Which broker for Commodity Demat Account
Just heard of Gold Funds ...actually NFO of some Gold fund was just launched...and my friend Aly and Self were talking about it ...
You see for buying ETF you still need an Equity Demat account and you cannot have a SIP kind of thing with ETF...so you can invest in these gold funds...I checked one of the gold funds asset allocation and they allocate 95% of fund in buying Gold ETF...the best part is that you can do a SIP in that e.g. monthly buying of gold funds at a particular date... Since you do not want to trade that much and also hold for long time I think this suits you well as you do not need to open the demat account too and its almost same as a Mutual Fund. Again I will suggest that moneycontrol will detail all the Gold Funds available (Mutual Funds) you can check their past performance too prior deciding in which to invest. The advantage of SIP too could be found from there ....
Now coming to your points .....
For point 1
I think you will need to open the Commodity Demat account...Most agents have almost same brokerage ...Some may have a bit less but then they have hidden charges...I personally never verified the Brokerage much since i too did not want to trade much in bullion, I did it to diversify my portfolio and hold for long.
For point 2
Noted you too do not trust the brokers much ...I am not sure but the e-service of the NSEL is not even an year old and hence most agents still are not able to give you a Web-portal for trading at your own and the affordable option is calling a broker and asking them to quote for you...(atleast my agent still does that and am not trading in bullion on internet). Still you can get runtime price from the NSEL website anytime and ask the brokers to act for you.
For choosing the broker, like I said earlier ...I did not care much for the Brokerage. I was not interested in trading most of my bullion investment, I am planning to hold it long...I chose my previous broker only with which I had my equity trading Account...
Three thing to consider for choosing a broker according to me would be :
1. Try to open your account only with those agents / broker whose office is in your city so that it is easier to contact them,
2. The Broker/Agent should be renowned and old company and
3. hence find the brokerage of only these few agents from their site and compare....
Mate while I have tried to share all what I knew and searched before entering the bullion market please do not forget that I too am a mariner like you and very soon going to join back the ship ...I personally think that some agents with superior financial knowledge might help you better....also if you find any info which you think could be beneficial to any jahajee just post it here and share your Knowledge.....
Happy investment and happy vacation
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