I am not getting into whether you should buy gold or not buy gold. There are enough people on both sides. I am on the side of Warren Buffet, and the only gold I have is what has been gifted to me either at the time of my marriage or somebody else’s marriage.
Here is a set of reasons why people buy gold:
1. My grandmother, mother, aunts all bought gold, and it has been a great investment for all of them, so I will also buy.
2. I bought a gold chain for my birthday 4 months ago – see how much it has appreciated, and I have been using it too!
3. What can I do with a demat statement? At least I can wear or use my gold – so it is better than shares.
4. It has gone up so much – I am sure it is bound to go up further.
5. I have no confidence in paper assets – all governments are printing too much money. Fiat money has already failed.
6. Gold has been a store of value for the past 4000 years – it is mentioned even in the great epics. Equity has no history.
7. See the movement of prices for the last 10 years…at least 10 years is a trend, no?
8. Once it goes up, it CAN NEVER come down.
9. My father lost a lot of money in Harshad’s and Ketan’s scam….my mother’s never lost money in gold.
10. See the Korean, Indian, Chinese governments, ETFs – all cannot be wrong, they are all buying, and so much!!
11. In a worst case scenario I can use it as a currency. I know people who ran away from Pakistan to come to India could only carry gold. Even those who fled Kuwait in 1980 only carried gold and silver…
12. Gold is a safe harbour….when things go wrong in the world, gold does well….now is the time…
13. Because the US is printing so much of currency, all the countries are also printing – so there is no point in keeping money in any currency, so I am choosing gold.
14. With such low interest rates, gold will surely be better than bank fixed deposit
15. It is the best, no, it is the only hedge against inflation.
I will refute them one by one soon 🙂
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