There are two problems that are contributing to the USD pitfall: Stupidity and more stupidity, which ironically, rest within the brains of MIT and Harvard alumni Ben Bernanke and Obama.

It wasn't since 2008 after the financial crisis that the USD started falling. It was wayyyy earlier than before that the USD was already devaluing.

Way earlier back in 1971 when America decided to put their dumbest president in office just to see what happens. Richard Nixon told the nation the Gold Standard was bad for the economy, and decided to take USD out from the Bretton Wood Agreement. He even went on and told the world's central banks to empty their gold inventories and replace them with worthless US$. This is why the US$ is the world's largest reserve currency until today, and China is making noise for a new reserve currency.

The series of war between America and Soviet and the Iranian Revolution followed on. War cost money, and America didn't have the money to pay. So what's the solution? Print more money! And then put circulate them in the public! This massive QE programme led to the unprecedented gold spike of US$850 an ounce in 1980, which is equivalent to US$2,000 if measured in 2006. The massive monetary inflation had brought the country to its knees and America was on the verge of a social collapse.

To tackle the problem, Henry Paulson, then treasury secretary, was forced to raise the interest rates to 20%, and it did what it was meant to do. Gold price dropped, US$ rose and the inflation controlled. Gold continued to drop until 1999 when the value was US$250 an ounce.

And then the Internet Bubble in 2001, America was experiencing another economic crisis. Alan Greenspan then chairman of the Federal Reserves reduced the interest rate from 7% to 1% in an effort to encourage spending in the economy. This was the cause for the housing bubble that led to the financial crisis 2008.

And pouring more fuel into the fire, America put another dumb president in power. Obama raised the debt ceiling, proposed his healthcare reforms(more government spending) and forced the Congress to approve his massive stimulus package to bailout companies. This ballooned the already exploding national debt of US$14 trillion (which is higher than the world's GDP combined  ) and America is trying to pay back all its debts by QE2.

Investors now know 2 things :- low interest rates will no doubt create another bubble and QE2 helps nothing but devalue the US$. If interest rates does not rise, QE2 not stopped and the national debt not controlled, investors will stay away from the US$ and you will continue to see the gold price skyrocketing (in USD).

EDIT: Those who do not know history are bound to repeat history. If you have the time, google Depression of 1920-1921 which was worse than 1929 and look how the government solved the crisis in just 18 months.

Also, google the German Weimar Republic 1923 and their government bankrupted the country. Whatever their government did back then, is exactly what the Obama administration is doing right now.

But today the price at PB, MBB and CIMB still moving up abit.. how come??

But today the price at PB, MBB and CIMB still moving up abit.. how come??

On Friday night (aka US Friday), gold price did surge very significantly, but Monday here is holiday, so you don't see Monday price that shot up (which reference the Friday price).

any maybank agent here? i want to register a maybank gold account.

Gold price is falling bro, perhaps this is a golden opportunity for new investors!
http://www.goldprice.org/spot-gold.html

I'm also interested to open a gold investment account. 

Let's hope that the price will continue to dropppppppp~

Gold price is falling bro, perhaps this is a golden opportunity for new investors!
http://www.goldprice.org/spot-gold.html

I'm also interested to open a gold investment account. 

Let's hope that the price will continue to dropppppppp~

What do you mean the gold price is dropping? What's the highest price last week?

i just curious is that worth to get a gold passbook account from maybank account?

Given that gold lends stability to the portfolio and acts as a hedge against inflation, it would always make sense to have some exposure to the metal. The question is, how much?
Although every individual’s goals and needs will be different and, therefore, demand a suitable asset allocation strategy, experts believe the exposure to gold should be between 5% and 15% of the individual’s portfolio. Swapnil Pawar, CIO, Karvy Private Wealth asserts, “It would be pointless to put less than 5% of the portfolio in gold while anything more than 15% would expose the investor to unnecessary risks.” Read full article here.

Be it Maybank or Public Bank Gold Savings Passbook Account (GSPA), they are trading accounts with no assured returns; unlike Genneva Gold Savings Plan which gives you an assured monthly return.

“Through GSPA, investors have the ability to build a personal gold investment portfolio by purchasing gold in small amounts from a minimum 5gm regularly over a period of time and can enjoy capital gains IF the price of gold (quoted in the international market) appreciates.” Rad more at http://mygoldgoose.wordpress.com/2011/03/2...g-popularity-3/

Hope this helps.

Cheers!

Please don't mislead people.
Gold is not a saving account.
Gold is not a investment that can yield any interest or any assured return.

Selling gold at 25% higher then give back 18%, is not a return nor yield.

Please don't mislead people.
Gold is not a saving account.
Gold is not a investment that can yield any interest or any assured return.

Selling gold at 25% higher then give back 18%, is not a return nor yield.

Hi cherroy, me misleading? 
By whatever name it's called, that's what CEO, deputy president and head of community financial services and head of retail financial services of various finance houses and banks said; namely Kuwait Finance House (Malaysia) Bhd, Malayan Banking Bhd and CIMB Bank.

E.G. "Dubbed Gold Savings Passbook Account (GSPA), it is pegged to international gold prices and is comparatively cheaper to invest in than physical gold, said Maybank deputy president and head of community financial services, Lim Hong Tat."

Here, read the original article at The Sun: Gold accounts gaining popularity as seen at http://www.thesundaily.com/article.cfm?id=58997

On your second point: 'Selling gold at 25% higher then give back 18%, is not a return nor yield'.
That is the unique business model of Genneva Malaysia Sdn Bhd
Read the explanation: Long term sustainability of Genneva's Gold biz -- posted earlier this afternoon 01:16 PM at https://forum.lowyat.net/index.php?showtopi...post&p=42067931

In addition, I stated very clearly in my post https://forum.lowyat.net/index.php?showtopi...post&p=42068577 under Added on May 4, 2011, 1:54 pm:
Please Note: All articles and postings here by me here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Is an apology in order? 
Nonetheless, I do understand and appreciate your concerns as a moderator to ensure no LYN Forumers mislead the public. Thank you for reading my articles.

Be it Maybank or Public Bank Gold Savings Passbook Account (GSPA), they are trading accounts with no assured returns; unlike Genneva Gold Savings Plan which gives you an assured monthly return.