A follower asked me my opinion of how to buy gold last week.
That is a good question as the array of products available in the market can be quite daunting.
First thing first, we have the XAUUSD which is the gold forex currency , just like any other pairs (EURUSD, GBPUSD, AUDUSD, etc) that you trade on forex. This is one of the most popular instruments traded.
My views on XAUUSD is here, here and here.
Then, there is gold related stocks like the popular Newmont shares as shown on chart. You trade this just like any other stocks, depending on your strategy. Value investors will calculate the intrinsic value and see if current price is offering at a discount before buying. Others bought this stock as a hedge against inflation in their portfolio.
And those who followed me for a while will know that I like Silver as well. See chart.
My views are here andhere.
For those who like the real , cold hard stuff can go for the physical gold bars, coins which are available at various bullion stores. In Singapore, you can also buy from UOB Bank.
The Pamp Gold bars at 100gm which costs SGD8205 is popular among gold collectors and/or investors.
However, please buy from authorised channels like banks and not other dubious companies which there are aplenty and scams are not uncommon here too. Read here
, here and here.
Remember, when it is too good to be true, stay away NO MATTER how tempting the offer may be. These schemes will continue and keep on coming back so long as there is greed in the market. The vendors merely set up another company, tweak the compensation plan a little and there will be suckers willing to take the risks. They all think they can get out fast enough until it is too late and remorse, pain and anger are the consequences.
Of course, there are other instruments like Gold ETFs, unit trusts, etc which one can tapped on as well.
In conclusion, there are different school of thoughts on whether should one own gold or not in their portfolio. Others swear by it for decades and in countries like India and China, buying or owning lots of Gold (bars, jewelleries, coins, etc) are a status symbol of one's wealth as well. Some traders buy the gold bars for keepsake to pass on to their generation.
Gold chart shows the price action has gone up 120% since 2015 and it is revisiting the peak at 1800 level since Sept 2012. Expect some correction ahead (sideway or dips) before we can see a major thrust ahead towards the end of the year.
I hope this has been useful and provided readers some reference points in considering adding gold or silver into their portfolio.
My favourite gold biblical story......
That is a good question as the array of products available in the market can be quite daunting.
First thing first, we have the XAUUSD which is the gold forex currency , just like any other pairs (EURUSD, GBPUSD, AUDUSD, etc) that you trade on forex. This is one of the most popular instruments traded.
My views on XAUUSD is here, here and here.
Then, there is gold related stocks like the popular Newmont shares as shown on chart. You trade this just like any other stocks, depending on your strategy. Value investors will calculate the intrinsic value and see if current price is offering at a discount before buying. Others bought this stock as a hedge against inflation in their portfolio.
And those who followed me for a while will know that I like Silver as well. See chart.
My views are here andhere.
For those who like the real , cold hard stuff can go for the physical gold bars, coins which are available at various bullion stores. In Singapore, you can also buy from UOB Bank.
The Pamp Gold bars at 100gm which costs SGD8205 is popular among gold collectors and/or investors.
However, please buy from authorised channels like banks and not other dubious companies which there are aplenty and scams are not uncommon here too. Read here
, here and here.
Remember, when it is too good to be true, stay away NO MATTER how tempting the offer may be. These schemes will continue and keep on coming back so long as there is greed in the market. The vendors merely set up another company, tweak the compensation plan a little and there will be suckers willing to take the risks. They all think they can get out fast enough until it is too late and remorse, pain and anger are the consequences.
Of course, there are other instruments like Gold ETFs, unit trusts, etc which one can tapped on as well.
In conclusion, there are different school of thoughts on whether should one own gold or not in their portfolio. Others swear by it for decades and in countries like India and China, buying or owning lots of Gold (bars, jewelleries, coins, etc) are a status symbol of one's wealth as well. Some traders buy the gold bars for keepsake to pass on to their generation.
Gold chart shows the price action has gone up 120% since 2015 and it is revisiting the peak at 1800 level since Sept 2012. Expect some correction ahead (sideway or dips) before we can see a major thrust ahead towards the end of the year.
I hope this has been useful and provided readers some reference points in considering adding gold or silver into their portfolio.
My favourite gold biblical story......
Silver is the blue line and as shown on the long term monthly chart, it has a lot of rooms to catch up with Gold.