Closed my Bank Account and Bought Gold and Silver
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Hiya Investors and Potential Investors
What are your thoughts on gold and silver precious metals prices?
Yes, the price of gold has gone up 757% over the last decade. But do you believe there will be more upside on gold prices over the next 4 to 5 years?
My opinion is yes. I am still bullish on gold prices and we are yet to see more upside in the prices. Analysts such as Maloney, Sprotman, Kiyosaki believe that gold prices will hit the regions of $5,000 to $12,000. Is that possible? But even if it isn't, even if it goes up to $2,000, it will be preservation of wealth, amidst inflationary pressures?
The few considerations I took into account:
1. The price of gold went up 757% during the boom times of the global economy and during this time precious metals was actually shadowed by investments in stocks, options and bonds which were yielding significant returns during the boom times. But what about now? Gold has always been the safe haven for the institutional and retail investors during economic recessions and financial turmoil, and it is no longer overshadowed by the stock and debt capital markets.
2. The recession in the US and Europe is a debt bubble waiting to burst. My apologies but everything that they had been doing, the political speeches and bailouts, is just not convincing enough to drive the economies out of the recession they are stuck in now. They are stuck. If they do nothing, both economies default and the recession will hit across the globe. If they do keep printing more and more money for their billion dollars bailouts, the USD and Euro will devalue significantly more and with their unemployment and minimal growth rates, inflation will swallow the economies and the currency will be worth a lot less.
3. The more the money printing for bailouts and coverage of the trade and budget deficits plagueing the above economies, the higher the inflation, which will just pull the value of the USD and Euro downwards, and gold prices are inversely related to both the share markets and the global currencies.
4. China has legalized gold ownership by the public. Indian currently consumes 30% of the global gold supplies, and we are yet to see China consumers start sucking up gold supplies in the market and their full involvement in the market. Demand from US, China and India which are set to grow will certainly drive the prices upwards. ETFs investments in gold and silver introduced since 2008 is growing fast on annual basis with more involvement from the retail investors and increasing number of online trading platforms that invest in gold and silver.
5. Central Banks, such as that of Russsia and South Korea, have become net gold buyers for the first time in 20 years. This is an indication that even Central Banks are losing faith in the financial markets and moving towards precious metals. When institutions start snapping up gold, and they buy in billions, this gives further upside to gold prices.
6. The masses are 'waking up' to the idea of investing in gold. Traditionally, its only the investment savy niche groups that invest in gold, but now the general public is waking up to the potential gold can offer in return for their investments. When the masses start buying, like they did for the iPhone and drove Apple prices to the sky, the price of gold is yet to move further and further up.
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No matter what, if you have gold, you are king.
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wah a wall of text... you invest in gold good lah, why torture my eyes with a wall of text... next time just summarize lah, like say "gold is good, everyone come buy, invest make money"... knn you type until a wall of text, what you want to show? show you're more educated and smarter izzit? nnb... buy gold buy lah, you buy and you type a wall of text... why dun you erect a whole building full of text even better...
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how to buy gold?
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Originally posted by kengkia:
how to buy gold?
Goldsmith.
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Silver Bullion and UOB Bank.
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Gold/Silver are highly speculative. My friend lost $50k when it plunged recently who has the same thought as you. When stock mkt crashes, nothing is protected. Beware of the risk and spread out your portfolio.
PS: Recent Gold/Silver plunged due to Europe's crisis. Go find out why gold/silver plunged!
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they plunged because of the economy events.... but the real thing is... it doesn't plunged.
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Originally posted by kengkia:
how to buy gold?
pawnshop also have...
pls stop digging your gold.....
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In 1973, Gold held by US central bank was 8,584 tones & currency in circulation was $61 billion. Dividing the gold held by the currency in circulation, we get a ratio of 140.2 for that year. i.e. 140.2 tones of gold were held per $1 billion of currency in circulation. In the year 2007, US central bank held 8,133 tons of Gold & the money in circulation was whopping $759 billion. The ratio comes to 10.7 .i.e. only 10.7 tons of gold held per billion dollars in circulation. If the US were to get back to the 1973 ratio of gold held per billion $ in circulation, it would have to increase its Gold Reserve to whopping 1,07,153 tons from current 8,133 tons, an increase of more than 13 times in potential demand. With the financial crisis not over yet, Central Banks like FED would continue to inject more & more money into the financial system. Thus the debasement of currency will continue, making real asset like GOLD & SILVER more & more attractive as a hedge against reducing purchasing power & loss of faith & confidence in paper currencies. We should thank GOD that US does not have a printing press for Gold. The YELLOW metal may be the only Savior of our wealth over longer term. That sure makes a case to buy GOLD. As far as our INIDA is concern, India M3 supply as on July 16 2010 was...READ HERE FOR MORE - http://bhavikkshah.blogspot.com/2010/06/one-should-always-buy-gold.html
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With the number of gold and silver dealers opening up stores and online, and the number of online trading platforms becoming available to trade on gold and silver ETFs, this is suggesting a massive interest from the mainstream investors now for these precious metals.
South Korea Central Bank buys more gold last month for their reserves. We are starting to witness a general switch in Central Bank reserves from basket of foreign currencies into precious metals to back their currencies.
Do you think we will witness the Gold Standard reintroduced to back the US Dollars?
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Gold can eat?
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My question to you is, since you have closed your bank account as the bank may go insolvent,
which vehicle for gold investment do you recommend? Which is free of default risk?
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I don't believe Singaporean local big 3 banks are close to insolvency. Matter of fact S&P gave all three a ratings upgrade and opines that they will be able to weather an upcoming financial storm.
A risk-free investment in precious metals is simply to buy outright gold or silver bullion and coins, and keep them in a safe place, such as certis cisco.
Other vehicles such as the ETFs and Savings Account - really depends. If they are unallocated investments, there is no actual gold and silver bullion backing your investment, and in the event of the insolvency of the institution, your money goes down with the institution.