Jewellery:
If you are buying gold for your daughter's marriage, buy gold bars now & get the jewellery made closer to the time of marriage.
Fashions and styles change & you do not want to spend twice on making charges and wastage, which are quite high (10 to 20 per cent).
Gold Coins/ Bars..!
The World Gold Council (WGC) & India Post, in partnership with Reliance Money, have announced an offer in which they will be offering gold at a 7% discount across about 970 post offices in India. The offer is on Akshaya Tritiya festival on May 13, 2013
The coins will be 99.9% pure, Swiss-manufactured gold coins in denominations of 1 to 50 gm from and will be available in the post offices until June 30, 2013
Jewellers expect the demand for coins or bars to be greater.
Last year, jewellery sales accounted for 90% of the total sales, while coins accounted for 10%. This year, it expect the share of coins to increase to nearly 20% during Akshaya Tritiya
Gold ETFs:
For investors, gold exchange traded funds (ETFs) are a BEST option.These can be bought if you have a brokerage account & demat account. Each ETF unit is equivalent to a gram of gold.
The advantage of purchasing gold as an ETF is that you do not have to worry about wastage, making charges, storage, safety and purity. However, you have to pay a brokerage fee at the time of purchase and sale & an annual fee called the expense ratio. This is only 1 to 1.50 %.
Gold Mutual Funds:
Many MF (mutual fund) firms have launched world gold funds.These funds invest in shares of gold mining companies internationally. The NAVs (net asset value) of these funds, however, do not move in tandem with the price of gold.
E-gold ...!
Here each unit is equivalent to one gram of gold. E-gold units can be bought from the National Spot Exchange. You need a separate demat account to buy e-gold.
For investors the best options are gold ETF & e-gold as there is no holding risk (as in physical gold), prices are transparent,and liquidity is high.Gold ETFs score on taxation vis--vis e-gold : they become eligible for long-term capital gains tax after one year while e-gold becomes eligible only after three years.
Physical gold and e-gold both attract wealth tax but gold ETFs are exempted.
Src: ET
No comments:
Post a Comment