Is Gold considered as investment or insurance?

[corydorus]

While we still pushing and pulling, I have Gold at USD1540 ... displeased with the high price i have to risk and pay for but can' help with the erosion of speed of inflation. Dynamic and Down Trend of stock market is another factor which i hope it can mitigate.

People who have got it USD 500, I bet have the same mentality that is so expensive.

This week reach a high of USD1880. Despite the high original price i got, is still a 22% profit for a few months period. I am happy this does work to reduce my stock losses for the past couple of week. We are still in the middle of uncertainty period of the economy and Gold further already accelerates at almost vertical line chart growth .... territory i new.

Some people starts to take profit. Should i ?


Cory

[Musicwhiz]

If I have to make a comparison, the rise of gold can be likened to stocks which shoot through the roof based on a rush for a particular asset class, thus the herd stampedes towards the "safe haven", and pushes prices up, making it seem that Gold is a very good investment.

However, price moving up without cash flows simply means more and more are speculating that the price will continue to go up, and that there is a "Greater Fool" out there who is willing to pay ever-higher prices. When will the music stop? No one can tell, but right now it's one heck of a party!

[Jared Seah]

Hello Cory,

Aren't you glad you acted BEFORE reading Krugman's article? LOL!

You may want to ask why central bankers are buying gold at prices higher than your buy price recently

Sell? Of course gold will correct - but who knows when? Like you've said, pundits have been saying that ever since gold hit USD500! Trailing stop to protect profit perhaps?

I think with the recent "correction" in equities market, some may have wished they own some asset class that don't correlate in the same direction down... Having some Yen and CHF ain't all that bad either.

I am scratching my head... Those who follow text books theories, why are they not following portfolio asset allocation theories and put all their eggs into one basket of equities - having 100 stocks is not diversification if the market tanks....

I follow Deng's motto: White cat black cat; can catch mice is good cat!

[wsreader]

It was announced during the budget last friday that trading of investment-grade gold and other precious metals will be exempt from GST. Any idea how we retail investors/traders can take advantage of it?

[d.o.g.]

Any idea how we retail investors/traders can take advantage of it?

It means you no longer have to stick to UOB's Gold Account or Gold ETFs to avoid GST. You can buy physical bullion (gold bars) directly and not pay GST, unlike before. Gold jewellery will still attract GST.

[KopiKat]

Any idea how we retail investors/traders can take advantage of it?

It means you no longer have to stick to UOB's Gold Account or Gold ETFs to avoid GST. You can buy physical bullion (gold bars) directly and not pay GST, unlike before. Gold jewellery will still attract GST.

Does it mean that those who'd bought Physical Bullions previously had just lost 7% (GST) of it's value (as they'd to pay GST previously)?

[d.o.g.]

Does it mean that those who'd bought Physical Bullions previously had just lost 7% (GST) of it's value (as they'd to pay GST previously)?

Previously those who bought bullion lost 7% immediately since they couldn't recover the GST. Now they won't lose the 7%, but the gold is still worth the same. If the gold price is $1,500 an ounce, whether you pay $1,500 (no GST) or $1,605 (with 7% GST), the gold is still worth $1,500 an ounce. It makes gold trading easier since you no longer need a 7% rise in gold prices to cover your GST loss.

[brattzz]

yes, 7% discount for those who wants to buy gold bars!

[KopiKat]

yes, 7% discount for those who wants to buy gold bars!

Hold your horses! Only from Oct.

http://www.todayonline.com/Business/EDC1...t-gold-hub?

The change takes effect in October and may lift demand for gold bars and coins. Singapore's investment gold demand nearly tripled to 3.5 tonnes last year, according to consultancy firm Thomson Reuters GFMS.

[Jared Seah]

There is no discount.

More that the "transaction" costs for trading in physical gold and other precious metals have gone down to be on par with HK and other financial centres.

OMG! I can't believe I am engaging in semantics! LOL!

Govt smart. Losing the 7% GST revenue is small potatoes compared to growing our financial pie bigger.

Cheers to capitalism and global competition!