Archive for the 'Commodity' Category

Is gold worth buying today?

Let me warn you the title has the word today just to attract you :-). I have no view at all about gold prices. Personally i do have gold, but no clue how much. In most cases the cost of acquisition is almost immaterial – it all happened decades back….. Why is gold an awesome […]

Should I buy MORE gold?

A few people have asked me…’should I increase my SIP in gold’. Frankly  for me the answer is ‘I do not know’. However I realise that many of them are sitting on small losses or a very poor return if they have invested in the last 10-12 months. The Rupee not long ago was 40 […]

Is it a good time to be buying gold?

As usual, I do not have an answer. However I can lead you to the definition of “Irrational Exuberance”…I hope at least some of you know its association with Alan Greenspan! Well this is what it means: When all people believe that: •    The reward will outweigh the risk •    This time it will be […]

Gold is Illiquid

i am not sure whether this is a one off experience or true across many locations… In chennai when a friend tried to sell gold worth Rs. 3L – she was told she could exchange gold ornaments for gold, but no cash. She had the same experience in a few other reasonably sized shops. I […]

Gold lending frauds….

Recently heard of 2 frauds in companies lending against gold…. One of the biggest risk in a single commodity lending is the risk of that asset falling so badly that it creates a lot of NPA in your books. Now the lovers of gold will argue till the cow comes home that this cannot happen. […]

Sugar Industry woes…

In 1991 Prime Minister Narasimha Rao brought liberalisation to a practical level. Departing from the Nehru-Indira’s uneducated guesses on economics, what Mr. Rao did was path breaking. Sadly Sonia is back in power -(and BJP’s stint did not matter) and we are back to our so called social ways. Take the case of the sugar […]

Yes it is a bubble!

  Most economists you meet or read tell you that the US problem is worse – much worse- than the Euro problem. Many of us think that the Americans have pushed the dollar too far and it has to fail. The American debt, the American bank’s date and the NINJA credit cards, NINJA educational loans, […]