How to Invest In Gold Futures in India

How to Invest In Gold Futures in IndiaGold symbolizes wealth be it is in the form of jewellery, gold bars or invest in gold. Your prosperity depends on how much gold do you have or you can buy. Unlike stocks, it is stable, secure and safest but do you know trading gold future might be dangerous for first time investors.

Definitely gold future trade is not a child’s play but a purely calculated gamble, which can you good fortune. In India, gold is considered as a divine gift from the Mahalakshmi, Goddess of wealth and prosperity. People love to own it because it secures their future, meanwhile gold future trade is quite risky.

The price of gold depends on the couples of factor, which makes it difficult to predict. In Indian context, gold is kept in physical presence instead using it as a commodity stock. This increases costs of gold as it includes the cost of the gold itself, the cost of carrying, the cost of physical storage and the cost of safety arrangement such as insurance or installations of anti-theft technology.

When you trade gold in future it cuts almost all expenses excluding cost of gold saving your money. It minimizes threats associated with losing gold without decreasing your gold’s price.

Let us suppose that you invest Rs. 3 lakh buying 100 gram gold. Now, three months later, gold prices are high, you can sell the gold at higher prices, meanwhile you pay nothing for storing, carrying and buying insurance for this gold. This reduces your overall costs you pay into managing your physical stock but with a brokerage (mostly from .1% to .25%).

In India, currently, futures contracts up to four months are available. This helps you to do business for the next four months, there you can check future prediction to take decision of buying or selling the gold.

Investing in gold future demands homework prior to take decision. It includes the current market price, future price, market risk factors, global economical factors. Therefore study and analyse all these factors before making your final thought.

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