What are the advantages of investing in Gold through Gold BeES?

I was planning to invest in Gold BeES since my friend told me to. Can anyone tell me what are the advantages which i can avail from Gold BeES which no other gold etf will give me?

Public Comments

1. None. In fact, it is probably quite the opposite. Consider purchasing a mutual fund or ETF through a reputable broker. Commission structure is much lower.
2. Well there are quite a few advantages like it is Potentially cheaper to have price exposure to gold price as compared to other available avenues. also it is Quick and convenient dealing through demat account. There are No storage and security issues. Gold BeES is Listed and traded on NSE just like any other stock and is Ideal for retail investors, as one single unit can be purchased from the secondary market. These are some of the major advantages of investing in Gold Bees. I too have invested and its great!
3. I'd rather invest in gold bullion. If you do not hold it you don't really own it. Paper gold can be a secondary way to invest in gold short term.
4. You need not to keep it physically and can not be theft by anyone. You can sell it online and able to get the best price
5. 1. Safety 2. Less transaction costs 3. Transparency in prices 4. Less broker charges 5. Bullion is standardised reducing transaction costs further http://www.grantsofcornwall.com
6. Pranav, My first input to you would be to request you to understand that investment is a serious business. After all, all of us have spent first 20-25 years of our life in our childhood and studies and will earn for next 30-35 years during which time we will also have to bring our children up as well as plan for the next 20-40 years of our life when we will be without professional income. While inputs from friends and close circle would be very useful as in many other areas, you need to look at checking out if this will suit you. While input from a knowledgeable and known person will be very good, taking inputs from people who are not experts in the field can sometimes backfire. With this background, my inputs on the benefit of Gold BeES or for that matter any Gold ETFs are as under: a. Gold generally forms part of ones investment portfolio, specifically in India, either by default or by design. It is also considered as an hedge against inflation meaning that the appreciation in gold will atleast be equal to the inflation that we face in the economy. b. Gold that we buy physically is generally in the form of jewels. This while helps you to keep money in a liquid asset (as you can sell gold or take loan on gold any time you want to ) owing to the fact that there are lot of costs involved like 'making charges', 'wastage', 'reducing the price for impurity (owing to usage)' etc. we end up having a far lesser value for the gold than what it actually is. It is understood that at the time of buying we loose around 10-14% and when selling another 10-14%. Hence, while the return based on the price of 1 gm gold from the day of buying to day of selling may give x% our actual returns will be far far lower than the same. c. In order to avoid these wastages and other in direct loss of investment value, people go for Gold Bars, Gold Coins etc. which while reducing this amount, still has a very high cost attached to it. It is in this background that products like 'Gold ETFs' and 'Demat Gold' come very handy. a. in ETFs / Demat Gold you do not hold physical gold, but have the right on the gold quantity that you have invested in at any time b. you will be able to liquidate these units of gold invested in as and when required at the then prevailing price of gold. c. The overall costs are far negligible compared to any other way of investing in gold d. There is enough liquidity in the market for such instruments thus enabling easy liquidity when you actually need to encash the same e. For eg. if one is saving for say a daughters marriage 10 years hence, instead of buying jewellery and keeping it which runs the risk of safety and more importantly the costs as mentioned and above all the risk of 'designs going out of fashion' demanding re-making the jewel when required, one can invest safely in instruments like Gold ETFs or Demat Gold and buy the required jewel by liquidating this investment when the need arises. -- Fundu Vishy - Your 'Mutual' Friend Follow me on twitter @funduvishy I blog @ http://blog.powermf.com