The WeekendInvesting Newsletter - 2 April 2024

Why Gold is Important for all Investors!

Calculating the price of gold in INR involves a straightforward process. Firstly, obtain the gold spot price or futures price in USD. Convert this value to INR using the USD to INR exchange rate. Then, incorporate the additional duties, typically around 15%, by multiplying the price by 1.15. Finally, divide this figure by 31.103 to convert the price from dollars per ounce to rupees per gram, considering that one ounce contains 31.103 grams of gold.

Reflecting on the gold price trends over the past two decades reveals significant growth. From April 2004 to the present day, gold prices have surged from 675 to nearly 70,000 INR per 10 grams, marking an approximate tenfold increase. Despite a bear market from 2013 to 2019-20, the overall trend illustrates a compound annual growth rate (CAGR) of about 12%, showcasing steady albeit modest returns compared to other asset classes. . . . .

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Why to not try to time the market

In the dynamic world of the stock market, opportunities often arise during periods of fluctuation. Analyzing a Nifty chart spanning four and a half years reveals multiple instances where the market experienced both highs and lows. These fluctuations create windows for investors to strategically allocate funds, capitalizing on market movements.

During lull periods in the market, such as the aftermath of the COVID pandemic or phases of range-bound movement, it is prudent to allocate funds strategically. By setting aside liquidity during these times, investors position themselves to take advantage of future momentum. This approach ensures readiness to invest when favorable opportunities arise, mitigating the risk of missing out on potential gains.. . . . .

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WeekendInvesting Daily Bytes

Today’s market experienced a day of consolidation, with the Nifty retesting its previous high and now consolidating near these highs, indicating a potential breakout ahead.

Despite a reasonably red heat map, with banks like Kotak Bank, ICICI Bank, and Axis Bank seeing declines, HDFC Bank was up for a second day, showing surprising strength within its group. Technology stocks such as

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