Your Questions About How To Invest In Gold

George asks…

I want to invest in gold etf.Where can i open demat and online trading account with low brokerage?

Please provide the steps in investing gold etf, brokerage details for gold etf,which one is best? and minimum money needed ? . Etf will lie on equities or commodity?which one?

John answers:

You can invest in gold etf through some brokerage houses like kotak, india infoline etc.
You can go slow on gold investments, limit your investments to 10% of your portfolio. ETFs is based on movements of gold. Do not trade into commodities.

Nancy asks…

What are the good ways to invest in gold ?

My banker friends tell me I should invest in gold as they are likely to go higher.

Please tell me where I can get good material to read on gold investment without a broker pushing me.

John answers:

I also think that gold has further to go. Have been investing in gold for the past 20 years and it has far out performed my other stocks and mutual funds.

I saw a book recently called Gold Vault and I think it is really a good book for anyone interested to invest in gold. Very comprehensive and touches on many aspects that are useful.

It also discusses the various ways to invest in gold.

David asks…

What are the advantages and disadvantages to investing in gold?

Is it safe to invest in Gold in today’s stock market? I’ve never invested before and I’m just curious about Gold, it seems safe but I’d like to learn more.

John answers:

It depends how you define “safe”; gold is a “hedge”, not an investment, so if history is anything to go by, if you buy an ounce of gold today it will cost about the same as a fine quality Mens’ suit. Fifty years from now, your ounce of gold will STILL be worth the amount of money required to buy the same suit.

If you purchased quality common stocks with your thousand dollars instead, some years you’d lose a little, some you’d gain a little or a lot, but over the next fifty years you would AVERAGE a return of between 7% & 12%, so you’d end up with stocks worth somewhere between $29,457 and $289,002.

It is doubtful a Mens’ suit will cost $30,000 a mere 50 years from now, given that they cost about twenty times today what they did in 1950.

“Safe” does not make sense for investments…

Ken asks…

What is the best way to invest in gold without buying buying gold coins.?

Also now that gold is so high what is the best way to invest in gold thru the stock market.

John answers:

The Gold ETF:

Daniel asks…

What are the benefits of investing in gold?

Anyone investing in gold that can tell me the pros and cons?

John answers:

Gold is a standard so that is a pro but it is an investment like anything else, it can go up and down, gold will never go out of business and when the dollar gets weaker the gold goes up. But just because the dollar is down doesn’t mean the price of gold is not over inflated.

Like any investment you need to be comfortable with what you are buying.

Getting the hot stock is not necessarily the best thing to invest in, looking at undervalued stocks can make you a healthy profit, especially if you are investing over the long term which is the smartest way to do it

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