What is the purity of the underlying gold?
Gold ETFs invest in standard gold bullion with purity (fineness) of 995 parts per1,000 (99.5%) or higher. • How will AMC check the quality of the gold that your Authorised Participants (APs) will deposit with custodian? The custodian will accept physical gold only if the gold is in the compliance with the Good Delivery norms specified by LBMA as described in the SID. The Custodian will also ensure that Gold bars deposited with it indicate that the fineness is 995 or above. • Can I exchange Units of Gold ETF for gold? No (except for Authorised Participants and Large Investors). Delivery of the gold will be at the location of the Custodian within the jurisdiction of Mumbai. • How are Gold ETFs taxed under Income Tax Act, 1961? Gold ETFs schemes are treated like non-equity mutual funds for the purpose of taxation. So, the gains attract short term capital gains (STCG) tax if held for less than one year and long term capital gains (LTCG) tax if the period of holding is more than a year. For
Related Questions
- Does the fineness or purity of the gold as measured in percent or karats contained in the gold bullion coins that WCM sells affect the amount of pure, 24 karat gold within each type of coin?
- Can a piece of jewelry be marked with the karat marking or purity and be bad gold?
- How does myGOLDmyCASH determine the purity of gold?
