Buying physical gold means you take delivery of jewelry, coins or bars and hold them yourself. It’s the most traditional form of gold ownership.

Pros:

• You own a tangible asset you can see and touch.
• No counterparty or credit risk—value cannot disappear if an issuer defaults.

Cons:

• High making charges (for jewelry) and storage or insurance fees.
• Lower liquidity—selling physical gold can take time and may incur additional costs.

Issued by the government, SGBs let you earn interest (typically ~2.5% p.a.) plus any rise in gold price over an 8‑year tenure.

Pros:

• Earn fixed interest on top of price appreciation.
• Long‑term capital gains tax exemption on redemption after maturity.
• Safe—backed by the government.

Cons:

• 8‑year lock‑in (though you can trade on exchange after the first 5 years).
• Secondary market liquidity can be low—bid‑ask spreads may be wide.

Offered by platforms like MMTC‑PAMP, you buy gold in gram fractions and the issuer holds equivalent physical metal on your behalf.

Pros:

• No need to worry about storage or security—provider stores it for you.
• Highly flexible—buy/sell tiny quantities at any time.
• Quick transactions, often within minutes via mobile apps.

Cons:

• You don’t physically possess the metal—reliant on the provider.
• Small transaction fees or fixed markup on each trade.

Exchange‑traded funds that track the price of an underlying gold bullion pool. You buy and sell ETF units on the stock exchange just like shares.

Pros:

• Low expense ratios compared with actively managed funds.
• Instant liquidity—trade during market hours at live prices.
• No storage hassles—fund holds the metal for you.

Cons:

• You incur brokerage charges and bid/ask spreads.
• Minimal management fee still applies.

These funds invest either directly in gold ETFs/futures or in mining company stocks. They aim for both price appreciation and potential dividend yields.

Pros:

• Professional fund management and active stock selection.
• Portfolio diversification—exposure to mining companies and commodities.
• Easy SIP options available for systematic investing.

Cons:

• Higher expense ratios than passive ETFs.
• Additional equity‑market risks—mining stocks may not track gold perfectly.