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Mutual Power


Mutual Power

Gold Traded Mutual Funds

“Gold is a wonderful thing! Whoever possesses it is lord of all he

Wants. By means of gold one can even get souls into Paradise.”

Columbus, letter from Jamaica, 1503

 

Gold is one of the good investment avenues open for many reasons.

 

Why one should invest in gold?

 

The uncertainty in world markets, particularly the US economy and the weakening of US Dollar against world currencies coupled with phenomenal rise in Oil prices, cascading price rise and inflationary trends – all these point to the need for strong world currency and that is the yellow metal- “” THE GOLD””. The Bullion has its own Standard. Besides, Gold is said to have sentimental values particularly in the Asian countries. Over time, Gold has proved to be an excellent preserver of wealth.

 

Gold has maintained its value in terms of real purchasing power in the very long run in all the countries especially in the US, Britain, France, Germany and Japan. Despite price fluctuations, gold has consistently retained its historic purchasing power parity with other commodities and intermediate products.

 

Gold traded mutual funds are the answer for people who want to invest in gold without the real difficulties of gold holding. For example, to buy gold for investment, one has to spend time to verify its weight, purity (particularly in third world countries) quality & other aspects. After all these, the problem of safe- keeping hovers over one’s head. Now Gold Traded Mutual Funds offer all the benefits of investment in gold without any of the above physical difficulties. Gold’s liquidity, acceptability and portability are particularly important in times of need. In essence, all these benefits are retained & rendered by Gold Traded Mutual Funds.

 

How these Gold Traded Mutual Funds operate?

 

They accept funds from public and buy 100% pure assayed gold. They issue unit certificate to the public for each gram of gold invested by them. For example, if one wants to buy 100 gram of gold, one has to buy 100 units from the Mutual Fund. The price of each unit depends on the price of gold ruling on any given day.

 

This investment can be kept in paper or in a demat account. These units can be surrendered to the fund and gold bars can be obtained in return (if required).

 

How the Fund repays in gold bars?

 

All the gold bought by the Fund is deposited with a custodian- usually a reputed banker- for safe keeping in their safe vaults. Once the fund units are surrendered, the Fund authorizes the banker/ custodian to release the gold bars.

 

So this helps the investor to get back gold or retain the deposit in gold (investor’s choice). Since these gold units are traded in the market, anybody can sell these units easily in the market at the price prevailing on that day. One need not search for a buyer as in the case of selling physical gold.

 

Gold Traded Mutual Fund offers all the benefits of investment in gold without its physical difficulties. The major advantages of these funds are:

· Safety

· Liquidity

· Convertibility to physical gold

 

This is one area that an investor can look forward to invest. However there are many more alternatives to invest. To know about investing in mutual funds visit Investing in Mutual Funds and to get an idea as to how mutual funds work visit Mutual Funds. Also visit Exchange Traded Funds to know about exchange traded funds

 

About the Author

Dilip Mohan, young & dynamic has had exposure divergent fields- from astronomy to wireless local loop. He has a flair for finance with an MBA degree in a reputed institute and paternal banking background. To check out his website click www.mutualfundforu.com To know about his other works visit Mutual Funds and Exchange Traded Funds

Why do countries/armies sometimes help in others' wars?

For example why did USA get involved in the Vietnam war. I want reasons other than mutual agreements, power increase, keeping trades, and army increase. Please help ASAP I need 2 more reasons and bibliography please!!! Thanks a lot.
Sorry, when I said mutual agreements I meant mutual defense agreements (military).

...Or you could do your homework.

Fear of the spread of certain forms of government (Fascism, communism (for Vietnam and Korea), whatever ticks us off.)

The other would probably be genocide and other crimes against humanity: especially Bosnia, Iraq, and many others.

Maybe you could get into why we have a defense agreement with Israel, but explaining it could be difficult.

Bibliography = Google it.

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Discover the power of Online trading + Demat account Invest in Gold Buy shares stock
Everyone knows about "China's Natural Resources fund," because similar mutual funds has come in India?

Everyone knows about "China Natural Resources," for similar investment funds has come from India's dependence on natural resources fund offer begins from 01/01/2008 and ending 31/01/2008 Natural in1 unit will invest oil and gas, coal, metal ores, steel and aluminum food and Agriculture, Mining They will not invest in infrastructure and energy, as energy dependence diversified mutual fund listed in 90 or idea from the standpoint of the stock market?

China NRF is a fund that will invest in natural resource companies in China alone, ie, mining, agriculture, metal, jewls, wind, etc. .... etc NRF reliancs 0-65% will invest in India and 0-35% in the rest of the world because the mining companies now are not doing well in India, compared with South Africa so they can invest their ....... It's a simple rule of supply and demand can not do natural resouce ,,,,,, so limited, but we need ,,,,,, demand is high so prices will go up .................... It is a good option to invest

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