March 14, 2012 8:34 am
I should invest in MOSt Shares Gold ETF NFO ?
(1) In this ETF We can get pure Imported Gold at a time of redemption.
(99.5 per cent purity or 24 carat)
(2) Lot size is low one may not afford 1 Kg gold ETF
(3) Redemption can be done at 22 Gold collection centers across India
(4) I think gold given by jeweler in various gold scheme are 22 carat and mostly they add their own margin.
Here we have to worry about Brokerage.
Go with Goldman Bees ETF for now as it has got a lot of liuidity and will trade close to real cost of gold. Wait for how MOST performs over 12 -24 months then can switch to MOST.
Dear Shitanshu, from your reply, I should assume – you are going to gift pure gold to your d’ter & not any jewelry.
My point was – no matter how you are arranging money or pure gold, ultimately you w’d have to purchase the jewelry from the jeweler. The purity ‘ll always be lower here.
For getting Physcial delivery need Gold ETF in bulk I think 1 Kg or above.
This Gold ETF provides delivery in even 10 gm size.
Dear Shitanshu, in case of Gold Bees, yes the physical delivery size is 1 Kg i.e. 1000 units. In my opinion, the very appeal of physical delivery is not good. What you are going to do with physical delivery, ‘ll put that physical gold to your choice of jeweler & ‘ll purchase your choice of jewelry in return. The same thing can be done my liquidating your Gold Bees on the exchanges & using that money to purchase that gold jewelry of your choice.
Finally it’s your call, what do you want to do with your money.
After few years I will need Physical gold for my marriage of my daughter. Till now I am investing in gold Scheme provided by jeweler.
I heard this gold ETF Scheme provide Physical gold on redemption as and when required.
So was thinking to purchase it.
Dear Shitanshu, you may invest in Gold Bees (now Goladman Sachs Gold ETF) or Quantum Gold ETF. You have the option of physical delivery in both these funds also.
Dear Shitanshu, Why do you want to invest in this NFO? Please answer in detail.
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