Tuesday, March 29, 2011
Thursday, March 10, 2011
What does Chart 1 says? It says that those invested in commodities doubled their investment in commodities. Those invested in Stocks in S&P500 loses 20% of their investment during the same period.
The article continues on with Bill mentioning his focus on precious metal (including gold & silver), agricultural commodities and Exchange Traded Fund (ETF) that holds basket of shares that support commodity exposure.
Bill Wermine is a Fund Manager Representative with Philip Capital Management Sdn Bhd. His email is email@example.com. His blog is traderstruthrevealed.com. Full article is in Malaysian Business March 2011 Issue.
The above is the chart from kitco.com on average live prices for 6 months. If we have a crystal ball, of course, the ideal time to buy gold is in the ‘ovalled’ area. I cannot say circled as the shape is oval ;-).
Why I choose this past 6 month’s period?
Because, I started enrolling to become a dealer the last 6 months (in Sept 2010) and I have suggested to you, as my readers in http://www.dinatalib.blogspot.com/ and my friends in Facebook, to start picking up (buy) some physical gold (gold bars / dinars).
The chart will repeat itself. It may not be exactly the same but there will be some similarities; same scenarios. Price will drop, price will shoot up, price being stagnant, rallies being resistence and support level etc. The history will repeat itself. What should you do? Educate yourself. Read a lot and ask questions.
Say that you bought gold at A. You have no slightest idea that the gold price will come down from that spot. At A, the price was USD1412.50/oz. Do not be despair if comes down, you should buy more if price is trending downwards. Any purchase when the price drops will reduce your average cost of investment. The price was later dropped to point B at USD1324/oz. It was a 6% drop. But we did not know about it then, did we? When the price was at B, we might think that the price will go down further. We wait some more, hoping to get a better price. If you did not buy the gold here, you lose good opportunity to get good price for your gold. However, the price did not go down further but it bounced back until now at point C (current situation). You really cannot time the price. Buy when you have extra capacity to do so.
Now, we are at C. Whe shall the price go from here? Will you buy now or wait for the gold price to come down? What will you do?
One possibility is that position C now will be replicated as D, ie gold price moves UP. I would just buy now if I were you. This is especially if you are just starting to invest in physical gold and besides, the physical gold investment is actually for medium to long term investment.
Another possibility is that position C will be replicated as position A, ie gold price drops. Nobody knows. Do you know what will happen?
With the political unstability in the Middle East and its chain reactions, as well as the continuity of the financial crisis in the West, there is a high chance that the gold price goes up rather than coming down. There might be some corrections to the prices on its way to find new heights. Why not buy now and see if the gold price really drops? If the gold price drops (even just for correction), buy again. Always set aside some budget for gold investment. There might be some good and cheap offers by many dealers as well along the way.
Kijang Emas Prices
Below is the Chart on Kijang Emas prices for 1oz during the same time period. Kijang Emas is the gold coin produced by Bank Negara Malaysia, sold by Malayan Banking Berhad. The selling price of 1oz Kijang Emas is captures as follows :-
Note that the lowest price within the last 6 months is just below RM4100/oz. We might not see the Kijang Emas 1oz sold at that same price again. The Kijang Emas price is strongly supported at RM4300/oz. At the time of writing, the Kijang Emas is sold at RM4555/oz.Buy Now
Public Gold Gold Bar
Public Gold Gold Bars are sold in 20g, 50g, 100g, 250g as well as 50g Gold Coin. The live prices can be seen in the right hand side of this blog. The prices will be changed every 20 mins to reflect the movement of the gold price globally. It will be stagnant during the weekend starting from the time the US market closes on Friday.
Besides gold bar, Public Gold also sells 1 Dinar, 5 Dinar and 10 Dinar as well as silver bars in 3 sizes ; 250g, 500g and 1kg.
Buy Silver Now
I can give you so many reasons why you should not wait for the price to come down eg the price is in correlation with other commodities prices like oil, the increase of import of gold into China, the printing of more money in US, but it is YOU who have to take action.
Hedge your inflation NOW! Buy Gold or Silver.
TORONTO | Tue Mar 8, 2011 3:53pm EST
TORONTO (Reuters) - Silver is likely to keep outperforming gold thanks to strong dollar flows, though both are still good investments compared with copper and other base metals, according to Eric Sprott, the hedge-fund manager and Canadian investment guru.
