In times of economic uncertainty, gold has always been a popular choice for investors looking to protect their wealth. Traditionally, people have invested in physical gold, but with the advent of technology, investing in gold has become more accessible and convenient. Today, investors can buy gold digitally with just a few taps on their smartphones through platforms like Angel Broking. In this article, we’ll explore the various ways to invest in gold via the Angel Broking app, highlighting key features, procedures, and important considerations for a seamless investment experience.
Understanding the Gold Investment Options
Before diving into the process of buying gold on the Angel Broking app, it’s essential to understand the different forms of gold investment available to you. On Angel Broking, you can invest in:
Digital Gold: This involves buying gold electronically, backed by physical gold. This option allows you to own gold without the hassle of storage, making it a highly liquid and cost-effective alternative.
Sovereign Gold Bonds (SGBs): Issued by the Government of India, Sovereign Gold Bonds provide the benefits of holding gold without the associated costs of storage. Additionally, SGBs offer annual interest on the invested amount, along with potential capital appreciation.
Gold Exchange Traded Funds (Gold ETFs): Gold ETFs are a type of mutual fund that invest in gold, and the price of one unit typically corresponds to the value of one gram of gold. They are traded on stock exchanges, making them a convenient option for investors.
Gold Mutual Funds: These funds invest in companies that are involved in gold mining and related activities. While not a direct investment in gold, they provide exposure to the broader gold industry.
Why Buy Gold on the Angel Broking App?
Angel Broking is one of the leading stockbroking platforms in India, offering a user-friendly mobile app with a wide range of investment options, including equities, commodities, and digital gold. Some key reasons to use Angel Broking for buying gold include:
Ease of Access: The app is designed with a clean interface, making it simple for both new and experienced investors to navigate and manage their investments.
Convenience: You can buy gold at any time, from anywhere, using your smartphone without the need for physical storage.
Security: When you buy digital gold, it is backed by physical gold and stored in secure vaults by authorized vendors.
Regulatory Safety: Sovereign Gold Bonds and Gold ETFs are regulated by the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI), respectively, ensuring a safe investment environment.
Getting Started with Angel Broking App
If you haven’t already, the first step is to download and install the Angel Broking app, which is available on both iOS and Android platforms. Here’s how you can get started:
Step 1: Download and Install the App
Search for “Angel Broking” in the Apple App Store or Google Play Store and install the app.
Step 2: Account Registration
To start investing, you will need to open a trading and Demat account with Angel Broking. The registration process is simple and fully digital. You will need to provide:
Personal Information: Name, email, mobile number, PAN card, and Aadhaar card.
Bank Details: To link your bank account for transactions.
Verification: Angel Broking requires in-app KYC (Know Your Customer) verification, where you will need to upload identity and address proof documents.
Step 3: Log In to Your Account
Once your account is activated, log in using the credentials provided during the registration process. You are now ready to explore the gold investment options.
How to Buy Digital Gold on Angel Broking
The process of buying digital gold on Angel Broking is straightforward and similar to purchasing any other commodity or stock. Follow these steps:
Step 1: Navigate to the “Commodities” Section
Open the Angel Broking app and go to the commodities section, which houses gold and other precious metals.
Step 2: Select “Digital Gold”
You will find various gold-related products. Choose the “Digital Gold” option, which enables you to purchase small quantities of gold electronically.
Step 3: Enter Purchase Details
Here, you can enter the amount of gold you wish to buy. You have the option to either:
- Enter the value in grams (the quantity of gold).
- Enter the monetary value (how much money you want to invest).
Step 4: Payment
You will be prompted to make the payment for the gold purchase. You can do this using UPI, Net Banking, or any other payment method supported by the app. Once payment is confirmed, the digital gold will be credited to your account instantly.
Step 5: Gold Storage
The digital gold you purchase will be stored in secure vaults by the app’s partnered providers. You will receive a receipt and confirmation for your records.
Step 6: Selling or Converting to Physical Gold
Whenever you wish to sell your digital gold, you can do so through the app. You can also opt to convert it into physical gold by requesting delivery (though this usually comes with additional costs for delivery and making charges).
How to Buy Sovereign Gold Bonds (SGBs) on Angel Broking
Sovereign Gold Bonds are a great alternative to buying physical gold, as they offer fixed interest and eliminate storage worries. Here’s how you can buy SGBs via Angel Broking:
Step 1: Navigate to the “Bonds” Section
Once you’re logged in, go to the section dedicated to bonds and fixed-income securities.
Step 2: Select “Sovereign Gold Bonds”
Here, you will see options to invest in Sovereign Gold Bonds issued by the Government of India.
Step 3: Place an Order
You will need to enter the number of units you wish to purchase. One unit typically equals one gram of gold.
Step 4: Payment
Once the order is placed, make the payment using your preferred method. SGBs have a predefined issue price, which is linked to the prevailing gold prices at the time of issuance.
Step 5: Bond Allocation
After payment, the bonds will be credited to your Demat account, and you will start receiving interest (typically 2.5% per annum) on the investment.
Step 6: Maturity and Redemption
The SGBs come with a tenure of 8 years, but early redemption is allowed after the 5th year. At maturity, you receive the bond’s value based on the prevailing market price of gold.
How to Buy Gold ETFs on Angel Broking
Investing in Gold ETFs provides exposure to the gold market through stock exchanges. To buy Gold ETFs on the Angel Broking app, follow these steps:
Step 1: Search for Gold ETFs
Use the search bar to find the list of Gold ETFs available for trading.
Step 2: Analyze and Select the ETF
Review the different Gold ETFs listed on the app, considering factors like past performance, expense ratio, and liquidity.
Step 3: Place an Order
Once you have selected a Gold ETF, enter the quantity and the price at which you want to buy the units. Alternatively, you can opt for a market order to buy at the current market price.
Step 4: Payment and Allocation
Confirm your order and make the payment. The Gold ETF units will be credited to your Demat account.
Important Considerations
a. Price Fluctuations
Like any investment, gold prices are subject to market fluctuations. Make sure to monitor the gold market regularly to make informed decisions.
b. Long-Term vs. Short-Term Goals
Gold is traditionally considered a long-term investment. Understanding your financial goals will help you choose the right form of gold investment.
c. Transaction Costs
Be aware of transaction fees, making charges (for physical gold), and other related costs that can impact your overall return.
d. Tax Implications
Profits from gold investments may be subject to capital gains tax. Sovereign Gold Bonds, however, offer tax benefits, as gains upon maturity are exempt from tax.
See Also The Gold Dollar Coin: Is It Real Gold?
Conclusion
Buying gold on the Angel Broking app is a straightforward and secure process. With various options such as digital gold, Sovereign Gold Bonds, and Gold ETFs, investors can easily tailor their gold investments to suit their financial goals. By understanding the key features and following the steps outlined in this guide, you can take advantage of gold as a safe and profitable investment through the convenience of your smartphone.
