5 Tips to Handle Gold

Gold | admin | August 24, 2010 at 9:30 am

Gold is an essential part of any investor portfolio. Till few years back, there was only one way to buy gold – go to your "family" jeweler shop and buy some ornaments. And when you want to dispose that Gold, just walk-in to same shop and the shopkeeper will deduct number of charges like making charges, taxes, polish charges, and other XYZ charges. In India, Goldsmith don't give offer the latest Gold price at that time. In a summary, you may end up by deducting around 20% of your Gold value. So, buying Gold from some Goldsmith is not a good profitable way.

So, what's the solution.

1. Buy Gold in your demat account via some ETF from your stock broker. Schemes How to handle Gold from SBI, Reliance, Kotak, Benchmark mutual funds offers Gold units in electronic form. Generally, their 1 unit = 1 gram of gold.

2. Don't store Gold in your bank lockers. They are not safe. Bank does not give any guarantee in case of theft or loss on account of natural calamity.

3. Don't store Gold in locker of your home almirah. Every thief knows that. Instead, make some "secret" place like underground tile, or behind the wall or mirror & store your valuable items there.

4. Use electronic alarms at your home & lockers. That will alert you or your neighbors in your absence.

5. Whenever you see "Gold prices drops" like headings in your newspaper, just buy gold and store that for long-term. When every country of the world is buying Gold at all levels, why not you at lower levels. It's a Golden asset for you and your family in financial crises.