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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its...

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its worth not only during festivals, but also during uncertain times. Whenever the world faces wars, inflation, currency weakness, economic slowdown, or financial panic, investors across the globe look at gold as a safe haven. This is because gold has a unique quality. It is trusted across countries, cultures, and generations. It does not depend on the promise of one government, one company, or one currency. Why Gold Holds Value Unlike paper currency, gold cannot be printed endlessly. Unlike businesses, it does not depend on profits or management quality. Unlike real estate, it is globally accepted and easily valued. This is why gold continues to remain one of the oldest and most respected stores of value. It has survived centuries of change, economic cycles, wars, and financial crises. The Right Role in Your Portfolio That said, gold should not be treated as a shortcut to wealth creation. Equities and equity mutual funds still remain essential for long-term growth. Gold plays a different role. It brings balance, stability, and protection to your portfolio. When equity markets are volatile or global uncertainty rises, gold often provides comfort. A sensible allocation of around 10-20% to gold can help reduce overall portfolio risk.  So basically, while stocks and equity mutual funds play the lead role in your long-term financial goals, gold plays the supporting but essential role. Physical Gold Has Limitations However, the way you invest in gold matters. Buying physical gold during festivals may feel emotionally satisfying, but it comes with practical challenges. There are making charges, purity concerns, storage issues, risk of theft, and liquidity problems. A necklace may be beautiful, but you cannot easily sell only a small portion of it when you need money. Also, when gold is bought as jewellery, the investor often forgets to calculate the actual return after making charges and deductions. Smarter Ways to Invest This is where Gold Mutual Funds and Gold ETFs become useful. They allow you to invest in gold without worrying about lockers, purity, theft, or storage. You can invest flexible amounts, start SIPs, track value easily, and redeem conveniently when required. For investors who want gold as part of their financial plan, these options are far more practical than buying jewellery purely as an investment. Tradition with Financial Clarity Akshay Tritiya is a beautiful reminder that wealth should be built with faith, patience, and clarity. Buying gold is auspicious, but buying it in the right form is financially wise. This Akshay Tritiya, celebrate tradition - but also upgrade your financial thinking. Because true prosperity is not just about owning gold. It is about owning it smartly. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Durability of Peace

Updated: Oct 22, 2024

Durability of Peace

On Monday, the world leaders marked the first commemoration of the October 7 attack on Israel. The United Nations Secretary-General, banned by Israel for his biased approach, has finally condemned Iran’s assault on Jewish land. While the US president called the Iranian aggression “unspeakable brutality” and his next in line planted a pomegranate tree, Israel expanded its military operation against Iran’s antisemitism. And now Israel is grinding the militants down to dust to prepare the ground for perpetual peace or what they call “the total victory”!


A year has also passed since Israel and Arabs were to seek peace by the best means. The young reformist leadership of Saudi Arabia was about to sign a deal to finally accept Israel as a valuable strategic partner in shaping the future of the new Middle East. But then the Iran-backed proxies attacked Israel and boiled up the old Arab-Jew conflict. Initially, Iran denied any involvement in or foreknowledge of Hamas’s attacks. But weeks later it joined the aggression as its “Axis of Resistance” started tumbling. When the Hamas chief was spotted and killed in Iran and the Hezbollah leadership too collapsed, Iran itself launched a barrage of missiles at Israel. “From The River To The Sea, Palestine Will Be Free” the old rallying cry started spreading hatred again. It is a call for wiping out Israel and establishing the Palestinian state from the Jordan River to the Mediterranean Sea. There is nothing wrong in demanding statehood for Palestine; but for that, would you justify the destruction of a legitimate Jewish land?


While facing Biden’s anger behind the scenes, Israel has intensified its operation to guard its existence. The Israel Defense Forces (IDF) are destroying the tunnels connecting Iraq to Syria and Syria to Lebanon that are used to smuggle Iranian weapons and transport the terrorists. IDF are targeting the secret passages built down below the UN’s ‘Blue Line’ to end the constant threat of cross-border attacks on Israeli civilians. IDF’s ‘limited, localised and targeted raids’ in Lebanon are reported to have eliminated over 250 Hezbollah militants in a mere two weeks and seized a large count of weaponries kept hidden under Lebanon cities. Israel’s PM is trying to reach out to the Iranian opposition. He also released a video message for Iranians, promising them a better future, prosperity and peace. And also hinting the change in regime.


A year has passed since the Israel- Gaza conflict, and the so-called superpower under Biden’s presidency could not find any solution around the negotiation table. Now, as the election nears, the US seems more desperate for a ceasefire than the Middle East. The US claims that the mastermind of the October 7 attack, Yahya Sinwar who was presumed to be killed, is alive and hiding in a tunnel underneath Gaza, holding Israeli hostages in the same vicinity. Yahya Sinwar is the new chief of Hamas, to whom Israel had proposed a safe passage out of Gaza in exchange for the immediate release of all the hostages and the demilitarisation of the region. Hamas has rejected the offer. Qatar and Egypt have accused the Israeli PM of impeding the peace process. But Israel’s war aims have been clear since the first day - the release of Israeli hostages and a permanent end to war. Israel is known for its intelligence-backed target elimination of terrorists instead of negotiation that would in turn legitimize the terrorist outfit. The controversial book “WAR” quotes Netanyahu “The harder you hit, the more successful you’re going to be in the negotiation.” This reaffirms that Israel is going to fight and fight hard for its people.


The Middle East escalation has divided US Democrats and young US voters deeply. De-risking the region could have been a key achievement for Biden’s party to lead the 2024 elections, but, alas! The Biden Administration has failed to enforce economic sanctions on Iran. The Iranian oil-export that had reduced to 70000 barrels a day during Trump’s regime increased to nearly 2 million bpd this year. In the past year, Biden’s inability to intensify the financial pressure on the regime secured a $100 billion revenue increase for Iran that jeopardized the new Middle Eastern dream. Now that the 5th of November is just a month away, the Biden government has decided to ‘expand’ the oil sanctions on Iran.


Israel’s state-owned media house has reported that Iran has depleted almost one-third of its high-grade missiles in its attacks on Israel. Recently, the former Iranian President revealed that the head of Iran’s special intelligence unit assigned to spy on Israeli intelligence was himself a Mossad agent. Not just the unit head but all the 20 agents in his team were Israeli spies! The unit provided Israel with Iran’s defence information including Iran’s nuclear program for years. The alleged Israeli team were reportedly able to flee Iran following their operations! Internal instability, socio-economic erosion, collapsed resistance forces, extended US sanctions and a constant threat to the country’s energy infrastructure have made the Iranian regime vulnerable.


So now Iran is threatening reformist Arab countries who have assured Iran of their neutrality. China, Russia and the United States, the mighty triangle of influence that largely determines the course of world events, have invested heavily in these Middle Eastern countries. And so the Middle East escalation will soon be curtailed as economic interdependence is the new driving force for peace. The global power dynamics can assure “victory” to Israel. But will this assure a durable peace? Golda Meir, the former Prime Minister of Israel once said “If the Arabs lay down their arms, there will be no more war. If Israel lays down its arms, there will be no more State of Israel.” The struggle for existence is the only perpetual thing.


(The writer is a foreign affairs expert. Views personal.)

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