Gold Investment Blunders: How a Single Decision Can Halve Your Returns!

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News18•18-01-2026, 14:22
Gold Investment Blunders: How a Single Decision Can Halve Your Returns!
- •Gold prices surged by 80% in the last year, yet improper investment can erode 30-50% of returns due to taxes and expenses.
- •Physical gold purchases incur 3% GST, making charges, and purity costs, reducing initial returns.
- •Digital gold also suffers from GST and spread, impacting profit margins.
- •Short-term capital gains tax applies for holdings under 24 months; long-term capital gains tax (12.5%) after 24 months can significantly reduce profits if not managed.
- •Sovereign Gold Bonds (SGBs) are recommended for tax efficiency, offering tax-exempt capital appreciation after 8 years, while Gold ETFs and Mutual Funds provide liquidity with manageable long-term capital gains.
Why It Matters: Invest in gold wisely to avoid significant losses from taxes and charges; SGBs offer the most tax-efficient option.
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