Right time to invest in gold?
Yes, this is the right time to invest in Gold as Gold is a good and a safe hedging commodity in uncertain times. Investors in stocks and financial markets have burnt their fingers in the recent past due to weakness of US dollar, higher inflation rate in double digits, rising petrloeum prices. So they would like to square up thir losses by going for the gold anticipating that in near future with the festival and marriage season in full swing the demand is likely to rise and prices of gold are likely to go up. The gold market in our country is highly price sensitive and as soon as prices fell in the last weak, domestic investors have rushed to gold shops and show rooms to encash this opportunity and buy gold with a view to gain in appreciation of prices in next few weeks or until the sentiment remains encouraging. Although prudence demands that we should invest a portion of our assets in gold, we should not go overboard. While there are several benefits of investing in gold, some caution points are worth noting:
1.When compared with other assets, such as debentures, gold does not provide regular income.
2. Investment in gold does not provide any tax benefits. On the other hand, sale of gold results in a tax liability.
3. Purity of the metal is always a cause for worry. There is ample chance that one might not get the purity that is promised. At the time of selling the substandard gold, one will have to settle for a lower price. To avoid this problem, at the time of buying, it is always better to insist on a certificate authenticating the purity of gold.Going for hallmarked jewellery is also recommended.
4. Extra cost is involved in preserving gold. If one has physical gold,one needs to invest in a bank locker for safe keeping. If one decides to buy gold over the stock exchange (i.e. gold exchange-traded fund), then onel needs to maintain a demat account.
In conclusion,invest in gold but prudently.
Dhiraj Nayyar’s column (‘Greasing the wheels’ in FE, July 29) was a good analysis of the degrees of corruption, its positive sides and impact on functioning of the government. Research shows that lack of administrative transparency, lack of freedom of information, contempt or neglect of the freedom of expression, weak accounting practices and feeble or emasculated anti-corruption agencies provide the fertile ground for corruption to thrive. What is required in India, like else where, is iron-clad protection for whistle-blowers. That said, public memory is short and the July 22 incident in the Lok Sabha may soon be overtaken by some other expose.
We may pull out of Singur if…
Author: Jatinder Pal Singh Broca Aug 25First it was the POSCO fiasco in Orissa. Now it is Singur imbroligo in WB. Politicians are using it as a plank for their vote bank. They least care if industrial development in the state takes a back seat. Obstructing such projects, which will generate a lot of employment opportunities in the state, is foolhardy. Ratan Tata is justified in carrying out his threat of moving out lock, stock and barrel from Singur, if political turmoil over a non-issue continues to drastically upset his ambitious Nano baby plans. Industrial Development is an engine for growth. It attracts a lot of investment, generates more business, develops required infrastructure, results in development of a cluster of ancilliary industries and above all, gives jobs and service to a vast portion of the local populace, resulting in their economic upliftment. Such a negative approach by political parties will kill the proverbial goose that is expected to lay golden eggs. A participatory management approach which involves the farmers as well, so that in the long run they also become stakeholders in the project, is judged to be the best approach in such ambitious ventures.As seen from media reports several other states like Mahrashtra, Uttrakhand, HP and Punjab have extended all help to the Tatas for re-locating their project from Singur and have promised hassle free investment procedures. Compelling Tata to move to other states will send the wrong signals to other business groups as well. Even existing industries may not think of expanding further in WB. This will obviously result in flight of capital to other states where the industrial climate is favourable and conducive for growth is encouraged. Mamta Bannerji and other politicians like her should do re-think or else this episode will result in disastrous repurcussions and may even go to the extent of writing an epitaph for this project: “Here lies NANO. Born 2003. Died pre-maturely: 2008. Death due to political murder. GOD FORGIVE THEM, FOR THEY KNOW NOT WHAT THEY HAVE DONE!”