Wednesday, April 20, 2011

The Story of Why Gold Will Rise More

Before I share a small story on Gold to help simplify the logic behind our view on investing in gold ever since it was Rs. 12,000 I want to inform all Happionaires that the wonderful people at Quantum Dynamics ( have finally launched their site and are ready for registrations. All those who would want to interact more and share ideas, network, learn about investing and creating wealth can contact Ms. Neha on +91 9971346274. For all those of you who are in New Delhi do ensure you share it with friends, family and loved ones. Other cities will be visited soon!

Even today I get several e-mails from fellow Happionaires asking me if it is still the right time to buy Gold (and Silver). And why I still feel it is good to buy Gold. I used to get it even at Rs. 16,000, even at Rs. 18,000 and even now.

Let us say you are a country. Let us make it even more interesting, you have been the msot powerful country on the planet for the past 30 years. Everybody trusts you and keeps keeping their entire wealth in your country. People have kept their gold in your lockers, because they trust you. People use the money you print for everything they do. Other countries respect you and listen to whatever you say.

Now you start enjoying yourself and spending left and right. You after all are a country who everybody trusts and gives money to. But the beauty is that, they trust you so much that all the money they have is kept in the notes you print. So you borrow money from the Chinese - but even the money you borrow is the same money printed by you, because the Chinese have kept almost all their savings in your money. You have printed so much money and almost the entire world has been using this money.

Your money became so powerful, that people for sometime even forgot about "God's money" which had been used since ages and millenniums. So for a few decades, people started using your money as the 'gold standard' anywhere in the world it was acceptable and of value. But now overtime you kept printing more and more notes, to solve your own hunger and greed.

Every time you ran out of money or couldn't pay back someone, all you did was print more notes. Imagine if you could just print a note on your home printer and give it someone. After a time, there were so many notes all over the world that people started realizing that these notes are not really worth that much. With so much supply coming in, demand started looking small.

Imagine what would happen to gold prices if everybody had 100 kgs - of gold in their home - would gold prices go up or down? Obviously they would go down - this of course is not likely anytime soon. But this will soon happen to these notes which your print.

A few people including Mr. Warren Buffett have a negative view on gold. Yes they do, but then even I would, if I was one of the most powerful people in this powerful country. If I could print my own notes on my printer, why would I want gold to become the standard? Wouldn't it be more fun for me to just print my money and buy whatever I want in the world? It is okay if others have to pay the price of high inflation and devalued paper in the future.

The problem is that the new 'sophisticated' generation doesn't like to think in simple terms. They are constantly looking for 'electronic' 'sophisticated' products. I am sure all those who have been followers of the Happionaire Way will today look back and see how simple it was to buy a few gold 'biscuits' and 'coins' and simply keep them in the locker and watch prices to appreciate. No need to speculate, trade or worry about anything.

While I started investing in the stock market, I would always want to invest in something that will give me good returns - I don't believe we should emotionally get attached to any asset class.

Now what happens to this powerful country - when suddenly everybody realizes, that these paper notes printed are losing value? What happens when the world suddenly realizes - "Hey we need more of God's money - it is really scarce." People will rush to it and when prices really shoot up, I will be the first person to sell.

This is how simple the story of Gold is. Simple villagers in India are buying, while I find it unfortunate that the 'sophisticated' people invest worthless ULIPS marketed by people in fancy suits. As a Happionaires don't think about complicated things, to create wealth - simplicity is more than enough.

Happy Investing!
Yogesh Chabria

LinkHope none of you are Stingy Investors!


Radhika Mehra said...

I long to read your posts Yogesh and every time I get an RSS alert I rush to read. I was amongst the lucky ones who followed your prophecy on gold and bought it at Rs. 16,000 and am very happy. I also enjoyed watching your show on TV and found it amusing how that other man had such different views. I hope people realize this soon and stop running behind things that are not real.

Please come to New York soon. We need you here and am sure New Delhi will be a huge hit.

Lots of love to all Happionaires and smiles.

Dp said...

Hi yogesh,
Thank you very much for helping us with your views on Gold. But could you please clearly tell us whether we should some amount of our money in Silver. How much should we invest in Silver? Gold: Silver should be 80:20 or 50:50.

You have not told us anything about Chamelion after that single Post..

Happy guy

Dp said...

Hi Yogesh,
I would also like to thank you for pointing out the mistake by Warren Buffet. He has been lying to Public about Gold. Even Berkshire Share price has underperformed against gold for last 10 years. His company has been involved in many insider trading case like Lubrizol. Still no action by SEC.Buffet is no better than Madoff. Very few personalities like you have the guts to share truth like this.


Sanjay Shah said...

Hello Yogeshi ji and all other fellow Happionaires here. What you said is beautiful and just wanted to completely agree with dp - Warren Buffett has fooled people for very long now. He might have been a good investor, but he says what benefits him - fair enough guys. But yes, Gold has given a million times more returns than him ever since we followed the Happionaire way. What I like here is that there are no ads or selling of stocks, real estate or gold. If real estate is bad, it is shared openly - if it is good it is shared openly.

Where else can we trust this type of information?

Beautiful, please keep sharing this and doing this beautiful service to humanity. Proud to be a Indian. Proud to be a Happionaire.

Anonymous said...

Hi Mr, Yogesh,

One line is worth the million sentences "simplicity is more than enough"

There are people try to make complications to simplicity and there are people make simple things to complications. I would like to rate you to first category of people making things simple and easy.

As per analysis Silver will beat Gold in long run because of its usage and ground availability, seeing the usage of silver we can say Its is still under valued, so i started accumulating silver since 18,000 and will keep on adding on major DIPS

thanks to you for sharing ur valuable knowledge


Dp said...

Hi Yogesh,
Could you please tell us where do you buy physical silver and how do you sell it. Because selling it is very difficult.


The Happionaire™ Blog said...

As always hanks for the lovely words and the best way to give back is share the ideas shared here with as many people as possible.

Dp - You can buy physical silver bricks at your local jeweler. Build a good relation of trust with the owner as he will also buy back.

Local jewelers have good relations with the gold and silver suppliers.

-Yogesh Chabria

Anonymous said...

Hi Yogesh,
Thanks for sharing your views. Would gold/silver etf/fund be the best option for someone wanting to invest a huge sum in gold/silver or do you recommend keeping it in physical form?. Can you please recommend some BSE/NSE listed? How much should one allocate to gold/silver Vs equity in an aggressive portfolio?

Cheque Printing said...

I en-cashed my FD and invested in Gold when you recommended it first time. I got handsome return and still I am invested in it. I will cheque it only after it crosses 25,000 Rs.

Thanks ton.