Which is better...Physical Gold or Gold ETF?

[piyushjha49]

Which is a better deal to invest in? Gold etf or physical gold?

 

[yamini_tekade]

Gold ETF is better

 

[rbisystems]

physical gold u required lot of risk in phsyical strain...
for GOLD ETF is better compare to that...as per my view

 

[gunavadhi]

but my wife wants to show off gold jewelery she owns.

 

[piyushjha49]

but my wife wants to show off gold jewelery she owns.

:lol::lol:

Why dont you tell her to wear gold etfs instead :thumb:

 

[deepsukhwani]

Gold ETF is much better in comparison to Physical Gold when taken from the point of investment.

The reason behind that is, Gold ETF has each unit price according to 1 Gram of Gold with 99.99% purity (So you dont need to worry about purity).

Another thing, it is in Demat Form, just how to own shares in your demat account (So you don't need to worry about its saving, physical location of Gold, or even of loots and theft)

Apart from this, the another thing is, while going for Physical Gold, you pay about 10% making charges and 5% about breaking charges when you sell the physical Gold, whereas there are no charges at all except the brokerage (which is hardly 0.05%) when you go for GOLD Etf.

So these were the benefits of trading in Gold ETF, another thing that I wanted to say is, Gold trading in MCX is even better than Gold in ETF, but that is more for trading and not for investing, so if you look from investment views for long term, ETF is undoubtedly the best option. And for trading, GOLD in MCX is the best option.

Hope this helps.

Regards!

 

[arun.gupta]

hey this really helped....now which gold etf is better?

 

[DanPickUp]

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[aarav.bhatia]

Buying physical gold is risky and storage for the same is riskier...Buy Gold ETFs. They are the best option today. Try doing a google search on Gold Bees and all your queries will be answered.

 

[Uppai Mappla]

I am surprised to see that everyone on this thread favour ETFs. In my opinion, the fundamental reason for investing is gold is as a hedge against extreme devaluation and possible loss of faith in paper and electronic money. It is OK to buy a gold etf for short term (as I myself have done in the past) but not as a long term store of value. This is because ETFs do not keep equivalent amount of gold as the number of units. Theoretically if I buy a unit of GoldBEES, Benchmark is supposed to give me one gram of physical gold. Since Indian regulations are stricter, Benchmark may well have equivalent amount of gold, audited and certified in their custodians vaults. But that is not the case with the gold ETFs in the West, the most popular and most notorious of which is "GLD" fund.

I agree that normally we are not going to run to GoldBEEs seeking our gram of physical gold. But it can happen in case of extreme devaluation of paper currency. Major currencies of the world, USD, Eur, JPY and GBP are all under risk. Value of currencies is a matter of confidence so a loss of confidence in multiple currencies simultaneously will result in investors and ordinary people selling all currencies simultaneously. In such case gold, precious metals and other commodities will be gainers. If we lose faith in the rupee, we may have to ask Benchmark to cough up our gold and if they are not able to deliver, the GoldBEES will become another piece of electronic junk.

This brings us back to the logic of investing in gold (long term). Only physical gold can provide you the kind of security needed at that time catastrophe. So please continue to trade in GoldBEES, but don't invest!!