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If Dow triples, gold may rise tenfold, Marc Faber says
Coming soon: Funds for trading in gold;
Firms gear up for funds that will invest
in gold exchanges within two months
By Anand Birai
Mumbai Mirror
Tuesday, April 25, 2006
http://www.mumbaimirror.com/nmirror/mmpaper.asp?
sectid=13&articleid=42420062234418742420062233531
MUMBAI -- If you love to invest in gold, then you will soon be able
to do the same without physically owning one gram of the precious
metal.
This mode of investing in bullion has now become a pheasible and a
paper-based reality thanks to the Securities and Exchange Board of
India (SEBI) finally issuing notifications to mutual fund (MF)
companies about gold funds.
The Association of Mutual Funds in India (AMFI) has already gone
public with this development and expects gold funds to hit the
markets in about two months. Just like regular mutual funds trade in
equities and government securities, the proposed gold funds will
also invest in gold exchanges.
According to the market players, Gold Exchange Traded Funds (GETF)
would enable investors to buy and sell gold at market prices,
something that SEBI has also hinted at, and be marked to the
exchanges on a daily basis.
This would eliminate botheration of keeping gold in safe custody
and, obviously, enhance liquidity.
In case you did not know, the market price of gold in the domestic
market on any business day would be arrived at by a simple
calculation:
Domestic price of gold =(London Bullion Market Association fixing
the price at US dollars per ounce X Conversion factor for converting
ounce into kg for 0.995 fineness X Rupee rate as against the dollar)
+ Custom duty for import of gold + Sales Tax/Octroi and other levies
applicable.
Several mutual fund companies had been in close consultations with
the World Gold Council for about a year now to understand the
logistics of the gold market and its dynamics.
"We have been working with some leading Asset Management Companies
(AMCs) and are finalising how the GETF can be shaped. With gold
funds, investment demand for gold might reduce as investors will be
having an alternative option for investing in the metal," Sanjeev
Agarwal, Managing Director of the World Gold Council (Indian
subcontinent) told Mumbai Mirror.
However, the exact mechanism of how the mutual funds would be
operating in gold market has not been known yet.
"I have not seen the notification. However, AMCs might follow the
model of being a custodian of gold or trade like in the futures
markets or just operate on basis of delivery receipts," said Sanjay
Santhanam, Vice-President (Marketing & Sales) at Sundaram Mutual.
JM Financial Assets Management Private Limited was one firm that was
believed to be on the verge of launching such a fund. But its Fund
Manager Biren Mehta said that they have not yet filed any documents
with SEBI. "Hence, I cannot comment on the final model of our
proposed gold funds," he said.
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----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
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888-413-4653
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Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
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Colorado Gold
222 South 5th St.
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Don Stott, Proprietor
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Gold@gwe.net
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Harvey Gordin, President
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Mobile: 602-228-8203
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info@gold.ie
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Greg Westgaard, Sales Manager
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178 West Service Road
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Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca
Miles Franklin Ltd.
3015 Ottawa Ave. South
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1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
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