It would be wise to revisit the wisdom of Buffett and his thoughts on gold:

1. “Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

2. “The problem with commodities is that you are betting on what someone else would pay for them in six months. The commodity itself isn’t going to do anything for you….it is an entirely different game to buy a lump of something and hope that somebody else pays you more for that lump two years from now than it is to buy something that you expect to produce income for you over time.”

3. “Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything."

4. “I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side…Now for that same cube of gold, it would be worth at today’s market prices about $7 trillion – that’s probably about a third of the value of all the stocks in the United States…For $7 trillion…you could have all the farmland in the United States, you could have about seven Exxon Mobils (XOM) and you could have a trillion dollars of walking-around money…And if you offered me the choice of looking at some 67 foot cube of gold and looking at it all day, and you know me touching it and fondling it occasionally…Call me crazy, but I’ll take the farmland and the Exxon Mobils.”

5. “The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.”

6. “What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As 'bandwagon' investors join any party, they create their own truth — for a while."

7. “I have no views as to where it will be, but the one thing I can tell you is it won’t do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot — and it’s a lot — it’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that."

totally agree with u. but i take my friend's situation, she can only afford monthly rm200 for investment. she would have save the money in savings a/c and earn the interest. instead, she use the money and buy a gram of gold in GIA, although it's riskier than savings a/c, but if she can sell it at higher price, she would have earn higher profit than gaining interest in savings a/c. let's say she buys 1 gram of gold every month (like saving rm200/mth), and sell them at a profitable price (assuming after 10 mth), she would have 10 x rm200 (her initial capital) + profit = rm2xxx. now, that she have more money, she can enter the stock market with it.

the conclusion is, not everybody has the money to buy stocks. some might just be able to squeeze only rm100 a month. while saving for a big chunk of money for bigger games like stocks, GIA is one of the options.

just my 2 cents

LOL that is provided that the price of gold increases in the 10th month. What if the price decreases?

Gold could fall to $1,250 if Fed tapers next week: UBS

The outlook for gold prices looks gloomy if the Fed goes ahead and begins tapering its securities purchases, Bank of America analysts say.

Such a move at next week’s FOMC meeting would represent the first step in a tightening of the Fed’s monetary policy. An increase in interest rates, or even the promise of increased interest rates demonstrated by tapering bond purchases, would depress gold prices because “rates represent opportunity costs of holding gold,” wrote BofAML metals strategist Michael Widmer in a note. The Fed currently buys $85 billion in mortgage and Treasury debt each month.

Gold prices would probably fall to $1,250 an ounce in the first move, said Joni Teves, an analyst at UBS, in an interview with CNBC on Tuesday. “But I certainly wouldn’t rule out another attempt below $1,200 if, for example, the Fed is more aggressive than the market is currently expecting,” she said in the interview.

“Armed conflicts especially in the Middle East have historically had a visible impact on gold prices through increased geopolitical risk and often oil price spikes,” wrote BofAML analysts. “We believe this time is not different: gold could rally immediately after the conflict starts although the rally could subside if the conflict does not escalate.”

But given the easing of geopolitical tensions, “the key for gold is if the situation escalates or if it is protracted,” said Teves on CNBC.

Warren is a FIATster.

Gold is the opposite of Fiat.

If interest rates increases,

a) the DJ will go to 13000

b) gold will go to 1200

c) US unemployment will rise to 9% in 1Q2014

d) US GDP growth will reverse to sub zero

that's y i said riskier than savings a/c

So do you add more gram to mbb GIA?

Today price already reduced to rm146/g from rm150

yea, saw it but dunno yet. might wait and see whether it'll go down to 1200/oz like what u posted above. ahaha.. the price is quite stagnant today

Nowadays we cannot predict the price. Suddenly it would shot up because of some "war" issues. Suddenly it would dropped because "war" delayed & fed tapering

The 1200/oz is just what UBS predicts, don't know can reach that level not

true... maybe i'll add some. keep some $ to add more if US tapering happens.

your money, your decision

Many people are addicted to QE and can't have enough of it.

just went to maybank apply GIA,staff turned say cant and holder name must be parents/guardian for below 18,btw i'm 17 hv to wait next year,just think to invest earlier for better future and gold price are turn down those months

what about u? did u add any grams?

nope. wait & see the situation

it is very stagnant today. between 1365 - 1367 the whole day

It would be impossible for people to use Gold as money. Gold is simply inefficient as a monetary tool. Paper money is still better but there has to be very strict process to ensure that people do not simply print. Think about this. If gold is being used, then gold mining countries will be very rich instantly which is pretty illogical.

He is right about the fear part and there is good reason to fear considering how money is being managed right now. That is the only reason why people are buying gold but it is a very, very valid reason.

This post has been edited by sylar111: Sep 11 2013, 07:43 PM

Gold Trades Near Three-Week Low as Obama Seeks Syria Delay

Gold futures swung between gains and losses, reaching the lowest in almost three weeks, after U.S. President Barack Obama asked Congress to delay a vote on military action against Syria, diminishing demand for a haven.

“For the time being at least, the Syrian crisis is averted,” David Govett, head of precious metals at Marex Spectron Group in London, said today in an e-mail. “For now, it would seem that the ‘war premium’ has gone. Now we are left with the Federal Open Market Committee meeting next week, where it seems that most people are looking for some sort of quantitative-easing tapering.”

Obama will pursue a Russian proposal to have Syria surrender its chemical weapons to international authorities, he said yesterday from Washington. The development postpones a congressional vote on using military force against Syrian President Bashar al-Assad’s government following an Aug. 21 chemical attack that the U.S. says killed more than 1,400 people.

“Gold prices have started to decline with the declining probability of a military intervention,” Goldman analysts including Jeffrey Currie wrote in a report, issued before Obama’s address. “We continue to expect that gold prices will decline into 2014 on the back of an acceleration in U.S. activity and a less accommodative monetary-policy stance.”