Wednesday, April 10, 2024

Ah! Gold!

Retail gold sales are shooting up. See this link: 

Sensible. Everyone needs gold in their portfolio. 

1) Gold is the one asset that  is the ultimate backup. In case of a dystopian end of the world situation, only two things will  help, gold, and guns.  

2) We are talking physical gold of course. 24 carat .999 purity, real, solid, gold biscuits. 

3) Gold has a negative correlation to other asset classes,  and is good from the diversification perspective. 

4) It is a hedge against the depreciation of local currency against the dollar.

5) There is a limited supply of it and it cannot be made in the lab.

6) It is easy to store, hide and carry. One hundred grams gold is the size of a small glucose biscuit, and the value is Rs. 7 lakhs.

7) Physical gold is outside Big Brother's radar. The additional bonus is that it is highly tax efficient.

8) Gold in ETF form, or as SGB's, tick some of the boxes, but don't tick all. Physical gold reigns supreme. 

9) I would suggest keeping 15 to 20 percent of your portfolio in gold. 

10) You will now ask, when is the right time to buy? The right time to buy is always now.

11) The right time to sell is never, or when you need the money. 

12) Physical gold is also hugely satisfying. Try holding a gold biscuit in your hand, you will feel a tingle run down your spine. That is a message from the Universe that you need to own gold for your well being and happiness.

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