Comments on: Saving and Investing into Gold-Series 3-How to Invest into Anything? http://www.anilselarka.com/2009/08/16/saving-and-investing-into-gold-series-3-how-to-invest-into-anything/ Radical Solutions Sat, 20 Mar 2010 06:13:53 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: Raj Sharma http://www.anilselarka.com/2009/08/16/saving-and-investing-into-gold-series-3-how-to-invest-into-anything/comment-page-1/#comment-7459 Raj Sharma Fri, 21 Aug 2009 09:07:27 +0000 http://www.anilselarka.com/?p=834#comment-7459 Kalidas ji, my strategy is to invest in both forms of gold, physical gold and gold ETF. As both of them have their own pros and cons. Please advice how I should balance my investment in both forms. For example - The percentage of investment I should put in physical form as compare to ETF. Raj New Delhi <Strong>Kalidas Says .... Monday, August 24, 2009 </strong> If you want to make it as an investment, not savings, choose Gold ETF more than physical gold because of the difficulty in buying and storing gold in Bar or lagdi form in India. However, make sure that Gold ETF you are going to buy is of highest rating. You may have to study their initial prospectus or visit their website to know more about they way they invest in gold and store them. Also, if Gold ETF may trade at premium or discount to spot gold prices. Do not pay too high premium to spot in buying such ETF. Mostly they trade flat or at some nominal discount to the spot prices. Make your ratio 60% for ETF and 40% for physical gold provided you are sure of the quality of the gold bar bought physically. If you are buying form well established source, nothing to worry. Also, buy them against bill, even if you have to pay 2% more towards taxes. Kalidas ji, my strategy is to invest in both forms of gold, physical gold and gold ETF. As both of them have their own pros and cons. Please advice how I should balance my investment in both forms. For example – The percentage of investment I should put in physical form as compare to ETF.
Raj
New Delhi

Kalidas Says …. Monday, August 24, 2009
If you want to make it as an investment, not savings, choose Gold ETF more than physical gold because of the difficulty in buying and storing gold in Bar or lagdi form in India.

However, make sure that Gold ETF you are going to buy is of highest rating. You may have to study their initial prospectus or visit their website to know more about they way they invest in gold and store them.

Also, if Gold ETF may trade at premium or discount to spot gold prices. Do not pay too high premium to spot in buying such ETF. Mostly they trade flat or at some nominal discount to the spot prices.

Make your ratio 60% for ETF and 40% for physical gold provided you are sure of the quality of the gold bar bought physically. If you are buying form well established source, nothing to worry. Also, buy them against bill, even if you have to pay 2% more towards taxes.

]]> By: Prakash http://www.anilselarka.com/2009/08/16/saving-and-investing-into-gold-series-3-how-to-invest-into-anything/comment-page-1/#comment-7457 Prakash Fri, 21 Aug 2009 07:19:04 +0000 http://www.anilselarka.com/?p=834#comment-7457 Dear Sir, I was trying to evaluate http://bullionvault.com/ vs. http://goldmoney.com/index.html. Specifically in terms of safety. Did you have a chance to look at bullionvault as an option? I would not like to commit myself, without hearing your views. Looking forward to a quick reply. Kind Regards, Prakash <Strong>Kalidas Says .... Monday, August 24, 2009 </strong> Both are equally good. It looks like bullionvault need larger investment, whereas Goldmoney needs relatively small. Both are reputed one. I have seen more coverage for Goldmoney than Bullionvault which is also recipient of Queen's award or recognition. If you are based in UK, go for Bullionvault. If you are based elsewhere, choose Goldmoney. Splitting money between two is also sensible. After real time experience, you may allocate more or less in each entity. Dear Sir,

I was trying to evaluate http://bullionvault.com/ vs.
http://goldmoney.com/index.html.

Specifically in terms of safety. Did you have a chance to look at bullionvault as an option?

I would not like to commit myself, without hearing your views.

Looking forward to a quick reply.

Kind Regards,
Prakash

Kalidas Says …. Monday, August 24, 2009
Both are equally good. It looks like bullionvault need larger investment, whereas Goldmoney needs relatively small. Both are reputed one. I have seen more coverage for Goldmoney than Bullionvault which is also recipient of Queen’s award or recognition.

If you are based in UK, go for Bullionvault. If you are based elsewhere, choose Goldmoney. Splitting money between two is also sensible. After real time experience, you may allocate more or less in each entity.

]]> By: Vijay http://www.anilselarka.com/2009/08/16/saving-and-investing-into-gold-series-3-how-to-invest-into-anything/comment-page-1/#comment-7448 Vijay Thu, 20 Aug 2009 11:33:07 +0000 http://www.anilselarka.com/?p=834#comment-7448 Dear Kalidasji I must compliment you on the present series on 'How to Invest into Anything'-all about Investments and Investing. Your style of presentation is lucid,simple and direct-the contents are down to earth and the timing immaculate (most relevant at this time of melt down) I must say your site is emerging as a single point of reference for all investment related matters, and could help shape the portfolios of scores of people.Personally it is becoming habit forming for me.Please keep the knowledge flowing uninterrupted. Vijay PS: Incidentally,every reading of your book "Sub Prime Resolved' appears to give a new insight.Great work! Dear Kalidasji
I must compliment you on the present series on ‘How to Invest into Anything’-all about Investments and Investing. Your style of presentation is lucid,simple and direct-the contents are down to earth and the timing immaculate (most relevant at this time of melt down) I must say your site is emerging as a single point of reference for all investment related matters, and could help shape the portfolios of scores of people.Personally it is becoming habit forming for me.Please keep the knowledge flowing uninterrupted.
Vijay
PS: Incidentally,every reading of your book “Sub Prime Resolved’ appears to give a new insight.Great work!

