Gold ...Looking ahead from here

In the months April to June 2011, India and China have accounted for 52% of Global bar and coin investment and 55% of global jewellery demand. Year on year the volume growth in India has been 38% as against 25% in China and 7% globally. As per a report from the World Gold Council the prospects for both the countries for the remainder of the year remain optimistic.

From April to Sept 16, 2011 as seen in the above chart, the rates of Gold has seen ups and downs but the trend line clearly shows the way ahead. As can be seen from the chart, the rates were below the trend line, but went suddenly northwards and rather went overboard.

The prices have now shown some correction and are on the trend line, giving the right opportunity to get into the commodity, if you are not already.

The reasons stated for an optimistic performance of Gold in India include

1. Relative economic prosperity
2. High Inflation Rates
3. Good Monsoon
4. Number of forthcoming festivals in which gold purchasing is customary

It is expected that the central banks shall remain net buyers of gold throughout the remainder of 2011.

Summing it up :--

Long term investment in GOLD looks extremely positive

Advance Tax - Company and Non company

Dear all corporates

The Due date for Advance Tax payment for the second installment for the company and first installment for the non company has been comes up on september 15,2011 with rate of 30% especially for those whose tax liability exceed upto Rs.10,000.00 for year

The Rates and Due dates for Non - Company and Company are as follows :

1. Company
June 15 - 15% of Tax Assessed
September 15 - 30% of Tax Assessed
December 15 - 60% of Tax Assessed
March 15 - 100% of Tax Assessed

2. Non Company
September 15 - 30% of Tax Assessed
December 15 - 60% of Tax Assessed
March 15 - 100% of Tax Assessed

Here is the tax assessed means = Tax due minus Tax deducted at source. Please note that to check Rs. 10,0000. 00 exceed limitand and then you have to consider full amount of tax due but for interest calculation amount is to be taken is total tax due minus tax deducted / collected at source (TDS/TCS)

Further for capital gain amount person can pay prospective instalments only. Means have to oay future advance tax installment due after earning of capital gain. However this exemption is only considered if you have paid whole of advance tax by March 31st (in same previous year)

If you have not paid your tax pro-rate bases in advance as shown above in advance as shown abobe you have to pay interest u/s 234C. Further if you have not paid your full taxes by 31.03.2012 for AY 2012-2013 then you have to pay interest under section 234B on balance amount of tax.

Due date to file Income Tax Return in respect of assessment year 2012-2013 for person other than companies and non audit case is July 31,2012. Interest U/s 234A is payable only if you miss the Income Tax due date for AY 2012-2013 i.e July 31,2012

And I hope you are not interested in calculation under thse section and have paid advance tax on time. However due to inaccurate estimate of income these one of these sections are applicable in most of the cases.

Rate of Interest: Rate of Interest is 1% per month or part thereof in all the above cases

Gold

Gold has been a proven method of preserving value when a national currency was losing value. If your investments are valued in a depreciating currency, allocating a portion to gold assets is similar to a financial insurance policy.

Thought to be one of the first known metals, gold has been coveted throughout history for its beauty, scarcity, malleability, and uncanny resistance to rust and corrosion. Centuries ago, gold's unique combination of properties -- its sun-like colour, its soft hardness, and, especially, its imperviousness to decay and corruption -- imbued it with magical associations in the eyes of many. Because of these unique properties, gold has traditionally been the currency of choice for much of the world's population. The value of gold has transcended all national, political, and cultural borders, making it the ideal currency.

In spite of the convergence of diamond and palladium, the demand for gold jewellery has seen a regular growth year-on-year. Countries primarily responsible for this growth are India, China, Italy, Turkey and the USA. In the last 3 years, the climb in the price of gold above Rs.20, 000/- in India.

Factors affecting gold prices in last 3 years

If we analyse the track record of gold in the past three years, we can conclude that gold prices have seen a steady and impressive northward growth.

In January 2002, gold prices per 10 gm stood at Rs 5,453. By November 2004, the price had gone up to Rs 7,005. The year 2004 has indeed been a great year for gold.

There has been a substantial increase in gold prices, but this has not dampened consumers' inclination towards investments in gold. In fact, investors have begun to recognise the effectiveness of gold as an efficient savings vehicle and an alternate asset class.

Demand for gold for the purpose of investment has outpaced the demand for the yellow metal for jewellery in 2004. Indians purchased 74.0 tonnes of gold for investment from January to September 2004, while it was 67.8 tonnes during the same period in 2003.

Reasons to say YES to Gold

1. The dollar is weak and getting weaker due to national economic policies which don't appear to have an end.
2. Gold price appreciation makes up for lost interest, especially in a bull market.
3. The 5 five years are the beginning of a major increase in rates of the gold in India from Rs.6000 to Rs.20000 +
4. Central banks in several countries have stated their intent to increase their gold holdings instead of selling.
5. All gold funds are in a long term uptrend with bullion, most recently setting new all-time highs.
6. The trend of commodity prices to increase is relative to gold price increases.
7. Worldwide gold production is not matching consumption. The price will go up with demand.
8. Most gold consumption is done in India and China and their demand is increasing with their increase in national wealth.
9. Several gold funds reached all-time highs in 2007 and are still trending upward.
10. The short position held by hedged gold funds is being methodically reduced.

Ways to invest in gold

1. Gold bullion
2. Gold coins
3. Numismatic coins
4. Gold certificates
5. Gold futures and options
6. Gold Mining stocks
7. Jewellery
8. Exchange Traded Funds (ETF)
9. Gold Mutual funds

Reasons to say NO to Gold

1. Gold doesn't pay income or interest.
2. Except for the last five years, gold has been in a bear market after a peak in 1980.
3. Central banks have tons of bullion which they occasionally threaten to sell.
4. If you don't count the last five years, gold stocks have not done well.
5. Since gold funds have made big moves over the past five years, it's time for them to drop back.
6. Your broker probably won't recommend gold funds.

If you believe in 'buy low, sell high',

gold is still low, but climbing.