Investing Tips for Gold, Silver, Copper, Platinum and Zinc
3. Issues that retail investors face while investing in commodities
Though popular metals like gold and silver are easily available at your nearby jewelers and banks too provide gold coins, but at times selling them back becomes a big issue. Banks do sell gold but doesn’t buy it back, and jewelers provide at least 5 to 10 percent less prices than the current market price.
Instead of going through all this trouble, you have option of investing in gold ETF. Gold ETF is a mutual fund that tracks down the price of gold for you. But one should keep in mind that different gold ETFs provide different prices depending on their own amount of investment in gold.
4. Trading in commodity futures is not investing
Investing in precious metals like silver, platinum and base metals like zinc, copper, nickel and lead etc doesn’t have easy ways of investing. Therefore often your investment advisors may suggest you to go for open commodity futures trading accounts at commodity exchanges like MCX and NCDEX. But the profit and loss account of commodity futures trading in these exchanges need to be adjusted at the end of each trading day. Therefore if your trade goes wrong, you end up paying more margin at the end of the day.
