Future of Gold

Made Governor of the Central Bank of India, d. Subbarao, tremendous efforts to dissuade the citizens of his country from investing in gold, and on the back of the pressures posed by imports of gold standard on the value of Indian rupee. Attention fans of shares and securities critical to invest in gold by saying that he lost any intrinsic value and is subject to theft, which is a source of concern to its owners.

And gold was made to its investors an annual return of 25% over the past five years, but in recent months has been subjected to the low value of 4%. Based on this, is there a reason to invest in gold?

Experts respond positively to this question, but they argue that investing in gold may be done only as insurance against the collapse of the other categories of assets. Says Lakshmi Iyer, head of investment products and fixed income in a box “Cuttack” common: “We believe that the difficulty in curbing inflation and performance moderate stocks and asset classes are included for the debt securities may induce many small investors to turn to gold, as a category of investment.” She adds: “The variability of the underlying market for foreign currency and the possibility of monetary expansion to some of the major currencies around the world, may push in turn also to the expected improved performance of gold, but it is a bad idea if you think that gold can be a substitute for other assets such as equities and fixed income. It For his part, says Kapil Narang, Chief Executive Officer, Foundation Ameriprise India: As long as you do not seek to achieve a return in the short term, we believe that we are always investing in gold should be part of a very diverse portfolio. “ And continued with saying, look to gold as a tool to ensure backup save the value when passing other categories of investment periods of volatility.

The record high for the price of gold increased by 30% during the last year is the very reason financial planners to advise investors not to do a large bet on the yellow metal. Says Aditya Daddy, a partner at Foundation The Tipping Point, a consulting firm financial: “We have passed the stage in which he was possible advice to invest in gold as a tactical, and we are now advised the investor that ensures its investment portfolio represented 5% of the precautionary measure of exchange against inflation Financial because the price of gold following the rate of inflation. “ He adds that those who actually chose to allocate 10% of their portfolio of gold, and then increased its share of the portfolio to 15% following a high price, they can sell part of gold and increasing the share of assets fell in value recently.

Although the above justify continued investment in gold, but that does not represent good news for women, it is not permissible to buy gold jewelery and consider it as an investment in gold, because the cost of production of jewelry and drop the price when the sale does not keep the profit margin mention of gold in order to an investment. Daddy says that even if the collection of gold for a future occasion such as marriage, it is the most logic to buy the metal through electronic funds traded in the financial markets, a form of non-physical forms of gold. He adds: “Even if you were buying gold in the form of alloys, there is still a difference between selling price and the repurchase price. And the best option is to invest in gold through funds traded in the financial markets, then sell when needed, and then do buy gold material.”

Has increased the spread of funds traded in the financial markets and investing in gold significantly, with the number of accounts in these funds from 147 047 in March of 2010 to 428,769 in September 2011, a high convergence rate of 192%. The total amount of gold owned by the fund rolling company AMC, an Indian company for asset management, has risen from 19 tons in March of 2011 to 28 tons in September and to 33 tons in December 2011, an increase of 74% during the nine months.

Upon observation of these popular enjoyed by ETFs investing in gold, I decided Exchange of India National (NSE) to do trading session private funds traded invested in gold, after the completion of trading cash and derivatives at half past three pm will be held on 24 April. At the time that can be traded funds, gold during a session of regular trading that are open in the ninth hour and a quarter of the morning and closed at half past three in the afternoon, is the resumption of trading funds, gold in the fourth and a half from that date to continue until eight o’clock pm, in order to enable investors to invest in gold until late in the evening. It was also decided not to impose fees on the implementation of the trading funds, gold transactions during the day, ie twenty-fourth of April.