If you want to accumulate gold for marriage of your children than you should start as early as possible and don’t wait for marriage years to come. In this scenario first of all you should decide how much gold will be required at the time of marriage of your child. And how many years are left for marriage of your child and spread this buying across this period. This is stated in below table.
As per above illustration suppose your Child’s current age is 9 years and approximate marriage age in your family and religion is 25 years then years left for marriage is 16 years. Now you need approx. 400 gms. Of gold for marriage so within next 16 years you have to accumulate 400 gms. of gold. My advice is to distribute it equally over next 16 years and buy 25 gms of gold every year. For this you can buy gold once a year on special occasions like, birth day of your child. In the years when gold prices fall, try to buy more than 25 gms so in years where gold prices rise sharply you can effort to buy less gold. This will help you in keeping your weighted avg. purchase price on lower side.
Now never sell this gold :Never sell the gold that you have accumulated over the years, in order to make money or to trade on gold. Many times investors think that since gold is not required now so let me sell it and I will buy back when price will fall. This is a wrong approach. Always stick to your objective. Here your objective is not to make money but it is to accumulate gold for marriage.