1. Readers may have seen my earlier post regarding gold…here also, I reiterate…Gold should not be bought for investment at all. It should be purchased as an insurance of the purchasing power of your savings.
    Having said that, the next question to answer is what type of gold? To the non layman, the answer is obvious…99.9% pure physical bars and coins ONLY! Any other form and you are merely speculating. Gold ETFs, Gold Mutual Funds, Gold deposits, Gold futures…all come under the single umbrella of speculation of gold “prices”.
    Buy upto 10% of your savings (not income) in pure physical gold, and stash it inside a Safe Deposit locker.
    Only thing that I hope is that the government in our country is not that mad to institute a general attachment of all Bank Safe Deposit Lockers. This was done in the US in 1933 by F D Roosevelt. I think of it as a colossal shame and betrayal of hardworking American citizens at that time (and of course, every american SINCE THEN as well). Indian govt of course, never gave us that trust…having paper money since independence, so its unlikely to seal bank lockers to take away our gold.

  2. http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=10439:dont-store-bullion-with-bank-of-nova-scotia&catid=46:canadian-commentary&Itemid=134

    Your views on this please. A quote from the above link:

    “During the recent CFTC hearings, Christian blurted out that “the gold market was a hundred times the size” of the actual amount of “physical” bullion held by the (so-called) “bullion banks”. While I have long alleged that the banksters didn’t have sufficient bullion to cover their gigantic “short” positions and their equally gigantic “custodian agreements” with the fraudulent, “bullion-ETF’s” (most notably, GLD and SLV), the revelation that the banksters had leveraged their real bullion by (at least) 100:1 was a shock to everyone.”

    This article is about Bank of Nova Scotia. As per information I checked in 2010. BNS used to store Bullion on behalf of Gold ETFs in India as well.

    LuckyOye has already weighed in…
    Subra, your views please?

  3. the MF global should be warning sign of thngs to come.custodians,stock exchanges,regulators -none of them are 100% safe.
    in the case of MF global,it is bizzare how COMEX allowed all that.imagine,NSDL telling you that the shares in your demat are now all gone.it is not that outlandish a scenario in a financial catastrophe. i’ll agree with luckyoye -physical gold alone is a good insurance against catastrophe.

  4. I understand MF Global was legally allowed to utilize client assets as margin. It was more a legal loop hole or weakness.

  5. and i think keeping gold in physical gold is inexpensive compared to etf and mf gold where the expense ratio in india is @1%. it will eat away gold itself @1% p.a. as gold being non income asset.

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