The Yellow Metal Fixation
December 21, 2012 Leave a comment
Losing Money On Gold
December 11, 2012 1 Comment
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.
The Golden Guess Contest
November 13, 2012 2 Comments
Are you up for some Diwali Fun?Why not try your hand at this contest?
Its free to enter.You don’t have to buy anything.And you can play it as many times as you want.
Perhaps you are going to be one of the winners of a 2 gm gold coin.
If you do win,please leave a comment telling us how you went about your successful predication.
Dhanteras
November 12, 2012 Leave a comment
Dhanteras falls on the thirteenth day of the month of Ashwin. The word “Dhan” means wealth. As such, this day of the five-day Diwali festival has a great importance for the rich mercantile community of Western India. Houses and business premises are renovated and decorated. Entrances are made colourful with lovely traditional motifs of Rangoli designs to welcome the Goddess of wealth and prosperity. To indicate her long-awaited arrival, small footprints are drawn with rice flour and vermilion powder all over the houses. Lamps are kept burning all through the nights.
Believing this day to be auspicious women purchase some gold or silver or at least one or two new utensils.Home appliances and new clothes and furnishing are other common purchases.The idea is that the spirit of prosperity that the heavy duty shopping signifies will continue throughout the year. Read more of this post
Gold And Diwali
October 29, 2012 8 Comments
Buying gold on Diwali is a well established tradition in India.Have you ever wondered how well you would have done if you had bought gold every Diwali day for the last 10 years?Here are the stats:
In the past 10 years, gold has been a great investment. If you had bought some gold each Diwali over the past 10 years, then these are the gains you would have seen by the next Diwali in Rupee terms: 9.3 per cent, 11.7 per cent, 8.0 per cent, 26.6 per cent, 11.5 per cent, 32.7 per cent, 23.5 per cent, 22.8 per cent, 36.7 per cent, 16.5 per cent.Compounded, the total gains are 670 per cent.So you could say ‘Sona hee hai, koi fizool kharchee thodey naa hai.'(It’s gold, not a waste of money)and make a purchase this Diwali.
But before you go overboard ask yourself how likely it is that this run of unprecedented returns in gold will continue.Or in concrete terms ,how likely is it that 10 grams of gold will cost Rs 2 lakh in 2022?
My answer is:Your guess us as good as mine.But if 2 lakhs per 10 grams sounds absurd do take a look at this chart compiled by the RBI.Way back in 1992 or in 1970 what would you have said about today’s prices?
Life is uncertain.Time,wealth and happiness are transient.If gold,especially ornaments, make you happy,go ahead and buy them.You might not become a billionaire from holding them .You might even lose money. But they will be a surer source of value than the newest Tab or TV.
wealthymatters 