Golden Queries - Answered

I want to Invest In Gold… How do I go about it?

Since ages Gold has been a commodity desired so much that it lead to wars and what not. Everyone knows this. Gold in terms of investment has been looked upon as a great impression. And in our country everyone understands the importance of it. But what if you want to Invest in it now? Would you buy coins from your local bank? Or would you buy from your friendly jeweler? Or would directly go to a commodity trader and start trading? Here are answers to all your questions.

Buying Coins from your local bank seems like a very easy job. But your cost price increases as you pay service taxes. Plus when you have physical delivery of that object extra precautions have to be taken from theft. When buying from your friendly jeweler you will have to pay for the making charges, charged for the casting and forging. While selling these are again unaccounted for. And if you think you can start by the way of commodity trading, you better be sure as market ups and downs and the Mark to Market funds would steal all the shine away. So then what’s the safest and the best way to start you would ask. Read on….

One can invest in Gold using the stock markets too. Yes the stock markets!!! There are a lot of companies listed in the stock markets who are in one way or other related to this sector. It could be anything like metals or a mining company or even an ETF. Now an ETF standing for Exchange Traded Fund is the most lucrative way of investing in Gold. Various ETF’s traded on NSE (National stock Exchange India) are Gold BeES, Kotak Gold, REL Gold, and UTI Gold. Ideally the value of one unit of any Gold ETF is equal to one gram of Gold. They are tradable like any other stock traded on the Indian National stock exchange. And with the soaring commodity prices one can start investing right away. One should start investing with at least 25 % of their capital and buy more on dips. On should invest with a time horizon of at least 2 years for getting good returns.

Disclaimer: The above views are my personal and I suggest you do your research before taking any decisions. Any comments / suggestions / feedback are welcome on sk.investments9@gmail.com