Well I have no strong views on Gold – however I have never bought any gold as an investment. I wear no gold on my body, but I guess my mother, sister, wife, and daughter do wear. However as a family also there is no interest in the gold – except to the extent that we pay some bank charges to ‘protect’ what we have.

A few months ago my wife said…’Did you know my gold is now worth about Rs…..’ – I said vow! I have now actually forgotten the amount – because it does not come in the net worth consideration for anything at all.

This was my view in 1980, 1990, 200 and 2010. It does not matter that if I had bought some gold in 1998 I would have seen a 400% gain – much better than a lot of cash that i may have held from time to time.

Here is Warren Buffet’s view…and I share it well almost completely. I am convinced that real estate and gold make tons of money for those who know how to deal with them. I do not. I would rather stay away from what I know that I do not know. I think I understand equity to some extent ….hope fully the market will not slap me!

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  1. buffet is right here.but thats true for anything in life.what pisses me off is his misunderstanding about the value of gold. he made some ignorant statement about gold being funny money -ie if martians observed human obsession with it,they would laugh at us.

    what i dont get is his irrational acceptance of paper money.paper money is based on faith.gold has passed the market test since many millenia.watching human beings exchange paper may sound more silly to martians imo.

  2. To some extent u r right n to some extent wrong
    but only time will tell
    till then its not bad idea ti diversify 5-10% in Gold!

  3. My strong personal opinion is that gold, for a large number of Indians, continues to be of sentimental value and something that will be acquired irrespective of its price. The talk of gold as a commodity, hedge against inflation, investment etc. is one that is highly Western in nature, in that, everything is treated in terms of profitability and return. And data suggests that Indians continue to buy gold despite the $1400 and Rs.20,000 mark and there are no indications that this will reduce. Yes, ETF investments have also been on the rise…..

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