Gold ETF by Affin Hwang Asset Management was listed today.

This is positive development for stock punters. We now can buy Gold like we buy shares, in our CDS account.

Price closed at RM1.74 with 8,271 lots being traded. 1 lot (100 shares) equal to 1 gm of Gold.

Can discuss when good time to buy Gold?

This post has been edited by Cubalagi: Dec 6 2017, 10:39 PM

I believe money from bitcoin will start to flow to physical assets especially gold soon.

I just found back this thread that I opened 2 years ago.. Forgot I opened it, due to poor response 😆

I hv been holding some of this "stock" a while but end of last year I double my holdings due to what I perceive as higher risks of economic disaster.

I think I want to promote more ppl to look at this, it tracks price of gold, which is now slowly going up again. Globally central banks are cutting interest rates, this causes currency to fall. Ppl are saying there is a currency war going on on top of a trade war. Gov wants their currency to go lower to maintain export competitiveness. In such scenario, gold being the "neutral" currency will naturally go up.

https://www.kitco.com/news/2019-07-17/Gold-...che-Bank.htmlhe

Goldetf is up 16% in 1 year and 11% YTD.

This is more convinient way to buy and sell gold as its in the same Bursa trading platform n transaction is fast, costs is low with no stamp duty.

This post has been edited by Cubalagi: Jul 19 2019, 12:31 PM

Pay normal brokerage like a stock.

I suggest use online cash upfront (like Rakuten 0.1%) for lowest transaction costs. Also no stamp duty but watch out for the min brokerage.

Annual management fee is 0.3% and custody fee is 0.2% per anum. So total is 0.5%.The gold is kept in Singapore but the units will appear in your Bursa CDS account.

The stock is 99% invested in real physical gold bars. So performance will track price of gold obviously. it was going nowhere from IPO until end of last year. But with trade war, interest rate easing, fear of crisis, Gold has been moving upwards.

So depend on your future outlook. Strong economic growth and high interest rates are bad for gold. Gold doesn't pay any dividends and interest. Crisis and low interest rates are good for Gold.

But even if you bullish on the economy, I think you should have some gold for "insurance" in case you are wrong.

What I like most is that it's on the same platform as my trading account. When I take profit from a stock I can immediately buy some Gold vice-versa.

This post has been edited by Cubalagi: Jul 19 2019, 02:08 PM

Yes, gold is now at historical highs in MYR terms.Thanks for sharing the chart. A 20 year time frame will show you an even more interesting picture.

But for sake of discussion, let me try to answer ur questions:

Q: How long will it keep its current valuation?

Ans: No idea. There is no comparative industry PE or EPS or a as such. Gold is..just gold. If we can tell exactly, than we can make millions by trading gold futures instead.

Q: How long will big Brother China going to continue its buying spree?

Ans: I think as long as the China-US rivalry persists.. which is going to be a long time. China problem is that they have too much of their money held in US Treasuries. Imagine if all ur money is with ur enemy.. Who is now starting to get aggressive with u. Problem right? They are trying to diversify away gradually, but since we are talking trillions of dollars, they can't pull out quickly without losing money themselves.

https://www.cnbc.com/2019/05/16/china-has-c...two-years.html:

Q: How long will the US keep their interest rate low?

Ans: They have been increasing interest rates for the past 2 years. Early this year, they said enuff increase! Now everyone is expecting the first cut to come end of this month. The expectation is that this is the first cut of many to follow. To answer your question, I would say about 1-2 years.

This post has been edited by Cubalagi: Jul 19 2019, 05:34 PM

"Volatility is high". High compared to what I may ask?

Compared to FD?
Yes

Compared to Govt bonds?
Yes

Compared to stocks?:
Nope..Gold is much less volatile (and this is a stock exchange section.. So ppl should be used to volatility! ).

If u compare big crashes.. the gold crash in 2012-2013 was 27% down (in RM terms). Compare that to the 56% crash of SnP500 and 40% crash of KLCI in 2008. N of course, can't even compare with individual stock volatility, where possible to drop 30% in one day.

The solution to manage the risk as always is to have a well diversified portfolio n never to put all ur eggs in one basket. The great thing about gold is its low corelation to equities. So it's a good hedge/insurance. I definitely sleep better with my stock portfolio knowing that I have some gold.

