Dhanteras 2019: Buying gold? Wait! First, KNOW THIS to make MORE MONEY by earning higher returns

Dhanteras gold buying muhurat 2019 is around as investment in gold is the most preferred option among the Indians on the occasion of Dhanteras — an auspicious day on which the Diwali celebrations begin. According to the traditional investment in gold, people buy physical gold, gold jewellery, gold coins and gold bars on the occasion of Dhanteras as these are the customary gold investment options in India. However, in the last few decades, some more options in gold investments have emerged. Those new options are Gold ETF, Sovereign Gold Bond, Gold Mutual Fund, etc. According to investment experts, one should have around 5 per cent to 10 per cent of their net investment exposure in gold investments. So, the Dhanteras Gold buying time is coming fast. Make your decision on which option you want to invest in.

Speaking on the timing that suits gold investment Kshitij Mahajan, Co-founder at Complete Circle Consultants said, "Timing for investment in gold is considered best when the stock market is volatile or topsy-turvy. If someone takes this gold investment strategy in one's consideration, it would give around 24-25 per cent annual returns in his or her gold investment." Mahajan also said that gold investment should be for the long-term and if the gold investment is one time, then it would give much better returns in a long-term perspective. He also advised gold investors to invest in electronic gold options like Gold ETF, Gold Mutual Funds, Gold SIP, etc.

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Advising investors to invest in electronic gold Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "In physical gold transaction, an investor has to pay around 2.5 to 3 per cent extra from the spot market price to the goldsmith while buying and the same he or she has to pay to the goldsmith again while selling the physical gold. Today, gold bars and biscuits are available in banks also and they also charge above the spot price, which is more higher than the goldsmith. So, while investing in physical gold, an investor loses around 4.5 per cent to 5 per cent of the net transaction he or she does in buy and sell of the physical gold."

Standing in sync with Kartik Jhaveri's views Kshitij Mahajan said that there are no maintenance charges like locker, the security of the gold jewelry etc. involved in electronic gold investments compared to the physical gold. Asked about some electronic gold investment plans that an investor can opt for today on Dhanteras Kshitij Mahajan said, "Nippon Gold Savings Fund, ICICI Gold Savings Fund and Kotak Gold Savings Fund can be a good Gold ETF option for an investor.

Explaining the benefits of Gold ETF investment, SEBI registered investment expert Jitendra Solanki said, "Both Gold ETF and physical Gold give same return to an investor but a Gold ETF investment is safe, easy to buy and sell, transparent. Gold ETF provides full freedom to the investor as one can buy or sell one's fund on one's bid price with a single click on the computer."

Speaking on the returns in gold investments Dr. Joseph Thomas, Head of Research at Emkay Wealth Management said, “Returns from gold comes from sudden upward movements during specific time periods. If you look at the last five years gold returns have been around 7 per cent CAGR. At the same time, equity returns for the same period have been anything from 12-15 per cent and returns have been 8 to 10 per cent from fixed income, for the same period. Therefore, to reap returns from gold one needs to position ahead of the uptick, and move out as it peaks out. This is exactly why a low portfolio allocation is suggested. If the Rupee remains weaker from here and if the current gold price levels in international markets are sustained, then domestic gold prices will remain well supported even at the current levels.”

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