We as a country are obsessed with Gold. When I say obsessed I mean super obsessed. Any major function calls for a visit to the Goldsmith. If its a festival or any auspicious day like Gudi Padwa, Akshay Tritiya, it is not surprising to see a huge line to buy gold outside most of the prominent and well known Jewelers' shops. No matter what, people will buy gold. Whatever the price whatever the hardship(standing in the sun for hours to just get into the gold shop). And people like me just find it amusing to watch. Any auspicious day and gold prices are sure to shoot through the roof. So buying the day before the auspicious occasion and selling it the next day seems more auspicious to me (You may frown here).
What is this age old love affair with the glittering metal ? Well, it stems from the fact that we Indians are very conservative in our approach to everything. Be it our dressing, our homes and even our investments. No one believes in the stock market. Most excuses seem to hover around reasons like - It is just too unpredictable., I dont understand it, I think its very volatile, you never know when is the right time to buy. Umm, one may argue these excuses are very valid, but isnt that true about gold as well? Do we really understand gold? Isnt it unpredictable too? I mean there is sometimes a difference of 1000 rs per day in the price for 10 gms.
There was a recent article in a reputed finance newspaper about how Indians keep buying gold, whereas that money could have been invested in equity which would mean that companies would have more capital to work on and expand and grow. Gold on the other hand just sits at home, needs to be guarded and does not really do anything except put more worry into our already over stressed heads.
Don't get me wrong. I am not anti-gold. Like every fellow Indian I too love Gold jewellary. But I dont believe in it as an investment. Its like any other Commodity I may buy. A cell phone or a laptop, It is mine. I will not sell it. The Gold chain and earrings mean something to me and have sentimental value which is the exact reason why gold just piles up at home. You will never sell it.
So buy gold but use it. Dont let it gather dust in the dark dingy lockers in the bank and in the cupboards.
Because for anything to shine there has to be light.
Well... nicely written but I differ from some thoughts
ReplyDelete1. A thumb rule for "when to buy gold". Only when the stock markets bang down. Generally true (not always though). Question to be asked, then why not deal with the stock market. For me its a simple reason, No time !!! Also, its not with me physically.
2. Value of cell phones, laptops etc depreciate over a period of time. Moreover there are challenges like new style (symbols), newer upgrades and better versions(?) that continuously hit the market. Not the case with gold as gold would virtually stay intact and its value, mostly appreciated.
3. Last one, you say wear gold. Certainly but occasionally. Well... after all it is an investment.
On thing that I agree, we Indians are too possessive about our investment may it be a gold or anything else.
oops!!! I should have written another blog for this... :)
Hey Yogesh! Thanks for your comments. I am not comparing the monetary value of gold with mobile etc. Its more about the sentimental value. Like I use my gadgets and would sell them only when I tire of them or cannot use them or they lose their sentimental value will I change them. Same is the case with gold.
DeleteI agree. Utility value is the most important value
ReplyDeleteU can try :
ReplyDeleteAs an investor, I tried this- the Warren Buffet style (Be fearful when others are greedy n be greedy when others are fearful):
1.Bought when no one was n sold on deepawalis n akhshay tritiyas(hot mahurats)....obviously made profits...
2.Non gold investment = silver...u can go for the same amount u wud invest on gold but buy silver instead, & sell when its @peak....hence u negate the "sentimental factor" :P ....again profit :)
but alas both of the above are stagnant for the last 8-10 mnths...so need a some new formulas now ;)
But nice article ....Dee :)
Nice thought provoking Article,
ReplyDelete