4/23/2012 05:41:00 PM
Your Advisor
Commodity Market is in under pressure, long term selling pressure is clearly seems in all commodity. Both precious metal gold & silver are trading in down side. International market effect can see easily on all metal segment.
People believe that buying gold on this auspicious day will bring prosperity to them for the rest of the year.
Today, there are several investment options in gold. But before deciding whether you want to buy physical gold such as coins, jewelery or paper gold such as ETFs or E-gold, it is essential to identify the reason for this investment.
Several asset management companies (AMCs) such as Reliance, Kotak have launched such funds in which the minimum investment amount is Rs 5000. You can exercise SIP (Systematic Investment Plan) or STP (Systematic Transfer Plan) option as well unlike gold ETF.
"The gold fund of funds are costlier by at least 0.5% because of the AMC set up. Hence investors who have demat accounts should opt for Gold ETFs," says Swapnil Pawar.
E-gold, on the other hand, is an initiative by National Spot Exchange. The clearing and settlement takes place on T+2 basis. The biggest advantage is the transparent pricing and the ability to convert the virtual gold into physical gold. However, the brokerage (charged by a broker) is in the range of 0.25% to 0.5%.
