postaday2011 | wealthymatters

Today’s Lessons

September 27, 2011 2 Comments

wealthymatters.com In 2008 gold was treated like any other high risk asset when the collapse of Lehman Brothers sparked heavy selling across financial markets in a widely-documented “dash for cash” — after which it bounced back hard to record highs. In Q1 2009, the gold price recovered long before other assets hit bottom.History would suggest that while gold has taken a beating, it is far from down and out.Monday’s tumble to around $1,535 an ounce dragged prices 20 percent below the record $1,920 reached last Thursday. But since its rise from just over $250 in early 2001, gold has bounced back from bigger drops, having fallen 25 percent between May and June 2006, and 27 percent in October 2008.General financial market Read more of this post

Filed under Alternative Assets, Paper Assets, Precious Metals, Theory, Tool Kit Tagged with forex investment, Gold, gold price fall, postaday2011, RandomBlog2011, US dollar, volatility in gold price, world's reserve currency

Historic Prices of Gold

September 27, 2011 4 Comments

This is my find for the day.I found the original here http://www.indiabullion.com/gold.php.

Combined with the newer data here http://goldpricenetwork.com/goldprice/india/ we can have 178 years of gold price history in India.Perfect for all sorts of analysis!

By the way I was surprised to see some price drops in the price of gold.None of my elders could recollect any of it and they are regular gold buyers!The human memory apparently is far from perfect! Read more of this post

Filed under Precious Metals, Tool Kit Tagged with Gold, Gold Price, historic gold prices, historic gold prices in India Rupee INR, postaday2011, RandomBlog2011

Inflation Gains Currency

September 25, 2011 4 Comments

These figures are from the ET article Inflation Gains Currency & How!Dated Sept,2011

1.) For the first time India will print as many new 1000 rs notes as 500

2.)For the first time,in value terms,the 1000 rupee notes will account for more money than 500 notes which were the mainstay of high value transactions for some time.

3. )2,000 million i.e. double the number of 100o rupees notes printer last year are to be printed this year. Read more of this post

Filed under Paper Assets, Tidbits, Tool Kit Tagged with 100 rupee note, 1000 rupee coin, 10000 rupee note, 100o rupee note, 50 rupee note, 500 rupee note, 5000 rupee note, Inflation, postaday2011, RandomBlog2011

The Rupee Dollar Exchange Rate

September 25, 2011 5 Comments

wealthymatters.com This is a very brief post.I read this article yesterday in the Mumbai Mirror http://www.mumbaimirror.com/index.aspxpage=article&sectid=44&contentid=2011092420110924085554.I thought it worthwhile to make a note of the Rupee -Dollar exchange rates at different times.

Historically the lowest point reached by the rupee was 49 in May 2002.

It did cross 50 very briefly late in 2008 due to the panic caused by the global financial crisis. Otherwise in the past twenty years we have been used to having the rupee exchange rate between 35 and 45. In fact it hovered around 45 for a very long time.

We did suffer two embarrassing sudden currency devaulations. The first was in 1966 (when rupee went from 5 to 7.5) and in 1991-92 (when rupee went from 15 to 32).

Filed under Paper Assets, Theory, Tool Kit Tagged with postaday2011, RandomBlog2011, rupee devaluaton, rupee dollar exchange rate

The Gold Investor’s Bible

September 25, 2011 6 Comments

wealthymatters.com This is the free e-book advertised in ‘The End of America’. Despite the negative reports I decided to look for a copy and read it just to see for myself if it was really as bad as it was portrayed.

I personally find this is a very good book and it has all the basics in one place.You can get a copy here: http://www.capitalsynthesis.com/wp-content/uploads/2011/07/The-Gold-Investor-s-Bible.pdf .If you are interested in investing in gold,I heartily recommend this book to you.Reading a book doesn’t mean uncritically accepting everything and tossing money into untested ideas.This book will offer you ideas,consider them,test them and if things work for you go for them.

Here is more about what I gained by reading this book with essays contributed by Chris Weber,Jeff Clerk,Steve Sjuggerud etc. : Read more of this post