POSTED BY June 8, 2012 1:52 pm COMMENTS (8)ON
Dear All, Gold has gone to its peak rates.
Can anybody suggest me is it good decision now to purchase GOLD!
Pl. Note: I have idle cash of about 3,00,000/- lying in savings accounts for the past 4 months. I am expecting 1.5 Lakh cash more in next month.
I want to properly use the money.
I am looking as GOLD as an investment. May be this is for Long term.
I am 38 yrs old and there is no possibility for need of this money in nearby future (ie. next 5 years).
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8 replies on this article “Purchase of Gold”
thank you all for your valuable suggestions
Thanks Mr.Ashal & Banyan sir for you replies. However, I appreciate Mr. Ashal, if you can elaborate your last sentence please.
I am repeating the same for your reference.
“By the way, you have to make a call that you want to ride the Gold train for 5Y or for really long term say 15-20Y if you opt to invest full 3-4.5L Rs. now in Gold.”
Do you mean me to keep invest the 3-4.5 L till 15-20 years? Pl. clarify.
Dear Ram, I mean – You have to decide on your own that you ‘ll invest for short term of 3-5 years or for long term of 15-20 years in Gold. It’s your personal call.
Dear Ram, My take is a bit different. Instead of allocating a fix amount for Gold now out of that 3L or 4.5L Rs. cash balance, just check for your family status & decide how much Gold ‘ll you gift to your kids at the time of their marriage. This Gold quantity is your goal to reach & accumulate that quantity over the period of time. You can go for mly purchase mode also for Gold ETF as per above calculation.
By the way, you have to make a call that you want to ride the Gold train for 5Y or for really long term say 15-20Y if you opt to invest full 3-4.5L Rs. now in Gold.
My suggestion is to distribute the amount to gold funds and mutual funds…
I believe that Golds may end up seeing fresh heights – won’t be surprised if it doubles in next 5 years. The entire supply and demand dynamics associated with Gold has changed owing to the current sovereign crises whereby Gold is considered as a safe haven. In the same article, you may find a link for ‘Golden Path of Gold’ in the conclusion section whereby I have detailed my analysis for the demand and supply factors which are pushing gold prices high.
You may want to first have a read of http://insight.banyanfa.com/?p=540 which details in a comprehensive manner all options available currently to invest in Gold and the pros / cons of investing into it.
You may realise that either Gold ETF or Gold Fund as the best option to invest into Gold. Unfortunately physical gold comes with headaches of purity and storage / security. I know of many people who were storing physical gold in their homes (even in safes at their home) and owing to burglaries, their entire gold got lost !
Sir, I understood Gold ETF is better than purchase of physical gold due to various reasons.
However, my main question is regarding, “is it advisable to purchase GOLD in this high rate”.