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This Akshaya Tritiya, be biased with sovereign gold bonds
Posted on: 28/Apr/2017 3:28:12 PM
You would have incurred a loss of 3.5 percent on 26th April if you had stepped into a gold store for Akshaya Tritiya last year, because it is auspicious to buy the yellow metal then.
However, experts in the market are confident about buying gold. In spite of hike in interest rate by the Federal Reserve, there is going to be negative real estate rates. At the same time, due to rise in populism in Europe, the investors will continue showing interest in buying gold.
It is a good opportunity to buy gold, as there is drop in price, said Chirag Sheth, a research consultant, South Asia, Metals Focus.
There has been constant and consistent buying interest on gold on this auspicious day. In the past few years, about 15 to 25 tonnes of gold was purchased on Akshaya Tritiya. During last year, Indians bought about 17 tonnes of gold. Considering the current market rates, this will count to Rs 5000 crore. Experts believe there will be increased demand for gold this year.
Which gold form is ideal to purchase?
Ideas for long term investors
There are sovereign gold bonds available in electronic format. You can redeem it during maturity. And this form of investment is tax free.
Regular investors
There are Gold fund of funds. This is also available in electronic formats. For marginal tax rate that are held for lesser than 3 years, it is taxable. If it is for beyond 3 years, the tax is for 20 percent along with indexation.
Physical buyers
There are coins available in the market. We have offline sellers as banks and jewelers. When you purchase online, you need to make a comparison of prices and verify if the seller is refiner or jeweler. You need to make sure that you buy from BIS certified refiner. Checking gold purity is also important.
