Droplet Wealth

       What you see is not what you get!                                     In the last blog , we showed that even though Gold has given better returns in recent times, the long term returns of Gold are still not the best among all asset classes. In that the returns compared were the returns of pure gold vs other Asset class. In this blog, let us understand the difference between the actual returns we make from Gold vs Paper returns based on Gold Prices we see.                              Let us first bring to your notice that our families usually buy gold as Jewelry and not as gold coins or bars. When we buy Gold as Jewelry, there are costs that get added to it, making / wastage charges + Taxes that we have to pay. A friend of mine recently bought a ring and came to me totall...

         Ever since the Gold started soaring my twitter timeline is filled with Social media "experts" calling out Gold as winner against Amar, Akbar & Anthony, i.e., Stocks, debts & Real Estate. Okay, so I now switched on to News Channel and they too were running headlines like - "Gold outshines bla bla..." I was like - Ye Tu, Brute? We thought that this too shall pass. But then started a galore of news pieces that called the doom for most of other asset classes. We said, enough, lets try and add some common sense to this non-sense! The 1st thing that we noticed is that the 20 Year returns of Gold is shown against the 20 Year returns of Equities. So it looks like this -  So Yes over 20 Years looks like Gold has given better returns than Equities. But wait this is a twisted narrative. To know why lets press the rewind button and go to 1997. In 1997, the Price of Gold was Rs 5100 and Nifty was trading @ 998.  Between 1997 to ...