Thursday, March 10, 2011

DISCUSSING GOLD PRICE MOVEMENT


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.

Buy Now

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 Now
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.

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