| As Indians, we love our gold. Not just to display, gift and bequeath, but also as an investment. For investment, we have been used to buying physical gold, but that has changed over the past few years. Just when we got used to owning gold through the exchange-traded fund (ETF) route, the government introduced another way to buy and hold gold: through gold bonds.
Gold ETFs track the price of domestic gold. You make a profit if the selling price is higher than buying price, minus costs. An ETF’s net asset value is expressed in terms of per unit cost of gold and returns closely correspond to gold price returns less adjustment for cash held in the fund. In a gold bond, returns are linked to gold price, and you get a sweetener of 2.75% interest per year.........................................Full Article: Source
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