Can someone enlighten me why gold has such value? Of course it's not used for any other purpose other than to decorate human bodies. If the world is in deep trouble, who wants gold to save themselves? If no one wants gold, because it's useless, then it's price should plummet. I guess I don't understand the human psychology.
RE:What's gold for?
by Loan Shark on Jan 18, 2008 04:35 AM
You have no idea ... you know how much Gold is there in the computer that you are tying from? ... just melt the whole thing in a smelter and Gold will be at the bottom.
Gold doesn't generate income ... stocks pay dividend, bonds and FDs/CDs pay interest ... besides you have to pay to protect your investment in Gold ... like put it in a safe deposit vault.
Over a historical period of say 20 years see what has Gold returned compared to stocks
RE:Buy stocks, Buy Bonds and Fixed deposits, not Gold
by Loan Shark on Jan 18, 2008 04:30 AM
In 1988 Gold traded at Rs 400/gram, today in 2008, it is Rs 1120/gram i.e. an increase of 180% over 20 years.
This comes to about 5.28% annual compounded. Just remember what your high school teacher said "Math does not lie".
IT MAY BE TEMPORARY PHASE, BUT IT WILL NEVER LOOSE CHARM, AVOID INVESTMENT IN DIOMANDS, DIOMANDS ARE GOOD FOR CHARM AND LOOK IF YOU HAVE EXTRA MONEY ONLY. GOLD HAS MORE VALUE & IT WILL REMAIN.
RE:Diamonds have no resale value
by Loan Shark on Jan 18, 2008 04:36 AM
Dollar has fallen because US govt. wants it to fall ... it's low value is helping US exports, bringing in foreign tourism etc.
RE:Stupid Indians- paper currency is worthless
by Bindu Tuteja on Jan 18, 2008 04:53 AM
We are in a bull market for Gold. There may be some violent correction on the way ... but this bull market is far from over!
Paper currencies eventually returns to its intrensic value i.e. Zero.
Gold is money... you cannot produce it out of thin air.
RE:Stupid Indians- paper currency is worthless
by Loan Shark on Jan 18, 2008 04:24 AM
Gold doesn't generate income ... stocks pay dividend, bonds and CDs pay interest ... besides you have to pay to protect your investment in Gold ... like put it in a safe deposit vault.
Over a historical period of say 20 years see what has Gold returned compared to stocks
Gold consumption in India was always the result of tradition - notably weddings. While it may be aesthetic to maintain mild customs, the practical utility of metals in a modern service oriented economy driven by scientific and technical efficiency & innovation is close to absolute zero.
The Indian household using its disposable income, in many cases even not so disposable income to buy jewellery is not a wise investment, its a waste. It has no regular use besides adornment, it loses lustre, its safekeeping is cost intensive and its resale value is always lower. It makes a lot more sense to invest in enterprise generating financial instruments whether banks, bonds or stocks.
Once a trend becomes too common, the upper class recognizes it and moves on to another with greater exclusivity. Diamonds are coming to be the preferred targets of the upper classes and diamond sales are picking up. But that too, like gold and all jewellery suffers the same flaws of zero utility and negative returns.
RE:RE:Gold = A waste
by Loan Shark on Jan 18, 2008 04:33 AM
Indians like Gold, because it cannot be easily spent like paper currency is .... people think of Gold as an asset ... something that they will have forever
RE:Gold = A waste
by nikhil shah on Jan 18, 2008 03:02 AM
what makes gold price fluctuate? if its not precious then why it price is soaring high in global market.
RE:Gold = A waste
by Tupaki Pramod on Jan 18, 2008 03:19 AM
price of gold fluctuates because it is priced in dollars and dollar is becoming weaker. before dollar went off the gold standard in 1970's it was constant to the price of gold
RE:RE:Gold = A waste
by Sameer on Jan 18, 2008 03:26 AM
Partly right. In the last year gold has appreciated against all the currencies in the world including Euro. There is no confidence in the fiat anymore.
RE:Gold = A waste
by Deepa Mathur on Jan 18, 2008 02:42 AM
Rightly said. One reason why gold prices are soaring up and this metal becoming more precious by the day is : Indian households' passion of keep buying and storing it for future weddings or 'needs' which may never arise.
RE:Gold = A waste
by Sameer Bhagwat on Jan 18, 2008 02:48 AM
Wrong Gold is a precious metal, infaltion doesn't touch it. Look at the history its the safest investment possible.
