In India, investment in gold is a sentiment because its usage is large in jewelry. According to reports, the total amount of gold in India is approximately about 22, tonnes, and it is increasing at a steady rate year to year. So many investors like to invest in gold because it recovers quickly and the performance is also good in difficult situations. Gold is a real metal it does not get destroyed or damage like other metals.
Gold has a long life, and it can be made as both currency and jewelry. And it is in short supply, so it has a demand in the market.
When the global markets come down, people start to move money to gold because it is a method to protect the investors from financial loss. If you are buying jewellery in Mumbai, you must stay away from gemstones or precious stones, as you might want to call them.
One of the biggest reasons for that is you do not know, how to value them. Valuations can range from the absurd to the ridiculous. When buying your goldsmith might sell it to you as the rarest bit on planet earth. However, when you find the true value, you would consider the same as ridiculous. This is why it is such a better proposition to buy just gold jewellery more than anything else. This way you are sure what you are buying.
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So, it is very important to be selective when you are buying gold, because you do not want to spend your hard earned money on things that would not fetch you value in the next few years. So, it is a good idea to buy and sell gold jewellery where you are certain on the prices of the precious metal. Gold rates in Mumbai are heading for strong resistance levels, as technical factors are just not conducive for the precious metal at the moment. Let us give an example. At Rs 28,, gold prices in Mumbai have breached their key resistance levels.
So, there is a scope for a downside. In fact, the prices of the metal are also above their day moving averages, which makes sense to sell it over the Rs 28, levels. There is a scope for further downside, if investors continue to sell into the metal. In any case to make money in gold, you need to buy cheap and sell at higher rates.
This is true for every asset class that one deals with. We suggest that you buy gold in Mumbai at around the Rs 27, levels, if you want to make some serious money in the precious metal. Otherwise you can just hold onto what you have already bought. It is extremely difficult to time the markets. So what you need to do when buying gold in Mumbai is to keep buying at those lower levels and average your cost. That is easier said then done though. So, the best way would be to keep buying at higher levels and sell at lower levels. The one interesting aspect about gold that every Mumbaikar needs to know is that there could be various factors that influence gold rates and this is the best part about gold.
Over a period of time, this would help and assist in taking an informed decision with regards to the gold rates in Mumbai. If you do not have technical expertise to understand gold price movement in Mumbai today you should seek professional advise, which will hold you in good stead. Also, you can study and day moving averages, which can help you get a rough idea on where prices are headed in the short to medium term.
Gold prices in Mumbai take into account various factors. At the moment we are witnessing tensions betweem the US and North Korea, which has pushed gold rates in Mumbai higher and could also keep them at elevated levels. Hence, it is important to keep an eye on geo political tensions. If you are looking to buy gold in Mumbai, the one option that you have is to buy in the futures market.
However, the problem in doing so is that you cannot hold the same for many years, as per your plan. What it means is in the futures market, it is very much necessary to square a transaction after the expiry of a contract. Say you purchased gold petal in the futures market for Feb delivery and the expiry is in March, because you purchased a march contract.
In such a case you have to square the purchases by selling the product by March. When you purchase gold in the normal parlance you do not have to worry about squaring-off as you can buy and hold. This does not happen with gold futures. You need to square off before the expiry of the contract. But, the advantage of buying gold through the gold futures market in India is that you can buy larger quantities as the broker charges you a margin, which is one big advantage of buying gold in the futures market.
If you have never tried there is no harm in venturing that way. However, it would be important to seek professional help, when taking or considering buying gold jewellery. Also, go for a depth in variety like gold bonds, gold ETFs, and other variety of gold. Make sure that you hold and maintain a long term view before you planning to sell the same. In the long term, the chances of making money is far greater than anytime else.
So, make sure that you are well prepared for the same. It is a good idea to buy and take physical delivery then invest in the futures market in India. In any case what we suggest is that you contact your broker, as he would inform you on the finer aspects of buying and selling gold in Mumbai. Above all do not forget to monitor the live gold rates in Mumbai.
Tips For Buying Gold
It is always a better idea to seek expert opinion, especially when one considers the futures markets, because of the huge risks that are involved with buying in these kinds of markets. Of all the metals that are mined from the Earth, gold is more useful and most precious metal. The metal has various unique properties, and hence it is used in different manufacturing sectors across the world. Gold is a perfect conductor of electricity.
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It can tarnish resistance; it can be drawn into wires, hammered into thin sheets, it is easy to work with, it can be alloyed with other metals for various purposes, it can be molded into different shapes, it has an excellent luster and has a beautiful color. Gold is used in electronics industry across the globe. The solid-state electronic devices apply low voltage and currents which can be quickly interrupted by corrosion at the point of contact.
Gold being a good conductor can easily carry low voltage currents and will remain free of corrosion. Any kind of electronic devices made of gold is highly reliable, and the durability is excellent. Gold is used in switches, soldered joints, connectors, relay contacts, connecting wires.
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A small portion of gold is used in electronic devices like global positioning system GPS , calculators, cell phones, television. Gold also finds usage in Computers for the accurate and rapid transmission of digital information. There are few things which you should consider before taking a loan and depending upon those aspects you can decide which loan will be suitable for you. The main thing that one must understand is for personal loan one will not need to give any collateral for securing the loan. When it comes to the gold loan, you will be getting a loan against the gold.
For a personal loan, you will be getting amount depending upon your banking history or credit history whereas for the gold you will be getting a loan depending upon the gold rate in Mumbai on that day and few other factors. For a gold loan, the interest rate will be a little low when compared with a personal loan.