Paper Gold Investment: Returns, Investment Options & Alternatives

By Team Gullak
Apr 2, 2024
4 min read

Gold investment has experienced a notable surge in popularity, as investors increasingly explore alternatives that extend beyond traditional physical ownership. A particularly intriguing option within this realm is paper gold, an innovative financial instrument that mirrors the value of physical gold without the responsibilities associated with ownership. This article aims to unravel the complexities of paper gold investments, providing a comprehensive exploration of its mechanisms, advantages, and the diverse options available in the gold market. We’ll also explore alternatives to paper gold investments & conclude what’s the best option for you.

Understanding Paper Gold Investment/Schemes

Paper gold, at its core, represents a financial instrument designed to mirror the value of physical gold without the complexities tied to possessing the precious metal. This approach offers a compelling alternative, allowing you to benefit from gold value fluctuations without the need for storage or security concerns. Key advantages of paper gold investment include its affordability and the ease with which you can enter or exit the market. This makes it an appealing choice if you are seeking exposure to the gold market without the physical burdens.

Popular Paper Gold Investment Options Explained

Gold ETFs as a Popular Paper Gold Investment: If you are considering paper gold investments, gold ETFs emerge as a noteworthy option. Their affordability, liquidity and ease of trading make them a preferred choice for investors seeking exposure to gold without the complications associated with physical ownership. However, it's crucial to be aware of potential tracking errors and market risks inherent in this investment avenue.

Returns: gold price appreciation(10-11%pa)

Lockin period: None

Sovereign Gold Bond (SGB) as a Popular Paper Gold Investment: SGBs provide government-backed security, guaranteed returns and attractive tax benefits. While they offer stability, you should note the lock-in period and limited liquidity associated with this option. They are more suitable for those with a long-term investment horizon.

Returns: gold price appreciation(~11%pa) + extra 2.5% on the principal

Lock-in period: 5 years

Paper Gold Investment Alternative - Gullak Gold Plus

In the ever-evolving landscape of digital gold investment platforms, Gullak Gold Plus stands out as a beacon of innovation. Offering an impressive 16% p.a.(extra 5% gold every year on top of gold’s annual returns of 11% using gold leasing), the app combines flexibility, ease of buying & selling, and the potential for higher returns compared to all paper gold investments. If you are searching for an accessible and dynamic digital gold investment avenue, Gullak Gold+ is a great choice.

- Returns: gold price appreciation(~11%pa) + extra 5% every year

- Lockin period: none

Beat returns from paper gold investments

Table: Gullak Gold Plus vs Paper gold investments

Investment OptionDescription5 Year Returns (approx)
Paper gold investment - Gold ETFsTrack gold price; traded on stock exchangescapital appreciation
Paper gold investments -SGBsGovernment-backed bonds with interest and capital appreciation2.5% on the principal + capital appreciation
Gullak Gold+Gold investment app that provides extra 5% gold every year on top of gold’s annual appreciationExtra 5% every year(in compound interest) + capital appreciation

Why Gullak Gold Plus Stands Out: A Compelling Alternative for Paper Gold Investment?

  • Higher Returns: With an impressive return rate of 16% p.a., Gullak Gold+ distinguishes itself as a compelling alternative within the paper gold investment landscape.
  • Low Initial Investment: With Gullak Gold+, entry into gold investment is remarkably accessible, starting with as little as 0.5 grams of gold. The app offers flexibility, allowing you to choose between setting up a systematic investment plan (SIP) or making a one-time investment.
  • Liquidity & safety: There's no lock-in period with Gullak Gold+, enabling you to exit at any time without incurring charges. Gold+ takes a significant step in securing your investments by providing a 100% bank guarantee, thus ensuring a robust and safeguarded financial investment.
Like what you read? Share with a friend.
facebook logoinstagram logolinkedin logotwitter logo
Frequently Asked Questions
Is paper gold a good investment?
Plus Logo
What is the best investment for gold?
Plus Logo
What is paper gold, and how does it differ from physical gold?
Plus Logo
What are the returns on Gullak Gold+?
Plus Logo
Is paper gold investment taxable?
Plus Logo