Latest news with #NiteshBuddhadev
India Today
01-05-2025
- Business
- India Today
'Gold doesn't always glitter': This CA's post might change your mind
As gold prices inch closer to Rs 1 lakh per 10 grams mark again, CA Nitesh Buddhadev is advising investors to keep a long-term perspective. He pointed out that while gold's recent surge may seem exciting, its performance over the years tells a different wrote on LinkedIn, 'Gold doesn't always glitter: It gave almost zero returns for 8 years. This data will blow your mind. Yes, gold just touched Rs 1 lakh per 10 grams. Yes, it has given fantastic returns in the last 4 years. But before you jump in seeing this shiny headline — zoom out.' advertisementHe then shared a surprising fact that, over an eight-year period, gold gave almost zero returns. Between 2012 and 2019, the price of gold barely moved, from Rs 31,050 to Rs 35,220 per 10 grams. That's a total return of just 13% over 8 years, which works out to less than 1.5% per year, mentioned CA Nitesh Buddhadev in his post. What's even more surprising is that between 1992 and 2002, gold went from Rs 4,334 to just Rs 4,990, giving a yearly return of under 1.5% once again, he why the sudden price hike in recent years? Buddhadev points to a combination of global shocks, like COVID-19, wars, inflation fears, and central bank purchases, which have all contributed to the price spike since 2020. He explains that this surge is typical, as gold often remains flat for long stretches before it experiences a sudden Chartered Accountant said, 'So why has gold doubled since 2020? Because it had barely moved for 8 years before that. COVID, war, inflation fears, and central bank buying all triggered a sharp move — but remember: every sharp rally often comes after a lull.'However, Buddhadev does not advise against investing in gold, though. He acknowledges that it's a valuable asset, especially for diversification. Gold acts as a hedge during uncertain times, but it's not a consistent growth driver like concluded his post by saying that though gold is a solid option for some, don't be fooled by its shiny surface. Limit your gold investments to 5% to 12% of your portfolio and always keep your approach grounded and InTrending Reel
Economic Times
01-05-2025
- Business
- Economic Times
Think gold prices always go up? This CA shares 'ZERO returns data that will blow your mind'
As gold prices near ₹1 lakh, Nitesh Buddhadev advises investors to consider gold's historical performance. Gold offered minimal returns between 2012-2019 and 1992-2002. Recent price surges are due to macro events after a period of stagnation. Buddhadev suggests gold as a diversification tool, not a primary growth engine. Tired of too many ads? Remove Ads Gold has seen dull decades before Tired of too many ads? Remove Ads Why gold prices doubled since 2020 Realistic expectations, not hype Tired of too many ads? Remove Ads Gold demand falls despite price rise How jewellers determine the price of gold jewellery As gold prices hover around Rs 1 lakh per 10 grams, Chartered Accountant Nitesh Buddhadev has urged investors to look beyond the short-term rally and focus on gold's long-term performance. In a LinkedIn post backed by historical data, he pointed out that gold has delivered near-zero returns during long stretches in the past, despite the current excitement around its price 2012 and 2019, gold prices moved only slightly — from ₹31,050 to ₹35,220 per 10 grams. Buddhadev noted that such marginal movement translates to poor annualised returns.'Gold gave almost zero returns for 8 years,' he also pointed to an earlier example: between 1992 and 2002, gold moved from ₹4,334 to ₹4,990 per 10 grams.'Look at another decade of dull performance: 1992 to 2002 — Gold moved from ₹4,334 to ₹4,990 in 10 YEARS — that's less than 1.5% CAGR again!' he explained that the recent rally is a result of a long period of stagnation followed by major global events.'Because it had barely moved for 8 years before that,' he cited factors like COVID-19, war, inflation concerns, and central bank buying as reasons for the sudden price rise.'Every sharp rally often comes after a lull,' he made it clear that he is not advising against gold investment.'Am I saying don't invest in Gold? Absolutely not,' he clarified.'It's a great asset for diversification. It's a hedge in uncertain times. But it's not a consistent growth engine like equity. And it's definitely not risk-free.'He advised investors to manage expectations and avoid overexposure.'Don't get influenced by recency bias. Even Gold is volatile. Have realistic return expectations. It too goes through dull decades. Limit your allocation to say 5% to 12%, with a long-term view.'While gold prices rose 25% in the first quarter of 2025, India's gold demand by volume dropped 15%, according to the World Gold Council. The total value of gold purchases, however, increased 22% to ₹94,030 Shah, Managing Director of Kama Jewellery, says that gold prices often change due to global market movements. The final price of a gold jewellery item depends on a few key factors in pricing gold jewelleryJewellers begin with the daily price of 24-karat gold. Since jewellery is usually made in 22KT, 18KT, or 14KT, the price is adjusted based on purity. For example, 22KT gold has 91.6% pure gold, so its price is 91.6% of the 24KT gold rate. This adjusted rate is then multiplied by the weight of the gold in the jewellery charges cover the cost of crafting the jewellery and depend on the design's complexity. Jewellers may charge this either as a percentage of the gold price or as a fixed amount per gram.A 3% GST is added to the combined cost of gold and making charges. There may also be additional costs like hallmarking say the price of 24KT gold is ₹96,500 for 10 grams. The price of 22KT gold, which is 91.6% pure, would be ₹88,394 per 10 a gold chain weighs 8.9 grams, the gold cost will be ₹78,670.66 (₹8,839.40 per gram × 8.9 grams).If the making charge is ₹499 per gram, the total making charge would be ₹4,441.10 (8.9 grams × ₹499).The subtotal becomes ₹78,670.66 + ₹4,441.10 = ₹83, at 3% on this subtotal adds ₹2, a hallmarking charge of ₹45, the final price of the gold chain is ₹85,650.