"I watch where the money goes and the money's going into silver. There's as much money going into silver as into gold in dollar terms," said Sprott in an interview with Reuters.
Sprott, who heads Toronto-based hedge-fund Sprott Asset Management, said it is important to note that silver available to buy is relatively scarce in terms of value, and that bodes well for further gains.
"There is 75 times more dollars worth of gold to buy than silver, but the money's going in one to one," says Sprott, while speaking on the sidelines of an investor event held in conjunction with the annual PDAC mining convention in Toronto.
Silver stocks in COMEX warehouses are near their lowest since April 2006, when the metal traded at $5 an ounce. Demand for silver coins has also picked up, especially in the United States, where it was at record levels early this year.
"My biggest thing is silver -- I think silver is going to go up a lot here. Gold's right in there, but not as good as silver," said Sprott, following a presentation to hundreds of investors in a resplendent ballroom at Toronto's Royal York Hotel.
Gold and silver -- traditionally viewed as a safe store of value in turbulent times -- have soared on inflation concerns, political turmoil in the Middle East and North Africa, an uneven U.S. economic recovery and the European sovereign debt crisis.
Gold touched an all-time high of $1,444.40 on Monday, while silver hit a 31-year high of $36.70 an ounce, after rating agency Moody's downgraded Greece's debt and violence flared anew in Libya.
"I have a little website that sells gold and silver maple leafs, and we sell about four times more silver than gold in dollars (terms)," said Sprott, who had earlier in the day addressed a room full of miners and investors and others at the PDAC convention.
The PDAC event is the world's largest gathering of people tied to the mining industry, and this year's event is expected to attract more than 22,000. The mood among delegates is exuberant, thanks to record or near-record prices that both precious and base metals are commanding.
BASE METALS RISKY
While bullish on precious metals, Sprott is wary of base metals - copper, nickel and zinc - as their fortunes are too closely tied to the fate of the broader economy.
"I agree with the prices of precious metals. I'm not as much of a bull on base metals," said Sprott. "I still worry about the financial system, it's massively over-levered and will still come undone."
Sprott's views on base metals mirror those of another of Canada's most influential money managers, Donald Coxe, who expresses similar doubts about the strength of the economy due to surging food and fuel prices.
"I'm not as economically optimistic as the average guy, so I don't go to base metals," said Sprott, a gold bug, who has built a reputation for bucking market trends.
"We have oil and food prices rising like crazy ... It's almost hyper-inflationary," said Sprott, who advises investors to put money in "real things" where demand is virtually inelastic.
"I'm very optimistic about gold and silver," said Sprott. "And real things like potash, uranium, oil, stuff that is absolutely essential."
(Editing by Frank McGurty)
The article is found in this link
Saturday, March 5, 2011
- Reason oil price is going up is because the world is running out on known reserves of oil; production cannot be increased easily
- Commodity Bull Market will stay
- If you are not buying physical commodities, buy commodity stocks; agriculture, mining, energy
- Jim is making money in commodities. If the economy is good, he will make money. If the economy does not get better, he will also make money as they are printing money (huge amount of it)
- Gold will go up to USD2000/oz by end of the decade, by end of the bull market. Silver will be USD50/oz.
- In bull market, you want to have everything. Jim hedge himself by shorting (selling) Emerging Market stocks & Nasdaq Stocks. Buying commodities.
- In 70's most stock did badly. The only stock did well is commodity stocks.
- He says farmers will be the ones driving Lamborghinis, and stockbrokers will be driving taxis. Smart stockbrokers will be driving tractors.
Friday, March 4, 2011
An article here from the The Edge Malaysia website on the bling bling. May you be better informed on your bling bling. ;-)
Something we would like to see ... in the chart ie the correction of price. Buy when it is dipping. Can you see the circle? Or should I say the oval?
There's a correction for the price from year-high of USD1435.70/oz. Current price is at USD1417.60/oz. Support level is at USD1417/oz and the next support will be at USD1410/oz. Breaking USD1417/oz, you should be happy to buy some more!!
Have fun observing and investing.
Tuesday, March 1, 2011
There will be a correction after reaching this point. See the live chart captured below.
New support levels are at USD1430/oz, USD1417/oz, RM1410/oz and USD1406/oz. Input from FX expert, Noor Shufaad Norani http://www.melakafx.com/. Good time to buy gold when the price is on correction.
Keep on reading.