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

[Klewtar]

Silver dipped to it's recent lowest on November 3rd. Silver may end up a better investment over the next 10 years than gold.

As far as I know, Gold may not exceed 2,000 USD/ounce.

 

[PartTime_Trader]

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.

Good Strategy in theory but when implementing, on account of premium on the next month series, shifting the position from current month contract to next series will cost you more than you make with FD, .

 

[praveen taneja]

Silver dipped to it's recent lowest on November 3rd. Silver may end up a better investment over the next 10 years than gold.

As far as I know, Gold may not exceed 2,000 USD/ounce.

get ready to see 2222 on spot and 33333 on MCX before Mar 2013:thumb:Jai Ram Ji KI

 

[Klewtar]

It's a scary thought that gold prices didn't move from 1990 to 2000. @ashish, were silver prices moving back then at least?

 

[Jhon Kumar]

I am also trading in Gold and i think its good at all.

 

[Creative]

Just to update you guys..
I'm following this method and it's hell lot of difficult in practice than what I thought.
Right now I'm in a loss of Rs 60000 max due to the crash on last Thursday and rest due to nervousness (moving out during recovery) and greed (taken GOLD contract make up fast ) to make up the lost amount. Some time in the recent past I lost faith in this plan and researched more. But I'm ready to give it a try till March'13 hope I doesn't get kicked out due to extreme volatility in COMEX.
I'm also working to improve my plan and reduce Contango and other financing cost. Will keep on updating this thread

 

[PartTime_Trader]

Just to update you guys..
I'm following this method and it's hell lot of difficult in practice than what I thought.
Right now I'm in a loss of Rs 60000 max due to the crash on last Thursday and rest due to nervousness (moving out during recovery) and greed (taken GOLD contract make up fast ) to make up the lost amount. Some time in the recent past I lost faith in this plan and researched more. But I'm ready to give it a try till March'13 hope I doesn't get kicked out due to extreme volatility in COMEX.
I'm also working to improve my plan and reduce Contango and other financing cost. Will keep on updating this thread

Have you considered the opposite trade?


Buy physical gold and short the future (first month) . . .

Near every expiry shift the short to next month.

This way you will be pocketting the premium every month as you shift your short position to next month.

The short will be always hedged by physical gold and you can unwind the trade anytime by selling the physical gold.

:thumb:
Cheers

 

[Creative]

Thats what I'm planning to explore with 2 mini lots so it will give me constant exposure. But buying physical gold has a burden of 3.5% (taxes and bullion charges). What I need to do is have faith on my strategy and don't get panicked out with 400 - 500 points fall. It's much easier said than done but else I'll be not succeeding either. Nerve of Steel thats what it wants, also I have decided not to see the tick-tick chart its nerve racking, instead I'm focusing on eod/weekly charts to see the macro trend.

Cheers !!!

 

[Nikhil Dogra]

If you have cash amount equivalent to the lot size value then consider keeping 90% of the funds in a liquid debt fund & deploy 10% as margin to hold "short near" future calendar spread i.e. short near month contract & long far dated contract. This could potentially yeild 10%-12% annual returns at relatively less risk.

 

[msa5678]

If you have cash amount equivalent to the lot size value then consider keeping 90% of the funds in a liquid debt fund & deploy 10% as margin to hold "short near" future calendar spread i.e. short near month contract & long far dated contract. This could potentially yeild 10%-12% annual returns at relatively less risk.

Do u mean NF futures?

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