You MUST have this in your portfolio! | Better Returns than NIFTY | CA Rachana Ranade

Summary

In this video, C RAR explores the glittery world of gold, a favored asset class in India and beyond. He recounts his first gold purchase in grade 11 and the impressive returns over 20 years. The video delves into recent geopolitical tensions, like Russia-Ukraine conflict, and their impact on gold prices. C RAR also discusses the role of gold during economic uncertainties and inflation, and analyzes gold's performance against Nifty. He further provides a technical analysis of gold and five gold-related stocks, emphasizing the importance of considering both price and volume in stock analysis.

Takeaways

• 🌟 Gold has been a favored asset class in India, with the speaker's first purchase at a rate of 8,000 rupees for every 10 grams, which has since increased to 75,000-80,000 rupees, indicating a significant return on investment.
• 📈 Gold has recently outperformed the Nifty index in the last one year, although Nifty has historically provided better returns over longer periods.
• 🌍 Geopolitical uncertainties, such as the Russia-Ukraine conflict, have driven countries to invest more in gold as a secure asset, influencing its price.
• 🛑 The freezing of Russia's US dollar reserves by America has prompted a shift towards gold as a more accessible reserve asset.
• 📊 China's People's Bank has significantly increased its gold reserves, the highest since 1996, reflecting a global trend towards gold as a reserve asset.
• 💹 Middle East tensions often lead to increased crude oil prices, which in turn can cause inflation and economic uncertainty, making gold a sought-after asset.
• 📉 Recession fears, such as those triggered by the Silicon Bank value crisis, can lead to a preference for gold as a safer investment.
• 🇺🇸 US Federal rate cuts can decrease bond interest rates, prompting investors to seek alternative assets like gold for better returns.
• 💍 Indian cultural love for gold, combined with wedding and festive seasons, significantly increases gold demand and prices.
• 📊 A significant reduction in the import duty on gold in the 2024 Union Budget from 15% to 6% caused a drop in gold prices.
• 📈 Technical analysis of gold and gold-related stocks shows promising breakouts, suggesting potential for price increases.
• 💼 The speaker has gold in various forms in their portfolio, including physical gold, sovereign gold bonds, and gold ETFs, and also invests in gold stocks.

Q & A

What is the main focus of this video?

The video primarily focuses on discussing the rise in gold prices, the reasons behind this increase, and the analysis of gold stocks. It also compares the performance of gold against Nifty.

Why does the speaker mention buying gold for the first time?

The speaker shares a personal anecdote about purchasing gold for the first time in grade 11 when the price was 8,000 rupees per 10 grams. This is to highlight the significant increase in gold prices over time, now ranging between 75,000 to 80,000 rupees per 10 grams.

What are the main reasons for the increase in gold prices according to the video?

The main reasons mentioned include geopolitical tensions (e.g., Russia-Ukraine war), inflation due to rising crude oil prices, recession fears, US Fed rate cuts, and India’s cultural affinity for gold, especially during the wedding and festive seasons.

How did geopolitical tensions impact gold prices?

Geopolitical tensions like the Russia-Ukraine conflict led to countries parking their money in gold instead of other assets like US dollars. This increased demand for gold, which drove up prices.

Why did gold outperform Nifty over the last year?

Gold outperformed Nifty over the last year due to factors like global uncertainties, inflation fears, and geopolitical conflicts that made investors turn to gold as a safe-haven asset.

What role did the People's Bank of China play in the gold market?

The People's Bank of China bought 316 tons of gold between November 2022 and April 2024, marking the highest share of gold in China's reserves since 1996. This action contributed to the rising demand and price of gold.

What does the speaker say about the relationship between crude oil prices and gold?

The speaker explains that when crude oil prices rise due to supply shortages, inflation tends to increase. This triggers recessionary fears, causing investors to shift their money into gold as a safer asset.

What impact did the US Fed rate cuts have on gold prices?

The US Fed rate cuts lowered bond interest rates, prompting investors to seek alternative asset classes like gold for better returns. This led to an increase in the demand and price of gold.

Why did the gold price drop after the 2024 Union Budget announcement?

The gold price dropped after the 2024 Union Budget announcement due to a significant reduction in import duties on gold and silver from 15% to 6%, which affected the price dynamics.

What are some of the gold-related stocks discussed in the video?

The video discusses five gold-related stocks: Kalyan Jewellers, Titan, Thangamayil Jewellers, Senco Gold, and P&G Jewellers. The speaker provides a technical analysis of each, focusing on their price movements and breakouts.