Tuesday, June 21, 2011


Most people are. They tend to be very protective of what they want to 'sell'. For instance, a Unit Trust (UT) Agent will definitely say that their UT portfolio is the best. An Insurance agent will say the same to their products.

As for myself, I have not said that Gold Bars & Silver Bars should solely be your assets. I was saying that Gold & Silver should be considered as one of your investment portfolio. Many people have not been aware of this opportunity. They took wrong moves by not asking the correct questions to the correct person. They buy jewelleries, thinking that Gold & Silver Investment is buying jewelleries. They shopped at jewellery shops and get discounted (sometimes up to 25%-30%) when they wanted to sell.

You can actually gain about 23% per annum with physical gold. But you have to be smart doing it. See the forecast here.

Shayne McGuire in his book "Hard Money : Taking Gold to a higher Investment Level", a moderate-risk investor should have 5 - 9% investment in Gold & Silver. A high-risk investor can have up to 25% - 30% Gold & Silver Investment.


I quote the sayings of Bengt Saelensminde, TheRightSide@moneyweek.com
Three tricks for being more objective about your investments

First, let diversification help you. A diversified portfolio helps reduce risk and gives you the option of changing your investment mix as opportunities show up. But on top of that, it can help you kick a bias…

Recently I argued that creating a balanced portfolio will often push you into holdings that you don’t even like.

That’s why I still hold a slug of government bonds. I don’t like the investment. I hate the idea of lending my money to a government sliding ever closer to insolvency. But as part of a balanced portfolio, I hold anyway. And because I hold those bonds, I feel a little more generous towards the sector. Though the child looks ugly, I can see its better qualities. I see its steadfastness as my equities get buffeted around.

The second way to kick a bias may sound a bit ‘school-boy’. But I’m a great believer in it. And that is keeping an investment diary. Every trade you make, you note down why you made it and what you expect it to achieve.

By regularly reviewing your notes you’ll find that you can judge your investments and returns more objectively. Your notes will help you see the error of your ways. If your reason for buying a stock turned out to be wrong, then it’s better to dump the stock before the rose-tinted specs blur the view.

My final way of clearing away the biases is to make an effort to read more widely. It’s hard to read articles that don’t sympathise with your views. But you can still disagree with the article. And only by understanding the enemy can you see their weaknesses and ultimately win the battle.

So, what do you think? Be open minded especially regarding managing your money wisely. Unlearn, learn and relearn. Leaving you with my two-cents, Knowledge is nothing. APPLIED Knowledge is Something. Always be able to see opportunities when it comes knocking at your door.

Have FUN browsing the blog.

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