ETF s better. The other product is an an unregulated product and hence risks are far higher for an investor. The product is on the fringes of law. Instead of Egold go for pysica gold/ paper gold etc.
this article just started explaning. how can one put this into practicle use? now i m left with knowledge of option available in market. i dont know the pros and cons and past performence for a given time frame. that would have completed the article...
(7)Now with direct cash transfer, more cash will be available and this is surely going into bullion market. So if you are interested in legalised speculative betting in GOLD [share market] you can stay invested as excess money of NREGA and Direct Cash Transfer are surely going to increase GOLD price further. Our so called economist knows it perfectly well[ ignore his sermons for high import bills and adverse BOP etc ] and that is why so many schemes of paper-GOLD are in offing. Go ahead, if you trust your luck, and invest in these schemes.
(6)Hope you know that econmist consider buying GOLD as "killing CAPITAL'.Hope you also know about NREGA. This scheme has killed " availability of lABOUR in market". Farmers are suffering as farm hands are not available at sustainable wage. This is fairly documented. Another thing not documented and researched is the roaring business of GOLDSMITHS in rural areas. NREGA workers are spending the excess money in buying GOLD . They are intelligent and not so rich people. They know that this largesee may come to an end abruptly and inflation etc will make their saving in banks worthless. Investment in GOLD will amke their present earning IDIOT-proof in future . So NREGA is big Killer of LABOUR as well as CAPITAL. No wonder with two of major production factors advesely affected growth in India is going downwards.
(5) Now if government decides that not so rich Indians should not be allowed to possess more than one kg of gold. All their excess GOLD can be taken over by Goverment.You can hide your GOLD and wait till some INTELLIGENT person takes over as Prime Misinster or Expert econmist. No such luck in case of paper-gold or real-estate.To make your present earning secure in future and IDIOT-proof buy physical GOLD.
(4)No such fear in case of Physical GOLD. There is no pressure on you to sell it before losses mount further. You can at least wear that GOLD as jewellery. On the other hand I don't think you can wear a necklace of certificates.
(3)Now paper assets linked to GOLD seems to be a good investment. But again, it is vulnerable to FOOLISH decision by our Financial Experts and Advisors.Consistency,uniformity and longterm policy decision is a luxury not allowed to not so rich Indians. One fine morning ,Government may decide that paper-GOLD prices are all heated up and experts want it to be discontinued from retrospective effect. And Government can re-imburse only fair value say 50% of currently trading prices. Take it ot forget it.
Now real worth of any investment in paper assets are always at the risk of vanishing /eroding . You may not have a role in fall in the real worth of paper assets. Some IDIOT as Investment Banker/ Asset Manager/ Credit Rating Agencies or may be even as a Prime Minister may take a decision which will lead to a fall in its value and you will be left with paper certificates only not usable for burning also. All not so rich people are advised to make there present earning IDIOT-proof by buying physical GOLD.
