Gold purchase through v/s through gold etf

POSTED BY bharat shah ON November 4, 2012 1:49 pm COMMENTS (8)

this is not for whether to buy gold or not for investment purpose. but which is less costly?

as i understand from equitymaster news letter, and the website, that we can buy even small quantity of gold at prevailing wholesale rate for holding with them , or to deliver at our address with actual delivery cost  but without any other expenses. as per equity master news letter, they only charge 1% of the profit (i presume, only in case of selling). Bullion india is promoted by National Spot Exchange and one pvt. company. As per Equitymaster, Gold etf is cost efficient in medium term. but i think otherwise,as gold etf is charging 1% as expenses every year on cost of holding, whereas bullion india is charging 1% of profit only at time of its sale.

what is your take?

8 replies on this article “Gold purchase through v/s through gold etf”

  1. Dear Bharat, thanks for the update. You are already aware of my personal views for gold investing. In my opinion, if one wants to hold physical gold, may be a better option than purchases made at local jewelers.



  2. bharat shah says:

    update on the matter , as you may know, now AMC could deposit within limit of 20% in gold deposit scheme as allowed by SEBI , and the the matter could change., but i do not know that or e-gold custodian can do the same thing , or not. otherwise i have not much for up dating.frankly it is complicaed for me to decide . my daughter seems bought physical gold in tiny quantity. for the data available on surfing, it seems gold price is though 2-3 % higher than spot wholesale rate, it is @2-3% less than e-gold rate. i am not contemplating etf gold unit rates , as the etf gold units really not representing 1gm/0.5 gm gold ,as it is believed. spot rate in small denomination of 1-2 gm may be 5-10% higher, i think.

  3. Dear Bharat, what’s the update from you on the matter?



  4. ravina says:

    thanks 🙂

  5. bharat shah says:

    honestly not. as such ,i have no investment in gold except family members’ jewelry. though, so many times i thought of buying a little gold as investment, i could not do for paucity of funds! however i advised my daughter to go through for buying gold. i considered it as trustworthy as promoted by the exchange, and cost wise, seems competitive with other option. one should study himself it before investing.

  6. ravina says:

    Bharat have u gone ahead with investing thru

  7. bharat shah says:

    Biswa Singh
    kindly refer following and draw my attention , if i am missing something in understanding it:
    Financial News Simplified​. (
    Issue dtd.24-10-2012

  8. Biswa Singh says:

    If your word is correct than its cheaper than NSEL e-Series. Seems to be a very good option.

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