NSE EGRs: Want to own gold without buying jewellery or coins? Learn about this new method..

NSE EGRs: In India, gold has long been considered a safe investment option. People purchase gold jewelry, coins, and bars for occasions ranging from weddings to festivals like Diwali and Dhanteras. However, buying physical gold brings concerns regarding its purity, security, and storage. You can now invest in gold without needing to bring it home; the National Stock Exchange (NSE) has introduced a facility for Electronic Gold Receipts (EGRs).

What are EGRs?

An Electronic Gold Receipt (EGR) is a digital certificate that signifies your ownership of a specific quantity of gold. Instead of being held by you, the gold is stored in a secure vault recognized by the Securities and Exchange Board of India (SEBI). In exchange, the investor receives a digital receipt, which is held in their demat account. The NSE launched a dedicated segment for EGRs in May of this year, allowing investors to buy and sell gold on the stock exchange, much like shares. There is also an option to convert these into physical gold if the need arises.

Benefits of Investing in EGRs

The primary advantage of investing in EGRs is that you do not need to purchase physical gold and store it at home, eliminating concerns about theft. This system also aims to promote uniform gold pricing across the country. Furthermore, investors can buy or sell gold at their convenience, and gold of the same purity and weight is interchangeable.

How can you purchase NSE EGRs?

To purchase EGRs, you must first have a trading and demat account with a stock broker that facilitates trading in this specific NSE segment. Please note that not all brokers currently offer the EGR facility. Once you have an account, log in to your trading platform and navigate to the 'Gold Exchange' segment. From there, you can select the desired quantity—for example, 1 gram or 10 grams—according to your requirements. Once you have checked the live price, place your order in the same way you would when buying shares. After the purchase is complete, the EGR (Electronic Gold Receipt) is credited to your demat account on the next trading day—that is, T+1.

No need to worry about purity either

Another advantage of investing in Electronic Gold Receipts relates to the purity of the gold. Only gold that meets the standards set by the London Bullion Market Association (LBMA) and the Bureau of Indian Standards (BIS) can be included. Consequently, investors do not need to worry about the purity of the gold.

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