Gold is under tremendous pressure internationally, so India may also see Rs. 25000 (just speculating, actually no clue) but Swaminathan A Aiyar says so in Economic Times.
I am not commenting on the price of gold at all. I do not think that to be a good investor you need to be playing the forecasting game. I belong to the Warren Buffet school of gold prices, and never believed that it is a good investment. I do hold gold, but that has nothing to do with my market view. It is the gold that my wife brought with her during our marriage. Needless to say I have not seen it AT ALL…it is in a locker operated by my wife….
What about real estate?
Well I do think it is far beyond the reach of the middle class. Why jobs cannot get shifted out of Mumbai? Will shops survive with the kids being able to buy things on Jabong? or Jabong’s equivalents? Ebay, etc. will dramatically alter the margins of the shops.
However SBI, HDFC, ICICI have balance sheets with about Rs. 500,000 crore worth of assets. So if prices of RE fall, these institutions will suffer a big HOLE in their balance sheets…
However R Jagannathan (Jaggi) has some views….like Swaminathan…so read these too…
Again not commenting on the price of land esp in urban India. Also it is not always that I agree with Jaggi…but this article is nice – and of course it is worth reading….amuse yourself.
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