Gold

India
October 9, 2011 4:17am CST
Recently I was in Kerala state of south India, my host Professor Reddy told me out of total Gold business in India, 20% is from Kerala; each family buys at least one gram of gold every week, might be little exaggeration; but I saw almost every man and women wearing gold ornaments there; some daily labors were wearing gold ornaments too. On September 7th 2011 the price of 10 gram gold was little over 29, 000 rupees, today in my city it is 26, 710; it is going down. As per World gold council report, the price went up by 38% approximately. Somebody told me Indians and Chinese people took this price rise lightly but not others. During this period there were several celebrations in my family, birthday of my twin grandsons, birthday of my granddaughter Subhee, 21st day celebration of youngest grandson Bishu, Vijaya Dasmi celebration etc. As per family tradition I had to give gold jewelry to my grandkids and cash and gifts to kids. The gold I had to buy was @28,750 per 10 grams, it was really high. Do you buy gold frequently; do you think gold as a form of ‘safe’ investment; because price is rising so fast? When I was a kid, the cost of one tola (11,666grams) gold was around 300 rupees only. Which one you prefer to give as gift, gold jewelry or cash? Please share your views and comment on this. Thanks in advance. Professor ‘Bhuwan’. . 09/10/2011
1 person likes this
8 responses
constaanta
@constaanta (571)
• Germany
16 Dec 11
Due to crisis of our our currency, the Euro, in my country gold is developing here and there as a shadow currency: people buy 1 gram units of pure gold, embedded in a plastic card, in order to keep them safe in their houses for bad days. And there are already shops and services accepting such little gold bullions. The price is about 60 Euro (90 US$) and the value of course is fluctuating parallel to the daily London gold fixing price.
marguicha
@marguicha (215042)
• Chile
23 Oct 11
Hi Bhuwar, My husband and I once bought gold jewelry as a way of an investment and we were robbed. Now that I live alone I prefer to have my money in the Bank, although it´s not as good an investment as other things. I gave some gold and emerald earring to my granddaughter for her 15 birthday, but my daughter quickly put them away as she is constantly losing some cheap jewelry she buys at the streets. I imagine that I will have to buy something like that for my other granddaughter, but she is too little yet. She has lost several pairs of tiny gold earrings in her year of life. In my country, when we talk about gold jewelry, we are talking about 18 K gold. Take care!
eshaan
@eshaan (6188)
• India
9 Oct 11
Hi friend, well in India wearing too much gold is very common....and i am surprised to listen about gold in Kerala as i have never heard that before.... The price of gold is continuously rising and i too feel that investing in gold can be counted as a safe investment, as the price is rising constantly we need to preserve it as in future its price will rise beyond our expectations and many people will not be able to afford that so its better to buy it from this time only, at least price which is now is like that we can buy it but when in future the price will rise the price will be very high so we would not be able to do anything....
tigeraunt
@tigeraunt (6326)
• Philippines
9 Oct 11
hello professor, gold is a very good investment. although we do not buy as often as you do because of the staggering price. here in the philippines, silver ornaments are much more popular. but i would rather like to wear gold if i have. very seldom that we get gold gifts here. ann
kareemadivina
@kareemadivina (1230)
• Philippines
10 Oct 11
I think gold is a good investment as long as you can keep it well.If not it can be stolen or lost anytime.When I was in the middle east Gold Markets are popular that you can literally find it in public markets.As my observation,it's really a good investment because the price can triple in 5 years,and continue increasing so far.Just wish I had purchase more when it's still cheaper.Even broken jewelries can be sold in a good price.
edumate
@rollylolly (2843)
• India
9 Oct 11
I prefer depositing in monthly investment schemes available in our place . I pay for 11 months and the last instalment is paid by the jewellery shop . So every year on Akshay Trithiya I get a gold ornament for me . Thanks for sharing your story .
maximax8
@maximax8 (31053)
• United Kingdom
9 Oct 11
Hello Professor. I have seen lots of adverts asking to buy unwanted gold. I know that in England the cost of gold is very high at the moment. For my 18th birthday I got given a 9 carrot gold globe on a chain. I bought many 9 carrot gold earrings and finger rings when I was in my teens and twenties. I usually give a gift but I sometimes give money instead. I am not going to buy anymore gold because it is so pricey. Bank accounts have low interest but at least the investment is secure. My mom once got burgled and I lost some of my rings. It makes me want to hide my gold jewelry away. I live in my bungalow and earlier this week one of my neighbors had his van broken in the night time and some things stolen.
youaremylush
@youaremylush (479)
• United States
9 Oct 11
I don't know anyone who walks around with that much gold, it almost makes me wish that I was Indian or had relation to one. I only have one gold item and I never wear it (it's a crucifix). I would say that gold is a great investment, seeing as it should always be worth something.