Which is the best route to accumulate gold ?

POSTED BY jvenkatkrish ON March 9, 2014 6:52 pm COMMENTS (7)


I want to accumulate gold for both my daughters wedding, the period is 20 Years from now. Though i have been investing in Quantum Gold saving fund for some years now – I really want to know which is the best route to accumulate gold. My Plan is to accumulate gold and make some jewellery out of it and gift the rest to them.

Which is the preferred route – Need advice PLEASE!

7 replies on this article “Which is the best route to accumulate gold ?”

    1. ashalanshu says:

      Dear Venkat, do it at your own risk.



  1. ashalanshu says:

    Dear Venkat, physical gold buying has it’s own set of problems. Purity, storage.



  2. vijay says:

    Additionally, difference in return b’ween the ETF and fund-of-fund (your gold funds here) can be at least about 1% or so (with ETF returning higher, in general).

    Another point: you should check if quantum gold fund permits physical delivery of gold. Not all of them have the option. For many, the minimum you can get delivery for is 1kg, if at all allowed.

    1. jvenkatkrish says:

      Quantum fund does not permit delivery of gold.
      How about buying gold coins or buscuit periodically and make Jewellery out of it later?

      1. vijay says:

        That’s a perfectly fine option. I think the jewelers, for now at least, will not provide you any bars/coins. You might also want to explore other options too including some carefully chosen gold schemes from reliable jewelers…they are not all bad for someone who positively needs to get jewelry.

        Earlier e-gold was a fine option, but since the NSEL fiasco many are a little too wary of that.

  3. ashalanshu says:

    Dear Jvenkat, each method has it’s own pros and cons. As your idea is for consumption at a later date, you may continue as of now. Please do note, the investment in Gold saving funds or even in Gold ETF ‘ll subject to tax at the time of redemption, hence you need to factor in that also. In simple words, if you are planning to have Gold of 100 Rs. value in future, your actual target should be 111 Rs. Where 11 Rs. is meant for taxation. It’s an example only for you, not the actual tax rate in future.



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