Gold is touching all-time highs. I wish to invest in it for my daughter for 4-5 years. Is it a good time? Or, should I wait? Either way, what level should I buy?
If the economic crisis persists, gold could go higher. However, if it abates, then prices will moderate. It is difficult to predict price movement. Start a systematic investment plan in gold by investing a fixed sum monthly, so that over five years you get the benefit of rupee cost averaging.
My broker advised investing in commodities via e-investment. Would you endorse it? Which commodities should I go for? Are their other ways of trading in these?
There are many ways to trade commodities. You can buy the physical metal from the bank or the goldsmith. You can buy futures on commodity exchanges, or buy gold via exchange-traded funds or via commodity exchanges (and receive commodities in electronically). As for the broker's suggestion, consider investing a fixed sum monthly in commodities electronically.
There are several non-convertible debenture (NCD) issues. Are these safe? I have a surplus of Rs 2.5 lakh. I don't need it immediately and can lock it for two years. What do you suggest?
The safety of these instruments can be gauged by the credit rating assigned to these by various rating agencies. You have to take a call whether you are comfortable with the ratings assigned and whether the NCDs are available for the period you want to invest.
The writer is director, Touchstone Wealth. The views expressed are his own. Send your queries to yourmoney@bsmail.in
