Indian Stocks News - Your Guide To Stocks, Investments and Money - Homepage
 
Powered By
Home Stocks To Buy Stock Tips Stock Trading Investment Growth Stock Penny Stocks To Buy   Mutual Funds
| Share

Tuesday, April 24, 2012

Buy Gold via Gold ETF

It’s Akshaya Tritiya time of the year again and people are out in markets to buy gold. Is there a smart way of buying gold than traditional way of buying gold jewellery from jeweler? Yes there is. Check it out.


The easiest way people follow traditionally is to buy gold from jewelers in the form of ornaments. It is best way if you want to buy ornaments and make your other half happy! But what if you want to buy gold only for investment? Do you know that jeweler charges you making charges of more than 15 to 20% of total cost of gold jewellery that you are buying? And then sales tax is added on top of it. Immediate loss of more than 20% in your gold investment the moment you walk out of jeweler’s shop! And then when you go to sell the same gold after some time, another few percentage points (often more than 10%) of loss in the name of purity loss, breaking charge etc. that jeweler thinks of. Eventually you end up paying more than 30-40% of your gold purchase price (your investment in gold!) as making charges, breaking charges, taxes etc. So where is your profit that you want to earn from the appreciated price of gold? It’s in the pockets of jeweler (making/breaking charges) and government (taxes).

Gold bars or gold coins offered by banks you think is a smart choice? Banks often charge you more than 10 to 20 % on top of market cost of 24 carat gold when they sell you gold bars and coins.

Also, when you buy gold in the form of jewellery or gold bars and coins, you are always under threat of theft of gold.

Think smarter.

Unless you have black money that you want to convert in gold without any receipts, and you want to make most out of appreciating gold price being smart and savvy investor, go for Gold ETF.

Gold ETF
Buying Gold ETF is purchasing gold in electronic form. You can buy them just like you buy the stock of any company from your broker. Gold ETF makes it easier for you to invest in gold. The investment objective of Gold ETF is to provide you with returns that closely correspond with the domestic price of real gold.

They are easy to purchase since you can buy even just one gram at a time. Over time, you can build up your gold portfolio to the level you want.

Gold ETF Features
1. Cheapest form of pure physical gold with no premium or making charges
2. No issues of wastage or impurities like in the case of physical gold
3. Tax efficient way to hold gold, No Securities Transaction Tax or wealth Tax
4. Can be easily purchased or sold anytime at transparent real time price
5. Can track your investment value in real time
6. No worries of theft and also save on locker charges
7. Benefit on long-term capital gains



You may want to read:
IPO News - Tribhovandas Bhimji Zaveri launching IPO
How to buy stocks with multibagger potential
Stock Research Report - Larsen & Toubro (L&T)
Stock to buy - Tech Mahindra
Goodyear India - Stock To Buy from Evergreen Industry
Infotech Enterprises - Stock Analysis and Recommendation
Stock Analysis – BPCL 3QFY12 Results
Buy Stocks of Va Tech Wabag
Stock Analysis - Bharti Airtel
Stock Analysis – ONGC
Union Bank – Stock Analysis with Target Stock Price
Share Market Stock Tips - Buy Stocks of Chambal Fertilisers
Free Stock Market Tips – Buy HDIL for short term

2 comments:

  1. What is the difference in buying Gold ETF and gold mutual funds?
    If I already have a demat account, which is better way for long term holding ?

    ReplyDelete
  2. Gold ETF stands for Gold Equity Traded Fund. There is no difference between gold mutual fund and ETF. Both are same.

    ReplyDelete

Leave Your Opinion Here... (All comments are manually moderated)