GOLD ETFS

POSTED BY Ravindra ON July 10, 2012 5:55 pm COMMENTS (16)

Hi

I want invest 2000 per month into gold ETFS can you suggest me in deciding the gold etfs.
do i need any demat a/c for gold etfs

Thanks
Ravindra

16 replies on this article “GOLD ETFS”

  1. abhijeku says:

    Hi Ashal
    I am a beginner and i want to invest in Gold ETF for a period of 2-3 years.
    i am opening demat account only for gold etf because as of now i am not sure if i will be trading in near future.

    Can you suggest me which demat account i should go for . i am thinking to go with indiabulls
    Am i right ?

    please guide me ..

    Thanks,
    Abhijeet

  2. Pawan says:

    thanks Dear Ashal

  3. Pawan says:

    Dear Experts,

    What’s the reason behind rapid increase in gold prices and equity are slowly growing, should we invest in gold now as it seems to be on rally? My question seems same as above , (I doubt this forum entertains about trading or investing tips, plz reply OR just discuss about rising of gold.)
    Thanks

    1. Dear Pawan, I’m not at all investing my personal money in Gold. If you do want to invest at all, my take ‘ll be simple & there is no change in this for past so many years. Please link gold investment with your kids’ marriage & invest accordingly.

      Thanks

      Ashal

      1. Pawan says:

        Thanks Ashal

        I am investing in gold ETFs for long term. and from that intermitently getting Jewellery for wife and remaining for for my kid’s marriage.
        and
        I like to ask “Should I keep my emergency fund also in Gold ETFs?”

        1. Dear Pawan, what you are doing for your wife or kids’ marriage purpose is OK. But emergency funds in GOLD etf is not a good IDEA Sirji. 🙂 🙂

          Thanks

          Ashal

  4. p990505 says:

    Thanks Ashal. When is the best time to buy gold ETF? As of now it’s around 32k ….I want to buy when it comes down….I have been told that after Diwali gold prices drop. What is your personal opinion ? also what is the long term trend for gold?

    1. dear P990505, May I know, do you want to invest in Gold for very short term or very long term?

      Thanks

      Ashal

      1. p990505 says:

        Sorry for not responding in time. I want to invest in gold to reap long term benefits. for my child’s wedding. Should I buy gold ETF now as the rates have stabilized? I think after Diwali it gets more costlier

        1. Dear P990505, how mach time is there with you for your kid’s marriage, 20 days, 20 weeks, 20 months or 20 years?

          Please clarify.

          Thanks

          Ashal

  5. p990505 says:

    Is there a way to similarly invest in silver ETF? Silver appreciation % is better than gold so would want to take advantage of it

    1. Dear P990505, as on date no Silver ETF is available in India.

      Although SEBI had framed the rules for both Gold & Silver a long back (actually rules are same, just the underlying asset ‘ll be different) but till date no AMC has come forward to run a silver ETF.

      Thanks

      Ashal

  6. somasekhar says:

    Hi BanyanFA,

    Gold is just another commodity / Metal, so its not recommend to do SIP because of commodity cycles. Remember, You are doing SIP only for liquidity, not for investment and you are not buying Physical Gold.

    Just do monthly RD in bank 1 or 2 years, then buy Gold bars using lump sum money.

    Thanks,
    Sekhar

  7. BanyanFA says:

    Hi Sekhar,
    I might not be able to convince my self to agree with you. Have a read of all options which are available in India to invest into Gold http://insight.banyanfa.com/different-options-to-invest-in-gold/

    As expected, no option is the best. You have to look into each of the option and its associated pros and cons to identify which one suits you the best.

    Regards
    BanyanFA

  8. somasekhar says:

    Hi Ravindra,

    1) Never invest in Gold through SIP route. It’s not recommended.

    2) Deposit money in bank for the next 10-12 months, then buy Gold coins.

    3) Never buy Gold when Rupee is weakening (Like current rupee condition), Buy when rupee is getting strong.

    Thanks,
    Sekhar

  9. Dear Ravindra, in case of Gold ETF there are 2 ways you can invest in.

    1. Purchasing directly from exchange using your demat account.

    2. Using a feeder fund (aka Gold saving fund), which ‘ll invest in Gold ETF on your behalf & you need not to have a demat account for this.

    In option 1 SIP is not possible but it’s cost effective.

    In option 2 SIP is possible but it’s costly due to double FMCs.

    Thanks

    Ashal

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