An Empirical Study on Gold Investment Rage Among The Professionals

A COMPARATIVE ANALYSIS OF GOLD ETF, EGOLD AND GOLD FUNDS Jalpa Thakkar Assistant Professor, ASM’s IPS Sheenam Gogia Assistant Professor, ASM’s IPS Vatsala Manjunathan Assistant Professor, ASM’s IPS ABSTRACT Gold is the oldest precious metal and it has been valued as a global currency, a commodity, an investment and also a symbol of beauty. For centuries, gold has remained an auspicious gift, a heritage value, whether it's for a new born baby or for a newly married couple. Gold gets passed down generations and has proved to be a good investment over decades. India is world's largest consumer of gold. It is required is to address the larger

issue that is to encourage the substitution of gold purchases with alternate investment options available in the financial market which helps in increasing the productive capacity of the Indian economy. We in our study have tried to throw light on the different avenues of gold investment available in the market. We have also tried to find out the awareness and attitude towards the alternative methods of gold investments among the selected investors in the Pune region. The research highlights the need for encouraging investment in new gold alternatives. This will ensure that gold becomes tradable and generates revenue rather than lying idle as a dead investment. KEY WORDS: E-Gold, Gold ETF, Gold Funds, Gold Investment, Return and Risk. INTRODUCTION Investors across the world buy gold as an investment. The demand for gold has risen over the last few years. It is mainly safe and sound form of Investment from the point of view of large global investors who aim at protecting their investments in the current global economic uncertainty. A growing range of methods now allows investors to either buy gold, or simply gain exposure to gold price movements. From gold coins, online accounts, exchange traded funds and complex financial products, to mining stocks, the most appropriate gold investments will depend upon the investor’s specific requirements and outlook. (World Gold Council) WAYS OF INVESTING IN GOLD 1. Coins and bars INCON13-Fin-017 2 2. Futures and options 3. Gold Accumulation Plans (GAP) 4. Exchange Traded Funds (ETFs) 5. Gold funds 6. E- Gold 1. GOLD BARS For the serious and large scale investor, gold bars are a simple and efficient way to invest in gold. The larger bars are usually available at the lowest premiums over their intrinsic gold value; smaller bars tend to cost more. There is a trade-off however, in that larger bars are not as flexible when it comes to selling. If you own a kilo bar, and you wish to sell, say 100 grams, it's not easy to slice off one end of your bar. Your choice of buyer is also more restricted as you will need to sell to a larger dealer; it is unlikely that you will find a private buyer as most people are not familiar with gold bullion bars. GOLD COINS It is sensible to purchase one ounce gold bullion coins, guaranteed by a government Gold coins are mass produced; they are available...

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