Shining Traditions - Gold as Investment

As the festive season of Navratri and Durga Puja begins, it culminates in the lively celebrations of Diwali. It’s a well-known fact that Indians have a particular fondness for precious metals, especially gold, and they often make purchases on auspicious days. During Dussehra, buying gold during the auspicious shubh muhurat is believed to usher in prosperity, happiness, and wealth. In Maharashtra, the tradition of exchanging apti leaves during Dusshera has been a revered ritual for generations.

Do you participate in this tradition of purchasing gold during the festive period? Gold, traditionally acquired as jewelry, can now also be obtained in digital forms such as ETFs and SGBs, thanks to the advancements in capital markets. Which form of Gold do you prefer investing in? Do share your views about Gold in the poll below:

  • Physical Gold
  • Gold ETF
  • Sovereign Gold Bond (SGB)
  • No Investment in Gold
0 voters
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Gold has a very long history as an asset class worth holding. Apart from traditional avenues where gold gets consumed an increasingly higher demand is going to come from electronics in the smart age. Gold being highly conductive, inert to corrosion and easy pliability is used extensively in electronics which means - evergrowing EVs, consumer gadgets, IOT devices all are going to create more demand and gold prices are likely to push up.

If I had to invest I would invest in SGB. Its backed by govt and is gold value + 2.5% interest. However as crazy as it may sound, I plan to trade my way to financial freedom. I don’t have any plans to invest in gold… :sweat_smile:

@t7support I fully concur. Even I invest in SGB and utilize them in my LEAPS strategy. Gold has shown a CAGR of approximately 10%, with an additional 2.5% interest yield (in SGB). Therefore, the total instrument return stands at approximately 12.5%. Considering my target return of 22% (which aligns with Warren Buffet :stuck_out_tongue:), my strategy return comes out to be 9.5%. This calculation guides my selection of strikes and, consequently, the premium I opt for.

Cherry on the cake? There is no Capital Gains on SGB! :heart_eyes: