I dont understand this article.. Does this mean that we just purchase some gold and keep it in some bank locker or something and after a substantial amount of time, sell it at a better value, which may be comparable to MFs or such investments and more than anything else, lesser risky? But do we not have to consider the fact that second hand gold(Gold owned by individuals) have lesser value than the market price? We also have to consider the fact that even reputed Jewellers may cheat in the purity of Gold, the charges of keeping the Gold etc... Another significant factor affecting Gold prices is that other forms of showiness: Pearl and Diamonds are gaining market, so Gold has to suffer ultimately. Last thing is, Tertiary articles like Gold will have market only when the economy is good, if we have to go on a subsistence basis, the demand for tertiary articles will lower, so prices would come down
RE:Gold prices down
by Mohammed on Apr 03, 2007 11:39 AM Permalink
My frend me also confused with this article. What i understand is when you buy gold coin the price will increase and as you said if we buy jewellery the price what the jwellerer gives you is very low and when you buy its very high and he is deducting the making charges as well. So what i understand is investin in gold coin is okay and we will get 10- 12 % return on that after one year or so because the grammage is marked on the coin. So be carefull
