Direct ownership

One of the main reasons for investing in Bullion++ is the fact that the money gets invested in real physical asset, i.e. gold and silver. Another advantage is that investors in Bullion++ get direct ownership of gold and silver. Investor has the advantage of timing his purchase at a price, which he finds most attractive and reasonable.

The title of ownership of bullion rests only with the investor at any given point in time while RSBL Commodities only gets the right to lend the bars at terms, which are beneficial to the investor.

Unlike investment in gold and silver in the jewelry form, investments through RSBL's Bullion++ are simple, cost effective, and liquid for an investor looking to invest a very large sum in bullion.

Regular income earner

It is very important that any asset is either put into use or provides positive income other than price appreciation. Any asset, which cannot do that, actually becomes a burden due to management and maintenance costs. Unless the price appreciation is reasonably high, assets may turn into a sore investment.

Normally, investments in gold and silver do not earn any income because they are in the form of jewelry, coins, utensils, etc. During times, when these are not put to use, their maintenance and management entails storage, insurance and other costs. Besides, it also involves the danger of theft and risks associated with it.

Bullion++ is a product where management of invested bullions is taken care of in a manner, which avoids such risks. Infact, Bullion++ provides the second income advantage of earnings from lending of bullion bars to participants in the professional bullion and jewelry market against adequate security.

Simplicity

Unlike a lot of structured products and investment schemes, where money gets invested in derivatives of gold and silver, Bullion++ entails direct investment in physical bullions. Bullion++ doesn't involve itself in any sort of super complex formulae or doesn't get the investor into the web of portfolio churning or the risk of human error in price forecasts.

The bullion invested in by the investor is stored in secured vaults by RSBL Commodities on behalf of the investor. These vaults are managed and run by LBMA Members. The investor continues to have the advantage of the price increase over the tenure of investment in the bullion. He can offer the bullion for lending to earn regular income apart from price appreciation or may simply opt to remain passively invested.

Liquidity

Whenever the investor requires to put the bullion bars to personal use, e.g. for conversion into jewelry, he may do so by withdrawing the same.

Also, he could exit from the investments by selling it in the market or to RSBL itself at any time at the prevailing market price. Unlike other real assets like real estate, bullions have the benefit of liquidity and money can be realized in just a few hours.

As compared to ETFs

Gold exchange traded funds (ETFs) are one of the recent products where money invested in ETF units is further invested in gold.

However, for an HNI who would want to invest in a gold kilo bar, gold ETFs would be costlier than investing in Bullion++ . This is because the gold ETF prices may not be the actual wholesale gold prices of the professional bullion market. The asset management companies of the ETFs have their fees adjusted in the prices by a concept called 'cash component' or alike. These fees are also typically much higher than those of Bullion++ .

Also, since gold ETFs are quoted in half gram and one gram of gold, prices tend to reflect more of retail prices as against the wholesale prices in the bullion market. In Bullion++ , investors get to buy gold and silver at the wholesale professional bullion market prices quoted on RSBL Spot, which are widely regarded as the benchmark prices in major bullion trading centers in India. Also, gold ETFs do not earn any additional income on its own unlike Bullion++ .

Silver ETFs are non-existent in India.

As compared to Futures

Futures involve leveraging and therefore can act as a double-edged sword for the investor. Hence, it is more suited for people who want to speculate in this market.

Futures are mainly meant for qualified professionals in the market who understand derivatives and not for lay investors. Futures are not actual physical investments but are used as hedging instruments.

Futures do not offer an opportunity for investing for the long term as futures contract expire in a few months.