Gold is a precious metal that is tied to world currencies and needs no description at all. I am a great supporter of Gold. If you need a valuable and priceless investment then you must have good amount of gold in your portfolio. Look at the returns over the last few decades and you would definitely be on my side. Does gold have any practical use? Hardly any!! But then why is to so precious? It’s precious because the entire world decided to tie it to their currencies. We need to understand that this is not going to change in the future (at least till the time we live) and hence gold will continue to dominate. The only probable use of gold is in creating jewellery. But will you buy jewellery or will you invest in other forms like bonds, Bars and coins?
I personally don’t like the concept of gold jewellery. Yes, it makes women look attractive and adds a golden charm to their personality. But that’s the only positive side of gold jewellery. You can buy small portion of it to really please your woman. There would be good returns but those would be less than normal gold bars and bonds. The cons of jewellery are abundant. Firstly jewellery is always in impure form. The purest form of gold is 24 carat and jewellery is generally made from 22 or 18 Carat gold. Creating ornaments means adding a lot of making and service charges. Typically, based on the jeweller these charges fluctuate from 225 to 400 INR per gram of gold. For instance, if you buy a gold necklace having 30 grams of 22 Carat gold then the least making charges would be 6,750 INR and most would be around 12,000 INR. If you consider a rate of 30,000 INR for 10 grams of your 22 Carat gold then it means your gold costs 90,000 INR but your necklace will come with a price tag of anywhere between 97,000 to 102,000 INR.
Metals wear down by age. If you decide to sell the same necklace 10 years later then the quantity of gold would be less than 30 grams. My past experience says that while making ornaments you lose some gold and wear and tear loses some more. So effectively, 30 grams could have diminished to around 25-26 grams within a 10 year timeframe. Gold bars and coins might wear down as well but the proportion is much lesser. There is a lot of emotional attachment towards gold ornaments and generally people refrain from selling them. This defeats the concept of investment altogether.
Just don’t broadcast this to your wife but never invest in gold in the form of ornaments.
http://expertscolumn.com/content/do-adf-schemes-really-benefit-home-buyers
http://expertscolumn.com/content/how-choose-under-construction-property-investment
http://expertscolumn.com/content/laws-punish-without-adequate-proof-can-only-create-anguish
http://expertscolumn.com/content/who-are-your-fake-plastic-friends
http://expertscolumn.com/content/suicide-cowardly-act
http://expertscolumn.com/content/my-review-samsung-galaxy-note-ii
I personally don’t like the concept of gold jewellery. Yes, it makes women look attractive and adds a golden charm to their personality. But that’s the only positive side of gold jewellery. You can buy small portion of it to really please your woman. There would be good returns but those would be less than normal gold bars and bonds. The cons of jewellery are abundant. Firstly jewellery is always in impure form. The purest form of gold is 24 carat and jewellery is generally made from 22 or 18 Carat gold. Creating ornaments means adding a lot of making and service charges. Typically, based on the jeweller these charges fluctuate from 225 to 400 INR per gram of gold. For instance, if you buy a gold necklace having 30 grams of 22 Carat gold then the least making charges would be 6,750 INR and most would be around 12,000 INR. If you consider a rate of 30,000 INR for 10 grams of your 22 Carat gold then it means your gold costs 90,000 INR but your necklace will come with a price tag of anywhere between 97,000 to 102,000 INR.
Metals wear down by age. If you decide to sell the same necklace 10 years later then the quantity of gold would be less than 30 grams. My past experience says that while making ornaments you lose some gold and wear and tear loses some more. So effectively, 30 grams could have diminished to around 25-26 grams within a 10 year timeframe. Gold bars and coins might wear down as well but the proportion is much lesser. There is a lot of emotional attachment towards gold ornaments and generally people refrain from selling them. This defeats the concept of investment altogether.
Just don’t broadcast this to your wife but never invest in gold in the form of ornaments.
http://expertscolumn.com/content/do-adf-schemes-really-benefit-home-buyers
http://expertscolumn.com/content/how-choose-under-construction-property-investment
http://expertscolumn.com/content/laws-punish-without-adequate-proof-can-only-create-anguish
http://expertscolumn.com/content/who-are-your-fake-plastic-friends
http://expertscolumn.com/content/suicide-cowardly-act
http://expertscolumn.com/content/my-review-samsung-galaxy-note-ii
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