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Investment in gold

Shri (CA Practice) (141 Points)

11 July 2012

Hi to All, I am thinking to investment some amount in Gold. 1) It is the right time to invest. 2) Should I buy gold coins or shares like Goldbees, which are more beneficial. 3) What will be the price of gold in near future. Kindly give your valuable advise. With best regards, Shri

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Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 12 July 2012

It will now depend on, how long do you want to stay invested in Gold.

1. If you are investing for a long term say 5-10 years, then it can be a good idea.

2. Buying physical gold will have other overheads like VAT, storage costs, purity issues etc. Gold ETF or Gold Funds could be a better idea.

3. For short term, gold may not generate high returns. In fact, it may generate somewhat negative returns.

Hope this helps.

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Shri (CA Practice) (141 Points)
Replied 12 July 2012

Dear Prof. Bajaj, Thanks for your valuable suggestions. If in short term, It may generate -ve returns. It means prices may fall further. So should i wait for some time. I want to invest for long term.....so will shares like goldbees will be a better option or investment in Gold ETF will right option, I would prefer Shares like goldbees, as it will charge only one time commission, on the other hand Gold ETF may charge entry and exit load. Pls reply with your valuable suggestion, Thanks in advance...Shri

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 12 July 2012

Dear Mr. Shri,

I would first like to clear a few myths that you have been living with:

1. Gold BeES is not a share. It is a Gold ETF.

2. Gold BeES will require you to pay a brokerag at the time of entry and exit both.

3. The entry and exit load you are referring are the terms associated with Gold Funds. Just for your knowledge, there are no entry loads in Gold Funds (if you go through the right advisors) and no exit loads if you are planning to hold for more than one year.

Whether to wait for buying or not, its a decision you will have to take. The prices could move eitherways, but in my opinion, chances of moving down are relatively higher.

Hope this helps.

Shri (CA Practice) (141 Points)
Replied 12 July 2012

Dear Prof. Bajaj, Thanks for your prompt and valuable revert. You have also clarified/updated my knowledge about Goldbees. Actually i have purchased long back some gold bees for which the broker charged commission same as chargeable on delivery. Will check with him again. With best regards, Shri.

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 12 July 2012

The brokerage charged by your broker is correct as you need to purchae Gold BeES from Exchange and he needs to pay some part of the brokerage to the exchange.

Also, at the time of selling those Gold BeES, he will again charge you a brokerage.

Thus, I suggested you to go for Gold Funds, wherein you can save on all these costs.

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Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 04 April 2013

Stock Market has lead to tendency of many to go in for much safer investments that gives a reasonable return. This is the reason for gold gaining popularity as one of the safest avenues for investment.

https://holisticinvestment.in/gold-etf

Regards,

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

Phone: 044-42030722

Neel Patel (Account Person) (26 Points)
Replied 11 April 2013

Investment in gold is the best investment as you can protect your portfolio and wealth if an economic crisis in China, the US or Europe occurs. Gold investors prefer to buy gold in its cheapest forms such as krugerrands, sovereigns and bars. The price of gold is generally in a continual rise. However, investors should not invest all their funds in one kind of gold investment.

Gold Rate