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.

http://www.livemint.com/2011/09/12221115/Now-you-can-buy-physical-gold.html?h=B

 

  1. i think, a chennai firm mnc bullion is offering gold with emi under name goldmine with minimum quantity @50GM. since long.

  2. wait.i did some calculations,bajaj capital one -i didnt see any margin for the 99.99% purity bars.am i missing something? it seemed like the 0 interest loans they give for consumer durables.

    if it is indeed the case,where is the leverage? it seems an ok proposition for those who want to SIP into gold physical bar.what am i missing?

  3. ofcourse unless you are dismissing SIPping into gold bar as a bad idea.well,that is a risk all investors take.the same sippers in Nikkei or S&P are sitting with zero in their accounts since last 11 years.equity and fixed income dont have any god given blessing to be on the rise everytime.the actions of central banks have a bearing in a fiat monetary system.

  4. Dr Mohammed Ali Khan

    Subra
    If I buy a few grammes of physical gold every month, out of my own earnings, without taking any loan, just to safeguard my purchasing power from the insanity of Ben Bernanke, Trichet Et Al, is it wrong?

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