Anyone interested in money management would have, at some point in time, heard the saying that gold is a hedge against inflation. Does the data support this adage? Let us find out. For an asset to be considered an inflation hedge, an investor must have a reasonable chance of earning a return higher than inflation…

Over the last couple of weeks, three readers have asked me why their Sovereign Gold Bonds decrease in value and how they can lose their principal in a bond with a sovereign guarantee. So, what is sovereign about these bonds? First, consider a simple bond issued by either RBI or the central or state governments….

With the Sovereign Gold Bonds, 2021-22 (Series IV) open for purchase from July 12-16, 2021, a reader asks, “how much return can I get from these bonds”? The only honest answer one can offer is, we do not know. Gold is too risky an asset class to make a prediction. Here is why we have…

The finance ministry has announced the release dates of Sovereign Gold Bonds for 2021-2022. Six issues (tranches) are to be released. Thrice in May(!), once in July and twice in Aug. A discussion on when one can buy these when one should not. There are at least three distinct ways in which investors approach gold….

We there is a discussion on gold returns, someone tends to point that “silver has done better” or “silver has more upside potential than gold” or some such statement. In this article, we compare returns and risk associated with gold and silver from Jan 1979 to Aug 2020.

On Jan 2nd 1979, Gold per troy ounce (about 31.1 grams) was Rs. 1792.85. On 24th July 2020, 41 years later (41.6 years technically), the price was Rs. 142343.67. That is a CAGR or an annualized return of 11.1%. There is however a catch though.

Have you ever wonder what returns one could get by buying Sovereign Gold Bonds? Here are some hard numbers.

Here is when investors should use the Sovereign Gold Bond Scheme 2020-21 and more importantly when not to!