Investing In Gold Can Make You A Millionaire
Many people in the sub-continent would jump out of joy if I say that Gold can help them be a millionaire.Yes! Why not? Gold can really help you attain a strong state of financial dominance during your retirement days.Finally everything has to be liquidated into paper currency which a mandated means of transacting in the current world.The problem with Paper currency is that it has a lot of fake pride.Imagine a 100 dollar note; it won’t be able to carry itself on its own unless it is backed by some asset of primary importance.Gold has been that asset all through these years.
It is of historical significance and its rarity and beauty makes its all the more dominant.Over centuries Asians have used gold for making ornaments and that’s the form it dwells in most of the houses.But can gold make you a millionaire? Personally I feel that it would make you one over time.Over the last 30 years Gold has increased by over 30 times and this hedge against inflation is bound to make you rich in its purest form.
No one can claim that it definitely will take you there as no one has seen the future.However history says that when markets toil gold regains its lustre and notches up. I am not an advocate of buying gold ornaments.I really feel the making price of these ornaments hits the valuation hard and you lose gold due to wear and tear whenever you want to liquidate it.Buying gold bonds over SIPs can be a safer way of stabilising your portfolio.
Here is my hypothesis.Assume you are 30 years old today and have another 30 years before retirement.If you can buy 10 gram of gold every month over the next 30 years then you have already laid a solid foundation in your march towards a million.Is it really difficult to do this? I guess not! It’s a question of putting 30000 INR per 10 gram which might not be really be difficult if you are thinking of gold purely as an investment.
But what if gold prices increase and it means putting a lot more than that.A more practical way of going about this is to put in an amount proportional to your salary into Gold.Imagine putting 20% of your in-hand salary into gold on a monthly basis.This means you give exposure to all prices of gold and whenever gold falls you have the luxury of buying more.If you follow this approach then you can surely make a difference to your future.