Rahul Mehta Gandhinagar LsCandidate
A few interesting things about gold
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1. Amount of gold in world . No one knows to be exact. But estimates say that all gold above earth is just 171,300 tonnes . It would fit in 21 meters * 21 meters * 21 meters cube. . All gold will fit in two olympic size swimming pool.
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2. so world has 24 grams of gold per every person in world --- man , woman , children.
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3. India has 20000 tons of gold. Govt of India has only 500 tons of gold. So India has only 17 grams of gold per person. So India has LESS gold per citizen than world average !! So India is poorer than world We Indians need to shed that FALSE image that we have a lot of gold. And its time that India, both private Indians and GoI, import more gold.
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4. Gold is the longest surviving universal currency - over 10000 years old. Dollar is only 100 years old
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5. Gold in India was Rs 100 per tola in 1951. Now it is about Rs 30,000 per tola.
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6. In events of war, everything including land loses value, but value of gold rises. So gold is ONLY war-resistent property.
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7. In even of war, the citizens of losing nation lose all land, buildings etc. But whatever gold they can hide remains with them. So gold is not just war-proof, it is also defeat proof
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8. Gold certificate is NOT same as gold. Because if company which has given you certificate goes bankrupt, then gold certificate is just piece of paper.
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9. Gold coins are better investments than jewellery. Jewellery always have at least 5% copper (or it becomes to brittle) and sometimes may have even 20% copper. While coins are 99.9% pure gold.. And value of labor is 1% to 3% of gold. So when you buy jewellery you will pay for labor plus about 5% of copper,. And when you sell it, you get money ONLY for gold. While in coin, there is no such loss.
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10. Paid-economists say that gold is dead investment. Well, they are paid to serve owners of giant companies who want you to buy shares so that they can sell their shares at more price. But these economists always invest in gold.
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11. RBI ended gold standard in 1951.
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12. India has about Rs 60000 rupees per person. Of this, about Rs 12000 is currency notes. RBI has gold of only around Rs 1200 per citizen. So RBI doesnt follow any gold standard at all.
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13. Despite this, over 90% people in India believe that RBI prints rupee against gold !!!
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14. Finance Minister Chidambaram in 2013 advised people of India not to buy gold. As per his own affidavit, he was owning gold and silver worth Rs 90 lakhs !!! In addition, God knows how much no. 2 gold he had. IOW, dont listen to all these Ministers' anti-gold advices..
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15. Paid-economists say gold is dead investment and waste of money. Well, US Govt has gold worth over $ 450 billion. Why dont these paid-economists first convince wise US Govt to sell all this "dead" investment, and then come to us 2 bit commons?
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16. Reality is that economists are paid by MNC-owners etc to give such idiotic advices that gold is bad , gold is bad. so that gold prices remain low, and so MNC-owners can buy gold for cheap. Except for educatd idiots, no one believes these paid-economists. And so gold market rightly remains high.
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So IMO, if you have small amounts, gold is far far far far better than shares and bonds. One should invest some in FDs, amd next should be gold, and then comes rental properties. After that, it must be factories and real industries, and shares of companies which are in real manufacturing.
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(Now, as a personal note, as of now, I personally dont have any gold , but my brother does, have some gold that we got parents. But I soon plan to convert 20% of my FDs into gold.)