Comments on: Take gold action! http://www.onemint.com/2009/11/04/take-gold-action/ Helps You Make Better Financial Decisions Fri, 10 Feb 2012 12:26:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: TIP Guy http://www.onemint.com/2009/11/04/take-gold-action/comment-page-1/#comment-43049 TIP Guy Thu, 05 Nov 2009 20:53:52 +0000 http://www.onemint.com/?p=3012#comment-43049 First, I agree with you on gold being storage value and lacks return generation, plus it has perception for stability. Second, from country perspective, I think RBI had to diversify its holdings. RBI had to have some mid single digit percentage of assets in gold. Taking this step further to individual perspective, specially Indians, majority of then already have gold-based ornaments to the tune of 5% to 10% of their assets. They basically own hard gold assets. So on individuals basis, there is no point in investing in gold derivatives or securities. It just defeats the purpose of asset diversification. First, I agree with you on gold being storage value and lacks return generation, plus it has perception for stability.

Second, from country perspective, I think RBI had to diversify its holdings. RBI had to have some mid single digit percentage of assets in gold.

Taking this step further to individual perspective, specially Indians, majority of then already have gold-based ornaments to the tune of 5% to 10% of their assets. They basically own hard gold assets. So on individuals basis, there is no point in investing in gold derivatives or securities. It just defeats the purpose of asset diversification.

]]> By: Ancella http://www.onemint.com/2009/11/04/take-gold-action/comment-page-1/#comment-42804 Ancella Wed, 04 Nov 2009 16:50:40 +0000 http://www.onemint.com/?p=3012#comment-42804 This is a very interesting post...about things which you don't find in everyday newspaper (at least the ones i read) :P This is a very interesting post…about things which you don’t find in everyday newspaper (at least the ones i read) :P

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