Investing in gold is in high demand & has fortunately given positive returns in the long-term. Do you think it is better to invest in Gold ETFs OR Companies that have designed & operate business models to cater to the demand for gold? Here's a chart to showcase the 5-year returns - https://charts.fyers.in/c5ba8cf303c86d8a6479297d12384a94/4e7977fe772a63abc819642e6b821a18.png
What's your pick?
For me, Muthoot Finance comes first - Amazing net interest margins, yield on loans and spreads....
After Muthoot, it is Manappuram Finance... Good revenues, great margins....and with Loan to Value ratio increased by RBI, it works in the favor of these companies.
Rgds
Gvk
Impressive! A pretty straightforward business model too IMO. A no-brainer for those who can stomach the volatility.
I will start the auspicious day by buying ETF gold. Wait for correction to buy equity.
Waiting for 39-40 goldbees
Traditionally Gold is the most liquid commodity. So the concept of ETF came from the safety and investing point of view. Again its diurnal variations are very less. Observation is from -1.5 to +1.5 % max. If it is less volatile, then why 90-95% haircut is not given. Please see that for Gold ETF Zerodha applies only 12.5% hair cut where as Fyers applies 40%. More than 3.25 times difference. That is horrible. Fyers need to revisit their pledging policy to broaden their customer base and to remain equally competitive.