Lowest point this year... had dropped about 10% from this year's peak... and going down...

Just bought today at UOB, no passbook, only a piece of paper like FD.

Buy/Sell different only RM2, better than Public 3.99%, CIMB RM5.60, Maybank 4.2%.

158.50/gm am price. By the time fill in forms, open saving account, 158.30/gm. Closing price 158.00/gm.

Might buy more later this week...

I'm not goreng-goreng investor, just putting some into gold investment account instead of all into FD.

BTW OUB got promotion today till 30th June for seniors above 50, 12 mths FD 3.6%

Will gold price achieve USD2000 by 2012?


Time to change question to "Will Gold Price touch USD1400 in 2012?"

In an gold investment acct, need to be aware how much the bank is charging in buying back.

Example:
Bank's price today RM160/g
Bank's price in future (say your target price to sell back to bank and exit) RM170/g

Bank's buying price spread 4%: 170 x 96% = RM163.20
Gain = RM3.20 per gram or 2% of RM160.


Coincidentally, the above prices would translate to about USD1600/oz and USD1700/oz. How good is that 2% depends on how fast the price can swing. And hopefully, it swings upwards.

UOB is at a fixed RM2 and CIMB RM5.60.
There is a slight difference from a fixed percentage when the price goes up...

There is no charge or fee when you buy; the bank's buying price has no relevant at this point.

When you sell back to the bank, then the buying price is relevant.

Of course you can wait till the buying price improves to your target level...

The main point is that if the sell/buy spread is wide, the price has to increase a lot higher to cover the spread to have any gains.

Using the same prices in the above example, UOB's buying price would be 170-2 = 168.
A RM8 or 5% gain instead.

just added 10gm to my 20gm...
have set aside money for 200gm...

UOB is in my neighbourhood...
told the teller I'll be seeing her very often... she said no problem...

-------------------------------
There was a write-up that 1300 could be the lowest point as miners can't keep operating their mines if gold price drops below 1300. And writer quite bullish that gold could hit 3000 within 5 years due to several factors. Google it...

-------------------------------
Keep in mind that when it drops sharply everyday, it could also bounce up very sharply the next day.

How to time the entrance? Don't know; so riding it down...

But remember that gold is traded around the clock. Europe and America markets are open when ours is closed...

This post has been edited by j.passing.by: May 16 2012, 05:08 PM

right on... gold is hedge against currency... should check constantly on Bank Negara's Kijang emas instead of solely USD/oz.

the drop in ringgit has cause local bank's price slightly higher than the increase in USD gold price today.

How to look into the future? That's why people buy gold - as a safeguard, and to spread savings over a variety of instruments instead of putting all eggs in one basket.

lucky did not top up today... sudden drop US10 after 4.00pm.

was expecting it to drop since price did not break through USD1600/oz...

maybe will follow strategy of buying on Wednesday middle of the week...

you can be in for long term or out in short term... when the time is right to exit...

on hindsight, if you had bought on Dec 29, you could gain more than 8% within 2 months.

to me, it's buying opportunity... i got my 50gm below 160/g... and happy with it.

if it goes back up above 175/g by end of the year... i exit.. 9% gain within 6 months...
(hopefully. if not, hold till it goes up next year... it already went above 1800, so it likely happen again...)
if it drops further below 1500, buy more...

It is.
But small (& conservative) player here, only diverting some FD to savings acct in gold.

we seen the peak above 1800, so it's not mission impossible for it to reach that high...
i think it will linger within 1530 - 1580 for awhile... it can go up, it can go down... who knows... it's "investment" risk!

take into account that gold is gold... it's a reflection of the state of economy around the word... primary trend is up since the world progresses... can be minor correction with small downward trend; and won't go back too much... once nasi lemak cost more, very difficult for it to cost less even if more people goes jobless.

at the moment, world stock markets going down and countries' development slowing down... seems like people selling gold and nobody buying them when people feels less wealthy... maybe also groups of people not so wealthy but buying gold because many smart persons saying it will up 2000 and no holding power, so have to sell at lost... the really wealthy people then will pick up cheap gold... so there is a level that gold can only drop to... what level? only the really wealthy people knows... when it goes up, it will also goes up as quick as it falls.... since another group of people who normally don't buy gold but will join the bandwagon because some smart persons will again say gold will go 2000 and beyond.

informative enough?

just my two sens. (would luv to say 'just my 2 oz" but only got less than that. )

yup, basic supply and demand economics... people holding gold and not selling are also not buying; and they are not the only sources of gold; did someone tell the gold mines to stop?

maybe you care to inform us what level you will top up?

btw what dividends were you talking about?

