Sunday, November 1, 2009

Gold Investment present a good opportunity for 2009??

Recently, a lot of my investor raised question about investing in gold. There is no question that gold's price run up recently. But will it push permanently above $1000 per ounce? Which one should i invest, gold, stock, bond or mutual fund? It is common that investor always compare those performace against each other. Frankly speaking, i am not the gold expert. i do no have the all right answer for that. But in fact, i do some research.

Base on the historical data below, if you were invested in Gold year 1913, with the inflation adjusted, you will get a double for annual average gold price in year 2009. The best timing to invest in gold were:
1. Year 1929 to 1933 - USA Great Depression of the 1930s. People feared their bank would fail or a bank run might happen.
2. Year 1971 to 1980 - Inflation and Stagflation, where the return on bonds, equities and real estate is not adequately compensating for risk and inflation then the demand for gold increases.
3. Year 2001 to 2008 - Increasing gold demand due to USD depreciation.




You could check out method of gold investing:
http://pbebank.com/en/en_content/personal/investments/gold.html
http://www.thegoldlabel.com/

How about investing gold in year 2009? Could we take the US bank crisis as opportunity for gold investing base on above data? The decision is your.

6 comments:

  1. for me, gold, is just another type of investment. if u expert in it, know how it up & down, of course you can go invest. but if u know nothing about it, just hope to buy it then keep it because think it will always go up, then, better think twice. invest in anything that you don't know is just increasing the risk to lost the money.
    besides, gold also has few type of investment, some is real investment, some is fast cash program-->
    1. buy the real gold, then you hold the gold or the cert which issued by trusted body (eg public bank, i think. :D)
    2. buy the 'gold option', actually i forgot how to name it, but then this investment, u does not hold the gold, it is just like buying future option, the winning or lost is multiply with a factor, comparing to the gold price. where u can get this investment? i know osk got offer, other than that, find urself. :)
    3. buy gold from unknown party, where you earn from getting monthly dividen. this 1, for me, it is fast cash program, where it will use the late comer to pay the earlier joined members...how far it can go? i dunno...if u chose to invest in this, be prepare, and good luck!
    conclusion: understand it before u invest it, or u may cry no tears. :D

    regards,
    yew tatt

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  2. Can buy from ETF if you have US security account, counter GLD

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  3. i don't know how to judge its movement

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  4. The gold label is selling phyiscal PAMP suisse gold from Switzerland with montly rebate without any speculation on the gold price. I have done information searching on the company. No doubt the company is doing gold trading to generate the profit and discover their strategics are workable from a source.

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  5. Hi,

    Try to study www.kitco.com , alot useful articles about Gold investment. But still.. you need to invest with alot money to see a good return in short term. Or unless you buy gold bar & coins keep it up for future.. Maybank can buy kijang emas coins.

    Regards
    R.Yew

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