5 Smart Ways to Invest in Gold This Dhanteras — Affordable Options for Every Budget

The festival of Dhanteras, celebrated on October 18 this year, marks the beginning of Diwali festivities across India. Traditionally, people buy gold on this day, as it is believed to bring wealth, peace, and prosperity to the household. However, with gold prices currently near record highs, buying physical gold jewelry may not be practical for everyone.

Fortunately, there are several smart and affordable ways to invest in gold that don’t require spending large sums or worrying about storage and purity. Here are five effective and convenient ways to invest in gold this festive season.

1. Gold Exchange-Traded Funds (Gold ETFs)

One of the easiest and most transparent ways to invest in gold is through Gold Exchange-Traded Funds (ETFs). These are financial instruments that track the market price of physical gold, allowing investors to participate in gold’s price movement without actually owning it.

When gold prices rise, the Net Asset Value (NAV) of the ETF also increases, and vice versa. The NAV is calculated at the end of each trading day. A key advantage of Gold ETFs is that you don’t have to worry about storage, insurance, or purity—the fund takes care of all that.

However, investing in Gold ETFs requires a demat account, as they are traded just like shares on stock exchanges. This option is best suited for investors seeking liquidity, transparency, and easy entry or exit from their gold investment.

2. Gold Mutual Funds

If you don’t have a demat account, Gold Mutual Funds are an excellent alternative. These funds invest in Gold ETFs on behalf of investors, giving you the same exposure to gold prices without the need to manage the investment directly.

The biggest advantage of gold mutual funds is flexibility—you can invest small amounts through SIPs (Systematic Investment Plans) and redeem your money easily when needed. Returns from these funds closely mirror gold’s market performance.

Several reputed fund houses, such as HDFC, SBI, and Nippon India, offer dedicated gold mutual fund schemes that are ideal for small and medium investors who want to diversify their portfolios with gold.

3. Sovereign Gold Bonds (SGBs)

Launched by the Government of India in November 2015, Sovereign Gold Bonds (SGBs) are a secure and rewarding way to invest in gold. These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government and represent gold in digital form.

Each bond has a maturity period of eight years, though investors can redeem them after five years. Apart from the potential appreciation in gold prices, investors also earn an annual interest of 2.5%, making this a dual-benefit investment.

Although no new tranches have been issued since February 2024, existing SGBs can still be bought or sold on stock exchanges. They are ideal for long-term investors seeking safety, steady returns, and government assurance.

4. Gold Coins

If you prefer to own physical gold but want a simpler and smaller investment, gold coins are a great option. Leading e-commerce platforms like Amazon and Flipkart are offering branded gold coins this Dhanteras in various weights—typically between 8 to 10 grams.

These coins are backed by trusted brands and certified for purity, removing the concern of authenticity. Many retailers are also offering discounts and cashback deals during the festive period, making them an attractive purchase.

Gold coins can also be gifted, making them a symbolic and valuable asset for both personal and traditional reasons.

5. Digital Gold

Digital Gold has emerged as one of the most convenient modern investment options in recent years. It allows you to buy, sell, and store gold online in small denominations without taking physical delivery.

For example, Jio Financial Services has launched a special digital gold offer for Dhanteras and Diwali. Users can purchase digital gold through the JioFinance app between October 18 and 23, and on purchases worth ₹2,000 or more, the company is offering an additional 2% gold bonus.

Digital gold is stored safely in insured vaults by the provider, and investors can choose to redeem it in physical form later. It’s an excellent option for tech-savvy investors who want the flexibility to invest small amounts and track prices in real time.

Final Thoughts

Gold continues to be one of the most trusted and time-tested investment assets for Indian households. Whether you prefer digital convenience, financial instruments, or physical coins, there’s an option to suit every budget and risk profile.

This Dhanteras 2025, consider moving beyond traditional jewelry purchases and explore these smart, cost-effective, and secure ways to invest in gold. With careful planning, your investment can not only uphold tradition but also strengthen your financial future.