Gold BeES vs Gold ETF: Which is Best

Traditionally, buying gold is a primary investment for Indians. The higher the demand, the higher the cost. The sudden increase in pricing makes people chase alternative investments that are easy to afford. By that, the government has introduced intellectual gold options such as Gold BeES, Gold ETF, E-Gold, sovereign gold bonds, etc.

Gold is a safe, predictable, and secure asset. So modern gold plays a vital role in every corner of the world. Though it is working seamlessly, the majority of investors are still new to this idea.

In the diverse range of concepts, we are about to see a detailed view of Gold BeES vs Gold ETF.

What is Gold BeES?

BeES is abbreviated as Benchmark Exchange Traded Schemes. It is a kind of stock available on the stock exchange. Through such investors can track the actual physical price of gold and purchase it in dematerialized form or on paper. Similar to other stocks, you can buy Gold BeES on both the National Stock Exchange and the Bombay Stock Exchange (BSE).

The investment and withdrawal are completely transparent; there is no physical gold involved in transactions. It provides the flexibility of online transactions; you receive the cash according to the current gold market price.

It is the best suitable investment for people who don’t want to be exposed to the hassles of physically storing gold.

What is ETF?

Holding a physical form of gold is more likely to meet the risk appetite. However, buying gold in an ETF (Exchange traded fund) is more safe and convenient. Investors can manage the investment online and sell it at the current gold price without any trouble. Unlike physical gold, you don’t need any safety measures to safeguard it.

Gold ETFs are available on the stock exchange and reflect the price of physical gold. Similarly, you can sell at the market price and get a withdrawal to your respective bank account. Investing in a Gold ETF is ideal for individuals who are looking at it from an investment perspective rather than wearing it as jewelry.

Check out our article on the difference between Gold ETF and Gold Mutual Funds.

Difference Between Gold BeES and Gold ETF

ParametersGold BeESGold ETF
Minimum Investment Quantity0.01 gm1 gm
LiquidityGold BeES has high liquidity. Investors can sell their holdings at today’s market price. Only the brokerage fee will be deducted, which is far less than physical gold.It is highly liquid. Investors can trade them on the available stock exchanges, so far, buying and selling is literally easy.  
PricingThe price may vary based on market fluctuations.The Gold ETF price is similar to the international standard and is always transparent.

Pros and Cons of Investing in Gold BeES

Pros of Investing in Gold BeES

Here is the list of benefits you can avail while investing in Gold BeES:

BeEs is an ideal choice for those who are looking for transparent pricing that is close to the current market value.

It has no lock-in period, so the investors can sell them at any time at the available market price that profits them more. Due to these convenient factors, this scheme is apt for small, mid, or long term investors.

Unlike physical gold, this online method is free from storage fees and making charges. Additionally, the investors are free from entry or exit loads.

Investors can obtain loans with this collateral.

Cons of Investing in Gold BeES

Market fluctuations are common and the price is unpredictable. Investors can’t expect any fixed return or profit purely based on the price movement of physical gold in the market.

The burden of entry or exit loads may be reduced. Yet the investors are about to pay some charges, like administrative charges, brokerage fees, or management charges.

Pros and Cons of Investing in a Gold ETF

Pros of Investing in a Gold ETF

Individuals can make a minimum investment of one unit (i.e.,) equal to 1 gram of gold). You can buy and sell on the exchange transparently, as the rate of gold is open to the public.

Stock trading is quite easy and hassle-free. During market hours, investors can buy and sell out the Gold ETF to today’s international price standard. Unlike other schemes, ETF prices aren’t differentiated by GST, local price ranges, etc.

Gold ETF is a simple and safe investment compared to the physical form of gold. It allows individuals to stay away from theft, typical storage areas, fraud, or the extra cost of making lockers.

Cons of Investing in a Gold ETF

Investors are not about to receive any fixed income or interest from Gold EFT as returns. Your profit rate depends only on market fluctuations.

Though you are free from entry and exit loads, you need to pay charges in different manners, such as fund management charges, brokerage fees, or administrative fees.


We may all know that the Indians are investing in gold decade-by-decade. As the evolution of digitalization makes tremendous changes in the physical gold price, Common people are not about to afford it.

To meet this rising demand, modern gold has been introduced that can be availed of at your convenience with no hectic limitations. Moreover, there are different types of platforms available to make a purchase. Aside from that, the two best investment choices are listed for better planning. 


  • Is Gold BeES Better than the Physical Form of Gold?

    Yes, Gold BeES is better than the physical form of gold in terms of ease of investment and liquidity. While both serve as investment options aiming for good returns, Gold BeES offers the advantage of dematerialized gold, ensuring safety and facilitating easy buying and selling at current market values.

  • Does the Investor Should Have a Demat Account for Buying Gold BeES?

    Yes, of course. The investor must hold a Demat account to buy Gold BeES, which will assist you in buying and selling gold at your convenience.

  • Are GST Charges Applicable While Investing in Gold BeES?

    No, there is no need to pay GST charges while investing in Gold BeES.

  • Does the Price of Gold ETF Differ from Physical Gold?

    Yes, the price of Gold ETF varies according to the demand and supply on the stock exchange. As we traditionally know, the price of gold varies from seller to seller and based on location. Also, investors who buy gold on the stock exchange do not need to pay any making charges or other taxes.