(MCX GoldM + Fixed Deposits) vs Gold Coins as Investment for 10 Yrs Time Period

#1
Hi All,

I'm an technical trader and has been actively involved from last 5 yrs in equity and derivatives. What I need to understand is something related to bullion.
The scenario is I have got a windfall cash of 18 lacs and thought of going for gold for my children, now it struck me that I can buy GoldM futures 5 lot and just keep them rolling near expiry since I'm at terminal many times a day and track market. And the rest of the money i.e 15 lac I keep in fixed deposits.
I'm keeping 3 lacs for margin and all downturn movements. Can you guys tell me if this is going to be a good idea keeping my investment horizon of 10 years. If not where is that I'm making a mistake.

PS : I'm not looking for trading the lots, its just like holding them without manipulating on a day to day basis. I may trade on very adverse market conditions.

Thanks in advance

Regards
Creative
 
#2
I have also been exploring investment in Gold this way. Since MCX Gold is not cash settled we need to square off the position before expiry. 2nd month future is ok to take,

As long as you understand the risks associated with leveraging, this is ok.
 
#4
Profitable. See this backtest. The reason this is not popular as investment is Indian people do not understand any gold investment which is not physical.

All the best
 

Klewtar

Well-Known Member
#5
There's no guarantee that gold will keep on going up in price.

Best time to buy gold is when it is at it's minimum value of 750 to 800 USD (it happened in 2007 I think.)

You might find more (and safer) returns by investing in Tobacco companies over the next 10 years. Holding onto gold (or even better, silver) for 2 to 4 years is less risky than 10 years.
 

Klewtar

Well-Known Member
#6
Now that I think of it, investing in the options/derivatives/FnO of a Tobacco company can be more rewarding for the increases in share prices.
 
#7
Tobacco company......ITC is good.
 

praveen taneja

Well-Known Member
#8
There's no guarantee that gold will keep on going up in price.

Best time to buy gold is when it is at it's minimum value of 750 to 800 USD (it happened in 2007 I think.)

You might find more (and safer) returns by investing in Tobacco companies over the next 10 years. Holding onto gold (or even better, silver) for 2 to 4 years is less risky than 10 years.
Now that I think of it, investing in the options/derivatives/FnO of a Tobacco company can be more rewarding for the increases in share prices.
Gold is in upmove since last 12 years and yet no sign of tiredness forget 700-800 eve if one get chance to enter around 1500 which is quite difficult in current scenerio.

There is a difference between investment and Trading If you want to invest play the safest that is Petal For more come to my thread Jai Ram Ji KI:thumb:
 

praveen taneja

Well-Known Member
#9
ITC is at peak cigratte losing charm due to high taxes and environment minister and health hazards or Cancer Keep eye on Zicom security system for good return Jai Ram Ji KI
 
#10
ITC is at peak cigratte losing charm due to high taxes and environment minister and health hazards or Cancer Keep eye on Zicom security system for good return Jai Ram Ji KI
Zicom ke liye shukriya sirji. Humne socha hum bhi aapko apni watchlist se koi achha share batayein, par itna achha koi nahi jitna zicom. humne shilpi cable, indag rubber, tata global, hathway ke charts ke saath compare kiya lekin yeh un sab se upar hai last 1 yr mein. :clap::clap:

Jai Ram ji ki
 

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