Comments on Creating Wealth The Unit Trust Way: #169. Gold Investment And Tetrahedron Update 11

As a goldbug saying, 'Staple 5 year chart on your ...

2009-05-26T01:31:37.478+08:00

As a goldbug saying, 'Staple 5 year chart on your forehead when you are thinking of selling'.

When on uptrend, sell only your profit. When it stabilize at peak sell everything.

During downtrend use CDA (Cost Dollar Averaging) and VA. When it goes down and stabilize, buy some more :))

yes..i think nic is right..no wonder my PBB gold p...

2009-05-18T11:50:43.387+08:00

yes..i think nic is right..no wonder my PBB gold price do not seem to go up much even when the USD gold price went up..

shud hv thought of that earlier coz now i m indeed stuck...so gotta hold on & wait & wait..

Be careful when investing in Gold.Although it's pr...

2009-05-13T10:59:37.839+08:00

Be careful when investing in Gold.Although it's prices has gone up in days but in RM term it has gone up much less due the fact the US$ is getting weaker and the gold price is based in US$. In order for the Public Bank Gold price to go up, it will need to "work" twice as hard to fight off the falling US$.

Nic

Being a amateur chartist, I will only use short te...

2009-04-18T15:36:22.726+08:00

Being a amateur chartist, I will only use short term money to 'trade' gold. Gold has a long term objective which is a hedge of inflation, currency devaluation and political instability, e.g. I will not 'trade' life/accident/health insurance.

Rule of Thumb, do not invest with your emotion. Do...

2009-04-17T13:19:33.854+08:00

Rule of Thumb, do not invest with your emotion. Do not enter the market without any knowledge, there is no good time or bad time to invest, just remember choose the best investment vehicle during good time and bad time, and never loss your capital.

Calvin Mak, It depends on how you view it. There ...

2009-04-17T11:46:48.932+08:00

Calvin Mak,

It depends on how you view it. There are two sides of a coin.

This bounce may be a short bear market rally. That means moving up in a small way in a downtrend. It will not beat the previous high. It will just climb a bit and then fall lower.

Stock market can be manipulated to go up. Just like how when an important figure speaks a few words and the stock market suddenly moves up. Therefore, it's my opinion that the stock market doesn't reflect how the economy is really doing. To see how the economy is doing, we need to read the datas released (unemployment, GDP, etc). Even so, these datas can be tweaked.

The sales of gold by central banks have also declined in the past year. They are conserving it.

Carson,Why would you say stocks are dead? The stoc...

2009-04-13T12:50:49.624+08:00

Carson,

Why would you say stocks are dead? The stock bounce up recently, I’m not sure whether it is a short rebounce or it is really recovering. I thought normally the stock market predicts the economy? Going down means economy is bad, going up means economy is recovering. Well, although it is said that the country is going to print more money for bailout, but they also have gold reserve which they can sell.

Michael Tsen,Exactly what I am thinking, there mig...

2009-04-11T09:46:06.490+08:00

Michael Tsen,

Exactly what I am thinking, there might be a downward move soon. In this case, it would be good to short a little bit and buy back at a lower price.

I am certain that the gold price will shoot up high again in November 2009. However, for the coming couple of months, we might see a weak trend in gold. This is a good time to accumulate more of it. And this strategy that I suggested here may help you add a few more grams compared to if you just hold on till November.

Nah, stocks are dead, I am not going into mutual fund / unit trust fund. We have not seen the bottom yet. Not till the US Dollars collapse.

I think this strategy is not good to apply with Pu...

2009-04-11T00:54:40.260+08:00

I think this strategy is not good to apply with Public Bank Gold accounts. If you practice this strategy for a while, you may eventually find this is the example where technical analysis is over trusted.

however, the big view of gold investment is you can probably keep until end of next year. So if you have holding power and ability to average down then by all mean try this strategy out for the sake of learning and experiencing.

furthermore I think the swing magnitude in gold price will narrow down at best so it probably wouldn't meet your trend lines targets. I would say now that it will stay around 900 zone.

further more, the graph also shows forming of double bottom, head and shoulder, which signify a big downward coming up soon

its time to take a break on gold and look at mutual fund again, perhaps ?

assuming we sell at line B, say @ US915 or RM104 (...

2009-04-10T19:58:22.232+08:00

assuming we sell at line B, say @ US915 or RM104 (bank's buying price)..the bank's selling price at that time wud be ~ RM108..
we wud hv to wait until the price falls to line A, say @ US850 or RM101(bank's selling price) to buy..meaning, we hv to wait for the bank's selling price to fall from RM108 to RM101 b4 we buy again to get the extra grams..
however, if the bank's selling price only fall to say, RM105 & then goes up again, then we will be "caught" coz we hv already sold at a loss & yet to buy at the lower price..

but if the initial loss is not to great, then i guess we can take the risk..extra grams better than nothing..

What if it goes down to line A instead before you ...

2009-04-09T18:40:50.169+08:00

What if it goes down to line A instead before you could sell?

If it is headed to line A, I’m trying to compare (i) a top-up at line A, or (ii) selling now and buy low at line A, to see which one is better.

If we sell now, immediately we have loss some amount of money. If we hold, we are *pretending* that as long as it is not sold, it is not consider loss yet.