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Investing in Gold

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2833
Printed Date: 20/Apr/2025 at 8:29am


Topic: Investing in Gold
Posted By: iaditya
Subject: Investing in Gold
Date Posted: 20/Jun/2010 at 11:48pm
Have wanted to understand for a while now, which is the best way to have an exposure to the gold market?

Is it
1) Physical Gold
2) Gold ETFs (*Quantum , Reliance etc)
3) Gold Jewelery Manufacture (*Ganesh etc)
4) Gold Retail Company (*Tanishq)
5) Gold Collateralized Lending (*Mannapuram)

While my gut suggests the first due to the liquidity and lack of hidden charges, I wanted to understand the experience of other persons in Gold ETFs specifically. Any idea on how to select a good ETF?

Pros:
- Easy Accessibility - Can be easily bought / sold
- Minimum investment for a GETF is one unit
- No need to hold physical gold (not sure my wife will agree)

Cons:
- Hidden Cost of Ownership
- Transaction Costs
- Inability to convert to jewelery


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Buy Solid Companies. Hold for 5 years. Avoid watching TV. Sleep Well.


Replies:
Posted By: iaditya
Date Posted: 20/Jun/2010 at 11:54pm
A good report on Gold ETFs for those who wish to learn more: http://www.hdfcsec.com/CMT/Upload/ArticleAttachments/Gold%20ETF%20Review.pdf - Link for HDFC Report

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Buy Solid Companies. Hold for 5 years. Avoid watching TV. Sleep Well.

Posted By: apeksha
Date Posted: 21/Jun/2010 at 6:17pm

Nirmal Bang has come out with a research report on commodities. The broking firm is expecting the gold to trade positive for the day.

The report says, "Gold has breached the major resistance of 18850 level and likely to trade further up in the short term. We are expecting the counter to trade positive for the day. We should buy only above 18850 for 18950-19K levels in the short term."

 



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Posted By: tyasha
Date Posted: 15/Dec/2011 at 8:51am
For investing in Gold:...
Gold is currently moving lower alongwith other markets, which is contrary to normal moves in gold, probably due to the fall in major currencies against the dollar. I feel thatshould the Rupee reverse trend against the dollar, gold will further depriciate in Re terms...
Investors hoping to get into gold should therefore expect lower levels in gold..

What do TEDies feel???


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Oh if only I had a time machine!

Posted By: jamesvaikom
Date Posted: 15/Dec/2011 at 10:27am
According to me Govt. should consider selling gold brought 2 years ago from IMF. Selling gold won't impact our economy as Indian people hold 25% gold reserves of the world. I think MMS saved our economy by selling gold during 1990. If people reduce their gold holdings and start investing in stocks than we can reduce our dependency on FII money. The problem is many people in India have sentimental attachment towards gold and are not willing to sell gold even if they face financial crises.

Posted By: S.Varghese
Date Posted: 15/Dec/2011 at 10:33am
Originally posted by jamesvaikom

According to me Govt. should consider selling gold brought 2 years ago from IMF. Selling gold won't impact our economy as Indian people hold 25% gold reserves of the world. I think MMS saved our economy by selling gold during 1990. If people reduce their gold holdings and start investing in stocks than we can reduce our dependency on FII money. The problem is many people in India have sentimental attachment towards gold and are not willing to sell gold even if they face financial crises.
You are so correct James. I think it is a very good strategy have some of your savings in gold may be 15-20%, but when it comes to gold Indians are extremely selfish.
 
When they are in financial problems, they will not sell their gold and land but will ask others to liquidate their investments (FD, etc) and lend them money for which they will not even think of giving the bank interest. 
 
I know people who sit on land worth crores but will borrow money from others - their punchline is "I dont have any income".


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Fools rush in where angels fear to tread.

Posted By: jamesvaikom
Date Posted: 16/Dec/2011 at 4:36pm
@S.Varghese
You are right. Investment in gold is not a problem. But most people won't sell gold when they face financial problems and when price is up. But they will loss land and gold due to their inability to repay debts.

Posted By: LearningToFly
Date Posted: 19/Dec/2011 at 6:59am
Who says Indians hold 25% of the gold reserve? I think our reserve is not more than 5%.

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Success... at all cost.

Posted By: jamesvaikom
Date Posted: 19/Dec/2011 at 9:44am
Originally posted by LearningToFly

Who says Indians hold 25% of the gold reserve? I think our reserve is not more than 5%.


Look around yourself. Even women from poor families wear lot of gold jewellery. But people in western countries wear only less jewellery. You may be talking about Govt's gold reserves.

Posted By: LearningToFly
Date Posted: 21/Dec/2011 at 12:13pm
Dude, tracking Gold is very easy. Include the reserve and gold held by citizens in India and the share doesn't go beyond 10% maximum. USA has the biggest share of Gold with almost 70%.

Originally posted by jamesvaikom

Originally posted by LearningToFly

Who says Indians hold 25% of the gold reserve? I think our reserve is not more than 5%.


Look around yourself. Even women from poor families wear lot of gold jewellery. But people in western countries wear only less jewellery. You may be talking about Govt's gold reserves.


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Success... at all cost.

Posted By: jamesvaikom
Date Posted: 31/Jan/2012 at 8:48am
Originally posted by LearningToFly


Dude, tracking Gold is very easy. Include the reserve and gold held by citizens in India and the share doesn't go beyond 10% maximum. USA has the biggest share of Gold with almost 70%.
Originally posted by jamesvaikom

Originally posted by LearningToFly

Who says Indians hold 25% of the gold reserve? I think our reserve is not more than 5%.


Look around yourself. Even women from poor families wear lot of gold jewellery. But people in western countries wear only less jewellery. You may be talking about Govt's gold reserves.


At the end of the year 2011, it is estimated that private Indian households hold more than 18,000 tonnes of gold valued at over $950 Billion US Dollars.
http://en.wikipedia.org/wiki/Gold_reserve

Golds share of nations Forex reserve of US is 76.6%. This means they have only less foreign currency reserves. India keep on importing gold every year. This means that gold held by Indians keep on increasing.


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