Comments on Creating Wealth The Unit Trust Way: #168. Gold Investment And Tetrahedron Update 10

yes..sounds like a gud idea..but if we hv bought a...

2009-04-09T17:19:52.928+08:00

yes..sounds like a gud idea..but if we hv bought at a high price > RM107 (which i did, OMG), then we must be prepared to incur an immediate higher upfront loss...read somewhere that the price will hit US1,100 by year-end..me still hoping..

Nadlique,You can trade gold through Public Bank Go...

2009-04-09T15:35:05.508+08:00

Nadlique,
You can trade gold through Public Bank Gold Investment Account. Not exactly 'trade' as in online trading. You can buy and sell at the bank counter.

Refer:
http://www.pbebank.com/en/en_content/personal/rates/goldinvest.html

nik and CK,
I have a thought. It's like this.

Say the price on a downtrend now. Say we bought at RM107. Now the price to sell back to the bank is RM101. And we sell 100gms, that means we get back RM10,100.

Then when the price hits lower at RM100, we buy back with RM10,100. We will get back 101gms.

In this case, we created 1gm extra. Of course, we still have to wait for price to go up beyond RM107 to see profit again.

Nevertheless, we created an extra 1gm compared to if we don't short it at all.

What do you think of this strategy? It's cutting loss, but also helping to create extra gram.

How are you trading Gold? Futures?

2009-04-09T14:42:32.897+08:00

How are you trading Gold? Futures?

700…that’s quite a big drop…Well, if it really ent...

2009-04-09T14:11:09.938+08:00

700…that’s quite a big drop…

Well, if it really enters temporary downtrend, I believe there are ups and down in between like last year. So buy and sell strategy might apply right now. The hardest part now is to identify what is the low by using technical analysis.

And if we don’t need the money urgently, any new top up will surely decrease our average buying price.

me bought at high price..now having heartache..can...

2009-04-09T13:58:52.813+08:00

me bought at high price..now having heartache..can't even sell to cut loss coz of the high price which i bought..well, i just gotta wait & hold...

CK,Yeah, looks like it is entering a downtrend cha...

2009-04-08T14:43:11.155+08:00

CK,

Yeah, looks like it is entering a downtrend channel. Those who are in buy-and-sell should trade cautiously.

Those who are in buy-and-no-eye-see can just leave it there for a few years. Price will certainly be trending higher in the long term. Higher than ever before.

I sold some too not to cut loss, but because i need the money. Sigh. Got to wait now for the low. Using technical analysis, some are saying it will be as low as 700 or 650. Have to be able to stomach it if you plan to hold on to your gold.

The 700 level is a possibility if we don't break out of the downtrend channel.

Looks like today the gold price drops below 880 wh...

2009-04-06T13:06:13.325+08:00

Looks like today the gold price drops below 880 which already breaks the support line, I sold half of the gold last week to cut losses and keep the remaining for long term.

The buying price now is about 102/g, definitely cheaper than the time I bought it. Not sure whether it is a good time to buy more or not as I think it'll drop further.
Looks like gold is changing to down trend like what happen last year after the peak. What do you think?

Since you express so much interest in gold and the...

2009-03-25T15:52:04.686+08:00

Since you express so much interest in gold and the trend seems to be on gold, i suggest you change the name of this site to attract more people and share your knowledge. And Gold is under the sun and the stars too, depending on how you want and can change things.

Anyway, It is also important to emphasise that the recent strong demand for gold has not beenirrational but rather pretty much in line with the probabilities of financial and sovereign default.' It also noted a strong relationship between the price of gold in US dollars and the exchange rate of the dollar against other currencies has begun to break down, adding that strong investment buying would offset a decline in jewellery demand.

Thoughts?

CK,Don't lose faith. Haha. We will still get that ...

2009-03-24T18:22:05.606+08:00

CK,

Don't lose faith. Haha.

We will still get that 50%. Just that we must not be greedy when it's time to sell at the peak (like the peak of 20 February 2009).

USD1500 may even be possible this year. It will come.

Looks like the gold price didn't skyrocket as expe...

2009-03-24T17:59:23.233+08:00

Looks like the gold price didn't skyrocket as expected. It keeps moving up and down. Well, it seems overall it is still in an uptrend but at a slower path. Could it possible taking 1 to 2 months just to reach 1000? Or maybe need to hold even longer time...I think no one knows. It just seems the buy and sell is not easy.
So, will gaining 50% a year in gold in this year possible?

