Investing in Gold ThroughETF and Physical Gold

Presented By (26 TF):Sahina Laila

Sikandar

Pushpendra

Ravi

Ranjit

Why Should Invest in Gold

Much Better Option than Other Asset class.

Economically secure asset during time of Recession.

It counters the effect of inflation and currency fluctuation.

ICICI Prudential Gold Exchange Traded Fund World over, Gold is a subject of economic interest and

is viewed as an avenue for investments. But in India, it has a deeper significance as it appeals to a number of emotions, from a form of adornment to a status symbol. Through the years gold's appeal in India has evolved from an object of pure aesthetic value to a commodity which offers itself as an avenue for investment and wealth creation.

ICICI Prudential Gold Exchange Traded Fund, an open-ended exchange traded fund, aims to provide investment returns that, before expenses, closely track the performance of domestic prices of Gold derived from the LBMA AM fixing prices.

Investor ProfileThis fund is ideal for -Investors looking to diversify

from other asset classes like Equity, Debt & Real Estate.

Investors who already have physical gold holdings.

Key BenefitsIts cost is lower than buying, storing and

insuring physical gold.Gold can be bought and sold in small

quantities - as low as 1 unit (approximately equivalent to 1 gram of gold.

Unlike jewellery or coins or bars, ETF units can be liquidated easily to benefit from rise in price of gold.

Purity of gold purchased will be 99.50% or higher.

Investment PhilosophyThis fund is a passively managed open-ended

Exchange Traded fund, which invests in gold bullion and instruments with gold as underlying, so as to provide investment returns that, before expenses, closely track the performance of domestic prices of Gold derived from the LBMA AM fixing prices. The fund is not actively managed and it does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of gold.

Various ways to invest in Gold

Physical form :

Gold coins and Bars through Bank and Jewellery. Non physical Form:

Gold ETF through broker or authorised entity.

Gold ETF ( Gold Exchange Traded Fund )

Introduction:- Purchasing Gold in electronic form.

- Listed on BSE and NSE of India.

Objective :- To provide returns that, before expenses, closely corresponds to returns provided by domestic physical gold price.

Gold ETFContd............................

Features:1. Simple

- You can buy just 1 unit.

- Very easy to buy.

- Buy it unit by unit as you want and build wealth.

2. Safe

- Quality Assured.

- Demat holdings allows security.

3. Trusted- Accepted as collateral for Loans.

- Backed by physical gold.

Physical Gold ( Coins, Bars, Jewellery )

Introduction:- Purchasing Gold in physical form.

- Economically secured asset.

- Example : Investing in Gold coins, Bars and Jewellery.

Features:- Higher Liquidity.

- Purity Assurance.

- Better option for Savings.

- Greater Safety.

Difference Between

{ Gold ETF and Physical Gold }

Better Investment Option:

Gold ETF prices are available on NSE website and can be sold any time through broker. But gold coins or bars which Bank don't buy back.

Safer Option:

Gold ETF’s are more safer than Physical because they are in Demat form, so no need to worry about theft and also save locker charges.

Difference Between

{ Gold ETF and Physical Gold }

Cost of Buying:1. Gold ETF :

- No making charges as in Jewellery.

- Only brokerage cost.

- can be bought at same price wherever you live.

- No VAT.

2. Physical Gold :- Custody, insurance, wealth tax, VAT applicable.

- Bank charge premium for purity.

- Gold prices are vary from state to state.

Physical Gold: Better than ETFs 

Physical gold continues to hold value regardless of how the world’s leading currencies perform. It also negatively correlates with the strength of the U.S. dollar.

Exchange-Traded Funds (ETFs) perform based on gold market value, structured like an index fund but traded like a stock on an exchange.

GOLD Strengths

A physical holding with inherent value

Hedges against paper stocks volatility

Balances portfolio performance

Protects against bank failures

Private, with minimal reporting requirements

Great liquidity; considered a currency

Nominal spreads

Considerations

Must be physically held, stored and secured

Must be purchased from reputable vendor to ensure quality and security

ETFstrengthsEasy way to trade

on gold pricesCan be part of a

larger account for diversification purposes

Can buy and sell quickly

Good choice for short investment horizons

ConsiderationsHigher transaction

feesA paper stock; holds

no inherent valueNo protection against

market stock market volatility

Little accountability — custodianship of gold holdings not audited

High reporting requirements

Thank You.....!!!!!