‘When global mkt stabilises, gold may fall’ | business | Hindustan Times
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‘When global mkt stabilises, gold may fall’

Mint, Hindustan Times and NDTV, bring you a personal finance show, Let’s Talk Money. The weekly call-in show, anchored by Monika Halan, editor, Mint Money, and Manisha Natarajan, editor and senior anchor, special programmes, NDTV, aims to answer viewers’ questions about money-related issues. Here are edited excerpts from the show that aired over the weekend on NDTV Profit and NDTV.

business Updated: Oct 31, 2010 22:29 IST

Mint, Hindustan Times and NDTV, bring you a personal finance show, Let’s Talk Money. The weekly call-in show, anchored by Monika Halan, editor, Mint Money, and Manisha Natarajan, editor and senior anchor, special programmes, NDTV, aims to answer viewers’ questions about money-related issues. Here are edited excerpts from the show that aired over the weekend on NDTV Profit and NDTV.

Natarajan: Let me thank all our guests today, first the audience who’s joining us for the show and of course our panel of experts: Anshuman Magazine, CMD of Asia’s largest real estate consulting firm, CB Richard Ellis; Harsh Roongta, founder-CEO of apnapaisa.com; and Ramesh Damani, stock market expert. The theme of today’s discussion is what will make your money grow. Your returns should be higher than what people around you are making. Let’s start with the first question.

Sandeep Jain: I would like to know that how is gold as an investment instrument.
Halan: The price of gold is driven by global events. The dollar is weakening and global hot money is looking for a store of value which it doesn’t find in the dollar, so it’s looking for an inflation hedge and gold is that one metal left that is still safe. The minute the world sorts out its problem — and we don’t know when it’s going to be — you may see a fall in gold. So do not invest more than 10% of your portfolio.

Roongta: You can get a loan against gold, from 10-11% to 40%, in a day, irrespective of your credit history and age; so I think to that much extent, your ability to get temporary liquidity is excellent.. having that in your portfolio does make sense, irrespective of what happens to the dollar.

Natarajan: Hot money in the Indian equity market — how safe or unsafe does that make Indian stocks?
Damani: The problem is that hot money comes in with portfolio flows and is equally liable to get out from time to time, but that’s just the nature of the beast and you can’t do anything about it.

Magazine: India is an emerging market and hot money has to find an alternative to invest (in); there is enough liquidity right now. If the economic forecast is what it is, money will still come, and India is one of the few countries that will be growing in the next few years, so I think in India we are in a better position.

Natarajan: How is Ulip (unit-linked insurance products) as a tax-saving instrument, Monika?
Halan: I think Direct Taxes Code (DTC) will change a lot of things. If you take care of your public provident fund (PPF), the National Savings Certificate (NSC), the home loan principal — you would have soaked up that R1 lakh (tax exemption) easily, so the decision by the time you come to Ulip vs MF is over. ...I will wait for DTC to kick in but your R1 lakh gets easily soaked in through other things which you have in that basket.