I am making a calculator which calculates long term capital gains (ltcg) for different investment modes. E-gold and ETF are taxed very differently: ltcg duration for E-gold is 3 yrs and ETF is 1 yr etc. If the units are redeemed as physical gold and not as cash then wealth tax is applicable.
My question is: Why on Earth would a retail investor want Physical gold for?
Investing in ETF to create wealth with which one can buy jewels is one thing. It may or may not be the best thing to do. At least it is understandable. What would one do with physical gold?
Take it to a jeweller to make ornaments? That doesn’t sound like a bright idea. Considering chances of impurities being mixed, wastage, inflation in making charges during the course of ones investment etc. Sounds too complicated.
What would a retail investor do with physical gold?