Best site to trade gold

Hi,

I am interested in gold trading ( futures ). Could you guide me in which is the best online site to trade commodities in ? Specially gold.

I am interested in buying huge volume of gold and sell it after 2-3 years. Margin amount should be minimum and there should not be much money wasted in commissions.

Why go for futures when you have Gold BeES a gold Exchange Traded Fund (ETF) which tracks the real time price of bullion and is backed by gold holding with 99.999 purity, it very cost efficient way to take exposure in yellow metal (this is one of the reason why gold ETFs are gaining popularity world over)

Gold BeES is listed on the NSE with symbol GOLDBEES and traded like any other stock, good thing is unlike gold commodity trading each unit price of Gold BeES is approximately equal to one gram of gold(currently approx. Rs. 1750) and the minimum no. Of units you can buy is one, also its classified as a debt scheme hence the Security Transaction Tax(STT) is not applicable and you are required to pay just brokerage which depends on the broker you select.

Its very transparent as you can get the real time NAV on the Benchmarks website or can get the live price on www.nseindia.com and trade accordingly, also since you want to sell it after 2-3 years it will be very convenient to store it as same will be delivered to your demat account. :thumb:

This is the most important piece of information I learnt today. Thanks. Could you tell me where I can buy this Goldbees share ? Do I need to have a demat account? which is the best online broker I can contact or register to buy this ?

oh ya I forgot to mention, if I invest in goldbees I have to pay up the full value of shares ( one unit = 1 gram approx ) right. BUt in case I trade in gold futures I can buy 1000 gms ( 1 kg ) by just keeping 15% margin money. This way I can transact much more. Please correct me if I am wrong.

Trading in Gold BeES is very simple. All you need is a trading account with an NSE Broker

A Demat Account as Gold BeES can be settled only in Demat form.
There are no exit and entry loads but you will need to pay transaction charges to your broker. You should try and negotiate the lowest charge with the broker !!

Since Gold BeES is classified under Mutual Fund, Investor investing in this need not pay Wealth Tax. The scheme will have Non equity Mutual Fund Taxation, applicable as per current Tax laws, which investor has to pay after redemption.
To know more about Gold BeES you may try checking out their website: www.benchmarkfunds.com

Cheers!

Dear, You are correct while trading in futures, you don't pay full money but just pay x% as margin.. But that also has downside to it.. When gold goes against you and price fall, you will be loosing on 1kg of gold.. not on 1 gram of gold.

Plz understand the instrument and risk before you trade (specially when u are talking about trading Futures/options)

In my view, gold has gone up 20% in last 30/40 days. Rather then jumping in now, better to wait for correction. I continue to be bullish on Gold..but not a buyer now but looking to book partial profit by tightening the stop and wait for correction.

Happy Gold trading.

hii,
I am in this market from last 3 yrs.. It is right that gold is moving very fast and risk is very high for long term position. But there is a high fluctuation from the last 2 months .. so its better to grab the short term opportunity in this market.. All you need is a good research call.. So dont wait for anything, the more u invest in this market more u will learn.. and may be in future u will get a good return from ur experience..
About the commission and all u can ask for low brokerage and high exposer from the trading company like we have customized brokerage and exposer limit facility.. feel free to call for any further enquiry..

Ashish Agarwal
Contact - 100

Tell me one thing here, if the price of the share is almost same as gold, why not buy physical gold instead?

hi,
Listen if u will buy a physical gold than u have to pay 100% while in futures market u have to hardly pay some % of total value of the gold.. and futures market is more flexible and have more liquidity.
like : If u buy 1 kg of physical gold u have to pay around Rs. 1800000
And in futures market for the same quantity, u have to pay margin of Rs 64000.
for 100 Grams(Gold Mini), u have to pay Rs. 6400 margin.
So It means u can buy the same quantity of gold in small amount and u have the opportunity to invest the rest of ur savings into other options or even u can buy more amount of gold in the same amount (18 Lakh) in futures market..
like.. In 18 lakh u r getting 1 kg of physical gold
In 18 lakh u can get more than 25 kg of gold..
So invest less and earn more...

Difference comes in storage, executing the buy/sell txn and booking profit, ease of fund transfer from/to yr bank..

Online trading in ETF, or futures gives u the flexibility of trading.. Holding physical gold has its own constraints from tarding perspective but gives more emotional satisfaction.

Happy Trading