gold equity

[rkkarnani]

I didn't understand this post.

1. Why do you have to go to another city to take delivery?

2. What is "mini"?

Just as Smaller lot of Nifty is Mini Nifty so is the smaller lot of Gold!!!

For all commodities there are designated warehouses in different cities, for Gold it happens to be in Ahmedabad, hence for PHYSICAL delivery of Gold one has to travel to that city!!!

 

[drpsiva]

I didn't understand this post.

1. Why do you have to go to another city to take delivery?

2. What is "mini"?

1.gold delivery is done in selected cities only and we have to go to respective place and collect our gold after paying full cash.(initially we pay margin money of 4-6% only)

2.gold is traded in 3 types. gold,gold mini and gold guinea for 1kg,100gms and 8gms.

 

[vasa1]

After reading this thread, I get the impression that the senior Traderji members have more faith in the real thing than in gold ETFs. Is my impression correct? If yes, why?

 

[vasa1]

...
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.

In the case of gold specifically, DSP-ML's World Gold Fund believes that gold-mining companies will perform better than gold itself. At least, that was their rationale for selling this fund. Some analysts argue that while the companies may do better in a bull market they will underperform gold in bad times as equity in general is supposed to.

 

[vasa1]

i too bought 2 units of rel gold etf

Why did you buy the rel gold etf as opposed to the others?

I have been buying and trading (in a v. small way) the Benchmark ETF listed as GOLDBEES on the NSE because I am under the impression that volumes are more in this ETF in the others.

 

[deepsa52]

After reading this thread, I get the impression that the senior Traderji members have more faith in the real thing than in gold ETFs. Is my impression correct? If yes, why?

Probably you know where US stands now - the collapse of the US financial system is likely in the next few years and this it may result in highly unstable exchange rates, not to mention that during a global systemic crisis many of these Gold certificates may not be honoured at all. While that sounds extreme, it is not. Recently a large US bank went down and some larger depositors lost their money.

The FED and the ECB and the bank of England know this better than we do

That is when real gold has more value over paper gold.

____

Aug. 22 (Bloomberg) -- A failure of U.S. mortgage finance companies Fannie Mae and Freddie Mac could be a catastrophe for the global financial system, said Yu Yongding, a former adviser to China's central bank.

``If the U.S. government allows Fannie and Freddie to fail and international investors are not compensated adequately, the consequences will be catastrophic,'' Yu said in e-mailed answers to questions yesterday. ``If it is not the end of the world, it is the end of the current international financial system.''

 

[uasish]

Ashish Da, I think after going thru a few sites that you need not travel to any place but your home to take delivery of Gold, it is credited to your DP account, which you have to open to take electronic delivery of Gold!!!

As in shares which you can convert from demat to physical, so is in Gold, you can convert the electronic gold to physical and then may be you have to travel to Ahemdabad to take delivery!!!

But as long as you keep it in electronic form you just trade it as demat shares!!!

I am quiet sure of what i have written, may be 99% sure not 100% though!!

My previous post was from MOSL site!!!

Thks for the Headsup.