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Jun 29, 2022

In this episode, Deepak and Shray unravel different aspects related to investing in gold. 

Gold has been around as a store of value for a couple of millennia, probably longer, because of how little there is and how difficult it is to get out of the earth.

Now get this - all the Gold mined would fit in a crate with sides of 21 meters. That’s roughly the length of three and a half standard containers.

Yet, in the last decade, this scarce and loved asset class has done just enough to match inflation. This means, adjusted for inflation, gold has returned nothing!

Now, after putting returns of gold into perspective, we get on to the theme of our podcast - Does it make sense to invest in Gold?

We look at gold from different lenses while we determine -

  • If gold is a hedge against inflation?
  • Can gold protect you in a crisis like war?
  • Is gold investment to create long-term wealth?
  • Is there an efficient way to invest in gold?

Show notes and references:

01:30 - Is gold the safe heaven when everything else falters?
05:00 - Today all assets classes act alike and correlated

Refer - How Gold has performed over years?

08:00 - Gold hasn’t outperformed inflation in 2011!
12:30 - Times when gold did outperform the Nifty
15:30 - The second-order effects of gold smuggling
17:30 - Buying gold for emotional and goal-based reasons
20:00 - Should you buy gold to hedge against a crisis like war?
23:55 - Is buying digital better than physical gold?

Refer - What is digital gold?

36:30 - Is gold as an ETF a good option?

Refer - What are Gold ETFs?

38:30 - Sovereign gold bonds as an avenue for investing in Gold?

Refer - What is the Sovereign Gold Bonds (SGB) scheme by Govt of India?

43:00 - What is the best way to buy gold?

If you loved listening to Deepak talk about money and finance. You'll also find his book quite interesting - You can buy the book here – Money Wise.