Gold Prices down = Gold ETF’s offer an Oppurtunity
Gold ETF’s has made investing in gold easier. It is a mutual fund scheme that allows you to trade in Gold.It closely tracks the gold bullion market and any changes positive or negative ,impact directly on the returns delivered.
The perspective of gold is changing from an item of consumption to an investment vehicle with the advent of Gold Exchange Traded funds.
A GETF can be traded on stock exchange. Through it you can sell and buy gold units.Here, each unit represents a definite quantity of pure gold and the prices of it move in tandem with the price off actual gold metal in the bullion market.The product is designed to give returns that closely match the returns provided by physical gold.
Gold is considered as an excellent hedge against currency fluctuations.
Rise in Rupee = Profit in Gold Market.
This can be put in an assumption that we buy 600 ounces of gold when dollar is Rs 45 , which would cost us 27,000 Rs and later when dollar is 40 Rs (appreciation of Rupee) , it would cost us 24,000 Rs. So, here is the profit.
Fall in prices of gold has led to increase in trading volume five-fold. Industry analysis perceive that gold prices are set to appreciate by 7-9% by the end of fiscal year.Gold council is also positive with overall prospects for investing in yellow metal being affirmative,with a number of underlying political and economic factors.
ETF’s offer advantages in the form of lower costs and convenience of investing.
With a dip in gold prices ,the best time of investment in “Golden Funds”.