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Gold Facts


buy gold on diwaliAs we head towards another Diwali, here are some gold facts to keep you motivated to make regular purchases in the physical product.Repeat ;physical and no version of paper gold.

1.With every 1 per cent rise in income, gold demand climbs by 1 per cent. But when prices rise 1 per cent, gold demand falls only 0.5 per cent.

2.For a 1 per cent increase in inflation, gold demand increases by 2.6 per cent as investors turn to gold to protect themselves against inflation.

3.Rural consumers show a pronounced preference for plain gold jewellery, while urban consumers are likely to buy gold set with precious and semi-precious stones.Plain gold jewellery accounts for some 88 per cent of purchases in rural India while the corresponding figure for urban areas is 57 per cent. In the days of rampant lab simulated diamonds sold as natural ones,a body is likely to help themselves by choosing plain gold pieces or simply discounting the price of “diamonds” while buying ornaments.Better assume them to be fake and be pleasantly surprised if they turn out otherwise. Read more of this post

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Bidding For The Lord’s Treasures


wealthymattersHere is some news of interest to all devotees of Lord Venkateswara and bullion lovers in general:

The Tirumala Tirupati Devasthanams is planning on e-auctioning the gold and silver ornaments from its hundis in collaboration with MSTC. It has already sorted the first lot of gold and silver jewellery for e-auction, got MMTC India to certify its purity, and has formed a committee of IAS and IPS officers to fix the floor price. The first e-auction is expected to rake in Rs 15 crore.

For each transaction, MSTC is to earn a service charge of 2-2.5% of sales.

If you are interested,watch the TTD and MSTC website.

 

 

Savitri Jindal’s Assets


wealthymatters.comHave you ever wondered about the assets of the really wealthy?Personally I have always been interested in knowing just where wealthy people have their money.My take is that wealthy people didn’t get that way or don’t stay that way without knowing a thing or two about keeping and growing their money safely.That is why I was interested when I came across her statement, given before the returning officer, while filing her nomination papers in 2009 for the Haryana Legislative Assembly elections.

Savitri Jindal is India’s richest woman. She is the widow of the late O.P.Jindal.In her statement given before the returning officer,Savitri Jindal states that she has moveable property worth Rs 17.75 crore and immovable property worth Rs 25.94 crore.I think it’s interesting to see how much of her money she has in a liquid form.Compare this to our asset allocation.Most of us are bound to have most of our money stuck in our houses.A house is a necessity, but it makes sense to acquire one’s fortune and then splurge on fancy houses rather than try to become wealthy by sinking money in our homes.

Savitri Jindal does not own a car.I think this lady shows us women a way out of owning a depreciating asset-claim you don’t drive.Having a car at one’s disposal is good but owning it might not be so wise wealth-wise.Keep the luxury car purchases for after you reach the stage of acquiring luxury homes. Read more of this post

The Dirty Truth About Indian Gold


wealthymatters.comHere is an article that appeared in the TOI in Jan ’09.If you invest in Indian gold jewellery,this article might just persuade you to have a fire assay done on your hoard to determine its fineness.

ALL THAT GLITTERS IS NOT GOLD 

Your wedding jewellery may not be as pure or as precious as you think it is. Several goldsmiths across India have taken to adulterating the precious metal with iridium and ruthenium,and are getting away with it, as until recently the metals failed to show up on all purity checks. It’s an alchemist’s dream, and the practice is becoming increasingly commonplace if you go by the stocks of the ‘duplicate’ metals at even the smallest of karigar workshops.

Both iridium and ruthenium belong to the platinum family of metals, and when mixed with gold, do not form an alloy but sit tight in the yellow metal.

What makes the adulteration even more alarming is that the metals do not replace silver and copper, which are added to the gold during the jewellery-making process to harden the soft, malleable yellow metal. As Saumen Bhaumik, general manager (Retailing) at Tanishq put it, “The two metals manage to camouflage as gold.’’

TOI tested several pieces of jewellery, and all had some amount of either iridium or ruthenium lurking inconspicuously with the gold. A 22-carat gold bangle bought in 2003 from a century-and-a-half-old jeweller—who has since then expanded from Mumbai to other parts of the country—when tested at the Indian Institute of Technology-Bombay, had 3% iridium in it.

A gold chain bought from a shop in Bangalore in 2002 when tested at another citybased centre had 2.39% ruthenium, while a pair of earrings from Kerala was found to be adulterated with 4.65% of iridium.

On an average, a piece of jewellery or a bar of gold contains nearly 5-6% of the adulterant, and manufacturers—wholesalers and retailers across India—are aware of how rampant this notorious practice is. Consumers, however, are the biggest losers as they have been kept in the dark. Read more of this post

Empowered Jewellery Shopping


wealthymattersIf you are a typical Indian,and have some spare cash,you probably buy gold and that too as gold jewellery.The jewellery might be for personal consumption but it is still going to have to do double duty as a safe,low-risk and liquid investment . So the jewellery is going to be bought with a sharp eye on its resale value.Purity and grammage will be important considerations.Also getting a good price will be a major consideration and there is bound to be a bit of bargaining.

Concerns about purity can be allayed by buying hallmarked jewellery. To find out the jewellers who carry BIS certified hallmarked jewellery in any city in India you can search here :Link

The price of gold follows the international rate,but there is no such thing as an all India rate.Infact there is nothing as a city-wide rate.Each shop notifies its own rate.But the All India Gems and Jewellery Trade Federation’s Trustmark rate for hallmarked gold jewellery can be used as a peg while bargaining about the price.To find out the Trustmark rate SMS GOLD RATE to 575758 or check the rate on the GJF website here :Link

In case you are making a significant purchase ,it is worthwhile getting a hallmark certificate from the jeweller. Hallmarking costs 25 INR per item,a pair of earrings being counted as 2 items.

Hope you find Great Bargains!Happy Shopping!

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