How To Buy Gold via Zerodha In 2025

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Methods to buy gold via Zerodha:

Sovereign gold bonds (SGBs). Government-backed bonds available in Zerodha’s bond section, offering 2.5% annual interest and tax-free maturity.
Gold exchange-traded funds (ETFs). Invest in gold-backed ETFs like GOLDBEES, AXISGOLD, traded on NSE/BSE via Zerodha Kite. Provides liquidity and lower costs than physical gold.
Gold futures. Trade gold contracts on MCX via Zerodha’s commodity section. Ideal for short-term traders, offering high leverage and risk.
Zerodha GOLDCASE. A fractional gold investment option on Zerodha’s smallcase platform, offering easy liquidity with no storage hassles.

Gold has always been a trusted investment, offering a hedge against inflation and economic uncertainty. Today, investors can buy gold digitally through platforms like Zerodha, India’s leading discount brokerage. Instead of holding physical gold, Zerodha provides multiple ways to invest in gold-backed securities.

This guide breaks down how to buy gold in Zerodha, including step-by-step processes, pros and cons, and a detailed comparison. Whether you're a beginner or an experienced investor, this article ensures you make an informed decision.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

How to buy Gold in Zerodha

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Methods to Invest in Gold via Zerodha

Gold has long been a trusted investment, offering stability during market volatility. With digital platforms like Zerodha, investing in gold has become more accessible, transparent, and convenient for Indian investors. Whether you're looking for physical gold alternatives, gold ETFs, or Sovereign Gold Bonds (SGBs), Zerodha provides multiple options to invest in this valuable asset.

Below are the best methods to invest in gold via Zerodha, covering gold ETFs, digital gold, and SGBs, along with their tax implications, benefits, and risks.

1. Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds (SGBs) are government securities issued by the Reserve Bank of India on behalf of the Government of India. They provide a secure way to invest in gold without dealing with the physical gold's issues.

How to purchase SGBs in Zerodha

Log into your Zerodha Kite account. Use your credentials to access the trading dashboard.
Go to the “Bonds” section. Navigate to “Govt. Securities” to view available options.
Select the SGBs option. View ongoing and upcoming SGB issues, along with issue price and terms.
Place your bid. Enter the quantity (in grams), verify details, and confirm your purchase.
Fund allocation. Ensure sufficient balance in your Zerodha account, as funds will be debited when the issue closes.

Fixed interest payments. Unlike physical gold, SGBs offer a 2.5% annual interest, paid semi-annually into the investor’s bank account. This provides an extra return in addition to capital appreciation.
Tax-free capital gains. If held until maturity (8 years), the capital gains on SGBs are completely tax-exempt, unlike physical gold, which attracts capital gains tax. However, selling before maturity will attract capital gains tax as per indexation benefits.
Government-backed security. SGBs carry no credit risk, unlike gold ETFs or futures contracts. Since they are issued by the Government of India, default risk is virtually nonexistent.
No making charges or storage costs. Unlike gold coins or jewelry, SGBs do not require storage, insurance, or making charges, making them a cost-efficient investment.
Easier to track and manage. SGBs are held in demat form, which means investors can track their value in their Zerodha account, similar to stocks and mutual funds.

Limited liquidity. SGBs are tradable on NSE/BSE, but their liquidity is often lower than gold ETFs. If investors need to sell before maturity, finding a buyer at the right price can be challenging.
Long-term investment commitment. The bonds have a fixed tenure of 8 years, with an exit option from the 5th year. This makes them unsuitable for short-term investors who might need liquidity sooner.
Fixed investment period limits flexibility. Unlike physical gold, which can be sold instantly, SGBs require a holding period for tax-free capital gains, making them less flexible for investors looking to exit quickly.

2. Gold exchange-traded funds (ETFs)

Gold Exchange-Traded Funds (ETFs) are mutual funds that invest in physical gold, with each unit of a Gold ETF representing ownership of gold in dematerialized form. One of the easiest ways to invest in gold through Zerodha is via Gold ETFs, which combine the flexibility of stock investment with the simplicity of gold trading.

How to purchase gold ETFs in Zerodha

Log into your Zerodha Kite account. Access your dashboard with your login credentials.
Use the search bar to find Gold ETFs. Look for ETFs by their ticker symbols, like GOLDBEES for Nippon India ETF Gold BeES.
Check real-time prices and details. Before buying, you can view the current price and other relevant details.
Place your order. Just like buying stocks, you can choose the number of units and place a market or limit order depending on your preference.