Time of India
01-05-2025
- Business
- Time of India
Think gold prices always go up? This CA shares 'ZERO returns data that will blow your mind'
As gold prices hover around Rs 1 lakh per 10 grams, Chartered Accountant Nitesh Buddhadev has urged investors to look beyond the short-term rally and focus on gold's long-term performance. In a LinkedIn post backed by historical data, he pointed out that gold has delivered near-zero returns during long stretches in the past, despite the current excitement around its price surge. #Pahalgam Terrorist Attack Nuclear Power! How India and Pakistan's arsenals stack up Does America have a plan to capture Pakistan's nuclear weapons? Airspace blockade: India plots a flight path to skip Pakistan Gold has seen dull decades before Between 2012 and 2019, gold prices moved only slightly — from ₹31,050 to ₹35,220 per 10 grams. Buddhadev noted that such marginal movement translates to poor annualised returns. 'Gold gave almost zero returns for 8 years,' he wrote. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Historic Figures Who Were Actually Photographed Gloriousa Undo He also pointed to an earlier example: between 1992 and 2002, gold moved from ₹4,334 to ₹4,990 per 10 grams. 'Look at another decade of dull performance: 1992 to 2002 — Gold moved from ₹4,334 to ₹4,990 in 10 YEARS — that's less than 1.5% CAGR again!' he said. Live Events You Might Also Like: 880 tonnes and counting: Why RBI keeps buying gold despite India having the world's 7th-largest reserves Why gold prices doubled since 2020 Buddhadev explained that the recent rally is a result of a long period of stagnation followed by major global events. 'Because it had barely moved for 8 years before that,' he said. He cited factors like COVID-19, war, inflation concerns, and central bank buying as reasons for the sudden price rise. 'Every sharp rally often comes after a lull,' he added. Realistic expectations, not hype Buddhadev made it clear that he is not advising against gold investment. 'Am I saying don't invest in Gold? Absolutely not,' he clarified. 'It's a great asset for diversification. It's a hedge in uncertain times. But it's not a consistent growth engine like equity. And it's definitely not risk-free.' He advised investors to manage expectations and avoid overexposure. 'Don't get influenced by recency bias. Even Gold is volatile. Have realistic return expectations. It too goes through dull decades. Limit your allocation to say 5% to 12%, with a long-term view.' Gold demand falls despite price rise While gold prices rose 25% in the first quarter of 2025, India's gold demand by volume dropped 15%, according to the World Gold Council. The total value of gold purchases, however, increased 22% to ₹94,030 crore. How jewellers determine the price of gold jewellery Colin Shah, Managing Director of Kama Jewellery, says that gold prices often change due to global market movements. The final price of a gold jewellery item depends on a few key components. Main factors in pricing gold jewellery Gold rate in the market: Jewellers begin with the daily price of 24-karat gold. Since jewellery is usually made in 22KT, 18KT, or 14KT, the price is adjusted based on purity. For example, 22KT gold has 91.6% pure gold, so its price is 91.6% of the 24KT gold rate. This adjusted rate is then multiplied by the weight of the gold in the jewellery piece. Making charges: These charges cover the cost of crafting the jewellery and depend on the design's complexity. Jewellers may charge this either as a percentage of the gold price or as a fixed amount per gram. Taxes and other charges: A 3% GST is added to the combined cost of gold and making charges. There may also be additional costs like hallmarking fees. Example of a gold jewellery price calculation Let's say the price of 24KT gold is ₹96,500 for 10 grams. The price of 22KT gold, which is 91.6% pure, would be ₹88,394 per 10 grams. If a gold chain weighs 8.9 grams, the gold cost will be ₹78,670.66 (₹8,839.40 per gram × 8.9 grams). If the making charge is ₹499 per gram, the total making charge would be ₹4,441.10 (8.9 grams × ₹499). The subtotal becomes ₹78,670.66 + ₹4,441.10 = ₹83,111.76. GST at 3% on this subtotal adds ₹2,493.35. Adding a hallmarking charge of ₹45, the final price of the gold chain is ₹85,650.
