Since gold ETF’s are bought and sold through a stock exchange; dealing in gold ETF’s requires a demat account. If a person already has a demat account for equity share trading then he can use the same demat account for buying of gold ETF units. A person who does not have a demat account, first needs to open a demat account before he can start buying gold ETF’s. A demat account can be opened through any of the stock brokers by submitting a duly filled account opening application form along with KYC (Know Your Customer) documents as per SEBI guidelines.
Gold Exchange Traded Funds (ETF)
Once the demat account is opened a person can start accumulating gold ETF units on a monthly basis or as per his / her convenience. For every order the minimum quantity is one unit (representing one gram) and maximum depends on the paying capacity of the person. Since the delivery of gold ETF units is taken in the demat account (Electronic format), the investor is saved from the hassle of taking physical delivery of gold. Source – Email
