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11
February
2009

Invest in Gold

In the year 2002, I had bought one Swiss gold bar  in Chicago at the price of $300+ and had gifted it to my mother. Today I regret not buying more of such gold bars like that. The price is more than three times and per all analysts, it is expected to touch $1500 - $2000 in next decade.Last year sometime, I had decided to invest some of my savings in Gold. But my deliema always was that with the price fluctuating between 700 and 900, I was not sure when to invest. That is when one of my friend suggested a Flexi scheme offered by a jeweler shop in Iselin, NJ. The name of the shop is Aabhushan and it can found here.

The deal goes something like this. You go to him and block Swiss gold bars at that day's price.Lets say I had been to him on 08/01/2008.Gold that day was priced at $909 and he goes by the London Fix price.The London Fix price can be checked here. You would not get the physical gold at the day of booking, but would get a acknowledgment from the shop owner about for your booking. Initially I was not very sure to give my hard earned money that way, but assurances from couple of friends, one who himself is a jeweler and the number of years this guy is on business (19 years) all gave me the confidence to put my money in there.The minimum time frame for keeping your money blocked is 4 weeks. After that you can withdraw from that Felxi scheme any day and you would get the lowest price as indicated in London Fix price during that period of time. Lets say, the cheapest price in this 6 months was $709, now he would give me gold at that price. The remaining amount would be given back to us. So in net, if I had bought gold on 08/01/2008, I would have lost $200 had I not gone through this Flexi Scheme. A saving of cool 200 bucks!

I am not suggesting to go to this shopper and buy gold nor am I giving any certification for him. There is definitely some amount of risk. But I was confident about him based on my findings and hence went ahead and booked few bars, which I am encashing soon as I feel gold prices may not go to those levels again. I am also planning to book few more gold bars in coming days, probably the whole of 2009. The main advantage of going to this guy and investing in gold through this Flexi scheme is that you are minimizing the rate fluctuations in short term. You cannot control the long term price, say in 2 years if gold falls to $500, there is no way to handle that situation, but all are hopeful that we may not see that day and gold is for sure to flourish in coming years.
Happy investing and take your own risk

Author: pradeep