Gold Wealth Creator: For centuries gold has been considered as a symbol of wealth, security and prosperity. Gold is bought at all occasions whether be it birthday or marriage or festivals. It is considered one of safest forms of storing wealth Gold Investment is considered as a safe heaven investment in troubled times and is one of the most preferred investment avenues.
Why Invest in Gold:
- Safe Heaven :Gold is considered one of the most pure safe and secure form of storing wealth. In fact gold can also be used as collateral for loans or sold to sail through uncertain times.
- Considered Asset Class: Gold as an Investment asset has given positive returns (in USD) for each calendar year during last decade outpacing most of the asset classes.
- Hedge against other asset class: Gold as an asset class has low correlation with other asset classes like equity or bonds. It also has low correlation with economic down turn and in volatile times and is a good hedge against inflation. Gold has emerged as an important asset class and most investment advisors recommend that at least 10 percent of the investment portfolio should be held in form of gold.
- Diversification: It is easy to diversify and hold in non physical form.
How Emirates NBD Securities (ENBDS) can help you diversify into gold
ENBDS can help you diversify into Gold portfolio by following methods:
Gold Futures: For short term investment objective ENBDS can help you buy gold futures which can be done with low margins. A gold contract worth 32oz of gold valued at approx USD 59,000.00 can be bought at low margin of USD 3,000.00 approximately. This is useful for traders who can either buy the future contract if they expect the price to go up or sell the contract if they expect the gold prices to move down.
Gold Security : Gold Security is a effective and economical way of holding gold in non physical form. Each is gold security is like share of gold and amount to 1/10th of Troy Ounce or equivalent of 3.11 gms approximately. An Investor can hold the same for a long time and accumulate gold at various prices so as to build a gold portfolio. The GS is listed in NASDAQ Dubai and is a shariah compliant product. The product carries a management fee of 0.4 percent per annum which is recovered on a daily basis. The buying and selling quotes are available at all times with minimum spread. Each DGS is backed in the form of certified 400-ounce gold bars (London Good Delivery bars) and are held in vaults of HSBC Bank (London Branch). It is not possible to buy a DGS without the appropriate quantity of gold having first been delivered to the custodian. All gold is held in allocated form and is subject to regular audits.
Silver: Silver is both an Industrial and a precious metal. As a Industrial metal silver has thousand of industrial uses from electrical and thermal to photographic industry. It is also used in jewellery and has been long used for minting of coins. New uses of silver are being found and demand continues to be driving the price. During the current year silver prices moved for USD 25.00 per troy ounce to almost USD 49.00 showing an increase of close to 93 percent in few months. Although the prices have receded back the overall scenario continues to be bullish and any pull back in prices is seen as good opportunity to Buy.
We can only summarize that with a Latin Proverb
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
Need More information on any of the above products
Please call
| Rajiv |Jha | 047038348 | jhar@emiratesnbd.com | ||
| Waheed Zainal | 047038330 | waheedz@emiratesnbd.com |
