J M FINANCIAL Rs 140
Valuation of non-cash generating assets like art, gold, unrented real estate, vintage cars, crypto etc depends mainly on the push and pull between demand and supply which in turn is driven by but not limited to factors like risk-on-risk-off, interest rates, fashion, taste, perception etc. You buy any of these assets because consciously or unconsciously you feel they will get more valuable in the future due to one or more of the reasons given above. Perhaps a great artist passes away and now there is only a limited supply of his art thus creating scarcity which drives prices up or a war breaks out somewhere in the world and gold demand rises due to risk off behaviour or interest rates are expected to fall making the cost of holding lower thereby increasing prices of real estate…so on and so forth.
