If You Find It Difficult to Smuggle Gold, Start With Cigarettes

Monday, 02 March 2015

If You Find It Difficult to Smuggle Gold, Start With Cigarettes

Greetings from Hitesh! All good intentions are not always logical and practical. Take an example of cigarette. We all know that cigarette smoking is bad and we should encourage stopping of the same.  But can we do it just be increasing the prices? Let us look into it.

What Government has done in Recent Budget?

After 3 years of successive and steep rise in excise duty on Cigarettes – this year also they have increased excise duty by 25% for lower end and 15% for higher end cigarettes.

What happens due to that?

It may bring down the volume growth for cigarette companies to be sure. But can you stop the guys from smoking? I think following things can happens.

1.  Lower end people will shift to BIDIs

2.  There may be spurious cigarettes in the market.

3.  You will see increase in use of imported cigarettes.

Govt is taking a pride that after increasing the Gold Duty, Gold import has come down from about 1000 tonns to 800 tonns, but what about the smuggled gold? Nobody knows the qty.

In case of GOLD, we do not have gold reserves in India. But in case of cigarettes – the companies are there and they will be losing to the BIDIs / spurious and imported ones. It will be a loss of revenue to Govt and companies manufacturing also. What’s more – the guy who was smoking is still smoking!!

What’s my call?

In the movie Mary Kom, there is a very famous dialogue – “AAP HAME ITNA BHI MAT DAROA, KE HAMARA DAR HI MAR JAYE”

There should be a limit to everything. Noble intentions will not necessarily bring noble results.

What Next?

Investors come to the market with Noble intentions to make money. They believe that the guys (media) giving them TIP for FREE is like GOD. The normal guy who would not give you Rs.100 without asking you the proper explanations – will invest lakhs of rupees on these FREE tips. You know what happens after that.

We believe there is no FREE LUNCH.

If your intention to make money is coupled with Honesty / Practicality and Logic – you can approach us for our investment advice. We assure you – you will surely make tons of money with us.

Have A Fantastic Week Ahead.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.