Friday, December 9, 2016

IS IT TIME TO START BUYING GOLD???

Dear Investor,
I have been historically against Gold as an Investment.
I have always advocated Gold purely and only for Consumption but sometimes, rarely, when market forces come into play, I have given Buy calls too...
(Remember, last time, I had given a Gold Buy call when it was hovering around 18000 levels and a SELL Call when it was around 33000 levels).                      
Image result for axis gold fund
while timing is always difficult even for a Genius.....but sometimes,you need to Buy/Sell Gold as a Tactical option.
The recent hardening of prices in Commodities and the production Cut in Oil by OPEC is a pretty strong indicator that the Gold has seen its bad days.
Yes, the Demonitisation effect will be there for some time and Gold prices will be depressed but its more or less a Given that Gold should see strong support around Rs.25000-Rs.26000 levels and is ideal for a good rally in about 2-3 years time                      

Hence, if you are accumulating Gold for some specific purposes like Child Marriage, do continue.
If you do not Gold in your portfolio, its time that you start looking at Gold seriously and accumulate around these levels and at declines.                      

But, don't be in a hurry....Gold will not run away....It will be a very very slow and steady climb....
in fact, it may even be weak for a Couple of quarter....maybe till March 2017 but it has VERY STRONG support around these levels and you can add Gold to your Portfolio                      
Image result for gold
And, as indicated by me so many times earlier too...you should look at buying Gold through
Gold ETFs
Soveriegn Gold Bond Scheme...
even a SIP in Gold Saving Scheme from Mutual Fund                      
Gold: Gaining Ground as  Prudent Investment•   Preserver of Value & Buying Power•   Hedge Against Inflation & Economic Dow...
ANY GOLD SAVING SCHEME will do...ANY
Any...
See...
All Gold funds invest in Gold..
They buy Gold
They sell Gold
so, there is no scope for difference in performance
but still there is huge difference in performance
Say...
Example :
Invesco Gold Fund has given 19.1% return in 1 year
Where
IDBI Gold Fund has given only 7.8% return in 1 year                      

Whereas...if I look at 3 year chart..
the same Invesco Gold fund has given a Negative return of -3.7%
Whereas the same IDBI Gold has NOT given Negative return but stayed at same level.....                      

This difference comes due to
1. Expense ratio
2. Tracking error
So, we have to look at funds which have
a) Less Expense Ratio
b) Less tracking error

Hence, I would prefer you to look at investing
AXIS GOLD FUND
INVESCO GOLD FUND                      

Of cousre, as I said..the fund selection does not exactly matter...
Over a period of time, they all tend to give same return

Request to also read these articles which will give you more insight



http://www.goodfundsadvisor.in/2015/09/sovereign-gold-bonds-scheme-better-than.html
http://www.goodfundsadvisor.in/2015/04/this-akshaya-tritaya-sell-gold.html
http://www.goodfundsadvisor.in/2011/03/good-time-to-buy-silver.html


http://www.goodfundsadvisor.in/2012/11/avoid-jewellers-gold-savings-scheme.html




But, let me clarify, for WEALTH CREATION, there is no asset class that beats EQUITY.
Equity should garner maximum of your Asset Allocation

Also request you to take your Advisors suggestion before doing any investment.


Also visit http:/http://goodinsuranceadvisor.blogspot.in/

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