Gold • Silver • Platinum • Palladium — Investor Guide

Precious metals act as stores of value and crisis hedges. They don’t produce cashflows, but diversify equity‑heavy portfolios and can protect purchasing power during inflation or currency stress.

Gold dominates thanks to liquidity (SGB/ETFs) and RBI/sovereign backing. Silver adds industrial exposure. Platinum & Palladium are niche, auto‑catalyst–linked bets with higher volatility.

Decide your goal first: hedge, tactical trade, or long‑term allocation (e.g., 5–15%). Then match the goal with the right instrument and holding period.

HedgeDiversifierNo cashflow

Ways to Invest

  • Sovereign Gold Bonds (SGB): RBI‑backed; price‑linked to gold + ~2.5% annual interest; listed for liquidity; capital gains tax‑free on redemption at maturity. Best long‑term gold proxy.
  • Gold / Silver ETFs: Buy via demat; pure price exposure, high liquidity; expense ratio applies; capital gains taxed as debt per current rules.
  • Digital Gold (platform vaults): Convenient small‑ticket buys; mind platform/custody risk and fees; verify audits & redemption options.
  • Physical Coins/Bars/Jewellery: Making charges/mark‑ups; storage/insurance issues; jewellery has design loss & illiquidity.
  • MCX Futures: Trading/hedging with leverage; margin calls; for experienced traders only.
  • Platinum/Palladium: Limited local access; exposure mainly via global ETFs/derivatives; highly cyclical.

Taxation & Liquidity (Snapshot)

InstrumentLiquidityCapital Gains Tax (indicative)Notes
SGBMedium–High (listed; best held to maturity)Tax‑free on maturity redemption; if sold earlier, debt taxationPays ~2.5% interest (taxable)
Gold/Silver ETFHighDebt taxation (indexation per current law)Expense ratio applies
Digital GoldMediumDebt taxationPlatform/custody risk
PhysicalMediumDebt taxationMaking/storage costs
MCX FuturesHighBusiness/derivative taxationLeverage risk

Where It Fits in a Portfolio

  • Strategic hedge (5–15%) vs inflation, currency stress, and tail risks.
  • Tactical allocation during macro uncertainty or rate pivots.
  • Use SGB/ETFs for simplicity; avoid oversized jewellery as investment.

Precious Metal ETFs

  • SBI Gold ETF -India - Live
  • SBI Silver ETF -India - Live
  • SPDR Gold Shares (GLD) — NYSE - Live
  • iShares Silver Trust (SLV) — NYSE - Live
  • Aberdeen Standard Physical Platinum Shares ETF (PPLT) — NYSE - Live
  • Aberdeen Standard Physical Palladium Shares ETF (PALL) — NYSE - Live

Live Precious Metal ETFs

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ETF Ticker Price Change Day Range Exchange
SLV details GLD details PPLT details PALL details

Education only; not investment advice. Markets carry risk; do independent due diligence.