The single most important negative of Gold ETF is not discussed here, which I believe is nothing but cheating. GOLD ETF charges 1% to 1.5% and more per year, for expenses which makes it unsuitable for long term investment.
If you buy 100 gram Gold for your kids future and want to keep it for say 20 years, you will be leaft with only approx. 80 grams or less, after 20 years. Conmpare this with buying physical Gold and keeping it in bank locker. The storage charge is negligible and you will only lose 5% or so, if you buy and sell from a good Jeweller.
So the bottom line is, Gold ETF is a terrible option for long term nvestment. It is just okay for 1 to 5/6 years investment and anything above that, you will end up losing a lot.
Re: Re: Thi is cheating!
by anil mishra on Jan 13, 2011 02:33 PM
never buy after reading articles. These are paid articles written by so called consultants who do not know how to manage their own wealth.
Re: Thi is cheating!
by james mantu on Sep 13, 2011 03:29 PM
Gold Etf is a good investment option: 1.you can buy & sell at any moment. 2.when you buy physical gold Say for Rs 10,000 & plan to sell it after 5 years you will never get the same market value at that particular point of time,say you will get around 10-15% lower comparatively. 3.Nowadays locker charge is not negligible,the bank will keep on charging till you withdraw the total amount of gold, where incase if you purchase etf you will pay only 1-1.5% in case you purchase or sell & no other charges are deducted every year. 4.So invest wisely in gold etf for a good return in long term,than investing in physical gold which is full of hassle.
Re: Thi is cheating!
by james mantu on Sep 13, 2011 03:37 PM
i forgot to mention another thing,as my friend zeng said in the above statement that "if you buy and sell from a good Jeweller" . As per my opinion jewellers shows 95% interest in selling jewellers rather than buying them, & if they do so he will try to make some good profit out of it where the person who is trying to sell his gold will ultimately end up in loss.........try it yourself as i had.........
Re: Re: Thi is cheating!
by james mantu on Sep 13, 2011 03:44 PM
For this reasons gold ETF is a much better investment if you want to reap the benefit of gold......
Re: Re: Re: Thi is cheating!
by Rakesh on Sep 14, 2011 03:05 PM
if i bought gold though etf then after some time if i want to get physical gold of my etf purchase then can i get it
Re: And
by Rakesh on Sep 14, 2011 03:06 PM
if i bought gold though etf then after some time if i want to get physical gold of my etf purchase then can i get it
