SGB Tranche 3 @6199/gm ~2.5x tax-free return in last 8y
1. Hedge investment portfolio during downside 2. Taxfree after maturity 3. Interest of 2.5% 4. Diversification of portfolio 5. Gold is heaven when inflation is high and macro is down due to its IMF reserve and Money printing capabilities. 6. Can buy sell if bought through digital apps like grow or Paytm What's your say? 10% of portfolio is fine through sgb way?? Like 1 lac for 10 lac portfolio
Additionally i prefer buying actual gold coins than paper gold.
Astrological reasons aside, if the idea is gold will still be able to buy the same good and service in case of the worst case scenario (like war, govt fail etc.) that piece of paper may be worth nothing as everything has failed.
I know this is a bit out there opinion but this helps me sleeps better.
What's the use of bullion if it can't hedge you during bad times. It is oxymoronic to buy SGB to hedge yourself given the risk of pandemic, severe recession and war
Allocation % varies basis the portfolio size, risk absorption. Having SGB in portfolio is a good hedge against equity fluctuations. Plus you can convince your parents to make less jewellery and gift more SGBs.
I hope you understand that SGB are not backed by physical gold, they are just guaranteed by GoI. There are severe liquidity concerns as well.
Better to find a trusted jeweller and buy bullion from them. No making charges, closest to market rate and very high liquidity. Plus you can use it as a collateral in the future. Worth giving up the extra 1.75% post tax.
dext3r
Stealth
9 months ago
I see SGB as a substitute of gold for children's marriage needs in a very long term future. We will renew the SGBs as they mature. Me and wife have accumulated around 200gm of gold. Target is around 1kg in next 2-3 years.
Overall it is a bit less than 10% of total portfolio.
U r principal engineer at which firm and ur domain? Btw good going, 1kg will be good enough for future
dext3r
Stealth
9 months ago
Interra systems. Its a small company in media domain. My profile is front end/ full stack.
Yeah it will be enough. Its just a safer mode of investment for wealth accumulation.
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