Wednesday 3 June 2015

A Comment on Conversion of Gold ETFs and MFs into Gold monetisation Schemes

My Comment on an article "Gold monetisation scheme: Is it time to swap Gold ETFs for Gold Deposits?" published in the economictimes.com Dated 02/06/2015 at 4:50 pm.


"This can be a good scheme for investors if only the banks can accept the ETFs as it is. 
If investor is required to first convert the ETF (Exchange Traded Fund) documents into physical gold and then only can invest into Gold Deposits scheme, where is the benefit? 

The conversion charges are about 2 to 3 per cent. So, extra interest earned through physical Gold Deposits is already spent on conversion charges and the person may even be a loser of some more money as interest earned can be lesser than already spent by him towards conversion charge."

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