Sunday, October 31, 2010

Buying Gold during festive season

Dhanteras and Diwali are two occasions in which lot of people buy Gold in India as it is considered very auspicious and has lot of religious sentiments attached apart from the feel good factor. But, does it really make sense to buy Gold during the festival season in 2010 when Gold has touched record high of Rs 20000 odd level.

Fortunately, the Gold market world over is down during the Indian festival season. So, unlike last few years when Gold prices are higher in India during the festival season compared to other countries, this year is quite different. This year, lots of bank are offering upto 10-15% discount on Gold coins depending on the quantity of Gold the investor is buying. Some Banks or Jewellers offer buyback option.

Investors can also consider buying Gold ETF (Gold Exchange Traded Fund). This is tradeable on BSE and NSE. Though, Gold is good for long term investment view and especially since this commodity has already more than doubled in the last 2-3 years.


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