Precious Metals and Beyond. Understand the Role.
Commodities such as gold and silver can provide exposure to assets that behave differently from shares and bonds. However, commodity prices can be volatile, and they do not guarantee returns or protect every portfolio against losses.
Ways to Gain Exposure
- Gold and Silver ETFs — Exchange-traded funds that track the price of the metal and trade on stock exchanges.
- Gold and Silver Fund of Funds — Mutual fund schemes that invest in such ETFs.
- Exchange-Traded Commodity Derivatives — Contracts on commodity exchanges that carry higher risk and suit experienced participants, subject to eligibility.
- Physical Gold — Coins and jewellery, with making charges, storage and purity considerations.
Key Considerations
- Price volatility
- No regular income from most commodity investments
- Costs such as expense ratio, brokerage and making charges
- Taxation, which differs by product
How VALUE ADDITION Helps
We help you understand the different ways to invest in commodities, their costs and risks, and where they may fit within your overall asset allocation.
Important note
All investments carry risk, including the possible loss of capital, and returns are not guaranteed. Availability depends on eligibility and applicable regulations. This page is general educational information, not investment advice or a recommendation. We do not provide SEBI registered investment advisory or portfolio management services.