Our parents always encourage us to invest in gold, and they are right. The yellow metal is known for its value and is also highly liquid. Most importantly, gold can help investors offset losses when the stock market is down. Gols is also great as a hedge against inflation. Most finance experts advise that a small portion of your portfolio should be invested in gold.
Diwali time is considered auspicious to buy gold. But most individuals often don’t want to invest considerable sums to buy a pile of gold. Instead, they can invest in gold stocks. We will discuss the best gold stocks you can buy to bolster your portfolio.
What are gold stocks?
Gold stock is a name given to publicly traded company shares with a strong emphasis on gold. There are several advantages to buying gold stocks than the metal itself.
Investing in gold companies may earn better returns than the returns on the actual metal. Companies can employ techniques to reduce costs and increase production to keep their profit rising. However, it’s not that all gold shares will give you good returns. Hence, investors need to pick the best ones carefully.
Here is a list of the best gold stocks to buy.
Best gold stocks in India
These are the best gold-linked stocks you can buy in the Indian market.
Titan, a Tata group company, manufactures watches, jewellery, eyewear and other lifestyle products and accessories.
The Titan shares are one of the famous and leading shares in India.
Follow Titan Company share price on Angel One before buying their shares.
Muthoot Finance Ltd.
Muthoot Finance is a lending organisation primarily offering gold loans. The company is a non-deposit NBFC that provides secured personal loans against gold jewellery. It lends against household gold jewellery but doesn’t trade in gold bullion.
The company was formed in 1997 in Kerala and turned into the largest gold financing company in terms of loan portfolio.
The next on the list is Rajesh Export, which engages in the business of gold and gold products. The company is involved in gold refining and manufacturing gold products like jewellery, which they sell under their brand.
Incorporated in 1995, it is a large-cap company with a market capitalisation of Rs 16,769.29 crore.
Follow Rajesh Export share price on Angel One.
Manappuram Finance Ltd.
Manappuram Finance is an NBFC that caters to the credit needs of people of the lower socio-economic classes, primarily in semi-urban areas.
Get updates on Manappuram Finance Ltd. share price on Angel One’s website.
Vaibhav Global is an India-based vertically- integrated electronic retailer company that sells jewellery, home, beauty, and lifestyle products to customers in the USA and UK.
Vaibhav Global is a mid-cap company with a market capitalisation of Rs 6068.47 crore.
You can follow Vaibhav Global share price on Angel One.
They are one of India’s largest jewellers. Kalyan Jewellers made a successful listing on the stock exchange on March 26, 2021.
They design, manufacture, and market gold, diamond, platinum, and silver jewellery through its 107 showrooms in India and 30 showrooms in the middle-east. It is one of the trusted jewellery brands in India.
It is one of the best gold stocks to buy.
Follow Kalyan Jewellers share price on Angel One’s mobile app.
Things to remember
Before you invest in gold stocks, you must remember a few things.
There are more than one ways you can invest in gold – direct investment in gold stocks, gold ETFs, and gold mutual funds. Before spending your money, compare each investment option’s advantages and disadvantages.
While investing, always make an informed choice and keep a tab on the market news that might impact your investment outcome.
Consult an expert
When you doubt your investment choices, it is always better to consult an expert.
Gold stocks also offer tax advantages, like the SBI Gold Fund. You can get long-term capital gain tax advantages if you sell after one year.
If you are not confident, you can also start by investing a modest sum.
These are a few good gold stocks investments. Always do your research before you select any stock to add to your portfolio. You can commence your investment journey today by opening a free Demat account with Angel One.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.