Last cycle needed about 25 years before the price actually broke the upside.
It was hovering around USD250~400 range for 2 decades plus.

Then how to invest in share? Any guide?

https://forum.lowyat.net/StockExchange

Thank you for your good explaination.

are u sure? very sure? or u guess only

yes u r rite about the last cycle. that's why 90% malaysian buy gold as jewellery only 10% buy bullion as investor. it's always 2 side of a coin either ur in stocks or gold but may i ask if u hv experienced 1997, 2000, 2008 stock market crash? if u hv u won't love stocks as much as u do now.

This post has been edited by robotica: May 5 2015, 10:49 PM

how low considered low in your opinion ?

per gram

Infographic on GOLD: Did You Know: Top 10 Countries With Largest Gold Reserves

I went through all this period, and experienced how hard the stock market can crash.
But I/people should love stocks more since then.

Look at the stock market now after those crisis, good stock price and indices are all at all time high across after the crisis.

The concern for me on gold investment is not how low the price it will get (although personally think gold price won't plunge too deep or far away from current level), but how long it takes to go back up.

Last cycle was 25 years, I may not have time to wait it again.
Mind that if it doesn't go up, it doesn't generate any interest or dividend, zero income from the investment throughout the period.

This post has been edited by cherroy: May 6 2015, 07:58 AM

My 2 cents on precious metals investment:
1) More on allocation of a % of ur asset as hedge against paper money or currency crisis;
2) Unless u r able to trade v profit (got cheap source n got good market to sell), don't target for short term profit;
3) Pass down as inheritance to ur next generation. ...

Simple test. If you have a PB gold account, you go to their counter and ask if you can take physical gold instead of cash from your gold account. If you cant, and you are only allowed to cash out, it is paper gold.

I'm very sure most of the gold account offered by local banks are paper gold. The gold account where you can withdraw gold, they charge you to withdraw gold and you have waiting days to be able to collect the gold.

Fully agree

I have CIMB gold investment account(but closed it already). This paper gold account has a special feature though where I can choose to take out real physical gold but the minimum amount to take out is 100g if I recall correctly and for every gram I take out, I'm charged RM10 for a so called admin fee. To the best of my knowledge, only CIMB has the option to convert the gold to physical and I heard PBB stopped that some time ago. Not sure if they have it back again and I can't find anything on PBB website about this. So yes, I reckon, PBB's gold investment account is truly paper gold.

if not wrong, UOB can convert to physical (T&C applies, but don't know the details)

i thought it is required to have the amount of gold sold on paper to be backed by the physical gold self?

it is always convertible albeit its made very not economical to do so

correct me if im wrong

There is no need for paper gold being backed by physical gold amount.

But banks can hedge themselves with the gold futures market or whatever financial tool on gold, as banks also do not want to expose themselves in term of gold price up or down.

i see.

than what gives ppl confidence in it?

u merely see the prices up n down.. and its not even insured by PIDM

The trust on bank honour the price.

then.. its no diff trading over the counter isnt it..
risk wise..

as gold is always promoted to be a very stable investment?