This post has been edited by Cubalagi: Jul 20 2019, 12:24 AM

I increase end last year and now a bit more than 10% gold. Up from 2-3% a year ago. Gain of 12% so far. 10% is my standard limit when buying any single stock, but there could be exceptions. I'm a self confessed market timer, so right now waiting for the signs.. 😆

Liquidity and traded volume are two different things. Liquidity for 0828EA is there due to market maker. But volume is not, maybe ppl not aware or don't understand.

N if u want big amounts u can call the fund manager to help. They can bring the liquidity. But what's more cool is that if u own 500000 units, then u can actually exchange your units to get a physical 5kg gold bar 9999.

This post has been edited by Cubalagi: Jul 20 2019, 12:01 PM

Im told its nominal if u arrange the pick up in Singapore yourself. The custodian will transfer the gold bar to your name and your shares in Bursa will be canceled.

I hv no idea on the gold manufacturer, but I think it could be from different sources provided it's LBMA certified.

http://www.lbma.org.uk/good-delivery-list

Market is generally pretty uncertain now. Having a good chunk of gold has allowed me to be "more brave" going into stocks this year esp in May.

Using football analogy, with my defense looking solid n with good goalkeeper, I can now push more players into the striker and attacking midfielder positions, playing a 4-4-2 formation. Many ppl are playing 10-0-0 now..

U are not 10-0-0 in my books.. maybe 4-6-0 (just guessing). 10-0-0 is like plumberly.. 😆

I consider good boring dividend stocks as my midfielders..sometimes they do score well. Cash, gold and bonds are goalkeeper n defenders n maybe defensive midfielder as well.

Growth n technology stocks, pennies and warrants etc are the strikers.

30% chance of global recession according to Affin

https://www.thestar.com.my/business/busines...ssion/#cxrecs_s

Yup. Let me know when it's 60%.

Gold is up again..good chance it will hit RM200/gm this week...as the world waits for China retaliation.

Imagine.. Back in 1997 it was RM30/gm. No dividends pun OK like this.

This post has been edited by Cubalagi: Aug 5 2019, 01:03 PM

Gold rally continues..n has touched USD1.5k/ounce.

Goldetf last traded at RM2.04, with NAV of RM2.033.

YTD return is 17.14%..

It's a fund structure. The fund buys physical gold bars which are kept in Singapore. 99% of the fund is in gold, the other 1% is cash.

So yes, the fund charges a fee, but you don't pay it directly. Its taken out from the fund.

What you pay is brokerage to the IB/broker, just like u buy a stock.

This post has been edited by Cubalagi: Aug 9 2019, 01:23 PM

The big money now buying Gold are central banks and financial institutions.

When the world got negative interest rates, then Gold is seen as an alternative.

1. The reason I like this ETF is that it is very easy for me to switch between gold to stocks.So if suddenly Maybank limit down, it's just 2 clicks, sell gold buy Maybank. Its much faster than transferring cash from a bank account to the broking account.

2. I regard Gold as the cash portion of my portfolio. I have cash MYR, cash USD and cash Gold. Both USD and Gold has outperformed KLCI year to date. I also have bonds, dividend stocks, growth stocks. This is called diversification. It's not a choice between 100% Gold vs stocks.

3. I don't agree a Gold is a temporary safe heaven. Gold is insurance when bad things happen to the economy. N bad things can last a long time (just ask the Venuezelans). Now, of course, when the economy is wonderful then holding gold will not be profitable, but in that situation, there are many things that can make u money.

This post has been edited by Cubalagi: Aug 9 2019, 02:08 PM

U can open a multicurrency current or FD account. Many banks offer this. N yes deposit in RM n they convert.

Golld has been pretty stable, inching up. I guess now waiting to see if China will send the People Liberation Army to the streets of HK.. N if that happens, for sure Gold will shoot up again.

In the meantime, I found something interesting at the fund managers website that I thought I share.

https://www.tradeplus.com.my/gold-tracker.html

If u go to the download section, there is a gold bar list you can download. U can check the manufacturer. That's the gold bars that the fund holds on your behalf as an investor. Remember that 1 unit equal to 0.01gm gold and a tiny bit of cash.

This post has been edited by Cubalagi: Aug 15 2019, 02:17 PM