The Real Truth About Buying Gold in India! | Cash & Copium Ep 2

Start your investing journey for free! Open a zero-brokerage Demat and trading account with Zerodha to invest in Stocks, Mutual Funds, ETFs, and Bonds: https://zerodha.com/open-account/?c=Z... Gold is India’s favorite asset class, but how much do you actually know about what you’re paying for when you buy it? In Episode 2 of Cash & Copium, Abid and Bhuvan break down the mechanics, myths, and math of investing in gold. From dissecting how international spot prices turn into MCX prices (including import duties, BCD, and GST) to debunking the age-old myth that "gold is an inflation hedge," this episode covers everything you need to know before making a portfolio allocation. We compare physical gold, coins, digital gold, and Gold ETFs—explaining why you should NEVER buy gold from a bank, the hidden risks of unregulated digital gold, and why Gold ETFs remain the safest, lowest-cost vehicle for long-term investors. 💡 KEY TAKEAWAYS & HIGHLIGHTS --------------------------------------------------- • Gold Pricing Mechanics: 15% of Indian gold prices are made up of import duties and taxes before GST is even applied to physical purchases. • The Inflation Myth: Gold has almost zero short-term correlation with CPI inflation. However, in India, it acts as a powerful hedge against Rupee currency debasement (3-4% annual depreciation). • Portfolio Protection: Adding 10-20% gold to an equity portfolio significantly reduces maximum drawdowns and softens market crashes without sacrificing long-term returns. • The Bank & Digital Gold Trap: Banks charge massive markups and legally cannot buy gold back from you. Digital gold is unregulated, carries up to 7% buy-sell spreads, and incurs 3% GST. • The Best Vehicle: Gold ETFs (and Gold Fund of Funds) offer the safest, regulated, zero-spread, and lowest-cost way to hold gold in a modern portfolio. Subscribe to the Subtext newsletter to get an email whenever we publish more of such awesome conversations. We promise not to spam you: https://subtextbyzerodha.substack.com