Want to accumulate 20-30 gms of gold by May 2014

POSTED BY Salva ON February 9, 2014 10:22 am COMMENTS (11)

Hi,

I’m looking to accumulate 20-30 grams gold by May 2014. Planning to invest 6k monthly in ETFs or buy 2g of gold every month. Which of these is better? I’m looking at Reliance My Gold Plan but not sure if the charges would be higher.

Please help.

11 replies on this article “Want to accumulate 20-30 gms of gold by May 2014”

  1. ashalanshu says:

    Dear Salva, emotions are OK but what about Tax liability on you for the Gold redemption from ETFs or Gold MFs? For the given situation, please check with a reputed jweler in your city that you ‘ll pay mly and at the end you should be able to purchase the Coins only.

    Alternate way is to open a RD. invest mly amount into it and then purchase gold coin from the maturity value. Of course in this case, the interest income from Rd ‘ll be taxable for you.

    Thanks

    Ashal

    1. Salva says:

      Thanks a lot Ashal! I’ll look into the jewellery store option.

  2. ashalanshu says:

    Dear Salva, how about opening a MF in her name from today itself and invest the desired amount in it?

    thanks

    Ashal

    1. Salva says:

      As I said before, it’s not about the money. More for sentimental value 🙂

  3. ashalanshu says:

    Dear Muthu, there is no exit loads on Gold ETFs.

    Dear Salva, what do you want to do at the end with these coins?

    Thanks

    Ashal

    1. Salva says:

      Hi Ashal,

      I’ll be needing ~3 sovereigns gold since my niece will be celebrating her first birthday next June. I want to gift her the coins so that she can use them as she likes when she grows up.

      Not gifting shares or any other securities since only gold has emotional value 🙂

  4. Muthu Krishnan V says:

    with ETFs, there will be exit loads if you redeem within certain time depending on the ETF. For physical purchase, there might be transport costs associated depending on where you live (even 100Rs petrol will result in a 1.6% charge for 6000Rs). reliance mygold had a 2% admin charge when i looked at it briefly. did not go much into details. check out the charges and loads of etfs, reliance mygold. If you need physical delivery of gold, you could also check out GRT jewellers gold saving scheme, you can invest online and also get the benefit of lower rate if gold price is less than your average price at redemption.

  5. Muthu Krishnan V says:

    do you want jewellery or gold coins at the end?

  6. Salva says:

    Hi Ashal,

    It is May 2015 only. My mind is yet to come out of 2013 I guess 😀

  7. ashalanshu says:

    Dear Salva, is it May 2014 or May 2015, you are talking about?

    Thanks

    Ashal

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