Is it really wise to invest in physical gold ?

Thinking of buying gold in dhanteras ? Have a re look.

Buying the precious yellow metal is a long drawn custom in this country , particularly in the festive season. Most of you have decided to buy some gold ornaments/coins or bars in this auspicious occasion of diwali and dhanteras. From the ancient times, gold is treated as symbol of wealth and financial security. If the ornaments are bought as wearing apparel, It is  O.K. But if it is purely for investment, I beg to differ. In the ornament, you have to pay about 12% extra as making charge which you cannot get back when you sell or exchange the ornament. Moreover, when you like to sell your ornaments, the merchant seldom shows interest to buy back rather than insisting you to get a new ornament in exchange. And if you agree, another 12% drains out!

Banks do sell 24 carat coins and bars but you must know that they never buy it back. In case of necessity you have to go to the jeweler and after showing reluctance to buy it, they will give you only a discounted price for your pure gold !

And remember, you have already shelled out a considerable amount as locker charges to keep your investment secured.

Why not think about investing in paper gold. Easy to buy, hassle free preservation and smooth transparent selling procedure. Only you have to open a demat account to buy and sell exchange traded gold funds. Not interested to open demat account ? No problem, you can invest in gold mutual funds which deal with these exchange traded funds.  You can invest in SIP mode also in these mutual funds. That means only a little sum of Rs 1000 per month may accumulate substantial asset in long go. As and when the value of physical gold goes up and down in the market, the value of this paper gold also goes up and down. So without any significance expense you can enjoy the fruit of appreciation of the yellow metal. In the last few years, gold has increased significantly. Just see the chart below.

How did you feel ? Amazing ?  So act now, make the hay while the sun shines.