If we are all so sure that there will be volatility in the world, we should all be buying gold, correct?
Yes of course…
So just go and buy it…why the delay?
Well you may not have money to buy gold. Now a simple solution exists, leverage.
After all we leverage to buy real estate (real estate prices cannot fall, dude!), we leverage to buy a car, Mahindra Resorts Holiday plan, etc. (need it today, dude).
Is it risky to leverage? of course not, ALL OF US KNOW FOR SURE that gold prices can only go up at 32% p.a. (it has gone up by 32%p.a. for 5 years, correct?)..
So borrow at 15%p.a. and invest in gold which will go up by 32%p.a. – where is the risk?
Wonder why Religare Enterprises Ltd., Bajaj Capital, Muthoot Fincorp, are not keeping the whole margin to themselves?
PS: this is a satire…do not take my views on gold seriously, I have no personal view…but here is a nice comprehensive article by Bindisha Sarang enumerating all the schemes including spending ones like Tanishq and investing ones like Muthoot.
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