Being in possession of physical gold, on the other hand, is a hassle-filled experience. It necessitates that investors be concerned about storage costs and security concerns. Buying gold online becomes a safer bet in this scenario.

Investors can buy gold online through fintech firms and their mobile applications and sell it digitally as needed. They can monitor the proceedings in real time without fear of compromise. Investors can also be confident that they will receive the current market value for their assets.


The wise way to invest in e-gold is to buy it digitally when prices are low. Given that fintech firms with platforms for digital gold purchases allow investors to buy fractional amounts of the precious metal, it is now easier than ever to buy gold and keep it safe without the need for physical storage. Depending on their needs, investors may be able to sell assets at high prices and make a significant profit.

All that you ever dreamed of? How does it happen? It happens through taking steps. Take this gigantic step into investing in gold.