GOLDEN RENDEZVOUS - COMMODITIES IN CONCERN

Amid tumbling equity markets, the only asset that maintained its shine is gold. Now even investors with low risk appetite can consider taking exposure to gold in their investment portfolios. Much of this can be attributed to the upward swing of gold to all time high which is expected to high up to $1400 an Ounce.

The demand and global uncertainties will push price sup, But despite rising prices it is advisable to maintain 5-10% portfolios as gold. It is a good avenue to balance the risk of equity. Although the current volatility is shot lived but in the long term , gold is steady as compare to stocks.

Another point to be taken care is preferably the investment should be made through ETF's. This electronic form of buying, selling & storing gold is more convenient & price effective than buying the metal in physical form. Thus you can avoid paying charges for gold storage & secondly selling physical gold is a

customer task.

According to a survey gold, Et F's gave 23% return last year. ETF investments should be systematic. One should buy gold at different price levels in small amount.

If One doesn't want to open a demat & a trading account, there is an option of gold fund of funds. These function like mutual funds where money is collected from investor to invest in gold Et F's.

High risk takers can also look at gold mini contracts of 100 gm through commodity exchanges. If you have a large sum to invest gold futures are a better option as the leverage factor is phenomenal as the major requirement is less than 5%.

However in gold futures, near month contracts are liquid and a person with a long term view will have to roll over the contract -ie- buy a new one & sell the old one. So if you already own gold start looking profit as prices are expected to count anytime from here and then move up again.One should sell in small portions at current levels to profit at different price levels.

The currency prices are also to be kept in mind as you have to shell out greater amount when rupee is low compared to dollar & pound and vice versa. In a nutshell some smart maneuvers can really make gold a steady & lucrative investment.

GOLDEN RENDEZVOUS - COMMODITIES IN CONCERN

By: shanu

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