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Efficient Gold Investing


wealthymattersIn unsettled times, gold remains relevant. It is an asset of the last resort. It comes in handy in times of personal and social crisis. If you have amassed a fortune, it makes sense to geographically disperse it to ensure that all eggs are not in one basket. Moreover gold tends to be a good hedge against a depreciating currency and can be freely bought and stored abroad to be converted to any currency of choice as needed. A further plus is the lower gold rates abroad. So, for readers who have written in to ask about alternatives to BullionIndia, if you can deal with larger quantities of bullion,there is a better option: BullionVault.

The best gold and silver deals are listed on the international professional bullion markets—where most trade and government industries and banks trade—not the Mumbai Wholesale market. But this market only deals gold in 400 oz good delivery bars, which cost around $500,000(3crores) each. The silver bars weigh 1,000 oz. This puts the best prices out of reach of most private individuals. Further good delivery bars are stored in accredited vaults. The vaults have a high minimum monthly charge, so you would need about 15 of these 400 oz gold bars, worth around $7,000,000(43crores), to make it economic for you to open an account yourself. The large starting balance tends to make the system inaccessible to many private customers. With the help of online trading such as BullionVault, you’re able to obtain information from international gold markets and own gold bars. It’s a good thing that you’ll also enjoy cheaper prices in terms of storage. So whether you are purchasing or selling, expect to find top notch international gold prices. BullionVault offers none of the free storage and zero commission on sales that BullionIndia offers. But the small fees are reasonable if you are dealing with larger amounts. You will make back these small expenses in the better rates you get. Also you will be offered priceless security and guarantees.  Read more of this post

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Zaveri Bazaar Gossip


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If you believe that there is something to be gained to by keeping your ears open to bazaar gossip,here is the on-dit in Mumbai’s wholesale gold market:

The international slowdown in gold prices has hit India in a significant way. Investors are disappointed and look to sell at the earliest opportunity.The current scenario does not make for a buyer’s market. People are waiting  for prices to drop further. The sale of exchange-traded funds (ETFs) and short-selling by investors has contributed to the decline.

A correction was in order given the astronomical rise in bullion over the past few years.Its the same for silver as well. This could be good news for retail buyers with the wedding season coming up in May.

May 13 is Akshay Tritiya, which may witness a drop in sales. The prospect of a free fall in prices will prompt buyers to defer non-essential purchases until Dhanteras, when prices could be even lower at round 22000-23000 Rupees per 10 grams.

Certainly,going by the subdued responses to the Siddhivinayak Mandir‘s gold auction for drought relief on the 11th i.e, Gudi Padwa, there is reason to be cautious.Small buyers were on a strict budget and the devotees who regularly make the big purchases were uninterested and absent.

More About Bullion India


wealthymatters.comThis post is a follow up to the exceedingly popular one here:Link .I hope the information here answers a great many questions in reader’s minds.

1.The G-units can be redeemed in 1 gm, 5 gm and 10 gm bars and S-units in 10 gm, 20 gm, 50 gm and 100 gm ones.

2.They deliver all over India and the charges are the same for all locations.So the more remote your location,the greater your advantage.The details of delivery charges are as follows: Read more of this post

Is Saving In Silver Better Than Saving In Gold ?


wealthymatters.comSilver is the poorer cousin of gold and shows more volatility.However it is also considered a precious metal.So how does it compare to gold as a savings/investment?Where would you be today if you had bought and held silver for the last three decades?Follow this link to your answer :Long Term Returns From Silver Vs SENSEX

So silver would have given you marginally better returns.However you would have had to stomach its greater volatility.And worrying for 30 years just doesn’t seem worthwhile.

Also like gold, silver returns adjusted for inflation are pretty underwhelming and gets beaten by equity returns by a big margin .And in times of negative real returns silver like gold shoots up in price.

Bullion India


wealthymatters.comHere is my new discovery for today:Bullion India.I tried it out today and found the sign up easy and customer service good.I find it an excellent way to buy gold and silver at good rates.Given the tiny units in which you can buy the gold,it is the place to go to make token purchases on auspicious occasions when the prices of precious metals generally rise.Also this site is an excellent way to accumulate precious metals a little at a time as there are no storage costs and commissions.

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