6 Replies to “could anyone please tell me the process of money investment in gold?”

  1. The way you invest in gold is by literally buying gold. You can do one of two things. You can buy gold by the ounce or by the brick, and take it home with you. Just make sure to keep it in a safe place, a vault is preferred. Or you can buy it and have the location store it for you. Here in Los Angeles you can drive downtown to the people who melt it from other resources. They have a secure area to keep it for you, either way when you are ready to cash in for your gold, you can expect a great pay. Back in the late 80s I believe an ounce of gold went for about $300 US dollars. Today, an ounce of gold runs about $1000. The price for gold has spiked within the last couple of years. And It will keep doing so. It is a good investment if you have the cash for it. You should also look into investing into commodities, they always go up. Good investment, and you would be investing in things you never thought you would. Good Luck.


  2. In India, there is an easier way of investing in gold. It is through investing in Gold Exchange Traded Fund (Gold ETFs). You need to have a demat account (just like you have for shares/bonds etc.). Many banks/Mutual Funds have launched Gold ETFs. ICICI Bank, HDFC Bank, Quantum Mutual Fund, Benchmark Mutual Fund are some of the Banks/MFs who have floated Gold ETFs. One unit of ETF is equal to one gram of gold (except in Quantum MF, in which you an invest even for half gram i.e. one unit is equal to value of 1/2 gram. You are allotted units as per prevailing rate of gold on date of purchase. You can encash units anytime and you will be given amount at prevailing rate on date of encashment. There is a small transaction charge, which is substantially less than what goldsmiths would charge. Of course, currently gold prices are at all time high. Investing now can be risky, in the sense that if prices fall after a year, your return will actually be negative. Try to invest when prices are low.


  3. As stated above, gold can be bought physically or through an ETC (exchange traded commodity fund – not an ETF as that is for shares) It does work kind of like a share as the value can go up as well as down. There are 3 things that need to be considered when buying gold.

    1) State of World Economy – gold is a safe haven and so when there are problems it becomes more valueable.

    2) World Inflation – gold has an intrinsic value and as such has historically been a hedge against inflation, deflation will make the price go down. It does not correlate perfectly in line with inflation.

    3) USD value – a strong USD makes gold more expensive, and visa versa.

    4) Marginal Supply cost – Gold currently has a MSC of $650 per oz which is the value at which mining companies make a profit on their aggregate mines. The minium price i have seen however is $250 per oz (China). It is possible that gold can fall this far (though unlikely).


  4. The concept of buying/holding Gold has been followed for ages. Gold has been one of the most sought after precious metals for generations and people have been crazy about owning gold always. In olden days the amount of gold possessed by a king signified his power. In the modern times the amount of gold in the reserves signifies the strength of a country’s economy. It is an unsaid truth that Gold symbolizes wealth.

    Gold as an Investment option is very attractive. When I was in my school my mom used to buy 10 grams of gold at the price I get her 1 gram now. That is how much the price of gold has gone up in the past 10 years. Also, gold is a limited resource. In India especially we do not have many gold mines that have been able to consistently produce as much gold as some nations around the world are producing. So considering these 2 factors Gold is a very attractive and a comparatively safe investment option.

    To know more about investing in gold pls visit: http://anandvijayakumar.blogspot.com/2008/12/gold-as-investment.html

    Cheers,
    Anand
    mail me at [email protected] if you need any more details.



  5. Hi you can buy physical gold is a way to invest you can buy bar golds, and also coins. Another thing that you can do you can invest in physical gold and trade plus leverage will help you to get the most in your return. If you want a Free precious metal report email me this maybe help you to make a good decision.





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