Investing

United States Tonnes: 8,133.5 Percent of foreign reserves: 79% With the largest official holdings in the world, the US lays claim to nearly as much gold as the next three countries combined. It also has the highest gold allocation as a percentage of its foreign reserves at 79 percent.   Germany   Tonnes: 3,363.6 Percent of foreign reserves: 75.6% In 2017 Germany completed a four-year repatriation operation to move a total of 674 tonnes of gold from the Banque de France and the Federal Reserve Bank of New York back to its own vaults.   Italy   Tonnes: 2,451.8 Percent of foreign reserves: 71.3% Italy has likewise maintained the size of its reserves over the years, and it has support from European Central Bank (ECB).   France   Tonnes: 2,436.0 Percent of foreign reserves: 65.5% France’s central bank has sold little of its gold over the past several years, and there are calls to halt it altogether.   Russia   Tonnes: 2,299.9...

  Sovereign Gold Bonds   are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank of India on behalf of Government of India. The quantity of gold for which the investor pays is protected , since he receives the ongoing market price at the time of redemption/ premature redemption. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc. There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold whic...

Goodwill is an intangible asset which is not visible and cannot be touched but can be purchased and traded.Goodwill consist many intangible assets like-Brand name,Customer base, Patents,Trademark,copyright etc.In other words, goodwill is a firm worth or reputation established over time.The valuation of goodwill is based on the assumption obtained by the valuer. A businessman work whole life to make its brand Successful, and this brand gives  business its desirable reputation in the market. This earned reputation evaluate the business, and its financial worth that a customer is eager to give is known as goodwill. This goodwill play a very important role in Mergers and Acquisitions.   Valuation of Goodwill -   Average Profits Method – This method is further divided into two sub-parts.     Simple Average – In this process, goodwill evaluation is done by calculating the average profit by the number of years it is called years purchase. It can be calculated b...