I sold my old phone and this is what I realized

I recently purchased OnePlus’ latest phone OnePlus Nord and have been using it over a month or so. As my old phone ‘OnePlus 5’ (I’m an OnePlus fan) was lying idle, I have been thinking of selling it off as there was no use for an extra phone. Luckily, my cousin wanted to buy a new phone Samsung M31 from Amazon. Taking advantage of this, I told my cousin to send me the money so that I can buy the phone for him and also sell off my old phone through the Amazon exchange program. Amazon quoted an exchange price of Rs 7450 and I accordingly accepted it and placed an order for the new phone day before yesterday.

The new phone arrived today and I have to hand it over to the delivery agent (with a little sadness) after doing all the necessary exchange procedures. As the agent was checking the phone for verification, we strike a little conversation, talking about my old phone. He asked me for how much I was exchanging it for and at what price I have bought it. I told him I’m exchanging it for Rs 7450 and that I had bought it in July 2017 for Rs 38k. And at that moment I realized how in just three years the value of the phone has come down to 1/5 of its original price …. (dangggg the rate of depreciation!!!) In this age of fast-moving technological consumer behavior, what’s so awesome today will be valueless in few years.

As I sit in my room realizing the high rate of depreciation of mobile phones, I come to terms that it’s not worth buying high-cost phones and better invest in something that will add more value in the future.

For instance, the price of 24 Karat gold in July 2017 was around Rs 2800/gm. Today it is at around 5000/gm. So, If I have bought 24Karat Gold in July 2017 for Rs 38000 (the price of my old OnePlus 5), it would have got me some 13.5gms, the price of which today will be around Rs 67,500! Now you do the math, Rs 7450 for the phone after three years or Rs 67500 for the gold after three years both for an investment of Rs 38000!

Now before you end up saying buying Gold and keeping it safe is an issue and all, hear me out! Nowadays there are digital gold services from Google Pay, PayTM, PhonePe, etc. However, I prefer PayTM Gold services. over Google Pay Gold services.

The good thing about such digital gold services is that you can buy anytime for any amount. I often buy for as low as 100 Rs to Rs 1000 periodically. Also, I used to buy gold from the cashback I received from PayTM. The other good thing about PayTM gold service is that it also shows the absolute return so that you will be able to know how much absolute returns you have earned over the period. Not only that one can sell the gold anytime and get the money in your bank account instantly. There’s also an option to convert your gold to digital gold and get it delivered to you. I have been using PayTM’s digital gold service for the past few years and also have been able to buy more than 10k worth of gold just from the cashback I received from PayTM (pssss I have sold off all the gold!)

This post may not apply to many who earns a lot or are very rich, but for many of us, who earns little and are spending lots on smartphones, this can trigger in asking, is it really worth buying it?

If you are earning 30-40K and planning to buy a phone that’s worth 60k-1lakh, much more than your income, please ask yourself, is it really worth it? Is it worth spending twice/thrice your monthly income on a phone that you will mostly just use for FB, WhatsApp, Instagram, Games that adds no or little value? Is it worth spending that much on a phone that will go out of fashion in a few years and will also depreciate it to a value 1/4th, 1/5th of its original value in just two-three years? Or will it better to invest in something else, like digital gold? You decide.