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GD Prep Topic 4: Investing in Gold is wastage of money
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1. Each of these topics will be available till 11 pm on the day it is first posted.
2. I / The IMM team will personally try to judge and evaluate all the points made after 11 pm and reply back to all of them.
3. The discussion will remain open for any other clarifications/points.
4. Points will be awarded for each reply. And all participants will be ranked.
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Look forward to a healthy debate !
It would be very harsh to comment that investing in gold is a waste of money. Though, looking into the trends of last couple of years, there has been a decrease in the price of Gold, we should not determine its value only based on short term investments. The price of Gold has increased many folds since the start of the 21st century. Moreover, gold is considered as an asset which can really come in handy in case of emergency
Now days, we also have Gold Mutual funds where one can think of investing instead of buying raw gold. This market is still untapped and we may expect better returns in the future. We can definitely think of diversifying our portfolio by investing in these.
When we discuss about the investment in any of the options , we must take into consideration various factors like the return on investment, the liquidity and the risk taking capability of the investor. Depending on that we can classify whether this investment is a wastage of money or a good investment option.
Gold can be rated very high in terms of liquidity. It can be very easily converted in to money.
When it comes to return on investment in investment on gold , the returns have been very unpredictable.Gold tends to do well when stock markets fail while performs better when stock market is on a dry run.
Gold is chosen as an investment by risk averse investors as the investment involves very less risk.
Investment in gold is also used as a measure to hedge against inflation, deflation and currency devaluation.
It would be very harsh to comment that investing in gold is a waste of money.
Several valid points. Good start +5 :good:
No mention of Current Account Deficit :negative:
When we discuss about the investment in any of the options , we must take into consideration various factors like the return on investment, the liquidity and the risk taking capability of the investor.
Thanks Anuradha. Guys, please take a look at this approach and try to follow it 🙂 Its a very good one to begin ! :yahoo:
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