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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.

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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.

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