Why Indians should stop buying GOLD?

Why are we Indians fascinated about Gold so much?

Having a friend’s or relative’s marriage in future? Mere 1 gm of gold coin costing about <3k INR would sound mightier than a washing machine costing about 8k INR. Over the last 5-6 years, Gold has been the most promising investment. Giving about 25% returns in a year. However, there is a problem. Gold is just a shiny metal which is over-hyped. I remember I attended a workshop in Bombay stock exchange where in the ex-president of the BSE just ridiculed Gold as an investment.

Some of my thoughts:

1. Gold is very trustworthy metal. It has a proven record in the history of mankind to bring them out of trouble in times of need – Be it marriage, Be it war, Be it a big loan repayment – Gold comes in handy. About 6-8% of human mind in India revolves around Gold. Whenever they want to go for ‘shopping’ when they have large amount save, they would buy GOLD. I know many people who would spend their entire savings only to buy GOLD. There are Gold schemes in India which encourages everyone to invest a part of their salary in GOLD every month!

2. Fact: Gold is not mined in India so much. Gold has to be imported. Like OIL, Gold is very less in India but the increasing demand has created a lot of Gold imports in India.

3. Gold is nothing but a stagnant yellow metal:  You practically can’t use Gold to do anything. Just sit back and relax while its locked in your locker. Its just a useless metal which has blocked minds of innocent Indians with its glittering sparkle! Btw, over the years, I’ve found one great use of gold. You can make Gold wires in your homes electrical cabling. Gold is a very good conductor with a very low power loss in transmission! I.e if you care for electricity bills and I.e if you’re super duper filthily richie rich!
But hey, for an average Indian, a locked asset in their locker – which they take a look at only to see that its safe, gives them mental peace and a feeling of superiority over others which is far more satisfying than a good meal – So yes, Gold does bring mental peace to Indians which is an Irony understated.

4. What next: Once you have all this Gold which is already imported into India by millions of buyers, what next? Since Gold has no other practical use, no one wants to trade gold with one another unless something important comes up like financial crisis or war. What’s the probability of such happening and to how much percentage of the general public? So basically it becomes a lumpy piece of metal lying in your locker giving you mental peace ONLY without any economic growth.

5. India doesn’t sell Gold. May be it does but the percentage is very less. Why would someone want to buy gold from India. Yes, Iran would get gold from India because India cannot pay them for the imported Oil – Due to the dollar problem (Not that Indian cannot pay)

In Conclusion: What can you do as an Indian ?
Its practically impossible to tell any Indian “Stop buying gold”. It would be like telling an Indian “Be there on time – Sharp”. What’s recommended is that do not buy Gold if you have excess cash. Invest in something else – in may be a business! Or something else..! Give a percentage of it as charity..

Mark my words when I say this: The more Gold India imports, the more liability will it add in the future. So its my very humble request to all you super duper richie rich fellas reading this blog – Invest wisely. All that glitters is not gold!

4 thoughts on “Why Indians should stop buying GOLD?

  1. Joseph

    I think one of the reasons why Indians have a discerning thirst for gold is the fact that this item is considered to be a precious cultural gift. However, as an investment, gold is a great commodity to hedge against devaluating currencies. While it may not be wise to invest all your money in gold, I think it is good to diversity your investment portfolio with precious metals.

  2. Manish Aggarwal

    How To Disable Star Token From Your Internet Banking
    There are Certain Steps which are helpful in disabling the Star Token from your Internet Banking after which you would be free to access your online banking from any browser and any Operating System.
    It is a WORK AROUND and therefore may not work in all cases. Though having said that, it has proven to be a successful source in all the cases that it has been tried in by far. The steps to Disable the Star Token are as follow :-
    01) :- First of all you need to remember your Secret Question’s Answer. If you don’t remember that, please login to Star Token and check the correct answer in Star Token. Log Out and close the application.
    02) :- Open Star Token again and enter INCORRECT Star Token pin for 3 times. Your Star Token will be locked thereafter & therefore it will ask you to RESTART Star Token. Click on Ok/Yes.
    03) :- Enter your User ID if asked. Now you will be given OTP(One Time Password) receiving options (Through Email or by SMS). Click on receive by SMS. An OTP will be sent on your registered mobile number (The number that you have registered with the Bank).
    04) :- On this page you will need to enter your Secret Answer and OTP(One Time Password) that you received on your registered mobile number.
    05) :- A “Congrats” message will pop up, it would say that your new Star Token Password has been generated and will be sent to you. Wait for 24-48 Hours and then you are free to login into your Bank Of India Internet Banking from any browser & any Operating System (Windows & Macintosh). Preferred browsers to use Internet Banking are Mozilla Firefox & Internet Explorer (IE 8 and above). Remember to always CLICK NO on STAR TOKEN ACTIVATION as it will always prompt you for the same whenever you have Logged In into your account (Post the Login Screen). It worked for me and for all the people that I know off who used these steps. Hope it would work for you as well. Best Of Luck !!!!..
    Thanks and Regards, Manish Aggarwal

  3. sumit samanta

    This is a very wrost bugget ever.mr. jetly is killed gold labour.many gold labour was income with this business. But this bugget isstop this work. And wich labour r work to they r now work less for this bugget. And this situation is blame to mr jetly and pm modi bugget planing

  4. sumit samanta

    This is a very wrost bugget ever.mr. jetly is now killed gold labour.many gold labour was income with this business. But this bugget isstop this work. And wich labour r work to they r now work less for this bugget. And this situation is blame to mr jetly and pm modi bugget planing.

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