Why Indians are the largest buyers of Gold

Posted on August 10, 2011 by goldblog

Indians are the world’s largest consumers of bullion because purchase of gold in the Indian society is for reasons beyond that of a simple financial investment.

The Indian buyer purchases gold regularly for gifting, weddings, and religious worship. In fact, the purchase of gold for investment purpose has probably been a lower priority as compared to other uses.

Gifting Gold in India is one of the most popular customs. It is one of the most preferred gifts to give, or to receive on almost every special occasion. It is an ideal gift especially during Diwali, weddings, religious ceremonies, and even simple occasions like birthdays or anniversaries. Gold gifted from an elder member of the family is often considered as a symbolic token of a blessing.

The great Indian wedding is not possible without Gold. It is almost customary for the Indian bride to be adorned with Gold jewellery on her wedding day. Also exchange of gold coins and gold gifts are common between families of the bride and the groom, especially during the time of the wedding.

Gold is very popularly used in India for religious ceremonies and festives. Most festives are associated with Indian mythology or religious history and hence are interconnected. Gold is considered sacred, eternal, and pure. Therefore it is the ideal commodity, and a necessity in many Hindu religious routines.

Hence, multiple reasons, most beyond the objective of a simple investment is what gives gold a higher level of importance among the Indian Population. In India, the value of Gold is far greater than its price tag.

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Easy Ways to Invest in Gold in India

Posted on August 10, 2011 by goldblog

There are many easy options available to Indain investors seeking to put their money in Gold Invesments.

1. Physical Gold such as Gold coins, Gold Bars in India

gold coin

gold coin india with image of Godess Saraswati

Certified physical gold can be purchased all over the country across various reliable retail outlets.

Many banks sell certified 24 karat Gold. Bank of India sells has gold coins in many sizes that can be purchased for investment or gifting at any of their 3000 branches across the country. Bank of India and most other banks onl sells Gold that has been imported from Switzerland and has an assay certificate attached.

HDFC Bank was one of the first to start retailing gold. ICICI Bank also sell physical gold . Even State Bank of India have physical gold coins for sale. Branches of Union Bank of India, Axis Bank are a few more places where you could purchase 24 karat gold coins in India.

However, most banks will not buy back any gold you have previously purchased from them. If you need to sell gold purchased at Indian Banks, it would only be possible at jewellery shops that buy gold.

Also, several banks may charge a premium fee to attach an assay certification to validate your gold purchase.

2. Buy Jewellery in India

indian bridal gold jewellery

indian wedding jewellery

Indian Wedding Jewellery and Indian Bridal Jewellery designs are receiving a lot of appreciation worldwide. Jewellery in Gold is an ideal way to buy Gold if investment is not the primary objective. Purchase of Gold Jewellery is very popular during Diwali, Wedding Season and auspicious days such as Dhanteras or Akshaya Tritiya. Most people purchase jewellery during these times for gifting, or self accumulation, or with a religious view as in Indian culture it is considered lucky to purchase gold at specific times such as Diwali, Dhanteras, and Akshaya Tritiya. There are many popular gold retialers across the country, including the new jewellery ventures by Reliance and Tata business groups. A visit to the India Internationa Jewellery fair in and other exhibitions like the Gem & Jewellery Indian International are also the ideal way to find a wide range of gold jewellery within your preferred style and budget.

However, when purchasing gold in jewellery from it is important to note that there is some loss in value through deduction of making charges and also varying quality among  jewellers.

3. Systematic Investment Plans in Gold in India

Several mutual funds, and other structured investment plans allow people to invest a fixed amount in Gold on a monthly basis. This helps keeping your monthly cash outflow low, at the same time you will average out the cost of your purchase. This is best for investors looking to buy gold on a long term basis and prefer to spread their purchases over time or do not want to invest a large amount in a single installment.
4. Gold Exchange Traded Funds in India

As discussed in an earlier post, Gold ETFs are exchange backed funds, and their units can be bought or sold on the local stock market such as Bombay Stock Exchange or National Stock Exchange. There is no physical delivery of gold in this type of investment. This is an ideal way of investing in gold in India for investors and speculators. However, to invest your funds into a Gold ETF, it is compulsory to have an online trading account an DEMAT with the NSE or BSE. Reliace, Kotak, Benchmark, UTI are some of the companies that offer Gold ETF investment opportunities.

5. Invest in Gold or Silver on the National Spot Exchange

Investors can also do gold day trading in India for investment in Gold or other commodities. The investment can be done in smaller units such as 1 gram of gold, to larger bulk lots. The gold or any commodity purchased on the National Spot Exchange is delivered into the DEMAT account. After that, if required by a customer, they can transfer their Gold stock from DEMAT to physical delivery if needed. More information on National Spot Exchange can be found here http://www.nationalspotexchange.com

Whichever type of invesment you select, it is important to invest after reasonable research in Gold prices and a clear outline of your expected objectives from your Gold Investment.

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Gold India Price Touches Record Highs of Rupees 25,180 per 10 grams

Posted on August 8, 2011 by goldblog

The Gold India Price of futures has peaked to Rupees 25,180 per 10 grams on Monday.

This is an ideal opportunity for early traders and speculators to book profits in their gold investments, and probably look at taking fresh positions at dips during the coming weeks.

Excessive fear of global double dip recession, which many are predicting could be potentially worse than 2008 is causing an extended rally in gold prices. The euro debt problem, and Standard & Poor’s rating downgrade has sent ripples of negative sentiment across financial heads and central banks of the G7 and European Central Bank during the weekend.

