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Auspicious Days To Buy Gold in 2014


wealthymatters

JAN 14 Makar Sankranti
16 Gurupushyamrit
FEB 3 Shree Ganesh Jayanti
13 Gurupushyamrit
MAR 12 Pushya Nakshatra
31  Gudi Padwa
MAY 2 Akshaya Tritiya
JUN 2 Pushya Nakshatra
29 Pushya Nakshatra
JUL 12 Guru Poornima
27 Pushya Nakshatra
AUG 10 Raksha Bandhan
SEP 19 Pushya Nakshatra
OCT 3 Dussera
16 Gurupushyamrit
21  Dhanteras
23  Laxmi Pujan
24 Diwali
25 Bahubij
NOV 13 Gurupushyamrit
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Efficient Gold Investing


wealthymattersIn unsettled times, gold remains relevant. It is an asset of the last resort. It comes in handy in times of personal and social crisis. If you have amassed a fortune, it makes sense to geographically disperse it to ensure that all eggs are not in one basket. Moreover gold tends to be a good hedge against a depreciating currency and can be freely bought and stored abroad to be converted to any currency of choice as needed. A further plus is the lower gold rates abroad. So, for readers who have written in to ask about alternatives to BullionIndia, if you can deal with larger quantities of bullion,there is a better option: BullionVault.

The best gold and silver deals are listed on the international professional bullion markets—where most trade and government industries and banks trade—not the Mumbai Wholesale market. But this market only deals gold in 400 oz good delivery bars, which cost around $500,000(3crores) each. The silver bars weigh 1,000 oz. This puts the best prices out of reach of most private individuals. Further good delivery bars are stored in accredited vaults. The vaults have a high minimum monthly charge, so you would need about 15 of these 400 oz gold bars, worth around $7,000,000(43crores), to make it economic for you to open an account yourself. The large starting balance tends to make the system inaccessible to many private customers. With the help of online trading such as BullionVault, you’re able to obtain information from international gold markets and own gold bars. It’s a good thing that you’ll also enjoy cheaper prices in terms of storage. So whether you are purchasing or selling, expect to find top notch international gold prices. BullionVault offers none of the free storage and zero commission on sales that BullionIndia offers. But the small fees are reasonable if you are dealing with larger amounts. You will make back these small expenses in the better rates you get. Also you will be offered priceless security and guarantees.  Read more of this post

Interesting Press Cutting


I came across this press cutting online.Its in Hindi.So apologies to my international readers.However you are not missing much as similar information in English is already available on this blog.Link.This cutting is more for the flavour of reading something in the vernacular.Definitely the words on the margin capture our deepest beliefs well.

wealthymatters

Zaveri Bazaar Gossip


wealthymatters

If you believe that there is something to be gained to by keeping your ears open to bazaar gossip,here is the on-dit in Mumbai’s wholesale gold market:

The international slowdown in gold prices has hit India in a significant way. Investors are disappointed and look to sell at the earliest opportunity.The current scenario does not make for a buyer’s market. People are waiting  for prices to drop further. The sale of exchange-traded funds (ETFs) and short-selling by investors has contributed to the decline.

A correction was in order given the astronomical rise in bullion over the past few years.Its the same for silver as well. This could be good news for retail buyers with the wedding season coming up in May.

May 13 is Akshay Tritiya, which may witness a drop in sales. The prospect of a free fall in prices will prompt buyers to defer non-essential purchases until Dhanteras, when prices could be even lower at round 22000-23000 Rupees per 10 grams.

Certainly,going by the subdued responses to the Siddhivinayak Mandir‘s gold auction for drought relief on the 11th i.e, Gudi Padwa, there is reason to be cautious.Small buyers were on a strict budget and the devotees who regularly make the big purchases were uninterested and absent.

The Real Rate Of Interest On Deposits


wealthymatters

Small wonder that gold prices shot up and gold  investment became popular between 2008-2011,huh?Ditto for real estate.

More About Bullion India


wealthymatters.comThis post is a follow up to the exceedingly popular one here:Link .I hope the information here answers a great many questions in reader’s minds.

1.The G-units can be redeemed in 1 gm, 5 gm and 10 gm bars and S-units in 10 gm, 20 gm, 50 gm and 100 gm ones.

2.They deliver all over India and the charges are the same for all locations.So the more remote your location,the greater your advantage.The details of delivery charges are as follows: Read more of this post

Returns From Gold


Gold prices do not always head north Link .Also inflation adjusted returns of gold if you adopt a buy and hold for decades strategy is likely to be underwhelming Link.But keeping aside inflation, what sort of returns can you expect from gold?Here are the graphs:

4 yrs Gold Price difference (absolute return)

4 yrs Gold Price difference (absolute return)

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How Well Would You Have Done if You Had All Your Savings In Gold?


wealthymatters.comToday financial planners and daily wage earners speak of ” investing” in gold.In fact,given the dream run of gold in the last decade,most people can’t see past gold.Never mind that between last Diwali and this one there was no substantial increase in the price of the metal and that there was a fall in price in between and then it struggled to rise for a while.

There is no denying that in the dark days after the stock crash of 2008 and the poor economy thereafter, gold provided good comfort for all of us who worried about our financial health.And the fact that gold price rose fantastically in uncertain times was the icing on the cake.

Also gold has helped us hedge against inflation.Here is the link to an older post.

Gold also does superbly well when the equity markets and debt markets are giving negative real returns.

So should you just have all your savings and investments in gold?Far from it!Aside from the wealth tax you might be forced to pay every year on an asset that will give no returns till it is sold, at which point it might attract capital gains tax,keeping your money in gold over the last three decades wouldn’t have given you stellar returns.Check out the chart here:Long Term Returns from Gold Vs SENSEX While gold keeps up with inflation,just buying and holding it for long is unlikely to make you rich any time soon.So be certain to enjoy the touch and feel and beauty of your gold.

Losing Money On Gold


wealthymatters.com

The price of gold has tripled in the last six years, giving investors an annual compounded return of nearly 20%. Compared to bank deposit returns of 8% a year and a volatile equity market, it is hard to argue with proselytizers of gold. But gold hasn’t always appreciated year-on-year. In the four years between 1988 and 1992, the price of gold fell every year. Again, between 1994 and 2001, gold prices declined year-on-year. Indeed, in the quarter century between 1980 and 2005, investors in gold lost 11.74% of their capital. The present rise in gold prices, which took off after the Lehman Brothers’ collapse in 2008, may reverse. These are the facts to remember,as you try to decide whether to keep your gold or sell.

Bullion India


wealthymatters.comHere is my new discovery for today:Bullion India.I tried it out today and found the sign up easy and customer service good.I find it an excellent way to buy gold and silver at good rates.Given the tiny units in which you can buy the gold,it is the place to go to make token purchases on auspicious occasions when the prices of precious metals generally rise.Also this site is an excellent way to accumulate precious metals a little at a time as there are no storage costs and commissions.

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