Gold has dropped further to RM 170 per gram on Maybank. Now trading at US$1,734 per ounce. I think its gonna drop further till about RM 160+. Then ill open up the UOB account.

Well im monitoring the US stock market as well. That should give a rough indication if prices will hold or drop further. But for now, i think prices may hold for now. But read the following article posted today:

http://biz.thestar.com.my/news/story.asp?f...96&sec=business


This post has been edited by cybermaster98: Aug 15 2011, 10:35 AM

Also read this:

http://biz.thestar.com.my/news/story.asp?f...21&sec=business

http://biz.thestar.com.my/news/story.asp?f...04&sec=business

I think gold prices will rise further before end of the year. I would wait till maybe tomorrow and see how the prices fluctuate before going in. This is to ensure i goin in at the lowest price possible.

Read following article from CNN Money: More turbulence expected this week. I think its perfect recipe for gold to rise further.

http://money.cnn.com/2011/08/14/markets/st...ex.htm?iid=Lead

Yes gold is volotile. It will go up and down. But the general trend for the past 11 years has been UP. The tactic with gold investment is to buy when its low and sell when its high. Like someone said earlier, gold investment is not just about knowing when to go in but its also knowing when to exit.

But for now gold trend is up. I dont see a major downward correction in gold prices in the next few years. So i would recommend a buy now and sell later when the prices go much higher in a few years. The world economy isnt looking good at all. The Wall Street earthquake last week is just the beginning of worse things to come.

The spread on GIA is only high for Maybank and Public Bank. UOB spread is only RM2. Of course, real gold is always best but then again, for now GIA suffices as long as the profit margins are good.

Dont worry bout bank collapses. Its highly unlikely to happen. Most Gov's now are protecting the banking system. If its gonna happen, ull surely hear bout it well in advance.

What is the normal trend for gold approaching the end of the year? It it true that prices rise just before Deepavali (due to higher purchases from India) and then drops towards December?

The following article was written by the same guy who predicted that gold will hit US$1,700 by end of summer 2011:

http://www.wealthdaily.com/articles/gold-a...lver-600oz/3085

For gold to hit US$3,000 by mid next year, that would mean our local prices trading at around RM 310 per gram. Do you think thats possible? Lets share our views on this.

This post has been edited by cybermaster98: Aug 16 2011, 10:40 AM

I think any investment lower than 20g would be relatively pointless. Even if gold rises, your profit would be too insignificant.

For instance, someone who invests only 10g at RM 170 would only make a total profit of RM100 if the price hits RM180 per gram. I think its easier to save RM 100 through cutting down daily expenses than in gold investment.

When i opened my Maybank GIA in 2010, i invested about 400g and even then i regretted not investing more especially with the current prices.

Yea now trading at US$1,785. Despite good rally on stock market past few days, people still investing in gold. I think the stock market is too dangerous now.

First of all, we need to check the sources of these articles. There are many speculators out there who hope to influence ppl with their articles. Traders who deal with solid gold will always say paper gold is crap while those who trade in paper gold will say solid gold is too risky and premiums too high.

We can read everything but take all predictions with a pinch of salt. Yes solid gold will always be the best form of investment in the longer term but how many of us are planning to hold gold till we're old? Most of us here are investors meaning we go in when prices and low and sell when prices are high. The most we would hold is about 5-7 yrs max.

Paper gold is risky since its not based on actual quantities of gold and your investments are not guaranteed by the banks. So if the banks collapse then your money goes with it. But do you really think the world banking system will collapse any time soon? Do you think Governments will allow that to happen? If that really happens, your gold investment will be the least of your worries.

But just in case the banking system comes under serious threat, you would see the signs early on. Before the banking systems goes down, the stock market would have crashed (and i mean a total crash not just like what happened last week). GDP of countries will be at drop dead levels while inflation will be sky high worldwide. The bond and equities market around the world would be at near zero while there's a drastic drop in property prices worldwide. All these things need to happen first before we see any serious effect on the banking industry.

So for the time being, i think paper gold is a safe enough investment option for investors like us.

But the more important question here is what do all of you think about prices in the next few months? Do you think it will rise further in view of Deepavali and year end sales? Let me know your opinions please. I did ask this question earlier but didnt get a response.

Friend, do you see the word OPINION above? An opinion doesnt mean FACT. All i asked is what you think would be the behavior of the gold. I didnt ask for a crystall ball revelation. I merely asked for people's opinion and why they would think so. Thats the purpose of forums: to discuss and share opinions.

Its trading at US$1,794 now. I dont think it has crossed the 1,800 barrier yet. Depends on how Wall Street performs today when it opens but i think it could cross that barrier tomorrow if market sentiments remain.

Plus they are dealing with solid gold not paper gold. Companies like Poh Kong are considered the 'middle men' in gold trading so of course any gold price would include their profit margins.

Most of us have either Maybank or Public Bank gold investments because until mid last year, those were the only 2 banks with GIA. Then later came UOB. If i invest in gold again now, i will surely got for UOB since their spread is only RM2. Maybank and Public Bank are ripping us off.

There is no definitive trend between stocks and gold. Yes a drop in stocks will mean investors moving to other commodities. What's happening now is that due to the volatility in the stock market, investors are falling back to gold as their primary investment. So even though stocks may rise for a few days but the rise isnt enough for investors to leave gold.

Investors also know that despite the rise in stocks early this week, the general economic conditions in US and Europe is poor with a threat of another recession getting stronger by the day.

Any investment either in stocks, commodities, bonds or currency is risky now. We must strive to choose investments with the lowest exposure to risks. Nobody has a crystal ball so nobody will know for sure which will fall and what will rise in the future. Just spread your investments and dont leave all your eggs in 1 basket.

Gold is trading at US$1,787 now. Quite stable past few days. I think gold needs to clear the 1,800 barrier 1st before we see any drastic changes. If it drops below the 1,725 barrier then it will go further as market sentiments will drop as well. Let see what happens.

This post has been edited by cybermaster98: Aug 18 2011, 07:56 AM

Yes gold doesnt give you interest like other investmen schemes. So unless gold appreciates, your money is stuck. But u must also remember that returns on gold based on the past 10 years, have been significant. Gold prices have appreciated 30% since i bought 1 year ago. No other legitimate investment gives you such high possibility of returns. Of course with these returns there also comes high risk in the volatility of the gold price. So like i said earlier, dont put all your eggs in 1 basket.

Gold has broken through the US$ 1,800 barrier. Its now trading at US$1,821. Just wait and see tomorrow's prices in Malaysia. It will be close to RM 180 per gram unless gold drops tonite.

I think nothing will stop gold now. I should have opened up my UOB account on Monday. Damn!

This is 1 of the major reports today that brought down Wall Street and Europe stock markets:

http://money.cnn.com/2011/08/18/news/inter...anley/index.htm

Yes i have about 400g in Maybank since May 2010. But Maybank spread is too high so i dont wanna invest there anymore. I think with the current rise in prices, the spread is now more than RM8 per gram which is CRAZY!