Building a community, one story at a time.
Gold Hits ₹91,300—Is It Time to Cash In or Hold Off on the Shiny Stuff?
3
0
0
Hey there, desi money mavens! Welcome back to Books, Blurbs, and Banter! Today, we’re talking about something that’s got every Indian household buzzing—gold. Just yesterday, gold prices smashed through the roof, hitting ₹91,300 per 10 grams on the Multi Commodity Exchange (MCX) in India, while over in the US, it touched a wild $3,145 an ounce (that’s about 28.35 grams for us metric folks). That’s an all-time high, folks—higher than your Diwali shopping bill!
So, let’s sit down with a cup of chai and figure out what’s driving this gold rush—and whether you should jump in or sit tight.
Why’s Gold Suddenly More Precious Than Ever?
You’ve probably heard the whispers at the local kirana store or seen it on the news—global markets are in a tizzy. Trump’s tariff threats are making everyone nervous about trade wars, and when the world feels shaky, what do we Indians do? We turn to gold—our trusty sone ki chidiya. It’s not just us, though—central banks, big investors, and even your uncle who’s always bragging about his stash are piling in.
Here’s the thing: gold isn’t like those ₹500 notes the RBI can print whenever it wants. It’s finite. Experts reckon we’ve already mined about 2.16 lakh tonnes—80% of all the gold that’s worth digging up. That leaves just 54,000 tonnes still hiding underground. Less supply, more demand—basic economics, right? So, when the economy looks dicey, gold becomes the go-to safety net, from Mumbai’s bullion markets to New York’s trading floors.
Warren Buffett’s Like, “Gold? Nah, Not My Vibe”
But wait—not everyone’s sold on this gold fever. Take Warren Buffett, the billionaire guru of investing. He’s never been a gold fan, and he’s not about to start now, even with prices soaring. Why? Because gold doesn’t fit his style. Buffett’s all about value—buying stuff that’s underpriced but has real potential, like a stock that pays dividends or a company that makes something useful.
Gold, though? It just sits there, looking pretty. It’s not like silver, which goes into your phone or electric scooters. Buffett once painted this killer picture in his 2011 letter to shareholders: Imagine all the world’s gold—170,000 metric tons—stacked into a giant cube worth $9.6 trillion. For that same money, you could buy all the farmland in the US, 16 ExxonMobils, and still have a trillion bucks left. A hundred years later, the farmland’s growing crops, Exxon’s paying out big, and the gold? Still just a shiny brick. His take: why bet on something that doesn’t do anything?
Could Gold Be Worth Way More?
Now, here’s a twist that’ll make your jaw drop. Some say gold’s still a steal. Back when the US dollar was tied to gold, its value was fixed. Today, the US money supply (M2) is $21.6 trillion—think of it as all the cash floating around plus some savings. The US holds 286 million ounces of gold. Divide that up, and gold should be $75,000 an ounce—way more than today’s $3,145. In rupees, that’s over ₹62 lakh per 10 grams! Crazy, right?
But hold your horses—there’s a hitch. Unlike gold, money’s limitless. The RBI or Fed can print more whenever they like. Pegging gold to something that’s always growing is like trying to catch a runaway autorickshaw—it’s a moving target.
So, Why’s Gold Still Going Bonkers?
If it’s not undervalued and doesn’t “work” like stocks, why’s it climbing? Simple: fear. We Indians get it—gold’s our emotional backup plan. Inflation’s creeping up, wars are brewing, and the rupee’s wobbling—gold feels like a safe bet. It’s not about what it does; it’s about hoping someone else will pay more for it later. Remember the Tulip Mania from history class? When tulips in Europe shot up to insane prices because everyone thought the craze would last? It didn’t. Gold’s got more staying power, sure—it’s been our wedding must-have for centuries—but it’s still riding on vibes and trust.
Oh, and don’t forget: owning gold isn’t free. You’ve got locker fees, insurance, and that constant worry about keeping it safe from nosy relatives. Those costs add up!
Gold vs. Stocks: The Real Deal
Let’s talk numbers—Indian style. If you’d put ₹1 lakh into gold back in 1995, today it’d be worth ₹16.5 lakhs. Not bad, right? But if you’d invested that same ₹1 lakh in the BSE SENSEX, you’d have ₹25 lakhs by 2024. That’s a whole extra flat in some cities! Globally, the S&P 500’s beaten gold over time too.
But here’s the kicker: in the last year, gold’s given a 29% return—three times what the SENSEX managed. That’s why your WhatsApp groups are buzzing about it. It’s recency bias—we’re hooked on the latest wins. Since the pandemic, gold’s been on a roll—2020’s chaos, the Russia-Ukraine war in 2022, and now these tariff jitters. Fear’s driving the bus, and gold’s along for the ride.
Should You Skip Gold Like Buffett?
Not necessarily! Buffett might scoff, but we Indians know gold’s more than just an investment—it’s culture. It’s that necklace your mom saved up for or the bangles you got at your wedding. Plus, it’s a decent hedge against inflation—not perfect, but it’s something. A small chunk of gold in your portfolio? Sure, it’s like adding a little masala to your dal—keeps things balanced. But going all-in just because it’s shiny? Maybe not the smartest move.
Wrapping It Up
So, with gold at ₹91,300 per 10 grams, it’s stealing the spotlight. Is it your ticket to riches or a glittery distraction? For me, it’s a story of fear, faith, and a bit of desi nostalgia. What about you—would you stack up on gold or bet on the stock market instead? Drop your thoughts below—I’d love to hear your take over a virtual samosa or two!
Catch you next time, Your banter buddy at Books, Blurbs, and Banter!!!
