Wednesday, April 18, 2018


Year after year I keep writing articles on Avoiding "INVESTMENT" in Gold...(doing it for 6 years on the trot).

Some investors keep coming back to me Sir, I want to INVEST in Gold....
Me : Why?

Investor : Sir, Akshay Tritiya hai & I need for my daughter's wedding in about 10 years time and the cycle repeats...

You are going to see lot of advertisement in the coming days to buy GOLD on the auspicious day of Akshaya Tritiya which is on 18th April 2018. Look at what happened, if you bought Gold on this auspicious day in the past, hoping that your wealth will grow. 
Let me share 2 charts

May-08 11726 10.50%
May-13 26890 3.40%
Apr-17 29620 7.10%
Apr-18 32200 5.33%

Hope this chart helps you to stay away from considering GOLD as an investment!

The same time Sensex has generated better and consistent returns, still many think that it is not good investment!!!

It is time to respond practically rather than emotionally.

My humble submission to everyone is never buying gold as an investment, buy gold as an ornament which you constantly wear. Do not start any gold investment even if you have girl child. Gold is important for the marriage, but it does not mean that we should invest only in gold!

Last, but not the least investment have no emotions, so whenever you invest do not show emotions. Gold and Real estate investments are more out of emotions which is proven now

Having GOLD as a portfolio allocation is a MUST but buying it for HUGE RETURNS is a strick NO-NO. 
The Biggest problem with Gold is that it never produces interest, no dividend, no rent, nothing
Its Growth entirely depends on belief that some other person will buy this Gold for MORE in future. 
And a yes gold also depends on FEAR.
What if there is a World War? something of sort where there is a crisis, a panic...
If you still want to buy Gold for long term, be smart and consider investing in Government Sovering Bonds as these will be backed by Govt and you will get the added advantage of Additonal Interest (albeit very low)

Gold Prices do tend to soften after Akshay Tritiya and Wedding Season in May.
there is absolutely no technical or fundamental reason to buy GOLD on Akshaya Tritiya.
If you research our Scriptures well, there too it is clear that Akshaya Tritiya is only meant for engaging in some GOOD DEEDS and not just worshipping Goddess Mahalakshmi.

The GOLD CRAZE was created by our friends in Jewellery Business. 

Gold is not an investment. Gold is an allocation in Indian Households. Continue buying gold in SIP for a specific purpose & allocation.

Your wealth grow as per the potential of the asset you invest.

If you are worried that gold’s supply would get exhausted soon, fear not!

About 10 billion tonnes – 10,000 million tonnes (yes, you read it right) of gold is estimated to be held in the oceans of the world. An economically viable model of extraction is being explored.

Necessity is the mother of invention. If gold prices continue to rise and if the demand would only increase, who knows, a technological innovation can happen in extracting gold from ocean.

10mn tones under the sea is eye opener. Same happened with oil; eventually people dug under the sea after land sources were well discovered and prices kept climbing- oil came from sea!

Its the Multi Stage Fracking Technology that changed equation for oil. 
Offshore was there, but the shale gas was the real gamechanger.

And Crude Oil was never the same again. 

so, maybe maybe some day going forward something in technology breakthrough could just help us in laying our hands on that 10 billion tonnes of Gold lying in Oceans. 
and Like Crude Oil..the price of Gold is bound to go down...
Waiting for that day!!!!!!!!

The diamond conglomerate De Beers has been mining diamonds from shallow waters off southwest Africa since the 1960s, so harvesting diamonds from deeper water is a possibility.



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Special thanks to Padmanabhan for inputs

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