A helping hand from numbers leads to objective opinions and confident decisions!!!

  Conventional wisdom in India: Gold jewellery is an investment. Though quite a many folks (I included) treat jewellery as consumption item and only bullion and various digital forms of gold as investment. If things were that black and white. Keeping the argument between physical gold - gold jewellery and gold bullion. Let’s set aside the digital forms of gold as of now. Assume you have enough digital assets and now want to possess little bit physical gold. Do numbers favor jewellery or bullion as investment? Bullion will mostly win hands down. UNTIL… We bring in the wearability factor of gold jewellery. One can don, correction - flaunt jewellery multiple times, for many years to come while bullion only serves as a collectible, to be stored in some locker. Maybe one can look at the bullion once in a while and marvel at the dazzle – but that’s about it. You can never don/display it like jewellery. But wearability, or the show off factor comes at a cost. Issue at hand – ...

  Assume you have decided to sell an investment. Another assumption here is the said investment is a volatile asset – it’s price can go up or down next year. Only thing holding you form taking the plunge -  the price. You have decided upon a price and will not sell until you get it. You have the capacity to hold. Never mind there is a possibility of the asset price going down instead of appreciating. A certain "price fixation"is probably the most unappreciated part of any sell decision.  But circling back to the quest for realizing a particular “price” - one mostly fails to consider the number which should be key to “hold for the price” or “sell now” decision -   “The Carrying Cost” . Or, in simpler words – the opportunity cost of holding the sale proceeds of a “fluctuating” investment in a fixed return, risk free kind of asset. Let’s say you own an investment property – debt free. You have decided you will not sell it below INR 1 Crore. And you don’t mind wai...