Sovereign Gold Bonds – I’ll Pass

November 28, 2015 2 Comments

wealthymatters The first I heard of the Sovereign Gold Bonds was on Dhanteras day when my bank tried to get me to purchase some of them.At the time , I was on my way out shopping and my first thought was: Do I really want to postpone my gold purchases for a year to earn an additional 275 rupees per Rs10,000/-?Yaar, I could haggle with the jeweller and easily get that much and more off my purchases. And then, I love wearing jewellery.Do I want to give up on that pleasure and experience, multiple times a year, for as little as 275 rupees? That too in the days when one simple restaurant meal, or a taxi ride might cost that much and more? The answer then was an easy “NO”.

Later, I was to learn worse about these bonds. They are priced higher than the price of physical gold on the street. So there goes any notional interest a person might have earned! Read more of this post

Filed under Paper Assets, Precious Metals Tagged with capital gains, Dhanteras, Gold, hedging costs, interest, jeweller, jewellery, postaday, price, shopping, Sovereign Gold Bonds

Price And Value – Waiting For A Bargain

July 19, 2012 12 Comments

“All things are sold at their highest when they are new in the market. If you have the patience to wait, you can see their true value later.”

You can read a nice post on the subject of finding bargains here:http://propertysoul.com/2012/07/19/getting-a-good-bargain/ Remember this applies to all investments too not just consumer goods.

Filed under Entrepreneurship, Paper Assets, Tool Kit Tagged with bargain hunting, bargains, postaday, price, sale, smart buying, smart shopping, value

Rakesh Jhunjhunwala On Investing Your Way To Wealth

June 11, 2011

Mr. Rakesh Jhunjhunwala, combines diverse skills as a equity trader, visionary investor and incubator of new businesses through private equity.He is the first dollar billionaire from India to have made all his money by investing–primarily in stocks.Converting Rs 5000 to a billion dollars is no mean feat.Moreover since he deals exclusively in Indian stocks and often in publicly traded companies, whose shares we all have access to,it’s well worth spending time learning how to invest one’s way to wealth from him.

Firstly,Rakesh believes that the choice of asset class is important . As he says”If you bought gold in 1970 and sold it in 1980, you bought the Nikkei Index in 1980 and sold it in 1989 and then bought the NASDAQ [till before the dot-com bust], you would have made 33% compounded returns in three decades.”Personally, under the guidance of Mr Radhakrishna Damani, he made a lot of money shorting stocks at the time of the Harshad Mehta scam post 1992.As he says,”My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success.”As Rakesh believes that the mother of all bull runs is still to happen in India ,for people like us,sticking to Indian securities as an asset class might not be such a bad idea! Read more of this post