High liquidity. Gold ETFs can be bought and sold at market prices anytime during trading hours, making them highly liquid investments.
Lower costs. Compared to physical gold, there are no making charges, and the buying or selling price is closer to the actual price of gold.
Safety and security. Since the gold is in electronic form, you don't have to worry about storage and safety.

Management fees. Gold ETFs have a small expense ratio, which may slightly reduce returns over time.
Market risk. The value of gold ETFs fluctuates based on market conditions, and external economic factors can impact gold prices.
No physical ownership. Investors do not hold actual gold, which may be a downside for those seeking tangible assets.

3. Gold futures

Gold futures are contracts to buy or sell a specific amount of gold at a predetermined price at a specified future date. This investment strategy is available through Zerodha and is particularly suited for those looking to hedge or speculate on the price of gold.

How to trade gold futures in Zerodha

Enable commodity trading on your account. If not already enabled, you may need to complete additional documentation to trade in commodities.
Log into Zerodha Kite. Enter your credentials to access the trading platform.
Find gold futures contracts. Use the search function to locate gold futures, such as GOLDM for Gold Mini or GOLD for standard gold contracts.
Analyze and place your trade. Check the current market conditions, decide on your position (buy or sell), and place your order. You can choose different types of orders based on your trading strategy.

Leverage. Futures trading allows you to control significant amounts of gold with a relatively small amount of capital, amplifying both potential gains and losses.
Flexibility. You can take positions assuming gold prices will go up or down, offering opportunities to profit in both rising and falling markets.
Hedging. Investors holding physical gold or gold stocks can hedge against potential losses in their holdings through futures.

High risk. The leverage involved means that small price movements can result in significant losses, making it unsuitable for inexperienced traders.
Complexity. Understanding futures contracts and the factors that affect gold prices requires a good deal of sophistication and market knowledge.

4. Zerodha GOLDCASE

Zerodha GOLDCASE is a fractional gold investment option available on Zerodha’s smallcase platform. Unlike gold ETFs or sovereign gold bonds, GOLDCASE allows investors to buy fractions of gold-linked assets, making it an accessible and flexible alternative to traditional gold investments. Since the gold is held in a digital format, there are no storage costs or purity concerns, and investors can buy and sell easily through the platform.

How to purchase Zerodha GOLDCASE

Log into your Zerodha account. Open the Kite or smallcase platform and log in with your credentials.
Go to the smallcase section. Search for GOLDCASE in the list of available investment options.
View details and performance. Check real-time price updates, historical performance, and investment breakdown.
Enter the investment amount. Unlike gold ETFs, GOLDCASE allows you to invest in small fractions of gold-linked assets, so you don’t need to buy whole units.
Confirm and place your order. Once the purchase is made, your holdings are reflected in your portfolio.

Fractional investment. Allows investors to buy small amounts of gold-linked assets, making it ideal for those who don’t want to commit large sums.
Easy liquidity. GOLDCASE can be bought and sold instantly on the Zerodha platform without the restrictions of sovereign gold bonds or ETFs.
No storage concerns. Since the investment is digital, there is no risk of theft or purity issues, unlike physical gold.
Lower entry barrier. Unlike gold ETFs that require a minimum number of units, GOLDCASE allows you to invest with any amount, making it accessible for all investors.

Platform dependency. Since GOLDCASE is unique to Zerodha’s smallcase platform, you cannot transfer or trade these holdings on other platforms.
No government backing. Unlike sovereign gold bonds, GOLDCASE does not have RBI or government protection, meaning returns depend entirely on gold price movements.
Transaction fees. While there are no storage costs, smallcase investments may have platform or transaction fees that can affect long-term returns.

