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View Poll Results: Which is a better option
Gold ETF 17 70.83%
Physical Gold 7 29.17%
Voters: 24. You may not vote on this poll

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Old 10th May 2011, 14:39   #31
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Default Re: Investing in Gold ETF or physical Gold - Which is better

Gold ETF gains come under short term capital gain rt? So min 15% tax on the gain. I have not started investing into gold as of now but then my friend always prefers to buy gold in 24 cr form and sell it off to the same vendor. There is a diff of 200/- per 10g between buying and selling price. This is the only thing which goes out from his profit. I have seen him buying 20g of gold at 12.5K per 10g and selling it off at 21K per 10g. No tax, nothing.
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Old 10th May 2011, 14:58   #32
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Smile Re: Investing in Gold ETF or physical Gold - Which is better

Quote:
Originally Posted by rk_sans View Post
Guys,
any answers on the above question as i have the same question.
The main criteria to select the best fund is the annual returns. However in case of gold the returns are almost same for the most the Gold ETF's. Even the other charges are also similar. The choice is yours. Hope this helps.

Please check the following link to see the retruns of Gold ETF's:
Mutual Fund :- Mutual Fund Investment, Performance, NAVs, Returns Calculator, Compare funds
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Old 10th May 2011, 15:04   #33
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Default Re: Investing in Gold ETF or physical Gold - Which is better

Quote:
Originally Posted by rk_sans View Post
Guys,
any answers on the above question as i have the same question.
Some of the key points while choosing any ETF
1. Choose a Gold ETF which most traded on the exchange (NSE & BSE)
2. Choose a ETF which has returns closest to the returns of the underlying gold

Cheers
Siddharth
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Old 10th May 2011, 16:23   #34
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Default Re: Investing in Gold ETF or physical Gold - Which is better

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Originally Posted by ghodlur View Post
The only drawback is I cannot do an SIP in ETF which if in place would have been a great boon to the investors.
You can now! A number of mutual fund schemes have been launched by Quantum MF (Quantum Gold Savings Fund), Reliance MF (Reliance Gold Savings Fund), Kotak MF (Kotak Gold Fund), etc. These are either FOF's (Fund of Funds schemes) or similar to your usual equity/debt MF's and you can setup a SIP for a fixed amount just like any other MF. Cheers!

Just one thing to be kept in mind! All of these schemes invest in Gold ETF's and some of them charge additional Fund Management expenses on top of the expenses charged in the ETF. IIRC, only Quantum MF's scheme is the one which doesn't levy any additional expense over and above the ETF expenses.

Quote:
Originally Posted by neoonwheels View Post
Gold ETF gains come under short term capital gain rt? So min 15% tax on the gain. I have not started investing into gold as of now but then my friend always prefers to buy gold in 24 cr form and sell it off to the same vendor. There is a diff of 200/- per 10g between buying and selling price. This is the only thing which goes out from his profit. I have seen him buying 20g of gold at 12.5K per 10g and selling it off at 21K per 10g. No tax, nothing.
The returns are liable to tax depending on the duration of investment. That's another matter no one cares about it!

Last edited by nkapoor777 : 10th May 2011 at 16:33.
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Old 10th May 2011, 16:35   #35
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Default Re: Investing in Gold ETF or physical Gold - Which is better

Gold is considered as a save bet to beat inflation. So it makes more sense to invest in gold now. With ETF being the preferred choice.

But at the same time gold is also considered as the biggest bubble.

But I personally believe gold will trend further as long as the US economy gains traction, which doesn't seem to happen soon.
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Old 10th May 2011, 18:56   #36
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Default Re: Investing in Gold ETF or physical Gold - Which is better

I checked Mutual Fund :- Mutual Fund Investment, Performance, NAVs, Returns Calculator, Compare funds but was not able to understand what to look for in the list of funds mentioned in there.
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Old 11th May 2011, 16:43   #37
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Default Re: Investing in Gold ETF or physical Gold - Which is better

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Originally Posted by Abeer View Post
I checked Mutual Fund :- Mutual Fund Investment, Performance, NAVs, Returns Calculator, Compare funds but was not able to understand what to look for in the list of funds mentioned in there.
If you look at the performance of the top seven funds (which are all Gold ETF's), there is a neglegible difference. What this tells you is that being passively managed funds, the returns are not varying between different funds and you can go ahead and invest in any one of them without any worries over which is the best of them. Just check average daily volumes on BSE/NSE websites and select one of the funds which has the least tracking error from its benchmark.
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Old 12th May 2011, 02:35   #38
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Default Re: Investing in Gold ETF or physical Gold - Which is better

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Originally Posted by download2live View Post
But isn't the whole point of buying gold is to avoid Market volatility? Atleast that is the only thing which makes me think of gold. Market is run by people who have lot of inside information which we will never know. I do not want to trust them blindly. I do not want any Fund manager reduce my whole life saving to worthless paper. I do not want to suffer because of his mistakes.

Going ETF way somehow makes me feel that we are letting the same unreliable market force a foot in the door.
Quote:
Originally Posted by joslicx View Post

I think the best approach would be to buy ETFs with your white money and solid gold (bars) with your cash money (if you have some!) This solid gold can act as a hedge against unnatural circumstances like e.g. currency losing its value or destabilization of the country etc. On the other hand ETFs will act as asset accumulation leading to wealth creation.

Exactly my thoughts.
I personally would put my money in physical gold. Even if the fund tracks the metal price, it is still subject to demand-supply, liquidity on the exchanges as well as other ETF specific risks.
If its purely for portfolio investment then ETF's make sense because of the storage safety and convenience but for securing one's future nothing beats physical gold. There are too many uncertainities which may strike at a time you never expected and paper gold will be just that, paper.
Physical Gold = Global Currency.

Regards,
Ab
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Old 19th May 2017, 11:48   #39
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Default Re: Investing in Gold ETF or physical Gold - Which is better

What is the opinion of the members regarding GoI Sovereign Gold Bonds.

Though these returns a half yearly interest amount @ 2.5-2.75%, but almost all of them are running at a loss.

I have bought from one such tranche last year, just to 'test the waters'.

Another weird thing from ICICIDirect, they do not allow to trade these gold bonds in secondary market, at least till now.

Fordday.
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