gold equity

Venkat123 · #1 13th August 2008, 02:25 AM

hi,
I'm looking to invest in gold in the near future. Problem is i can't trade commodities through my account.

Are there any exchange traded funds that track gold? What about some cash cow gold miners?

Thanks in advance.

vasa1 · #2 13th August 2008, 06:39 PM

Quote:

Originally Posted by Venkat123

hi,
I'm looking to invest in gold in the near future. Problem is i can't trade commodities through my account.

Are there any exchange traded funds that track gold? What about some cash cow gold miners?

Thanks in advance.

There are at least five gold ETFs. I prefer BENCHMARK's GOLDBEES (on the NSE) since it has the highest trading volumes. There are also gold ETFs from Kotak, Reliance, Quantum, and UTI.

I don't quite understand "What about some cash cow gold miners?", but DSP-ML and one more fund house (AIG ???) have gold MFs (which don't require a demat account or broker) and these invest in mutual fund units (held abroad) which invest primarily in companies mining gold.

Hope this helps.

Venkat123 · #3 14th August 2008, 08:47 AM

Thanks Vasa!

By "cash cows" i meant companies whose equity price is based on steady income rather than speculation.

uasish · #4 15th August 2008, 12:08 AM

Found that Gold -I is inversely proportional to Nifty Fut in August.

Venkat123 · #5 15th August 2008, 04:26 AM

uashish,
What is "Gold -I"?

thanks.

vasa1 · #6 15th August 2008, 07:45 AM

Quote:

Originally Posted by uasish

Found that Gold -I is inversely proportional to Nifty Fut in August.

I too would like to know about gold -I.

In any case, is it correct that
a: gold doesn't appreciate as much during an equity bull market
b: gold does better during economic downturns
c: gold does better when the dollar (and rupee?) is falling
d: there is something called the "gold-oil ratio"

uasish · #7 15th August 2008, 08:45 AM

Gold-I ,is the Gold Futures.

The following chart of Nifty Fut EoD & Gold Future EoD,the Gold Fut data is upto 13th hence drawn a line to mark the 13th of Nifty Fut.You can visually
see how strongly these are correlated.

deepsa52 · #8 15th August 2008, 09:24 AM

Quote:

Originally Posted by uasish

Gold-I ,is the Gold Futures.

The following chart of Nifty Fut EoD & Gold Future EoD,the Gold Fut data is upto 13th hence drawn a line to mark the 13th of Nifty Fut.You can visually
see how strongly these are correlated.

That looks very interesting, short term gold may very well go down as the stock markets are going up on every bit of bad news ( when the theater is empty, there is no rush to exit when there is a fire

) But gold tends to have some seasonality effects as well during Indian festival and marriage seasons. Please take a look at gold from last August.

deepsa52 · #9 17th August 2008, 06:44 AM

If gold demand, ie prices are not going up as expected Sept-Jan, it probably means that the Ben and Paulson magic is working on the Indian economy.

deepsa52 · #10 17th August 2008, 06:56 AM

Quote:

Originally Posted by Venkat123

hi,
I'm looking to invest in gold in the near future. Problem is i can't trade commodities through my account.

Are there any exchange traded funds that track gold? What about some cash cow gold miners?

Thanks in advance.

Any reasons not to trade ETFs overseas ?( I don't know what it takes for repatriation though ) You have a lot more choice and flexibility, you can go both long and short. GLD is the most liquid gold ETF.

In general commodities outperform commodity companies in the long run , if you are talking about going long/investing , except for some of the speculative penny stocks.

The Following User Says Thank You to vasa1 For This Useful Post:
Venkat123 (23rd August 2008)

The Following 5 Users Say Thank You to uasish For This Useful Post:
deoria (23rd August 2008), diosys (24th August 2008), myvineet (15th August 2008), vasa1 (15th August 2008), Venkat123 (23rd August 2008)