Buying Gold For Investment. Any Tips

Most of the traders/investors thinks that investment in gold is not a good option. Here is what Mr Warren Buffet used to say about gold:However, being born in a middle class family, and listening to my mother continuously talking about the rising prices of gold, I differ a little about the idea of investing in gold.Gold has been used as an currency for over centuries in this world. This is one of the source which has consistently been in the market and used to buy or exchange items. Moreover, it is treated as a sign of royalty.I believe that everyone should have a small portion of his portfolio invested in gold. There are various reasons why I believe this, however here are few.First- now a days, every country has a different currency. However, gold is one of such option which can be easily used for trading in any country. In the worse times, having gold in your pocket can be a great backup, than the currency of a country which is declining or non-acceptable else where.Second- stocks, bonds, mutual funds etc might not be useful in other-countries and may even crash or shuts down in worst scenarios like world war. However, I believe that the importance of gold won’t be reduced to zero in such conditions.Third, this can be a good investment to pass on to your next generation who might not have such luxuries to have abundance of gold.Forth, although gold has not given such huge returns like stocks or real estate, however it can help to diversify your portfolio and reduce the risks in adverse economic conditions.Overall, I believe that a small percentage of investment in gold, is a good option.Hope this answer is useful.

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Strictly Not!I was quite impressed by the concept of Paytm's digital gold. I just had an overview of how it works and purchased 5 gm immediately without giving a second thought. The hard phase starts here -Purchased 5gm Gold for Rs. 14970/- (Rs. 2993.5/gm)Got 597 rupees Paytm cashAfter a week tried to sell it but Selling Price was not going above Rs. 2804.5/gm, so for my 5gm it was just Rs. 14024/-So you can see who is in profit.There will be always a difference of Rs. 180 - 200 per gram in the buying price and selling price. So it can never be considered as an investment option as long as the gold price increased drastically.I am already in a loss, do you also want to be in one?

Buying gold coins is a wiser choice than buying jewelry. No, they don’t lose value like gold jewelry does. In fact, their value appreciates over time.Here are some reasons why investing in gold coins is better than buying jewelry:Buying gold coins is a smarter option as you don’t have to pay for the making changes, which at the time of selling are not included in the calculation. As many of us know, in gold jewelry the making charges incurred are a lot and after a point of time when the jewelry design is out of fashion, they become sheer wastage.Resale value of gold coins is much more than jewelry as they are considered to be more credible and pure in quality. Also, thanks to their size and shape, gold coins can easily be cast into anything.Gold coins also make a better investment option than jewelry as we don’t have any sentimental values attached to it. The same is not the case with jewelry. Imagine would anyone sell their engagement ring or a necklace gifted by father/brother on the wedding or a family heirloom in the form of jewelry. No one would like to do that.Another great reason to purchase gold coins instead of jewelry is that you can buy gold coins online, unlike jewelry items on the jewelry shops that are much more expensive and you prefer buying in person after trying them on yourself.No wonder people have switched to coins for investment instead of jewelry.

Yes and yes. 1000 years ago, 1 ounce of gold bought you a well made suit. Today, 1 ounce of gold will buy you a well made suit. No currency in the world at the time would be worth that today unless it was made up of gold or silver.Do not buy gold looking for market beating returns (although that is certainly possible depending on the market). You should invest your money in gold if you are looking for a way to preserve your buying power. Remember, just as with the market, gold has it’s ups and downs, but NO other currency the world has ever known has maintained it’s value through the rise and fall of empires, world wars, plagues, etc.I have about 15% of my “retirement” money in metal (gold and silver), but it is not in a qualified account. It is physical bullion stored safely. I have dipped into it for multiple reasons, but I always refill my holdings, and i try to add 3 ounces of gold every year. I hold far more weight in silver, but beyond 1,000 ounces, it becomes too cumbersome to store, so gold and platinum are where i go from there.When i retire, i’ll have (hopefully) preserved the buying power of around 100,000 dollars worth of todays money. It should be worth around $200,000. Conversely, if i left that cash in coffee cans or even a savings account, i’d lose the equivilent of 20–40% of my buying power assuming inflation averages 2–3% a year.Gold is better long term than cash. Stocks are better long term than gold. Real estate trumps all:)

That depends on purpose. If  you are buying for investment & savings/emergency purposes, only go for Gold coins. You can get them from Banks, Tanishq, Local jewelers etc. (mostly, I found them to be reliable enough & slightly cheaper than Banks when it comes to price of Gold coins) Or, else you can invest in Mutual Funds who in-turn invest in Gold ETF. If you have a Demat account, you can purchase Gold ETF yourself Gold ETF | Buy Gold ETF | NSE Gold ETF | Buy Gold Online in India | NSE Gold IndiaE-gold is a better option for investors than gold ETFsPage on nseindia.comIf buying ornaments alone, buy only Hallmarked jeweler. 91.8% purity, I believe. Beyond that (any more purity), Gold does not remains malleable & ductile enough for jewelry usage. Even if you have a trusted khandaani jeweler (neighborhood sunar -like most Indian families have), just DON'T blindly rely on him & try to have all Gold Items tested in Tanishq.  Just visit any Tanishq showroom any day & get this free testing done (takes hardly 2-3 minutes per piece of ornament). I get it done all the time in Bangalore & Lucknow. No hassles. Additionally, what you need to know for sure is the fact that pricing of ornaments have a substantial component of "making charges" - minimum 30%  can be as high as 60% depending upon the intricacy/rarity/novelty/vintage appeal or aesthetic appeal of the design, & to some extent on jeweler's discretion.What these "making charges" do for you is: When you go to market to mortgage or sell you ornament, the jewelers would, as a norm, only consider the weight, carat/purity of the Gold. The money you get paid in return is much lesser that would would have got if you sold a Gold Coin. Essentially, the higher the % of making charges in your ornament, the lesser is the resale value in general. So, unless you are really compelled to buy ornament alone (compelling reasons such as a future marriage) or money does not matters much for you, prefer Gold coins over Gold ornaments. When buying Gold ornaments, try to find out the % of making charges, which you easily can - through some probing & a Tanishq test.This is all from my limited personal experience in last 10 years (which is clearly not enough).I have dwelled more upon the fact whether you should buy Gold ornaments or Gold coins, rather than where to buy Gold ornaments from because it is something that every Indian (whose money is hard-earned) must know.