Hi,

I have read a lot of advantages of buying GOLD via GOLD ETF's however I have few queries.

1. If I buy an GOLD ETF then will I be able to convert it into physical GOLD . IF yes then will I get 100% pure physical GOLD?.

2. Which are the best GOLD ETF's in the market. I was recommended to buy BENCHMARK GOLD EXCHANGE TRADED or UTI GOLD ETF ..Can anyone pls throw some light which one is better.

I apologize if I have asked silly queries but any response will be very helpful.

Thanks
Stockinvestor

There are threads in this forum with more details. Just search for "gold" and you'll find them.

But, yes, I like the GOLDBEES of Benchmark although there should not be too much to separate the various gold ETFs.

No, you cannot exchange your ETF for real gold. You can cash out at the prevailing rate and buy real gold whenever you like.

In case of Gold ETF from Quantum, one can take physical delivery of Gold in multiple of Kgs.

how many of us has plans to buy Gold in kgs.......?

I think none of the ETF's allows retail investors to convert their units to gold.

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Hello experts,

Are gold etfs generally safe ? By definition as I understand, they just fluctuate according to gold value in the market.

There are kotak, reliance, sbi, quantum, etc that give gold ETF. Since the gold ETFs depend on the value of gold in the market, I presume it doesn't matter in choosing the etf i.e. kotak or quantum doesn't matter here. At the end of the day all are going to give results based on the value of gold in the market

Is it right ?

Thanks,

if the gold etf is investing most of its corpus into pure gold, its returns would be more or less the same as that given by gold.

the returns given by gold etf's are almost same over the last one year:

http://new.valueresearchonline.com/f...1&objective=36

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Because of festive season and then marriage season, demand of gold may increase in next 2-3 months. Is it a good time to buy gold ETF?

gold prices are determined by global supply and demand and exchange rates.

Indian demand is a factor in determining gold prices, but it cannot move gold prices on its own.

buy gold (or gold ETF's) only if you have a long-term bullish view on gold.

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can anyone mention the exact NSE codes of Gold ETFs?

What is the difference among Kotak, reliance, sbi, quantum ETFs?

thanks

You can find the NSE Codes http://nseindia.com/content/products/prod_etfs7.htm

and why the prices different on each ETF .. even gold price is always same in $$$ every day?

Quantum is almost half price then other because there unit is approx 1/2 gm gold. Whereas KotakGold is approx 1 gm gold. Reliance is cheaper than Kotak, whereas SBI is costlier. No idea, why?

It depends on how well the funds are managed and also on demand and supply for such funds.

Some funds don't invest all their corpus in gold, but keep a small quantity in cash instruments.

Thus, the NAV's of all ETF's are not same.

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Is STT charged on ETF. I purchased 10 units of KotakGold on Friday through kotak securities. They have charged STT for the same.

As per my understanding STT should not be charged on ETF.

Yes, I think gold ETF's are not subject to STT.

You should write to Kotak Securities about it.

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Alchemist, many of the questions being asked here have already been answered by you elsewhere.

I feel it would be more helpful if all the gold ETF posts were in one thread (but it will mean work, work, & more work for you ).

I checked with Kotak and they informed me STT is applicable on Gold ETF.

But as per this article, STT is not applicable on Gold ETF.

http://www.financialexpress.com/news...to-stt/235887/

Not sure who is correct?

whom did you talk to?

send him the link to this article from Kotak Mutual Fund's site:

As far as I know, STT is only for:

-equities.
-equity funds.
-equity based derivatives.

http://www.kotakmutual.com/kmw/newsr...T_16022009.pdf

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