The Hindu : Business : Novel scheme to buy yellow metal

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Thursday, Sep 25, 2008
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Novel scheme to buy yellow metal

K. T. Jagannathan

The scheme enables investors to buy gold in futures and lock in the price at the current level.

CHENNAI: Apollo Sindhoori Commodities Trading, a fully-owned subsidiary of Apollo Sindhoori Capital Investments, has launched a novel scheme for investors to buy gold.

Known as the systematic savings scheme, it helps an investor purchase eight grams of 24-carat gold in futures.

The scheme enables investors to buy gold in futures and lock in the price at the current level. This scheme is designed to help those investors who plan to invest in gold and that too in small quantities on instalment basis.

The scheme enables investors to derive the benefits of buying eight grams of gold in futures in commodity exchanges. “The above scheme facilitates investors to purchase gold at ease and convenience,” a company spokesman said.

An investor can enter into this scheme by paying Rs. 1,500 as initial margin money along with duly filled in application form.

The balance payment towards the eight grams of gold can be made in instalments of Rs. 1,000 or in multiples of Rs. 1,000 between 1st and 10th of every month.

The contracts will be rolled over at the head office here every month at the prevailing rate till such time the delivery is taken. However, investors can pay the entire amount at any time and obtain delivery of the gold.

Under this scheme, there will be an initial brokerage of two per cent at the time of entering into the contract.

In addition, VAT (value added tax at one per cent) will be charged at the time of taking delivery of gold.

In case of delivery in the demat form, the VAT will be reimbursed on sale.

For further queries, investors can contact: gold@ascilonline.com .

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