---

Added on May 24, 2012, 11:43 pmr u sure u r posting in the right page, & not the funnies?

This post has been edited by j.passing.by: May 24 2012, 11:43 PM

Dear happy4ever,
I’m lost & speechless... maybe u can pm me and tell me more...and rescue me from further embarrassment in this thread.

based on the above price, it's UOB (local banks' prices is higher).

yesterday price was 159.30; difference of 0.44%
but exchange rate (based on Bank Negara's sell rate) on USD has increased 0.78%.

one of the reasons to hold gold... to protect against currency depreciation.

(btw today's ringgit is at its lowest for the past 2 weeks...)

no, your 160 is UOB's.
Local Public bank is like 163.
UOB is like Singapore's.

the thread has over a hundred pages, currently i think we are talking paper gold or savings/investment account in gold...

physical gold - bars, coins, jewellery - is costly and a lot higher than the spot price (like over 20%) and its buy/sell margin is also a lot wider to due to extra costs involved in the transaction... and is for long term holding for at least several years or more.

But can take to pawn shop when your personal economy is bad.

Link to UOB's gold coins & wafer bars = http://www1.uob.com.my/business/GMIM/GMIM_...ous_metals.html

"when economy good gold price will drop and when economy bad gold price will raise"
The statement is over simplified; and in the opposite direction...

Whose economy? Considering that gold has a world-wide market, it cannot be seen in isolation... the 'economy' in question would be a comparison between countries.

Rupees is at all time low (and also due to new import tax), gold price in India has not drop in the past 3-4 months unlike ours.

If a person in India bought gold in February, he's happy now...
If he is here and bought gold in Feb, he

(He can take his gold to India, and get better value for his Feb. ringgit; but he will need to spend all the rupees there...)

India is one of the biggest consumer of gold in the world, and it's importation of gold had slowed drastically, due to above reasons - weak rupee and new tax.

So even though our economy is relatively stable over the past 3-4 months, the world demand for gold has dropped, and it's price adjusted accordingly.

Anyway, it is a minor adjustment to us... but you would be glad to be holding some gold if the state of economy is so bad (Malaysia going bankrupt or in a war zone) that you need to abandon your house and flee to take refugee elsewhere. (Where to go, ah??? )

So it is more accurate to link gold to exchange rate than 'economy'. But generally currency appreciation/depreciation is link to 'economy' too.

Gold is relatively constant over the value of things. And the value of things is depending on how much we value them (back to demand/supply theory). When the 'economy' expand, gold price expand.

---------------------------------------------------

Physical gold is for longer term than paper gold... check and see how much your gold coins/bars has to appreciate to breakeven when selling back to the bank.

Holding paper gold or gold investment/savings account?
I'm taking a risk as I think it is better than saving my money in fixed deposit, not for "safe haven".

"Safe haven" (if there's such a thing) is underestimated... I think you'll need to store your gold in the country you're planning to take refuge to be really safe. And pray for good luck on the journey to the 'safe haven' destination.

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Added on May 25, 2012, 6:46 pmhi happy4ever,
u still here?

this paper gold thing? no la, we're taking about 'gold' savings accounts in reputable banks.

i think u r mixing it up with some sdn bhd company that offer high dividends when u buy gold from them but had to store and keep the gold with them.

This post has been edited by j.passing.by: May 25 2012, 06:49 PM

Please provide and share with us the details when you know where to get physical gold in reasonable buy/sell spread that is better than the 1 or 4% that is offer by the banks in 'gold' savings account. Same with the bank which offer dividends.

Of course, I will be interested.

