All articles related to the “topic”, gold
A reader asks, “Which among the following two has higher credit risk? 1. Gilt fund (actively managed) or 2. FD in a nationalized bank? I need to choose one for a 10-year goal for the debt portion”. On the face of it, this might look like a trivial question to at least experienced investors. However,…
Continue reading →A reader asks, “Can I add 10% to 20% gold to my investment portfolio? My need is in 15 years? Is it possible to do backtest to find out how a portfolio with gold fares against a portfolio without gold? The short answer to this question is one can certainly add 10% to 20% of…
Continue reading →We are studying the efficacy of a double moving average market timing model with different market indices. We have already established that the model reasonably works (see links below) with Indian gilts, Nasdaq 100 and the S&P 500. Our primary goal in this updated study is to illustrate market-specific risks and the sequence of returns…
Continue reading →A reader asks on Twitter, “Can we use Sovereign gold bonds for retirement planning?” For those who hate tax, the Sov. gold bond is an enticing investment. Buy and hold it for eight years and the returns (if positive!) are tax-free. So why not do this over a 20-25 year period when a typical investor…
Continue reading →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…
Continue reading →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….
Continue reading →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…
Continue reading →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….
Continue reading →Series VIII of Sovereign Gold Bonds 2020-21 will be available from November 09-13, 2020 with Settlement date November 18, 2020. During this period, the price will be Rs. 5177 per gram for offline subscriptions. Online purchases will cost Rs. 50 less. This is marginally higher than the seventh tranche which opened at Rs. 5041 and…
Continue reading →The seventh tranche of Sovereign Gold Bonds 2020-21 (Series VII) will be available for sale from October 12-16, 2020. The issue price of the Bond per gram during the subscription period will be Rs. 5041 (down from Rs. 5,117 for series VI and Rs 5,334 for series V). However, it is not a product for…
Continue reading →These are the issue dates of Sovereign Gold Bond Scheme 2020-21. The finance ministry has announced six further tranches for the current financial year. This is the schedule. Also see: Sovereign Gold Bond Scheme 2020-21 (Series VII): Should you buy? Tranche Subscription Dates Issue Dates 2020-21 Series VII October 12 – 16, 2020 October 20,…
Continue reading →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.
Continue reading →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.
Continue reading →According to the income tax rules, the gain from each unit of a non-equity mutual fund that is older than three years is subject to 20% taxation with indexation benefit using the cost inflation index. With the Cost inflation index for FY 2020-21 just announced, let us see how tax is lowered on all debt funds,…
Continue reading →Have you ever wonder what returns one could get by buying Sovereign Gold Bonds? Here are some hard numbers.
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