Do you keep your gold assets in bank locker? You are probably paying some fees every year for your lockers.

Instead, what if you could get a locker for free?

What if I said banks would pay you to keep your gold assets safe?

Time for a thread. πŸ‘‡πŸ‘‡πŸ‘‡
1/ The major issue with having gold in bank lockers is

- You pay hefty fees on an annual basis to the bank.
- The lockers aren't insured
- There's no real safety/security in case of theft or an unfortunate event.

Is there a work around?


Enter "Gold Monetisation Scheme".
2/ GOI introduced the Gold Monetisation Scheme in 2015. The main objective was to cut down India's gold imports.

How it works:

You deposit your gold in bank.
They keep it safe for a fixed number of years.
You get it back as physical gold or cash on maturity.
3/ What should you do to be eligible?

You should take the gold you want to deposit to a Collection and Purity Testing Centre (CPTC). GOI has established over 300 CPTC's across India.

They will take your gold, evaluate its purity, and provide a receipt for the gold quantity.
4/ You take the receipt to your bank.

Create a gold monetisation scheme account in your bank.

Give them the receipt provided by PTC.

Your bank will then convert that receipt to a scheme certificate as part of your GMS account.
5/ The interest rates are as follows:

5-7 years - 2.25% per annum
12-15 years - 2.5% per annum

Tax Benefits:

No capital gains tax on the profits made through this scheme.

Capital gains are also exempt from wealth tax and income tax.
6/ What all can you deposit?

You can deposit Gold bars, coins, even old jewellery.

What can you not deposit?

You can't deposit Gold jewellery encrusted with gemstones.
7/ What's the catch?

You won't get your gold back in its original form.

Upon maturity, you'll get fresh gold coin/bars or cash.

Once you deposit your jewellery/bar/coin, banks send them to Mineral Trading Corporation for minting gold coins, or sell it to jewellers.
8/ Short term deposits do not calculate interest in the form of cash. They give you interest in gold in grams.

Ex: If the interest is 0.5% per annum, you get 1 gram on 200 grams deposited, at the end of the year.
9/ Medium and long term deposits calculate interest in Rupees, based on the Gold value whenever you deposited.

If you deposited 200g at a value of 600k, and the interest rate is 2.5%, you'll get 15000 rupees as interest in a year.

This is of course tax exempt.
10/ 2.25-2.5% interest rate on Gold is on par with the SGB scheme provided by the RBI.

Also, the option to encash the gold on maturity is also attractive in case you want cash instead of physical gold once the scheme matures.
11/ Is there a cap on how much you can deposit? Yes and No.

Minimum deposit : 30 grams
Maximum deposit : Unlimited.
12/ Details of GMS in few bank websites:

SBI :…



Contact your bank for more details on this.

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More from @theBuoyantMan

16 Jan
You see so many people on Twitter saying

"Infosys ADR is up 5% today."

"ICICI Bank and HDFC Bank ADR ended highly positive today. Good move coming up for Banknifty."

Have you ever wondered what is ADR? You're not alone.

Time for a thread. πŸ‘‡πŸ‘‡πŸ‘‡ Image
1/ Back in the early 1900s, people were buying shares in foreign countries in the respective country's exchanges (many still do).

There are few issues with that:

- Complexity of the purchase
- Currency conversion issues
- Difficulty in transactions

and so on.
2/ JP Morgan saw this, and thought

"what if people could trade foreign companies

- in our country
- in our currency
- but without the companies having to list themselves here?"

ADR was born.
Read 22 tweets
14 Jan
It looks like every symptom on Google search leads to cancer.

So, when you have a symptom that Google screams CANCER, should you be afraid?

Before I answer that for you, let's talk about Occam's Razor and how you can use it to simplify your life.

Let's dive in. πŸ‘‡πŸ‘‡πŸ‘‡
1/ In the early 1900s, two physicists studied space and time and arrived at a similar conclusion: things tend to go a little bonkers within the space-time continuum.

Ex: The closer we get to moving at the speed of light, the more we slow down.
2/ Both the scientists arrived at the same results through their equations & derivations. But both had different explanations.

One suggested that the phenomenon was due to the changes that took place within "the ether". Another didn't refer to the ether at all.
Read 31 tweets
13 Jan
Stories like these are why most people start a business.

And they are all wrought with survivorship bias.

Be very careful while getting inspired by such stories. Always ask, "how many edu-businesses started with Aakash and failed?" before you consider starting one of your own.
I am not discouraging you from starting a business.

By all means, start a business. That's one of the ways to the promised land of wealth.

But don't start a business because you're inspired by the success stories on media.
No founder comes up to media to discuss failure.

Failure stories also don't work that well commercially and don't provide enough fodder for media ratings.

Nobody discusses failure publicly. Very few are transparent enough to do that.

So, what you see is filtered information.
Read 25 tweets
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If you're not able to guide people in the right path, and encourage them to take the right steps, better to QUIT talking. It's my humble submission.

Discouraging people has never been so easy. But, showing them the right way, helping them acquire skills, is very very tough.
Also, if you're reading this, understand this first.

Trading and Investing should NEVER be undertaken as a "for a living" kind of a full time profession unless you have a steady inflow of cash through other means.

Have a job. Keep building skills and learning.
Holding on to a day job or other businesses that bring in money frees you from the pressure of making money in the markets - which is the NUMBER 1 source of stress that leads to making impulsive decisions.

Such decisions usually lead to huge losses.
Read 6 tweets
12 Jan
When you break down the lives of extremely successful people, you find that their success didn't come from an earth shattering break-through.

Rather, it came from obsessing about a simple idea, fanatically.

Time for a thread about one such idea. πŸ‘‡πŸ‘‡πŸ‘‡
1/ During world war II, a eleven year old kid checks out a book from the nearest library. The book's title was "1000 ways to make 1000 dollars".

After he reads that book, he makes a statement that by the time he was 35 years old, he'd be a millionaire.
2/ By the age of 35, his net worth was roughly 7-8 million dollars. The library was Omaha public library. That kid was Warren Buffett.

How he got there is an interesting story.

As soon as he reads that book, he decides he should have 1000 dollars before he finishes school.
Read 23 tweets
11 Jan
To avoid this, do a monte carlo analysis and find out the probabilities of range of drawdowns and work with leverage on your system accordingly.

For ex: a system I trade currently, has a historical maxDD of 4.76% and recently it hit a maxDD of about 5.5%.
On conducting monte carlo analysis of the system, I understood that the probability of maxDD to be below 5% is only ~3%.

There was about 61% probability of the maxDD to be between 5-10%

and ~2% probability that it could be around 20-40%.

You need to be aware of these.
Once you know the odds of a certain range of maxDD happening, then you can confidently deploy your strategy.

You'd also face drawdowns that lie within your comfortable range instead of being misled by just the historical maxDD as it happened in the series of trades historically.
Read 4 tweets

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