If you have invested in electronic gold through NSEL (National Spot Exchange Ltd), there is a procedure to convert those units into physical gold, such as coins or gold bars, and receive them. Electronic gold units held in the form of edema must be transferred to the designated NSEL beneficiary account. Their problem is not unique, since today many people find it difficult to safely store the gold they have at home or in bank lockers. The idea of keeping your gold assets, especially currencies, on paper using gold ETFs is a good idea and is considered one of the Best Gold Investment options available. While investments in gold ETFs can be converted into physical gold depending on the number of units you own, the opposite is not possible.
You can't directly convert the physical gold you hold as currencies into an ETF that way. You'll need to sell the gold you have and then allocate the profits from those sales to a gold ETF. The selling price of your gold coins will depend on the current gold rates, which you can check at the time of sale. Once you've sold the coins, transfer the money to your bank account so you can use them to invest in gold ETFs.
If you invest in gold futures, you'll need to either offset your position before the contract expires or accept the delivery of physical gold. Like gold ETFs, electronic gold units are fully backed by an equivalent amount of gold held by the custodian. The benefit of the long-term capital gains tax is only available after three years in the case of electronic gold, unlike gold ETFs and gold FoF, where the same thing is available after one year. However, buying gold in physical form, such as jewelry, is a big problem due to impurity and resale value issues.
NSEL stores equivalent physical gold in a designated vault with a purity of 995 and is fully insured. Since these are national exchanges, you can receive physical gold in major cities, including Mumbai, Ahmedabad, Delhi, Hyderabad, Bangalore, Chennai and Calcutta. The delivery of physical gold will be offered in specific denominations and only at certain locations, where NSEL has made storage and delivery arrangements. The physical gold will be delivered in Ahmedabad, Mumbai, Delhi, Calcutta, Indore, Kanpur, Jaipur, Hyderabad, Cochin, Bangalore and Chennai.
