its falling like a rock...
will go short at 1200   

hello me first time invest in gold,

opened a gold SA with UOB today.
start with 40gm today at RM130.80. Am i taking too high a risk buying now??

Gold's worth how much is based on fiat money term. 

Money can be used to buy properties, invest in stock market, can be used to open up business to buy goods, to pay wages for workers, to buy burger at roadside store, can buy candy.
But gold cannot without changing to fiat money term first.

If gold price doesn't go up like from 80's to 2000, then gold "worth" also being 'eaten" by inflation.

Gold is not a money since it doesn't be used as a medium of exchange.
When gold cannot buy candy, burger, house, car, shares, how can it be classified as "money", so more "honest money".

Debts increasing is not a concern as long as those debt can be serviced and fiat money works well until my last breath.

Thanks to banking creations such as gold derivatives, gold futures and options, and gold exchange traded funds (ETF), tonnes of gold and silver has been 'bought to existence' out of thin air, just like how paper currency is created. These banking products allows clients to invest in gold and silver, but you seldom get to 'cash out' in physical gold and silver, because there might not be any in the first place!

This is why gold and silver prices have been very volatile in recent decades, because the prices not only account for the available physical gold and silver on the surface of this planet, but also 'non-existent gold and silver' created by these banking products.

Thus gold prices are very 'sensitive' to financial news because of the above reason, as much as currency exchange rates. This month the US central bank, the Federal Reserve is in the discussion of tapering or reducing its monthly purchases of treasury bond, in other words print less money out of thin air, thus reducing inflation rate. A reduction in inflation rate means USD will devalue in a slower rate, thus USD's value in terms of gold 'logically' should increase in a slower rate. This news thus induced a gold 'selling' pressure, and further amplified by the banking creations (gold derivatives, gold futures and options) mentioned above.

Similarly true for commodity like silver, tins, copper, aluminum, oil, palm oil, etc except that gold doesn't have much industrial use.

If some gold is 'bought to existence' out of thin air, then gold is good as fiat money 

if you are referring to paper gold then yes, u r right. But not for physical gold. Tell me how to bring gold into existence? unless u mine them

For those who bought gold in the last few years, believe their gold holding loss a lot more than RM depreciation.

then what about those who bought gold in the early 2000? When price was still 200/oz. one of our member here bought his gold at that time and happily seeing his money appreciate. Of course, you won't earn a dime unless u sell it. If the price is always up without down, everyone would have earn a living by buying/selling gold. No need to work anymore. 

Hello to all the gold sifu here, im a newbie who yet to have a gold account. I have a few question here
1) I know by far UOB offer the best buy/sell difference , but due to inconvenience ( no online purchase, branches are quite far from my place), isit better to open at other bank?

depends on how u see it. The spread might be the closest but convenience is also important. Price could change in seconds and by the time u travel to the bank, the price might not favour u anymore.

2) What are the factors that influence the price of gold everyday. Or what are the mechanism of gold price? There cant be a wizard behind controlling the gold price everyday  XD

demand supply. And demand could easily affected by news from the fed. Maybe some sifus can add more

Thank you for your reply. 1 more doubt, the bank they will update the gold price from time to time, or they have a specific time to update the gold price?

Likewise for other minerals like copper, aluminum. However, 90% of gold produced are still in circulation and available for recycle, the more it is mined, the higher the chance it will devalue.

I choose stock, properties that can yield dividend, rental, as well as capital appreciation.

I am not advocate to tell people to keep RM4000 cash.
It is not wise to keep Rm4000 cash, put inside FD, bond does yield 3-4% currently.

Money = medium of goods exchange.
If it is not used as medium of exchange, then it is not a "money".

If gold is money, so does property but nobody said property is "money", right?

you would be surprised. UOB gold prices are changing every few minutes. I was there yesterday and the person in front of me bought RM131.xx, but when i bought it it was  RM130.80. Then only i found out the price is live from the UOB screen.

If you are buying paper gold, that's mean you view gold as an investment. In that case, gold is currently in a down trend. Although it is good to buy at low price, don't forget low can get lower. Furthermore gold tend to stay in one direction for years, so prepare to hold your paper gold for years before gold price rise again. Nowadays many people has started to invest in gold, this in a way make gold prices fluctuated much like an equity stock.

However if you are one of the fans to believe that the something bad is gonna happen tomorrow (war, market crash, etc), you should stock physical gold instead. Because when the worst happens, I bet most of the banks will be in deep shit and don't forget your paper gold is not protected by PIDM.

So, paper gold is a no no for me at this moment.

yay keep going down

walao ... gold lao sai ?