Such sudden spurts generally results in the physical demand for gold to become slower as consumers patiently wait for better stability in gold prices. In course of time, the price of gold will either stabilize, or the consumers will have to come to terms and accept the new gold prices.

Retail shopping of Gold is still expected to increase further as the Wedding Season, Diwali, and Dhanteras are yet to commence in India – the biggest consumer of Gold.

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How regular Gold India Price Reference can help in creating a Successful Gold Investment Strategy

Posted on August 8, 2011 by goldblog

If you are looking to earn a profit from your investment in gold, it is important to remain updated with the latest gold prices in India. Due to heavy speculation in gold during recent times, the price can vary greatly at any given time. Hence, all the best gold investors and gold traders keep a tab on the gold price regularly to understand market sentiment towards gold, and predict trends.

Having updated knowledge of the gold price in India, or in your home currency will ensure that you make informed decisions about your investments.

By now it is an established fact, when times are bad, gold will shine. Hence keeping your own knowledge about equity markets and stocks will also help you decide which a good time to buy or sell gold is. It is also advisable to follow tips or research from credible sources like successful investors and gold investment companies.

The reason gold is so popular among all markets globally is because no matter what happens to stocks or currencies, gold is has a foundation strong enough to hold its own price value. Historically, several cultures worldwide have used gold coins as a standard currency for centuries before the normal paper currency was introduced.

Regularly updating gold prices yourself is the best strategy to understand the gold price movement and decide if you are interested to speculate, invest short term, or take a long call on gold.

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Getting High on Gold

Posted on August 6, 2011 by goldblog

This yellow metal has been giving investors a very positive outlook for the future. Many investment experts on across top news channels and online financial portals are recommending  to accumulate more gold at dips. The high level of insecurity in international markets, low interest rate, and limited investment options are taking gold to new highs.

Research states that there is an anticipated demand of almost 500 tonne of gold annually in India. Even though the urban population has been investing through Gold Exchange Traded Funds in the local stock exchange, the rural population is still purchasing their primary gold stock in its original physical form.

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Happy Birthday India, how Gold are you today?

Posted on August 6, 2011 by goldblog

Nearing Independence day celebrations, India’s gold reserves are glittering at an all time high of $25,349 million. Gold has added sheen to India’s reserves.

The Reserve Bank of India has granted seven additional licenses to banks for importing gold, which has further purshed up the demand. The recent gold rush has got everyone hooked on to the yellow luster - from Indian government’s own reserves, to mutual funds, private investors, non-investors, traders, old people, young people, married people, and maybe even kids . Gold is turning into a global phenomenon.

Considering that India being the largest gold consumers in the world are further increasing their gold imports by significant levels, it may be well worth noting it that down especially if you have been looking to invest in gold lately.

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Gold Rate India Fast Loading Chart Rupees Per Gram

Posted on August 5, 2011 by goldblog

For checking your gold rates on the go, visit the Gold India Price Lite fast loading page on http://www.goldindiaprice.com/mobile/index.html

Get gold prices and rates in rupees refreshed live.

 

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Investing in Indian Gold ETF (Exchange Traded Funds)

Posted on August 4, 2011 by goldblog

ETF – An Exchange Traded Fund is one of the simplest and easiest ways to invest in gold. For the same reason they have taken in billions over the recent years when investors became bullish on increasing their exposure to Gold.

An ETF is a mutual fund that is traded on the stock exchange, like almost any other stock. In the case of Gold ETFs, most of the money in the ETF are invested into certified physical Gold. The buying and selling of Gold ETF units can be done on the stock exchange where it is listed. Investing through an ETF allows the investor to speculate, buy, or sell for long/short term very easily without the hassles of physical delivery. This offers a great level of convenience to the investor, along with options to leverage like any other investment in the BSE and NSE.

The price of 1 unit of a Gold ETF is usually equivalent to approximately one grame of gold in rupees, less the funds expenses which can range from 1% to 3% depending on the fund.

A List of some of the Indian Gold Exchange Traded Funds:

  • SBI Gold ETF
  • Gold Benchmark GOLD BEES ETF – The most popular Indian ETF
  • UTI Gold ETF
  • Kotak Gold ETF
  • Reliance Gold ETF
  • Quantum Gold ETF

Companies like Muthoot Finance also offer loans against ETF units, just as they do with physical gold.

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All that Glitters is Gold!

Posted on August 4, 2011 by goldblog

Gold is truly shining of late. Lack of confidence in markets, combined with global uncertainty has given way for this precious metal to further provGold Barse its mettle indeed.

Although the US debt crisis found itself some relief (for now), investors are heavily banking on gold to hedge them from future political and economical crisis. With India being one of the largest buyers of bullion, many experts estimate the price of gold to soar higher over the next few months with the oncoming wedding season, and Diwali Festives.

In just a short span of less than 30 days Gold has rallied from a range of Rupees 2150 a gram,  to nearly Rupees 2350 a gram. High speculations in current markets, along with a favored hedge against anticipated financial crisis across United States and Europe have been a catalyst to the increasing price of Gold. Confidence in buying gold has strongly risen due to rewarding returns the last few years.

Will gold continue to soar higher this year? Will it cross USD 2000 an ounce barrier before December 2011? Only time will tell. For now Gold is anything but old.

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