Our call on Sovereign Gold Bond has come 100% correct. Those who did not buy are blessing us


3rd July 2019



Our call on Sovereign Gold Bond has come 100% correct. Those who did not buy are blessing us



Dear Fellow Travellers,



Greetings from Hitesh! Smart readers have appreciated our last posts on educations. In investment, 90% success comes from proper psychology and 10% is the execution and investment ideas. We deal with both areas. However, over the last 25 years, we have observed that more information is available to today’s investors than what was available to me in 1992. The average investor is not trained to deal with the onslaught of information attack and he fails.  



With the blessings of my Guru, I have always been going correct in understanding the intricacies of any investments products and predicting their success and failure. So, in 2015 when the GOVERNMENT launched the SOVEREIGN GOLD bond scheme, we had said STRONG NO.



Our post was written on 14th November 2015. You can read the post on our blog site.






What happened to the GOLD BOND?



Looking at the scheme, we had categorically said it would be better to buy GOLD in Physical form. Those who invested in GOLD BOND in various series – below is the performance of the gold bond.








Today all the gold bonds are available at 3% to 8% discount to the GOLD’s market price. Say you have bought at 2600 in 2015. Same gold bond is sold at Rs.3121. While the current gold price is Rs.3500 per gram. It means in spite of GOVERNMENT giving you 2.75% per annum interest – you are making losses.



What would have happened if you bought the GOLD in 2015 in physical form?



The gold price was Rs.2600 per gram at that time. Now Rs.3500. It means gold has given Rs.900 per gram or 34% return in the last 4 years. Close to 9% per annum.



Gold bond was giving you 2.75% per annum and you are still down by 7% compared to Physical price as of today.



What would happen to the guy who wanted to buy JEWELRY for marriage today assuming he bought GOLD BOND?



Say Mr. ABC has bought a gold bond. Now, he has a marriage of his daughter and he wanted to buy gold ornaments for her. He will have to pay the 7% difference plus making charges to the jeweler plus capital gains TAX on gold (Rs.3121-Rs.2600=Rs.521) to the government.



Had he bought the GOLD in a physical format he would have to pay just making charges.



Another problem is that he would not have been able to sell his gold bonds in one go due to liquidity issues in the market.  



Role of Government and Banks: -



Government and Banks are not always working in the best interest of the normal citizen. You need to think about its implications in the long term. If you blindly follow what has been advertised and marketed by MEDIA, even GOD will not be able to save you.



Special Offer: -



If you appreciate the role of an investment advisor, you can take advantage of the following offer.



We are offering yearly and 3 years of equity advisory services for Indian and USA Market. Currently, you can also join our TRIAL membership of 3 months. This is for a short period only.



Please write to us for the details of our membership



Make Your Choice.



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

Live With Passion…Invest With Passion.



Hitesh Parikh.


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