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  • Category: Miscellaneous

    When investing spare money in gold should we buy jewels or gold coins?

    Unsure whether to go in for buying coins or jewellery when investing in gold? Check out the suggestions & advice given in this forum thread.

    There are rumours that money in the bank would be utilised by the Union government for development purpose and it would be redeemed later. So people are exploring alternatives to save their hard earned money and thus deciding to buy gold. However, keeping gold jewels in the home is risky as a burglary menace cannot be avoided nor controlled.

    So if at all investment has to be made, should we invest on gold coins as that can be kept safely anywhere without anyone's notice. Any other suggestions?
  • #619642
    Do not keep all eggs in one basket-that is the saying. Prudence says that we should not keep our hard earned savings in just one place. We should spread it across different avenues as per our savings and our general financial capacity.
    Bank deposits were taken as the most dependable savings for those who have saved money from their hard earned income by sacrificing or deferring their many needs. Unfortunately the new 'market economy' dictated by western economists and thrust on our country have tried to discourage bank deposits and draw that to their business to save their interest payment to banks.
    Traditionally womenfolk made some home savings by restricting expenses and earmarking them for emergencies. Very wisely and practically they kept this as gold jewels, so that they can use it daily and sell or pledge it when funds are needed.
    One by one small savings were discouraged and money splashing and borrowing was encouraged by all types of incentives for spending and borrowing for consumption purposes.
    Now if you save and invest on jewels, you will be incurring expense on both points-purchase and sale. Even on gold coins the jewellers do not give the exact price for the weight seen. They reduce some amount on some pretext. But comparing between jewels and coins it is better to invest on hallmarked coins from reputed and properly authorised sources. Unfortunately the popular retail sales of gold coins by banks is also discontinued. So we are at the mercy of jewellers who will repurchase on much discount even if you return same day evening.
    So better spread savings across in more than one bank. Invest a some part in jewels; at least womenfolk will be happy to use it. Save some amount in tax saver equity funds. Then invest in equity funds or directly in equity.

  • #619644
    First of all the news that the money in the banks is not safe is not a new issue. The amount in the bank up to Rs.1,00,000/- is safe. It is there in the banking rules since 1965. But the rumours in the social media about this item has come mow only. There is a proposal to increase the limit.
    Coming to your thread, if it is only for investment, it is better to purchase gold coins instead of jewellery and that should be kept safely. You can think of keeping that in BAnk lockers. If you want to keep it in the house you have to take insurance for the household articles basing on the quantity of gold you are keeping in the house.
    But keeping higher amounts of gold in the house is not at all safe.

    always confident

  • #619647
    Nowadays, most of the people are opting for paper gold instead of jewelries or gold coin. Safety is the primary consideration behind the change of preference. Even if physical gold (jewelries/gold coins, etc.) are kept in bank lockers, the safety is not ensured and the investors have to pay hefty amount as locker charge. So, the preference for paper gold has been increasing day by day.
    Beware! I question everything and everybody.

  • #619681
    Any money kept in the bank should be safe, at least if the Government has to be in power, any rule of misuse or diversion of funds would not be welcome as people would not know when they will need the money.
    As far as investment goes, the traditional arms of investment that holds good for us would include Mutual funds, Bonds, Land, gold and Retirement funds. The value of gold is fluctuating based on the market and global financial stability. Like Mr.Partha says, gold for investment would be preferable in the form of GOLD ETFs or paper gold, rather than physical gold. If physical gold is the only option then in that coins would be better than jewellery. A lot of people make pieces of jewellery for their children but after a few years when they get married, the designs get outdated and have to be re-modelled leading to loss of money and gold wastage charges. Around 1/3 can be in the form of jewels and the rest as coins. Coins from a certified source with the warranty cards are useful better the jewels.

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