Everyday when US Fed announce something, it will greatly affect the stock (equity) and commodities. Whenever stocks in US go up, gold price will drops.
Whenever US announce it is going to print more money, gold price will go up.

Anonymous,Thanks for your feedback. I did think ab...

2009-03-20T18:14:16.633+08:00

Anonymous,

Thanks for your feedback. I did think about changing the name. However, the domain name is already established on the search engine.

Moving to a new domain might make me start all over again to build my searchability on search engine. It takes time to build it.

Anyhow, the bulk of my previous posts are still on unit trust. It's just that the times have changed and gold investment is a good investment now. And as I have also promised under my blog title "Scoop up some valuable tips too on other investments along the way." We just need to move with the times. Or lag behind and suffer loss in our investment.

On a lighter note, The Sun and The Star do not really talk about sun and stars. They talk mostly about other things under the sun and stars. So?

I think you should change the name of your website...

2009-03-20T16:29:23.665+08:00

I think you should change the name of your website since you don't really talk about unit trust.

Michael Tsen,Yes, there are many charts that we ca...

2009-03-16T13:58:50.788+08:00

Michael Tsen,

Yes, there are many charts that we can look at. And there are many ways we can draw the resistance and support lines.

Since I am invested in Public Bank Gold Investment Account, and the buy-sell spread is about 4.2%, my trade has a longer outlook to recover the spread before I can see any profit.

30 Days chart is too short term. I buy and sell based on daily 1-Year chart. Depending on the price movement, investing in PB Gold Investment Account can take 1-3 months to make profit.

On listening to the news, I have given up listening to them. I use mostly technical analysis to get the timing to buy and sell. News are just supplemental and for amusement.

These news will be more useful to those who buy and hold. I am more to buy-and-sell.

Most of the time, the market react unpredictably to the news. News are written by media that are in turn controlled by some people behind the scenes. The news are churned out to move the market according to those people's interest.

Notice how Obama's and Bernanke's words can move the Dow up even when everyone knows that the bottom is not reached yet.

Look at these headlines:

1. Gold futures tumbles on weak global cues. (http://news.tradingcharts.com/futures/6/7/121432276.html)

2. Gold prices shine in bad economy. (http://news.tradingcharts.com/futures/5/7/121400375.html)

So, when market is bad gold goes up or down?

3. Gold falls in London as rising equities cut investment demand. (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a.fBDlWKx0Zg)

4. Gold little changed in Asia after declines in equities, dollar. (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aN9AkQNIvVHc)

5. Gold gains in Asia on haven demand after stocks, dollar decline. (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZpAEYddi1XU)

And the news (#4) said gold price little changed when equities declined. On another news (#5), gold gained when stocks and dollar declined.

Is gold price going up or down in this bad economy times? Confusing isn't it? And there are more news like that that contradict each other. See how the news are manipulated to move the market?

And you also use term like Head and Shoulder, does that mean that we expect the price to fall? And this is based on chart alone without referring to any news. Can't we then buy and sell based on technical analysis alone?

What is fundamental news for gold? Where do we get fundamental news? Shortage of gold supply from mines? Bad economy?

In short term (that's what I go for ~ buying and selling), price will move up and down based on news. These news move people's emotion and their decision to buy and sell. And globally, people react with very short-term memory towards the market. Gold price can go down when Obama says a few words.

And can go up when Buffett offers his thoughts.

It is indeed confusing listening to the news.

I do not like to project long term forecast even if the fundamental news are good. This is simply because I am into buy-and-sell. If the price goes up within a month, I will sell. I won't hold it for as long as a year.

hi CD, I managed to dig some charts out and posted...

2009-03-15T01:38:44.330+08:00

hi CD, I managed to dig some charts out and posted a respond to this article here, do take a look and comment what you think.

http://malaysiapersonalfinance.blogspot.com/2009/03/gold-investment-supplement-info-090314.html

good for you on gold investment, this good trend w...

2009-03-15T00:52:12.833+08:00

good for you on gold investment, this good trend would probably continue till mid next year before it turns sour

i cann't really see sell targets base on graph above alone, I would have watched closely at 930 and 950 just to be conservative.

i think bond's time is over now that fed has cut rates. What I am interest to find out is when we should transfer back our gold money back into mutual fund ... what's your take ?

Carson,Yes, based recent past result, it seems it ...

2009-03-14T22:05:58.081+08:00

Carson,

Yes, based recent past result, it seems it might skyrocket by next week. May be around 1050?
Then it will be a small dip and might go around 1150 by end of April. Haha...just simply ratio calculation.