Sort by :
Filter by :
- Originally Posted by CoronaExtraGuys,
Should one invest in Gold now? Please suggest.
If you are thinking to buy some jewellery for your wife, then don't call it INVESTMENT. It is a CONSUPTION. You will never get the principal amount back, fotget about the profit....CommentQuote1Flag
- 5 Things NRIs Should Know Before Buying Gold This Diwali
Bangalore: Are you planning to buy gold this Diwali? Being a Non Resident India (NRI) you may not be aware of various colorful opportunities available in India for buying the yellow metal. On the eve of Dhanteras, the festival of wealth and prosperity, you want to buy Gold and Gold jewelries to woo the goddess ‘Laxmi’. You need to know few facts which will actually turn your gold buying into a sensible investment. Here are the five interesting facts which you must consider before buying gold from India, reports Deepa Venkatraghvan from TOI.
1. How Much To Invest In Gold
As gold has a high market value, you can amplify your assets by buying it. Gold purchase is never an expenditure but an investment plan. Every investor must include gold investment in their portfolio. It will help you to diversify your portfolio and at the same time, will also minimize the risk. Expert says, you must invest 5 to 15 percent of your total asset in gold. Gold acts as a 'safe heaven' for investors and it will definitely save you in the time of crisis such as a severe crash of the stock market.
2. Importing Gold Versus Buying In India
A NRI is permitted to import gold bars, coins and ornaments up to 1 kg to India, provided thefact that he should have stayed abroad for a period of six months or more. The import of gold is subjected to duty tax. An NRI should declare the gold on arrival to India and pay duty which is currently is 4 percent of notified value in case of gold bars bearing serial number, weight and manufacturer's name and 10 percent in case of any other kind of gold, including jewellery. The 'notified' value is determined by the Government from time to time.
Does it make sense for NRIs to import gold? Amresh Acharya, Director-Investments, World Gold Council explains, "With hallmarking now available at many leading gold outlets, the purity and quality of gold in India is equivalent to that in other parts of the world. However, based upon the priority of the consumer there are two counts on which this choice can be made. Traditional gold jewellery in India is inspired by the country's rich heritage and craftsmanship. Consumers considering purchase of jewellery, especially traditional designs for socio- cultural reasons, will find unparalleled designs and themes in India. In terms of price, the import duty coupled with other local taxes has made gold in India more expensive compared to some other countries.
However other costs like making charges etc could be more expensive in countries particularly the U.S. and the U.K. So the consumer could be better off buying gold, particularly intricate jewellery, in India”, as quoted by TOI.
3. Buying Gold In Physical Form
Gold jewelries are usually bought during marriages and special occasions in India. A buyer of gold jewelries enjoys two advantages. Firstly, by wearing gold ornaments he can enhance his personality and secondly it acts like a safe investment option. However, jewellery also has a major drawback - there is a loss of around 30 percent due to making and melting charges when you buy and sell.
Coins and Bars
You can buy gold bars and coins both from banks and jewelers. One special feature of gold coin and bars are, they are made with 24 karat pure gold and comes with an international assay certification. Even the bullion coins are also not priced much above the prevailing gold price. These are available in various denominations ranging from 2.5 grams to 50 grams and are priced according to their weight.
4. Buying Paper Gold In India
Gold ETFs(Exchange Traded Funds)
Instead of holding gold in physical form, you can buy gold in India in a paper form! Surprised? You can buy gold ETFs with the same ease as you stocks. Gold ETFs are mutual funds which track a benchmark index and its performance is based on the chosen index. You can invest in Gold EFTs even for a small quantity of 1 gram which will cost you around 1000-5000. You can also trade them easily on the stock exchange.
"NRIs can invest in Gold ETFs in India. If they are buying through the exchange, then NRIs must have a PINS account. An NRI can invest in Gold ETF without PINS account directly with Fund House but in this case investor has to buy or sell in the multiples of 1000 units," explains Lakshmi Iyer, Head of Fixed Income & Product, Kotak Mutual Fund.
Source: 5 Things NRIs Should Know Before Buying Gold This DiwaliCommentQuote0Flag