Gold & Silver Funds

Gold is the first choice for Indians. It is invariably part of everyone’s investment portfolio. Many are happy to wearing them as jewellery. In recent times, many have been buying Gold as coins and Bars – just for investment purpose. But the real challenge is:

• Safety: You need to keep them in SAFE lockers for obvious reasons.
• The Purity of the gold you buy is a big question.
• The bazaar rate of Gold and Silver is different from its international price – due to jewellers margins, taxes etc.
• When you buy gold, the rate is usually higher when compared to the rate at which you tend to sell.
• And when you buy in tranches, you keep adding multiple jewellery / coins / bars – making it difficult to keep track.

Now you can Buy Gold and Silver in electronic (demat) form - as Exchange Traded Funds. All the above challenges have been addressed here:

• Since you buy in demat form – there is no need to keep in locker
• The purity of gold you buy in electronic form is 24 Carat.
• The price at which you buy / sell is at transparent, international rates.
• While you may buy in tranches – like 5 grams, 10 grams etc – all of them get pooled under single entry in your demat statement. Hence there is no bits and pieces of gold here.
• Gold is traded as 1/100th of a Gram. Hence if you wish you buy 1 gram – you need to buy 100 shares of Gold ETF. And Silver is traded in grams.