Gold Investment - Getting the most out of it
Gold is considered as a good avenue for investment. Experts suggest that short-term investment is gold with careful planning will yield better returns. So what would be the better medium? Jewels? or Gold bars? The answer is solid gold. No Jewelry. Then what would be the best investment period? Short term or Long term? The answer is Short term. If short term, then what would be the exact time duration? The answer is 2 years or 3 years.
Buying Gold for future investments
Assume that you buy 10grams of 22-carat gold (from HDFC/ICICI/UTI) once in every 2 months for Rs.11K (avg). Then at the end of one year, you will have 60grams of gold worth Rs.67K in hand. By the year end, the market value of that gold would be definitely 5-8% more. Assume the value is Rs.72K. Next, when you invest in gold for a total of 3 years, you will have Rs.220K worth of gold in hand, which is, obviously a good sum of money. So if you plan properly, you can en-cash the gold with your bank and pay a property loan’s or new car loan’s up-front payment.
Buying Gold for buying Jewelry
The idea is to buy Gold as ‘Gold Coins’ or ‘Gold Bars’ from reputed Jewelries. Buy solid gold periodically for 2 or 3 years. By the end of the period, buy jewelry using the solid gold in the same Jewelry. The trick is to find a good / reputed jewelry chain. Big names like GRT, Tata Gold, Alukkas are offering good services in the market. So buying gold from them would be safe. But ensure, proper billing and quality check certificates.
- Rajesh Sundaram