Re: Where do you keep your Savings?
Don't many desi's invest in gold, property and businesses anyway?
Gold is the best investment at the moment, but prices are incredibly high, so I'm not sure whether it would be a wise choice to actually buy it now.
However, having said that, if the economy has no real chance of recovering in the next few years, then it is a good idea. Just make sure you sell the gold before the recession turns to a boom because gold prices will drop again.
Re: Where do you keep your Savings?
buying jewellery is not akin to investing in gold......just fyi.....
Re: Where do you keep your Savings?
They say ’ Money talks ’ - all mine says is ’ Good bye’ 
Re: Where do you keep your Savings?
[quote=““Disney Princess””]
This approach seems more like speculation than investment
Re: Where do you keep your Savings?
Just an update: We have decided to go down the Gold bullion route. :)
Here is an FT article about investing in Gold that finally convinced us, and after talking to a few experts too!I believe that gold has established a new and sustainable price level. And that means gold stocks look cheap and have the potential for a great upward move. It’s a robust plan to build exposure that could prove very profitable over the years to come. If you missed the recent spike in gold, then don’t get mad… get even. Now is the time to buy gold stocks.
Gold price is down 11% in 3 days since the 1900 level reached when the FT article was published.
Re: Where do you keep your Savings?
^ gold fell from 61k/tola to 56k/tola overnight, but it is recovering today and as of now it is 58k/tola......though jewelers are not happy cuz no one wants to buy jewelry at such exorbitant rates..
Re: Where do you keep your Savings?
This approach seems more like speculation than investment
Real money is made in speculation. There is no such thing as risk free money. Those who don't take risks can never be rich.
Re: Where do you keep your Savings?
there is a difference between taking calculated risks in investing - for eg., you understand a business, and are convinced of its likelihood to succeed, and think it has acceptable risk of failing. hence you invest in the company.
princess is talking about the other kind of risky "investment" - yaar gold to hot hai, chal laga letay hai ek maheenay key liye.. no one's got rich with that approach.
Re: Where do you keep your Savings?
Investment in gold is a calculated risk. It's not like gambling.
Re: Where do you keep your Savings?
well, gold doesn't do well in comparison to pretty much any other asset for long term investment. at best, it is a hedge against inflation, beats holding onto raw cash. and short term, if you are convinced it will perform well, i guess you could call it investing. but anything short term is too unpredictable for me personally to consider as any different from gambling.. i don't know how you could calculate the risk on something whose pricing is tied to everything from global oil prices, libya, US feds comments, etc etc.
Re: Where do you keep your Savings?
It is strange that every Tom, Akbar and Hari loves Gold today. 7 years ago, when it was at 250 dollars an ounce (1/8th of recent peak) no one liked it.
So it is a better investment at $1900/ounce compared to $250/ounce.
Over the last 100 years, Gold's inflation adjusted return is 0 (as Queer points put above). (I am not sure of exact # of years, but is is > 50 years).
Some may be pumping up Gold due to an agenda (they may be in the Gold business - so probably selling to the janta). Some are naive - thinking what has gone up 7-8X in 7 years has further room to run.
I have no idea where Gold will end up in the near or long term. But considering the absolutely abnormal move upwards in the last 7 years, I will pass.
Good luck to both the pumpers and pumpees.
Re: Where do you keep your Savings?
^ gold has always had an overall upwards trend. Although I agree that investing in gold CANNOT be considered as a business, at best it is a good short term strategy to prevent the depreciation of your cash.
Re: Where do you keep your Savings?
^ Over the long term, Gold has barely kept pace with inflation (I think) - not something I am comfortable describing as "overall upwards trend".
Not sure in the short term (that is < 6 months) cash gets seriously depreciated. So not clear why one would use Gold as a strategy to prevent depreciation of cash over the short term.
Personally, I have been bitten in the .... quite badly both during the tech bubble and the financial bubble. No substitute for "school of hard knocks".
I appreciate the calm way we have been debating this issue. Sorry if some of my posts may have come across as too preachy. Bubbles are personal for me - just trying to provide perspective so someone else does not get burned badly. Cheers :)
Re: Where do you keep your Savings?
^ gold has always had an overall upwards trend. Although I agree that investing in gold CANNOT be considered as a business, at best it is a good short term strategy to prevent the depreciation of your cash.
^ This and as the article states that gold investing isn’t so much about making wealth as preserving it, what with the uncertainties with the major currencies at the moment.
Re: Where do you keep your Savings?
I haven't started yet ... but when I do I'll put it in KKF's mattress ... then hopefully it will behave a bit more like a bank for me too ....
Re: Where do you keep your Savings?
Channeling the inner Technical Analyst
Gold is forming a head and shoulders pattern, and is poised for an upward move. There is resistance at its recent high of $1900 per ounce. If it clears that comfortably, it can be bought at $2000/ounce. The near term floor is set at $1600/ounce. Place stop/loss order at this level and get out if Gold goes below that price.
Our mission statement is not to fight the tape, because the trend is your friend.
If you cant beat them, join them!
Re: Where do you keep your Savings?
urghh@TA
the only reason to ever invoke TA is if you see an upside-down batman pattern. which is a sure sign to sell. not.
Re: Where do you keep your Savings?
^ upside down batman pattern - yes that is definitely a sign to sell (or to buy).
One thing is for sure, those Technical Analsyst are very good at telling us "where the market has been" and "what the current mood of the market is". Their crystal ball for past occurences is the best.
Re: Where do you keep your Savings?
Ok you guys are getting too technical now! Thats why I started this thread because most of this finance speak goes over my head! :) please keep your talk mum-friendly! ;)
Re: Where do you keep your Savings?
Sorry MissFreudian. Please ignore posts 56-59 - we were being silly - just having some harmless fun.