Gold investing is something people have started thinking again in this recession times. The average return on gold in the past year has been around 30 per cent. But if you are investing in gold, make sure it comes with tax benefits and security. Gold has been doing well because of inflationary fears and the downtrend in equity markets.Gold jewellery is not as good a investment as it is not as liquid as bars or gold funds, points out financial planner Gaurav Mashruwala. If you are saving to buy jewellery it makes sense to buy gold coins. These coins are accepted by jewellers in return for gold used in jewellery. If you intend to sell the coins, you may have to take a discount of up to 4 per cent, irrespective of how pure are the coins/bars.
New Delhi Surging gold prices to record highs of over Rs 16,000 per ten gram may have made the existing investors wealthier, but the analysts do not consider it the right time for the new investors to enter this market — both directly or through exchange traded funds.
While gold prices may zoom further and might even cross Rs 17,000 level in the short term, there are significant downside risks from the current levels, especially if the equity markets start recovering, the experts believe, as they attribute the recent rally mostly to the investors’ continued flight away from the stocks. Gold coins are available in different sizes, so you can buy the ones that suits your needs the most. The usual sizes are coins of 2, 4, 5, 8, 10, 20 and 50 grams. The coins are 24 carats, and the banks guarantee their purity too.