]]> By: Nitin Pillai http://www.anilselarka.com/2009/08/16/saving-and-investing-into-gold-series-3-how-to-invest-into-anything/comment-page-1/#comment-7411 Nitin Pillai Mon, 17 Aug 2009 13:33:58 +0000 http://www.anilselarka.com/?p=834#comment-7411 Hello Kalidasji, I went through APMEX, just wanted to understand the jargon's here, below is their list of some product ================== (1 oz) .9999+ Fine Gold Bar - Pamp Suisse As low as $21.95 over spot! Only $9.99 over melt value ================== What does over spot and melt value means ? what should we be looking for ? Thanks Nitin Washington DC USA <Strong>Kalidas Says .... Monday, August 17, 2009 </strong> I do not think you have correctly quoted. May be partly quoted. The term "Over the Spot" usually refers to Gold Bars (0.9999 purity). If Gold is Spot Priced at US$ 932 PTO (Per Troy Ounce), the retail price = Spot Price /troy ounce + $ x (where X is the margin for the trader for making raw gold into gold bars). In the example you have quoted, Retail Gold Price = $ 932 (Current Gold price/Ounce) + $ 21.95 (about 2.35%) = $ 953.95 per troy ounce. Please note that Troy Ounce is different from normal ounce used in normal measurement. 1 Troy Ounce = 31.1035 grams (rounded to 4 decimals) 1 Ounce = 1/16th of pound or about 28.3495 grams (upto 4 decimals) MELT VALUE is usually referred to Gold Coins or Medals or Medallions or Gold Bars having less than 0.9999 purity. The coins usually have higher weight due to mixing of two or more metals viz Gold + Copper for coins to be used in circulation. Pure 24K gold coin will deform easily, due to soft metal structure. If Copper is added (such as in ornaments), it will impart more strength to permit wide circulation without getting deformed. Thus, a coin may actually weigh more than 1 ounce (such as Kruggrand) but its melt value will be determined with reference to gold content. Read the following: 1907-1933 Saint Gaudens Double Eagle Denomination : $20.00 U.S. Dollars Designer : Agustus Saint-Gaudens Diameter : 34.0 mm (1.339 inches) Edge :Lettered Composition : 90% Gold, 10% Copper Gold Weight : 0.96750 Troy Ounce Total Weight :33.44 grams Although it was $ 20 Coin, its Melt Value = Gold Weight x Current Gold price per ounce <a href="http://www.goldbarsworldwide.com/index.html" rel="nofollow"> GOLDBARS WORLDWIDE</a> is an excellent website that describes every form of gold bars in the world. Hello Kalidasji,

I went through APMEX, just wanted to understand the jargon’s here, below is their list of some product
==================
(1 oz) .9999+ Fine Gold Bar – Pamp Suisse
As low as $21.95 over spot!
Only $9.99 over melt value
==================

What does over spot and melt value means ? what should we be looking for ?

Thanks
Nitin
Washington DC USA

Kalidas Says …. Monday, August 17, 2009
I do not think you have correctly quoted. May be partly quoted.

The term “Over the Spot” usually refers to Gold Bars (0.9999 purity). If Gold is Spot Priced at US$ 932 PTO (Per Troy Ounce),

the retail price = Spot Price /troy ounce + $ x (where X is the margin for the trader for making raw gold into gold bars). In the example you have quoted,
Retail Gold Price = $ 932 (Current Gold price/Ounce) + $ 21.95 (about 2.35%) = $ 953.95 per troy ounce.

Please note that Troy Ounce is different from normal ounce used in normal measurement.

1 Troy Ounce = 31.1035 grams (rounded to 4 decimals)
1 Ounce = 1/16th of pound or about 28.3495 grams (upto 4 decimals)

MELT VALUE is usually referred to Gold Coins or Medals or Medallions or Gold Bars having less than 0.9999 purity. The coins usually have higher weight due to mixing of two or more metals viz Gold + Copper for coins to be used in circulation. Pure 24K gold coin will deform easily, due to soft metal structure. If Copper is added (such as in ornaments), it will impart more strength to permit wide circulation without getting deformed.

Thus, a coin may actually weigh more than 1 ounce (such as Kruggrand) but its melt value will be determined with reference to gold content.

Read the following:
1907-1933 Saint Gaudens Double Eagle
Denomination :

$20.00 U.S. Dollars Designer : Agustus Saint-Gaudens
Diameter : 34.0 mm (1.339 inches)
Edge :Lettered

Composition : 90% Gold, 10% Copper
Gold Weight : 0.96750 Troy Ounce
Total Weight :33.44 grams

Although it was $ 20 Coin, its Melt Value = Gold Weight x Current Gold price per ounce

GOLDBARS WORLDWIDE is an excellent website that describes every form of gold bars in the world.

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