What do you buy during Dhanteras ?
When you read about Dhanteras and favourite stories you realize one thing.
Indians love their gold!
“Have a little extra money ?Don’t forget to buy gold” .Advice we have all received sometime or the other.
My 3 Money Rules
- Increase your earning But don’t forget savings.
- Money saved is money earned!To earn and keep is important.
- Diversify assets. Always balance your financial basket
In India we are conservative in our investments .
Savings,equity,gold,land all are important for your wealth basket.But the percentage of each is what makes you win or loose.
In India Gold has always been popular.From ancient times gold has been the number one precious metal.
Primary reason maybe it’s beautiful warm ,yellow colour which reminds us of the life sustaining sun.It’s also linked to many popular Indian stories .Gold also signifies the blessing of Goddess Laxmi.It’s association with prosperity and affluence makes gold buying symbolic.
Being a noble element makes it less likely to cause skin irritations and react with atmospheric elements.Makes it perfect for wearing and keeping for long time .
Gold jewellery makes most Indian woman happy.So it’s a must wear for weddings and auspicious ceremonies.
Gold has been consistently the only happy metal for Indians.Not surprisingly India is the number one gold buyer in the world !
We are typically conservative investors. So we like safety and security over anything else.
This is why physical gold wins any day. Atleast with most women.
What are the different methods out can invest in Gold ?
This article in jagoinvestor will help you decide.
But before stockpiling Gold ,physical or otherwise you must know a few things.
Gold prices over the years have been consistently up.So it should be great to buy Gold right ?Depends .
It depends on what you want out of that investment . If its meant for securing the amount,not necessarily growth .Then gold is not too bad.
I love Gold but I love after knowing all its negatives.
Read about gold price movements in India before buying.
Interestingly Gold is considered the purest international currency.You might be able to buy stuff with gold but not with Indian currency in places outside India.
So while it’s better than having money in your savings account,it has not always kept it’s promise as an inflation adjusted investment
Warren Buffet – “We live in a world where 80 years out of 100 will be good. But we don’t know which 20 will be bad.”
So what should be on your investment plate this Diwali?
The best way to learn is from the greats.
My favourite 3 Quotes from the book
Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger(affiliate link),Warren Buffet’s reticent but equally brilliant friend.
#Value investing principle 1
Measure risk
Everything in life depend’s on having a good judgement . Assessing risks and benefits are mortar before choosing any investment .
- Safety margins need to be adequate.
- Avoid dealing with shady people.
- Avoid big mistakes . Shun major capital losses.
#Value investing principle 2
Be Independent
Only in fairy tales are emperors told they are naked
- Have independance of thought .
- Be objective and rational.
- People agree or disagree doesn’t matter.
What matters is correctness of your analysis and judgement.
#Value investing principle 3
Have patience
Compound interest is the Eighth wonder of the world (Einstein )
DON’T interrupt it unnecessarily
So before you buy Gold today remember Asset allocation.Don’t put all your eggs in one basket.
Are you a value investor?
Whats your plan for investing Dhanteras and otherwise?
This is a part of UBC #Daily chatter day 28 with @Blogchatter
(Disclaimer:I am not an investment specialist.Kindly consult a professional before making any investment )