April 1, 2012 12:34 pm
Which is the best investment among e-Gold vs Gold-etf vs physical-Gold ?
Dear Vikas, please check some prev. discussions on the forum on the matter as queried by you.
I would personally want to invest in Gold Saving Mutual Funds which invest in Gold ETFs as such mutual funds offer me the flexibility to invest via SIPs.
Physical gold suffers disadvantages of impurities as well as efforts to keep them safe. Further, they are uneconomical to buy in small amounts. If you want pure gold, you would have to approach banks who would provide you 99.5% pure gold, but then would charge you premium for it (around 10% the price of gold).
e-Gold takes away the disadvantage mentioned in Physical Gold, but then you need a seperate brokerage & Demat account (your normal Equity shares demat account can not be used). Another disadvantage is that both Physical gold & e-gold are subject to Wealth Tax. Gold ETFs are exempt from Wealth Tax.
Gold ETFs can only be bought via a stock broker and you need a demat account to purchase it. Gold Saving Mutual Funds which invest into Gold ETFs remove this disadvantage and you can hold them without a demat account.
Thanks for the response. I also heard that e-gold is a better option than Gold-etf, but i wanted to compare it more with physical gold.
why e-gold can be better than physical gold, one reason is security, if we keep the security aspect apart for a while, what are the other reasons, any thoughts?
In my opinion, if you at all want to invest in gold, e-gold is the best option. Difficult for me to bring out all pros and cons of all three categories.
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