IS IT STILL A GOOD TIME TO BUY GOLD?

My friends always ask me this question. Is it still a good time to buy?

My answer is, "Why Not? What are you afraid of?

Most of their answer is, "The price can come down."

I ask them back, "Can you time the market?"

They reply, "No."

I ask again, "What if the price goes up instead?"

** Quiet ** (No answer)

I will advise them, "If you buy now, and the price goes down, you buy again, adding to your investment. Your investment cost per gram is cheaper from the first time you buy"

An example :

You buy 20g gold bar on 10th Dec, 2010 at RM 3135. Your investment cost is RM156.7/g

The price goes down and 20g gold bar is only RM3090 today.

You can buy again.

If you buy, at RM3090 today, your total investment cost is now RM 6125 but you own 40 g of gold. Your investment cost is now RM153.1/g. The cost is now cheaper by RM3.6/g.

So, your opportunity to gain is at a higher rate now.

Physical Gold Investment is a better avenue for medium to long term investment. You must keep your gold bars and dinars for atleast 2 years before you can reap the return. The longer you keep, the better the return in.

The pictures below show three charts :-

1. 60 days Gold price up to 16 th February, 2011

2. 6 months Gold price up to 16th February, 2011

3. 1 year Gold price up to 16th February, 2011

Your question on "Is it still a good time to buy?" is answered here. Yes, because, the price today is still a low price compared to last year end price. Last year end price is at USD 1421.60/oz whilst today, the price moves from USD 1370/oz to USD 1376/oz. This is already a discounted price of at least 3.3%.

Observe the chart, the graph has a bottom at USD1314.90/oz somewhere at the end of January 2011. The trend is moving upwards now. The price may already make a rebound. My advice is to catch the price before it shoots up. How to buy physical gold?

You will come out with a different question. "Will the price go up?" "Of course" See the 6 months Gold price chart, the lowest price is USD1224.70/oz. You will never see this price again to buy, at least for the next 1 - 2 years. Where will the price go? It will go up.

How much will the return be? I have no answer to that but you can see the last one year chart.

Taking the highest price with the lowest, the return is 31% in one year. Better illustration is shown in 10-years Chart.

Can you calculate how much is the return on investment for 10 years?

So, What stops you from owning gold now?

How to buy physical gold?

If you have a Facebook account, you can sight my photo album of gold & silver. You may find good insights & comments there.

OTHER ARTICLES ON INVESTMENT GOLD

• HOW TO INVEST IN GOLD BARS & DINARS?
• WHY INVEST IN GOLD? (1)
• WHY I PREFER PHYSICAL GOLD INVESTMENT COMPARED TO PROPERTY INVESTMENT (OR ANY OTHER INVESTMENT)
• PERSONAL MONEY DECEMBER ISSUE 2010

• INDEX