WhatFinger


Gold, A Glittering Web

The Necklace



Gujarat, India. Gold and woman are almost synonymous to each other. It is very rare to find a woman who does not get attracted towards gold and jewelry. It is the same with me also, but most of us are not aware that the net gold investment turns out to be a loss instead of gain. How? Well, you will be able to find more about it when you read my experience and co-relate it with that of yours.

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I was longing to buy a Mangalsutra (black beads and gold chain, a treasure for a married woman) for the past many years. This year, my husband decided to gift me with a new in exchange of an old one on the occasion of Karva Chauth. We landed in one of the popular jewelery showrooms of Vadodara on a Sunday afternoon. As soon as we stepped on the stairs, the well-dressed durban opened the door for us with a gentle smile. Around 20 executives standing at counters welcomed us and we felt very honoured. The ambiance, lighting, decoration was very attractive and we were carried away with it. As we began selecting the chains, an aged man came with glasses of water followed by juice. It was a wonderful way of welcoming guests and it was all appearing to be very nice. After seeing some pieces, we selected one, which was a suited toward our budget. The old 22CT gold weighing 15 gm was purchased @ Rs.9100. Whereas, the new chain 22CT chain weighing 17 gm was sold @ Rs.9500 + Rs.155 pg labour charges. Therefore, in this single deal the total loss was around Rs.9000. Let us understand the catch in the whole deal. On selling my old gold, I lost on the weight of the chain, secondly I lost Rs.400 pg due to the difference in purchase and sale price. For example, if you opt to purchase 10 gm gold, you would pay Rs.11,050 @Rs.9500 (present rate) + Rs.155 labour charges per gram. Whereas, you opt to sell it you get Rs. 9100 only. So, the net loss in one deal is Rs.1950, plus weight of beads, pearls, etc. If we take into account the utility of gold as an investment option, even then it proves out to be disadvantageous. The reason being that the gold, which I sold in the present case was purchased in the year 1991 @ Rs.4500. This should have amounted to more than Rs.18000+ in 16 years. If it had been any other investment or bank deposit, it would have yielded me that much but I lost this plus the loss on the sale of the gold ornament. This could be the same the world over, and probably this is the reason that nowadays people are opting for real estate, land or simple fixed deposits looking into the safe and fixed returns. Finally, we realized that we paid around Rs.9000 all for hour to sit in the jewelry shop to appreciate the ambiance and overall decor. Is gold really worth an investment? Do think twice when you decide to buy gold on the auspicious day of Pushya Nakshatra, falling on November 1 this year. Padma Bhargav is a freelance journalist. She can be reached at: padma.bhargav@gmail.com


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