Hi All,


The scenario :

A person in my neighborhood needs advice regarding buying gold for the purpose of his daughter's marriage. He wants to invest Rs 3 lakhs for this. Although the marraige is 12-15 months from now, but seeing this constant upsurge in gold prices, he wants to lock in money to ensure that he at least buys gold at current levels and not more than that. He has 3 lakhs cash available with him.

Option 1 >> Pay 3 lacs to jeweler and lockin 150 gms of gold at current prices.Although the money won't earn any interest for him, it will ensure safety from future price hikes.

Option 2 >> Buy ETF for 3 lacs in a phased manner and redeem before marraige. Major drawback is he has never operated a demat account, and is not familiar with ETFs or taxes etc arising from it.

Option 3>> Park the money in a short term FD and wait for a price correction to act on option 1 in a phased manner.


All fellow boarders, who track gold prices, kindly suggest what would be the best solution for this person.

If daughter and future son-in-law are smart, they should take ETF units or better equity MF units as gift.

how about parking the money in SILVER for that fixed period.

buy eight [kg] Biscuits and sleep for 15 months

That's a good idea to invest in silver. One of my friend bought 3 Kgs of silver biscuits in August at the price of 30.72/gram. Now the current price is 44.17/gram. This is my view. Please take the advice of others too. Thanks

All fellow boarders, who track gold prices, kindly suggest what would be the best solution for this person.[/quote]

Commodity prices are volatile. Your neighbour needs money next year. Don't time gold price, allow time to purchase in phased manner.

Parking cash for interest in Time Deposit of Bank & purchasing gold jewellery worth 25k / month over next 12 months could be good idea.

Even best analysts ever timed the market even half-the time!

man4urheart tracks gold on a regular basis.

Here is one of his last posts on his blog.

Decide accordingly.

Elliot Wave India: GOLD - Near climax?

This is not about gift, the money needs to be utilized to procure gold to be used in jewelery at the time of wedding. Only concern is protection from rising gold prices.


Silver has had a nice runup in the past few months. However, if silver prices tanks and gold price rises, it will defeat the purpose. Buying Gold ETF is a safer bet in this respect.


This is not about timing the market. This is about hedging against rising gold prices from a 12-15 months perspective.

Jewelery can't be purchased in a staggering manner as choice and design needs to be determined once only as per contemporary style and trend.

Option 1 is about parking the money with the jeweler to ensure that you get the same rates for gold while procuring the jewelery at a later date.

In fact option 3 mentions parking this money in a staggered manner.However I wanted to know what would be the best possible strategy in this case and why

Thanks for the link.

Would appreciate comments from man4urheart on this strategy.

From a correcting perspective Option 3 seems to be more suitable.

Hi All,

Please comment on the most efficient strategy to hedge against future gold price?

For the record, I will recommend doing a FD and buying Gold in market.

I am bearish on Gold for next 20 years, as that is when it will bottom out!

It has finished its bull cycle of 10 years!

Hi man please post the chart of last ten years of Gold, Silver.

Here you go, from man4urheart's blog, Gold - Game Over!

Old article:

Gold crosses Rs 20,700-level, silver breaches Rs 44,000-mark - Times Of India

Now silver crosses 66000 I think it's 50% return in 5 months.

Silver is rally like anything.

Exactly a year back, Silver was trading at $17.50 per ounce. Today it is trading at $42.80 per ounce. That's 145% appreciation in one year.

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