Comparison of gold investment methods in Zerodha

Having explored the different ways to invest in gold through Zerodha, it's crucial to weigh these options side by side to determine which suits your investment goals and risk tolerance best. Here's a detailed comparison:

Comparing gold investment methods
Method	Liquidity	Returns	Risk level	Investment horizon	Additional benefits
Sovereign gold bonds (SGBs)	Low	Gold price appreciation + 2.5% annual interest	Low	Long-term (5-8 years)	Tax-free capital gains on maturity
Gold ETFs	High	Mirrors gold price movements	Medium	Short to long-term	Easily tradable on stock exchanges with lower costs than physical gold
Gold futures	High	Market-dependent, with leverage amplifying returns	High	Short-term (days to months)	Higher profit potential but requires active management
Zerodha GOLDCASE	High	Tracks gold prices in fractional investments	Medium	Flexible (short to long-term)	No storage hassle, allows small investments, easy liquidity

Best Forex brokers offering gold trading

Zerodha, a prominent Indian brokerage firm, does not offer Contracts for Difference (CFDs), including those on gold. However, investors interested in trading gold have alternative options.

How to Buy Gold in Zerodha

For those specifically seeking to trade gold, it's essential to engage with international Forex brokers that operate legally and are regulated in their respective jurisdictions. Some reputable brokers offering gold trading include:

Best brokers in India that allow investment in gold
	Min. deposit, $	XAU/USD spread, pips	XAU/USD commission, $	Withdrawal fee, %	Max. Regulation Level	TU overall score	Open an account
Eightcap	100	25			Tier-1	9.1	Open an account Your capital is at risk.
XM Group	5	35	3,5		Tier-1	9	Open an account Your capital is at risk.
RoboForex	10	18	2	0-4	Tier-3	8.9	Open an account Your capital is at risk.
Exness	10	20	2,5		Tier-1	8.7	Open an account Your capital is at risk.
VT Markets	100		3	1-3	Tier-1	8.69	Open an account Your capital is at risk.

An underrated but powerful strategy is taking advantage of gold price inefficiencies

When investing in gold through Zerodha in 2025, most beginners simply buy Gold ETFs or Sovereign Gold Bonds (SGBs) without thinking strategically. But here’s a game-changer — if you're looking to maximize profits while managing risk, consider a two-layered approach. First, buy SGBs for their 2.5% annual interest and tax-free maturity benefits. Then, hedge your position using Gold ETFs or Zerodha GOLDCASE to capitalize on short-term price fluctuations.

This allows you to earn a steady return from SGBs while using ETFs for quick buy-and-sell moves during gold’s volatility spikes. This strategy helps you benefit from both stability and liquidity, something most investors overlook.

Another underrated but powerful strategy is taking advantage of gold price inefficiencies in different investment vehicles. Gold prices in SGBs, ETFs, futures, and GOLDCASE don’t always move in perfect sync due to factors like liquidity, demand, and taxation. Savvy investors track price differences between these instruments and switch between them strategically. For example, when SGBs are issued at a lower price than ETFs, buying fresh bonds instead of ETFs could give you instant value gain.

Likewise, during market dips, accumulating GoldCASE units in smaller amounts while holding long-term SGBs can help smooth out volatility. Instead of just blindly holding gold, use these inefficiencies to stay ahead of the market.

Conclusion

Investing in gold through Zerodha offers various avenues, each with unique characteristics and suited to different types of investors. Whether you prefer the security of SGBs, the liquidity of Gold ETFs, or the leverage of Gold Futures, Zerodha facilitates all these options through a straightforward platform.

Before you embark on your gold investment journey, consider your financial goals, risk tolerance, and the amount of capital you are willing to invest. It's also wise to consult with a financial advisor to tailor your investment strategy to your personal circumstances.

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FAQs

Can I buy physical gold through Zerodha?

No, Zerodha does not offer the option to buy physical gold. Instead, you can invest in gold digitally through Sovereign Gold Bonds (SGBs), Gold ETFs, and Gold Futures. These are secure and provide various benefits over physical gold, such as safety, liquidity, and ease of trading.

What is the minimum investment required for Gold ETFs in Zerodha?

The minimum investment for Gold ETFs in Zerodha depends on the price of a single unit of the ETF, which is typically linked to the current market price of gold. Most Gold ETFs allow you to start investing with just one unit, making it a flexible option for investors of all budgets.

Are there any risks involved in investing in gold through Zerodha?

Yes, investing in gold through Zerodha involves risks. Sovereign Gold Bonds have lower risk but limited liquidity due to long maturity. Gold ETFs face market fluctuations like stocks. Gold Futures are high-risk, requiring experience due to their leverage and complexity.

Is investing in Gold ETFs better than buying physical gold?

Gold ETFs are cost-effective, secure, and more liquid, while physical gold requires storage and incurs making charges.

Team that worked on the article

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

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