New Delhi, Aug. 27 -- old remains a lucrative and trusted investment for wealth protection and portfolio diversification. The recent rally in gold prices clearly underscores its importance as an investment instrument. Still, investors today face a crucial challenge: How should they invest in gold?

Investing in gold is likely through sovereign gold bonds (SGBs), gold coins and bars, digital gold, gold ETFs, among others.

For investors looking to make additional returns on gold apart from appreciation in value, sovereign gold bonds are a lucrative option as they offer an additional return when bonds are held till maturity. Unlike physical gold, which can be sold instantly for cash, SGBs are less liquid due to lock-in periods and limited t...