Hi
As more Questions were raised about GoldMoney It was nice to see this Interview published overnight with the Founder of GoldMoney Josh Crumb [linked at bottom] that explains a lot about GOLD as a investment or Currency. A very interesting interview that is 52 mins. Deep insights into the Gold Market if you are looking at being more educated about what are the drivers of the Precious Metal
value.
If you decide to open an account use the Link above, and you can set up a recurring deposit to save Gold regularly.
Someone on Twitter asked me that the lower price they are offering would go away if you ask for delivery of Gold, because of Import duties. Frankly if you are seriously Saving money in Gold and putting it away you do not want to keep Gold Bars at home. Recently a Relative of mine had the same question because it is not safe. Sure you can have insurance. Next some people will put it in a Bank but that too is not legal. Meaning that the Banks say that you are not supposed to
store gold in their safe deposits and they do not insure it. So you do not want to Hold Physical gold you only want someone to hold it in a Vault outside the banking system, and be able to Redeem it whenever you need your money instantly. All that without the Big 5% spreads that the Gold Jewellers and Currency dealers will Charge you for Buying and Selling. The closest good alternate way is to buy a MCX Receipt for Gold or Silver and pay a Warehousing cost of 2% per annum or Buy the Gold Bonds
from the Government that pays you 2% per annum to buy it and No Tax if you hold to Maturity. But those are one time investments. Here it is simply you can do a recurring account and withdraw to your bank account anytime with no warehousing cost, at near above 0.5% transaction cost. There is no minimum investment limit so you can try it out with peanuts and see that it meets your expectations as well.
I have been actively covering this subject because I meet small investors everyday many of whom are not comfortable with futures market [naturally], roll over requirements that you have to remember etc., and some who do not know how to buy and hold dollars. Here
you get a bit of both. However let me highlight that since Govt imposed duties on Gold imports almost 2 years ago, Gold MCX rates have been at a discount during rollovers. That means that as a futures buyer of Gold I am being paid anywhere between 0.5-2% every month to simply roll over the contract. No body is sure why the gold futures market is paying you to buy but it is. The discount was as high as 700 Rupees at times over a year ago but not today it is at 60 rupees, or 0.2%. And it might not
stay that way forever, eventually we should see a premium during a bull market. Usually if a discount occurs in equity markets it would mean that People at large are short and paying the Bulls to rollover. So any rally amounts to a Short squeeze. I may then say that the last year and a half has seen shorts slowly squeezed out of the Gold markets but not fully yet.
Onto the Interview Link Below: Enjoy
