The physical price of gold as at 9.30am stood at RM129.42 per gramme, down 72 sen from RM130.14 at 5pm yesterday.-- Bernama

The physical price of gold as at 5pm, stood at RM129.69 per gramme, down 45 sen from RM130.14 at 5pm yesterday - Bernama

Inflation Rate in America? Pretty high, if you ask the actual people living there.

Well, good question. Why is it that even though demand is high, gold prices is still going down. Very, very good question.

With FED intention to taper QE from the current USD 85 bil to USD 75 Bil per month in bond purchasing, gold trading price is expected to go lower as USD gained strength in a few weeks to go. Overall, it is a good time to purchase the yellow precious metal!

U R just speculating lah!. No differences than TOTO and Magnum. Just only the spread is smaller. Good Luck.

therefore in these few weeks at least it is bad to buy gold
unless you're trading it for a short term

What I mean is those who already have a big saving in gold and silver? During the last gold bull ride, a lot of investor has over-geared and have more than 30 - 50% of their asset in PM. Some government staff even took personal loan to play PM, some saw people $making $$ and become a physical trader. Wow! too be a successful trader you must have big capital! where to get the capital? squeeze everywhere lah! Now price drop so much! what happen to these trader? If own $ oklah, if borrow money personal loan? every month makan roti.

Just my gut feeling only. I think over the next few months 6 month to 1 year, the interest rate will goes up. This may lead to liquidity crisis in banking system. They have try it b4 last year asking Uncle Ben to announce possible tapering , interest rate shot up. That was an experiment.

If interest rate goes up for few months, lot of derivatives , margin will die due to high interest.
liquidity crisis means most of the thing will drop. For PM maybe it maintains at current prices.

Once the liquidity crisis is over, probably people got $ but the gold price has gone up. That will be a more likely scenario. For now, keep some cash.

This post has been edited by GoldChan: Feb 6 2014, 04:11 PM

an experiment must be verifiable. Here are the task list
Task 1: Call UOB got stock or not. Got means = price too high or people are still doubting when to buy
Task 2: C goldsmith shop everybody queueing to buy? yes or not
task 3: call Maybank C got kijang emas or not.
Task 4: call Publicgold said U 1 immediate delivery pay cash.! got stock or not!
Task 5: select 3 main bullion dealer website :- see gold and silver price.! still available for sales???

If all YEs, then availability is not an issue now or maybe few months down the road, unless something big happen. E.g. Suddenly China revalue Yuan.

give it a try ok.

If that the case, then every week you just cost averaging buy a bit and a bit then U won;t susah hati buy too expensive.

Inflation rate is never a gauge to determine gold price.
In fact, gold price never co-related well with inflation rate.

From 1980's, 2000, goods price already inflation rise several folds, while gold price appreciation? zero.

Well, of course there is gold available. Once gold starts 'not' to be available is really the time when the price starts to shoot up. Come on. Gold price is still arr pretty low and has not skyrocket it. Seriously. You have a blog on silver and yet you do not understand the fundamentals.

This time around, I believe those who actually own gold are the ones who will be well prepared. So yes, maybe if crash comes, prices of gold will go down. But, people who are well prepared will buy on the drop so the drop will not be so significant this time around.

Secondly, maybe gold will start to go up to a certain level before the crash.

Well. There is a risk in everything. But what is important here is risk management. The thing is yes, there is a possibility that gold will go down. But by how much? Do you seriously think that it will go down less then 900 or 850 this time around?

You see friend. You need to see things from a longer term perspective. The drop in prices act to drive out people who are buying gold to make a quick profit. The people who buys into gold for long term investment are probably even prepared to pay Storage Cost for the next few years. On the other hand, short term thinkers are always thinking in the short term. The moment price drops, they become scared. And using loan to buy gold is not a good idea because gold is not something that can produce income. By borrowing, you are now incurring storage cost + interest. That is not good financial planning. A person who is good in financial planning has to always be prepared for interest rate hikes etc. You have to always be prepared for negative consequences.

Now that the price is lower then 2 years ago, you tell people not to buy. So if the price suddenly goes up. I am sure you will be asking people to buy. That is what I call "herd" mentality.

Gold futures contracts on Bursa Malaysia Derivatives were mixed at mid-day on mild buying interest for the precious metal.

At lunch break, February 2014 was four ticks lower at RM134.00 a gramme, March 2014 was unchanged at RM134.50 a gramme, while April and May were untraded.

Turnover stood at 72 lots while open interest totalled 1,476 contracts.-- Bernama

increase of gold price = inflation rate + sentimental value

now the sentimental value is gone. time to buy buy buy

of cause 1250 level is not a good time to buy, if you scared that gold will crash below 1000, you can buy shares while playing with gold

if gold sits between 1100-1200, then i would advice to buy. but now is winter... let's see what happens when summer approaches

Hahaha. suggesting people to buy shares at this time. Have you even observe the share market recently? It's not pretty.

I never scare gold price drop, I mostly concern is gold repeating its own history from 1980's to 2000.

The physical price of gold as at 5pm stood at RM130.17 per gramme, up 48 sen from RM129.69 at 5pm yesterday - Bernama

there is a saying. never put all your eggs in a basket. with fed tapering ahead, assuming it is successful, stocks will have bright future for at least 5-8 years. if not, share will be all time high and wait for crisis to happens again... then gold will really shine

last time USA-japan the only countries dominating the world market. everybody respect USD. now we have china, SEA, korea, india,... everything has changed. it will be a challenging time for gold

Fed QE is exactly the reason why stocks market are so high and now you are saying that tapering will actually make the stock market go higher. Seriously, arrrr do you even know what you are talking about?

Now that USD is "less" respected, shouldn't gold move up against the USD.

FED is maintaining liquidity in the US market by introducing QE 1, 2 and 3 as to aid US economy after US sub-primed mortgage crisis in 2008. However, by pumping e-money into the market via bond purchasing over the years, has weaken the US dollar against foreign currency, thus causing US government to pay more to its foreign creditors in the long run, increasing the risk of defaulting, in return causing US Treasury bond to loose its AAA credit rating from Standard & Poor (S&P) in 2011.

With the weakening of US dollar against foreign currency, commodities that are traded world wide in USD also experiencing artificial increment in price and thus seeing gold price appreciated drastically after the introduction of QE in late 2008.

With the tapering of QE, the US dollar is anticipated to gain strength and majority institutional investors will take advantage of this moment to make good gain from currency exchange alone thus leaving the Asia equity market for now, returning to the US market.

In the long run, when the US economy is back on their feet, they will continue to be one of the world's largest consumers, continuing to import goods frm other parts of the world especially China, thus spurring global economy growth.

Unless there is a new industrial usage for gold, gold price is likely to remain suppressed.