How to buy GOLD ETF units?

POSTED BY Chetan Ambi ON January 20, 2013 1:41 pm COMMENTS (11)

Hi,

I am planning to buy GOLD ETF units on monthly thru SIP route. I don’t have demat account. Suppose if I open demat account with SBI, can I buy gold units only from SBI gold etf or I can buy from other AMC’s gold etf units? I am confused about GOLD etf. Please help me in this regard.

Also please shed some light on buying e-gold on NSEL.

11 replies on this article “How to buy GOLD ETF units?”

  1. Dear Chetan, please open a demat account & start purchasing gold ETFs. all frontline brokers are available in your nearby area. Please purchase either Goldman Sachs Gold ETf or Quantum Gold ETF.

    Thanks

    Ashal

  2. Chetan Ambi says:

    Dear Ashal,

    Still I am not able to make final decision on where to buy gold. But I want to invest in gold for my marriage (in 2 years) and also for my sister’s marriage (after 10 years). I don’t have demat account as of now. Which is the best option to invest considering all type of charges levied. Physical Gold or eGold or Gold ETF or Gold MF?

    Thanks,
    Chetan

  3. Chetan Ambi says:

    You are right Ashal!! I should associate it with a goal. Thanks a lot. I soon decide on where to buy gold and plan accordingly.

  4. Dear Chetan, instead of blind investing in Gold, please link it with a goal. Say after 20Y, I w’d gift 500gms of Gold to my kid on his/her marriage. Now your goal is clear that you want to go for 500 gm gold in next 240 months. This roughly translates into mly purchase of 2 gm gold.

    From where you want to purchase, ‘ll be your personal call be it for Gold ETFs or e-Gold.

    Thanks

    Ashal

  5. Chetan Ambi says:

    Ashal, I am not fascinated towards Gold much. Though I want GOLD to be part of portfolio. Of course not more than 5-10% of my portfolio. Please share your views if any thing you want to say bout Gold as a part of portfolio.

  6. Dear Chetan, May i know why are you so much fascinated towards Gold investment?

    Thanks

    Ashal

  7. Chetan Ambi says:

    Sorry for the confusion “Free Financial Calculators”. Now I am clear. I am planning for invest for long term. So will go with e-gold in SIP route. Thanks a lot.

  8. Chetan Ambi says:

    Dear Ashal, Thanks for the quick reply. But reply from “Free Financial Calculators” is just opposite.

    Which is the best option to buy gold units? Gold etf or e-Gold from NSEL? Please suggest.

    1. Please reread Ashals answer again and see that it no different from mine.

      ETFs are more tax efficient 1 y long term capital gain vs 3Y for e-gold
      ETFs has 10% taxation while e-gold 20% with indexation

      For long term e-gold is better because of lower expense ratios
      For short term ETFs are better

  9. Dear Chetan, if you are having SBI demat account ‘ll be allowed to purchase only SBI shares or all other shares available on BSE or NSE?

    As you can purchase all shares from NSE/BSE, so do the gold ETFs.

    Regarding NSEL for gold investing, please open a separate demat account as NSEL does not allows normal demat account for it’s operation.

    Thanks

    Ashal

  10. You can buy any ETF with SBI demat acc.

    for e-gold on NSEL you need to open a separate demat acc. from NSEL

    you could follow these instructions

    http://www.nationalspotexchange.com/eseries.htm

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today