February 28, 2013

Investment in gold

Today, everyone is aware that either you need to invest in gold or land to overcome the inflation. But the ever increasing price of gold makes it unreachable for a common man. Therefore, it is high time you start thinking of the alternatives which would make you buy gold eventually at the same time not getting succumbed to the market volatility. Many jewelers have come up with various schemes to invest in gold. As an investor, it is very important to select the right jeweler with good record and name in the market. And selecting the right scheme is the next important thing to do.

There are schemes where your money is right away invested in gold and the gold is accumulated in your account every time you pay. This scheme therefore reduces the risk and gives full value for the money invested. For example, ‘GRT Golden Seed’ scheme lets you accumulate Gold. Whereas, there are jewelers who offer schemes which accumulates money periodically and at the end of the period invests the accumulated money in gold. In addition, there may also be incentives along with this scheme. The jeweler may a month’s installment to your accumulated money and let you buy gold. For example, you have paid Rs.5000 every month for a period of 15 months your accumulated money would be Rs.75,000 and the total money to be redeemed for gold would be Rs.80,000. ‘GRT Gold tree’ is this kind of scheme.  But again, this would be profitable only if the price of gold go down at the time of redemption. In my opinion, I would recommend investors to accumulate gold instead of cash. After all, low risk grade and high return would be the only requirement for all isnt it?

Many other features like No wastage charge, nil VAT and flexible deposit should also be taken into consideration while selecting the schemes.  While some jewelers let you buy gold coins and diamond jewelry at the time of redemption, others don’t. So it is important you compare the schemes of different jewelers before investing.

Start investing and beat the inflation!

Good dayJ

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