Gold, as all of us know, the most preferred purchase everyone makes at the first given opportunity. We have many reasons to buy Gold and in my opinion it can be grouped in any one of the four.
G —– Growth of your money , savings & investment in value over a period of time.
This also gives your Glamour and a status in the society. At least it is perceived so.
O. — Own it. More than that possess it. Ornament- Use it an ornament and wear it. Flaunt it.
L — Leverage with Loans. At times of emergency right from the poor to the rich, this is an asset class one gets loan against securitisation of this asset easily. NO additional security is required.
D. Dispose this when you don’t need this asset and encash this.
There would be very few families who do not own GOLD, In our eagerness and enthusiasm we make emotional decisions and purchases of GOLD and Not a rational one.
Pause for a moment.
If you had purchased Gold in 2010, the rate of Gold in INR per gram was 1780 and today it is 2484 and Congratulate yourself. You have got a return of 40% in 5 years which is an absolute return and If you had bought this 10 years back, when it was around 600, you have got yourself a 300% return.
There are many Jewellery companies and Trading companies which deal in precious metals more importantly Gold. To name a few
. Ganesh Jewellery
Tribhovandas Bhimji Zaveri or TBZ as it is popularly know.
Rajesh Exports. These are listed in the stock exchanges for over five years. Other companies like Thangamayil Jewellery, PC Jewellers etc have recently listed in the stock exchanges.
If only one had changed their obsession from Gold to companies which are selling jewellery or trading, one would have made more money.
Look at this,
Titan – From 4 Jan 2005 when it was trading at 9.80 today it is trading at 353 and you have got 3800% ie 38 times return
You have got 350% return in the last five years from jan 2010 when it was 76.
Similarly Rajesh exports has gone from 10 to 242 in the last 10 years and 92 to 242– 170% return
Thangamayil Jewellery from 62 to 195 in five years.
From the above if you had bought companies of jewellers or traders in precious metals, you have gained much more than buying GOLD.
Grow in value
You own the company to the extent of shares you have
You can get loan against shares
Dispose and get the payment in three working days.
Think of options and better ways to create wealth. Do send in your views and do contact me.