Seems like we're not talking on the same subject...
If you click & see all the posts I done on this thread, I only join in last week, (and had not gone through all the 100 pages or so, sorry...) and only just started to have 50gm, buying 10gm at a time...

=======================

Since you're talking about physical gold, it drew my interest and thinking of keeping some coins (maybe in the next dip after making some gains in this dip, hopefully...)

Below is some analysis on the sell/buy spread taken from UOB.
Added in is the Gold Savings Acct ("paper gold") price for investment capital comparison.

"Weight" "Gold Type" "Bank Selling" "Bank Buying" "Difference"
1 GMS Gold Savings Account 160.40 158.40 1.2%
1 OZ AUST NUGGETS 5186.00 5001.00 3.6%
1/10 OZ AUST NUGGETS 608.00 511.00 16.0%
1/2 OZ AUST NUGGETS 2680.00 2510.00 6.3%
1/20 OZ AUST NUGGETS 396.00 266.00 32.8%
1/4 OZ AUST NUGGETS 1397.00 1262.00 9.7%
1 OZ GOLD MAPLE LEAF 5186.00 5001.00 3.6%
1/10 OZ GOLD MAPLE LEAF 608.00 511.00 16.0%
1/2 OZ GOLD MAPLE LEAF 2680.00 2510.00 6.3%
1/20 OZ GOLD MAPLE LEAF 396.00 266.00 32.8%
1/4 OZ GOLD MAPLE LEAF 1397.00 1262.00 9.7%
1 GM KINEBAR 385.00 187.00 51.4%
1 0Z KINEBAR 5369.00 5009.00 6.7%
10 GMS KINEBAR 1895.00 1631.00 13.9%
2.0 GMS KINEBAR 549.00 347.00 36.8%
20 GMS KINEBAR 3548.00 3233.00 8.9%
5 GMS KINEBAR 1077.00 830.00 22.9%
1 GM PAMP GOLD 311.00 178.00 42.8%
1 OZ PAMP GOLD 5275.00 4999.00 5.2%
1/2 OZ PAMP GOLD 2761.00 2514.00 8.9%
10 GMS PAMP GOLD 1839.00 1630.00 11.4%
100 GM PAMP GOLD 17289.00 16194.00 6.3%
2.5 GMS PAMP GOLD 557.00 419.00 24.8%
20 GMS PAMP GOLD 3487.00 3238.00 7.1%
5 GMS PAMP GOLD 983.00 823.00 16.3%
1 OZ S'PORE LION 5186.00 5001.00 3.6%
1/10 OZ S'PORE LION 608.00 511.00 16.0%
1/2 OZ S'PORE LION 2680.00 2510.00 6.3%
1/20 OZ S'PORE LION 396.00 266.00 32.8%
1/4 OZ S'PORE LION 1397.00 1262.00 9.7%

give me a reason to believe you, a stranger to me, and goes on a wild goose chase on your mysterious bank...

would you go & fly kite if i say so?

"but why dont you get on some real gold instead?"
no money mah... not like your 'not so rich' family using gold cutlery, my family heirloom is only several pairs of bamboo chopsticks.

The price list is tonight's prices copied from UOB website.

There is already a bit of margin included into the 160.40/g over the spot price; hence that's why I said the capital cost is much more in buying coins/bars.

I'm not really interested to hold physical gold at the moment; for now the gold investment account is the best vehicle to "fool around" with my fixed deposits for the short term of several months up to a year.

But of course, if we have spare money that's doing nothing, it could be ideal to have some coins or bars and leave them lying at the bottom of the cupboard for the next 1 or 2 decades.

Cheers.

================
happy4ever,
thanks for the laughs...

your nugget is more priceless than Paris "Do Walmart sell walls?".

you can't really blame me when you are the one who bring up the subject of bank paying dividend on gold account; and yet refuse to name the bank and just simply ask us to walk in and do the search ourselves. Might as well say nothing; or maybe trying to troll us & draw attention to yourself.

Cheers.

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Added on May 26, 2012, 12:04 amcome on... there's only a handful of banks in Malaysia... just check them out and you offer prove rather than me on a wild goose chase because you kind of remember something.

Cheers.


This post has been edited by j.passing.by: May 26 2012, 12:04 AM