Gold price may hit Rs 45k/10 gms in 2020! This is money-making strategy for highest gains

Gold price today is hovering around 40,500 per 10 grams. According to the bullion and currency experts, the gold price may hit Rs 45,000 per 10 gms by the end of 2020. While commodity market experts are advising gold investors to buy gold at commodity exchange (MCX and NCDEX), investment experts have a different view altogether. According to the tax and investment experts, buying gold at the forward markets is highly risky as it's completely a future trade, which has an expiry. They are suggesting investors buy electronic gold through gold ETF, gold bond and gold mutual funds. They are of the opinion that in this route of gold investment, one can get near 5 per cent more returns and at the same time, it would be convenient to store, buy or sell.

Speculating huge gold price rally in 2020, Anuj Gupta, Deputy Vice President — Commodities and Currencies at Angel Broking said, "The gold prices have gone up by $21.28 per ounce today in the international markets touching its life-time high of $1,605 per ounce. This gold price rally is expected to continue till January end as the US-Iran crisis may get prolonged till February end." Gupta said that in short-term gold price may hit $1,630 per ounce while in the long-term or in the next six months, the gold price may touch $1,700 per ounce."

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Gold price globally is in the range of $1,565 per ounce to $1,630 per ounce. The gold price had gone above $1,600 per ounce levels in the early month of January 2020 but has come down after profit-booking by the future gold investors. In short-term gold price may hit $1,630 per ounce while in the long-term or in the next six months, the gold price may touch $1,700 per ounce." Asked to predict gold price in Indian National Rupee (INR), Anuj Gupta of Angel Broking said, "Gold price in the Forward Markets may hit Rs 43,000 per 10 gms in short-term while in the next six months, we may witness gold price escalating up to Rs 45,000 per 10 gms."

Suggesting electronic gold ahead of physical gold to the investors Manikaran Singhal, a SEBI registered tax and investment expert said, "Gold ETF, Gold Mutual Funds or Gold bond is better than physical gold because it's easier to liquidate without any storage problem which a physical gold holder comes across. However, the gold investment should be for the long-term, say twenty or above years as the returns on it would be in sync with the gold price appreciation in the spot market." Asked about the form of investment in electronic gold Manikaran Singh said that an investor can invest in Gold ETF or Gold Fund even in the SIP (Systematic Investment Plan) mode and it would give almost the same returns as an investor can get in normal Mutual Funds SIP available in the market. Manikaran again maintained that the return he said is for the long-term.

On taxes involved in the gold investment Kartik Jhaveri, Director — Wealth Management at Transcend Consulting said, "All taxes that are involved in the physical gold is being levied on Gold Fund and Gold ETF investment. However, in the case of Gold Bonds, the Long Term Capital Gain (LTCG) is exempted but the Gold Bond is not always available for investing. It is launched by the Government of India when it needs to generate money from the market at cheaper rates." Kartik Jhaveri said that Gold Bond is not an investment. In fact, it's a loan that the Government fo India takes from the public in general. Gold Bond is subject to lock-in and it has a maximum investment limit. Since investment is a regular process, it's not advisable for an investor to wait for the Gold Bond keeping its money choked. So, if an investor has surplus money in its portfolio, he or she can invest that into the Gold ETF or any other Gold Fund for the long-term.