Satyug Gold Purchase Plan

wealthymattersTomorrow is Akshaya Tritiya,and the gold fever is spreading.A lot of people have seen pricey ads like the one to the left and asked me if its a good deal and whether they should go for it.Here is my answer:

I know neither Shilpa Shetty nor Raj Kundra personally.Obviously they make money.But how steadily is something I don’t know.Nor exactly how much.I see their names associated with a lot of new businesses.They leverage their celebrity status.They have their money in start-ups but just what assets they have and where and how any personal guarantees can be enforced,is something I can’t tell you.And the Satyug Gold Purchase Plan is nothing more than an entrepreneur’s promise to pay.An unsecured promise to pay.And as such I will analyse the product.

All business people,as long as they have a reputation of being reasonably reliable and not thieves, have access to funds from other business people.The credit is unsecured and of short term duration and the interest is over 2% per month.Some negotiation might be possible but not all that much.

Various companies come up with fixed deposit schemes.They offer some financial statements of various levels of reliability for us to peruse.Currently company deposits give you round 13%pa.

In case of the  Satyug Gold Purchase Plan,depending on the tenure you choose, you get a discount on the day’s gold price.And a year later you get delivery of the quantity of gold you purchased,irrespective of the then price.So first off, you bear the price risk which will determine your final returns.Then,assuming that the price of gold remains constant at the Rs 28,000 per 10 grams,you get returns ranging from:15% to 9%.And they are neither fixed nor predictable.

So,now its your call if you feel adequately compensated for the risk of total capital loss by these rates.My only advice is to go for the 1 year option if you must.At all costs avoid the multi-year options as even ordinary FDs are better risk adjusted options.


Gold On Akshaya Tritiya


Auspicious Days To Buy Gold in 2014


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

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.


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