The good old time of gold price will never come back, but i am still not able to decide whether it is a right choice to invest in gold as our parents use to do..

Will we get the same returns from Gold as our parents and grandparents got..

Should we invest in gold at the same pace as our parents use to do or we should slow down..

What should we do , when it comes to Gold Investment...

Lets discuss and find out , whether we are on the right track of not investing in Gold at this point, or we are making a mistake by not investing in it..
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  • 2001...old man put 10 lakh in gold and 10 lakh in plot...

    2012.. 10 lakh (gold) become 35 lakh+..... 10 lakh (plot)..become 87 lakh...

    so RE RE RE
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  • I dont how come 10 becomes 35, in 2005 gold was 6500, now it is ~31000.

    Originally Posted by fritolay_ps
    2001...old man put 10 lakh in gold and 10 lakh in plot...

    2012.. 10 lakh (gold) become 35 lakh+..... 10 lakh (plot)..become 87 lakh...

    so RE RE RE
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  • Originally Posted by fritolay_ps
    2001...old man put 10 lakh in gold and 10 lakh in plot...

    2012.. 10 lakh (gold) become 35 lakh+..... 10 lakh (plot)..become 87 lakh...

    so RE RE RE


    These figures may not be entirely correct

    Gold price 2001 = ~INR 5000
    Gold Price 2012 = ~INR 31000

    10 lakhs invested in gold in 2001 becomes 62 lakhs

    Cost of a DDA flat ground floor Mayur Vihar Ph 1 delhi in 2001 = 20 Lakhs
    Cost of the same DDA flat ground floor Mayur Vihar Ph 1 delhi in 2012 = 1.2 Crore (Or less)

    RE Prices have gained around the same or less if comparison is done between 2001 and 2012. (Please can anyone ratify this with examples. Please correct me if these figures seem not fully correct).
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  • Picked from another thread, RE is a special asset class. Its the only asset class which is backed heavily by the govt. No other asset class (G-OLD, stocks, commodities or bonds) are provided the level of support that RE gets. Look at the recent US Fed move to buy home loans from the secondary markets to lower home loan rates and the various benefits that UK, Spain, Japan, China and India provide to RE investors.

    The supply of RE is local (you cant import land) and totally controlled by the govt and builder lobby so any hint of price correction is followed by moves from the govt to prop up the market (lowering of interest rates, tax benefits, stamp duty exemption, etc).

    Because the RE market is so big as a % of GDP when it crashes the wider economy of the country also suffers. A fall in price of food wont affect the country as much as a comparable % fall in the price of RE given that RE is the most leveraged sector of the economy.

    So coming to you question on when to buy RE provide one has the money

    Look at the state of the finances of the govt (central govt) and see how far away are they from busting
    Check the 50 yrs history of house prices net of inflation
    Check about the medium to long term view of the economy of the country and the local area
    Check the supply and demand situation in the local market where one wants to buy a house.
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  • Guys,
    We are talking only about the appreciation or price rise of both. What about the rent earned from property in 10 years. We have to calculate that also. Can some one estimate the rent earned in 10 years. So net gain = rate appreciation of property + rent earned.
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  • also .. GOLD can be easily stolen.... unlike RE (land) where kabzaa is possible... but still RE is less risk business than Gold....
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  • RE investment & appreciation is relative to one's capability & location chosen... some property can multiply multi-fold times in same tensure but Gold has almost the same rate throughout country unlike the varying appreciation in RE from place to place .. in my opinion Gold & RE investment can't be compared always but only once in 5-10 years. In long run & almost everywhere in country RE beats Gold in appreciation.
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  • One thing is good in gold investment. Any amount you can invest and you will get proportional return. But for Real Estate more money required.

    Now a days lot of small and big financial institute and bank offering loan against gold, like Muthoot finance, Mannapuram gold loan, HDFC gold loan etc. Whenever you need money you can take a short term loan against your gold.
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