Re: it is superstition.
by kiran kumar on May 13, 2013 01:03 PM
The whole commercial activity in the world is based on this. Whether you go on a Europe trip, Amusement park, long drive, watch a sports event, have a dinner in a 5 star hotel, do a charity, or deposit it in your bank account. You do it, to give yourself a materialistic satisfaction. If you try to think a little bigger, all we do, all we are crazy about can be classified as a superstition. Only the source of the superstition may vary. It could be religion, historical, mythological, peer pressure, western culture, whatever we think is trending or a cool thing.
The ultimate aim of any of these superstitions is to give materialistic satisfaction. So, buying gold is equal to doing bungee jumping or donating in charity (when we give someone will take, gold miners/technicians managing the adventure sports/old and incapable people who cannot afford their own living).
Different people with different tastes prefer one over the other.
GOLD IS UNPRODUCTIVE INVESTMENT ALSO DIFFICULT TO STORE AND PROTECT AGAINST THEFT IF U WANT GOLD BUY ETF. GOLD PRICES ALSO FLUCTUATE LIKE SHARE PRICES BUT SHARE ALSO GIVE DIV. WHY GIFT GOLD AS PRESENT? GIVE SOMETHING USEFUL. GOLD WAS IMPORTANT IN OLD TIMES WHEN NO OTHER AVENUE FOR INVEST EXISTED NO FD NO STOCKS NO MUTUAL FUNDS. NOW PEOPLE INVEST IN GOLD JUST BECAUSE IT IS A TRADITION WHICH CAUSES MORE HARM THEN GOOD. GOLD IS USEFUL FOR THOSE WHO WANT TO INVEST ONLY BLACK MONEY. IT IS ALSO AGAINST NATIONAL INTEREST. EARLIER WE GET OUT OF OLD ILLOGICAL TRADITION THE BETTER.
Re: GOLD BUYING
by kiran kumar on May 13, 2013 01:25 PM
It is true that there are avenues for investment, but how many are immune to scandals. Why did Satyam's share values go below its net asset value. The day before it sank, their books showed healthy bank deposits. Their books were audited by PWC - I am sure you will not be able to find a better auditors than them in the world.
If invested in Banks, what I get to keep in return of my money is a piece of paper. Who guarantees that Cyprus will not happen in India, who guarantees a Global Trust Bank will not repeat?
All people investing in gold are asking for is a piece of metal instead of a paper. Once that is done, the person giving the metal can put the money for the productive work. No one stops that.
Also please note that the people (who matter and) who talk of discouraging people from investing in gold are not ready to do away with the gold in RBI vaults. Why is RBI still holding more than 550 Tonnes of gold? More than 1/2 a gram for every person in the country, when there are millions starving?
People invest in Gold because they feel it is credible, they don't feel govt's reliable.
How can anyone believe the govt which produces liter diesel in 35 Rs and sells it at 52 Rs and says it is subsidizing it to an extent of 7 Rs and therefore incurring losses.
The biggest curse on India is its superstitions. The media and traders spread more of it and make people slave to it. Many other countries including nearby China prosper well because they are out of superstitions and religions
