One can Buy Gold from Futures market like commodity market. Both MCX and NCDEX offer future contracts in Gold. Contract size caries from 8gm, 100gm, 1Kg. You have to enter a contract via an exchange like stock exchanges, commodity exchanges etc. Here you can enter into a contract to buy or sell the Gold futures. No physical storage of gold arises in this case. You can square your positions before the expiry of the contract. Else You can also take the delivery of gold after the expiry of the contract if you really wanted to do so.

When you invest in Gold through Futures market, there is no need to pay all the money needed for the purchase of Gold. All you have to pay is margin money. Margin money comes to around 5 to 10% of the total cost. You can lock at the price of Gold today. If you want to buy the Gold later and the price of Gold has gone above your lock in price, then you are at gaining end. Nowadays the exchanges has drastically reduced the lot size of Gold contract. Taxes-1) Short term capital gain tax applies within 1 year( 2) long term capital gain tax applies after 1 year.