Categories Gold

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90% of my savings were in equity, debt was never attractive! Last few months have taught me the imp of diversification!

Gold - through SGBs was my move on diversifying! Holder since Jan'20 - so far so good!

A🧵on talk given by @PositiveGamma on Investing in Gold!

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Link to the here -
https://t.co/NxEkVKZi2H
MMTC PAMP is where Krishna worked before Setu and he was also responsible for launching Digi Gold at PayTM!

1) Why Gold?
1.1 Diversification - Volatility & Returns not tied to market conditions - diff. from financial assets.

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1.2 Safe Haven - High value asset, easy to transport! Large value - limited space. Liquid and easy to convert to cash across the world.

1.3 Hedge against inflation and currency depreciation! (Depreciation of Rupee is a major factor behind Gold returns in India)

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1.4 Upside in Tail Risk - Confidence in currencies & financial systems is low, gold can see upside in scenarios like this!

1.5 Upside on Demand/Supply - Constant Demand - Supply is stable!

2) Gold - Indian Context - Better returns compared to other asset classes...

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... specially in the last 2-3 years. Gold has done well both in low inflation & high inflation returns. So both real (ex. inflation) & nominal returns have been good!

3) How much to Allocate?
3.1 Diversification/Inflation Hedge - 10-20%
3.2 Tail Risk/Safe Haven - 5-20%

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