gold Silver
If you are thinking of investing in gold or silver in the coming time, then it is important to understand in which form of investment will be beneficial. Jewellery, Coin, Bar or ETF (Exchange Traded Fund). On top of this, our expert Ajay Kedia, founder of Kedia Capital, is telling you in detail what would be the better option for you to buy gold and silver for investment and use amidst the falling prices of gold and silver.
If buying for use
If there is a wedding or any big function in your house in the coming 2-3 years, then it would be better to buy gold in the form of jewelery now. By doing this you can avoid the expense of increasing making charges and design changes in the future. However, the disadvantage of investing in jewelery is that the making charge is not refunded when it is sold, which reduces the return on the actual investment.
If buying for investment
If you want gold or silver only for investment and do not need immediate use, then it would be wise to buy coins or bars. The making charges on these are low and they can be easily sold or exchanged if needed. Apart from this, investing in Gold ETFs or Sovereign Gold Bonds is also a better option, because there is neither the problem of storage nor the loss of making charges.
Government’s step towards increasing transparency
The Government of India has recently implemented the HSN code and HUID system, which has made source tracking of gold and silver jewelery easier. It is now possible to identify every jewelery item through HUID (Hallmark Unique Identification). That means you will know where it is made and how pure it is. This has increased both transparency and trust in the market.
Apart from this, currently 3% GST is applicable on gold, which comes in the tax category decided by the government. Experts believe that if this tax is reduced slightly in the future, gold purchasing may increase further.
Keep an eye on gold and silver prices
According to Ajay Kedia, a decline of about 8-8.5% has been seen in gold recently. A further decline of 10-12% is possible in the coming time. According to previous data, if gold comes around ₹ 1,24,000, then it could be a good buying opportunity. At the same time, there is a possibility of a fall of up to Rs 40,000 per kg in silver. In such a situation, if investors remain patient, they may get a chance to buy at a better price in the coming months.