Hi All,
I did some research on gold this weekend, here are some of my findings:
Gold and Equity Market
When there is uncertainty in the equity market, prices of gold usually rise. This is because investors flocks to a more stable form of investment. As shown in this graph:
Graph of Gold vs S&P 500
How do we invest in gold in Singapore?
Well, I found a place where you can buy "gold bars" literally. Visit this link:
http://www.uobgroup.com/pages/personal/investments/treasury/preciousmetals/index.html
Warren Buffett's Stand on Gold
"It 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."
Warren Buffett,1998 at Harvard, on the non-productivity of Gold
Conclusion
So, I in my opinion, I think that gold only serves aesthetic purposes. And there is no such thing as investing in gold, only trading or speculating. Personally, it does not fit my investment taste. I want put money in places that do good to Mankind. Certainly not paying people to dig, bury and guard it. So, I guess I'll stay on with Government bonds and equity market.
Hope this post helped increased your knowledge. Do let me know if you actually purchased a gold bar from UOB. Would like to take a look at a real gold bar. Haha.. Ok, feel free to comment and add in your personal view. Thanks for viewing!
Sincerely,
Lam
2 comments:
yr post come at the right time! cos people are interested in gold and finding more abt this type of investment given the uncertainty in other pdts such as equity.
Government bonds are the way to go, safe and almost 100% capital guaranteed at the end of the holding period.
Attended a talk by Mr Tan Kin Lian in NUS a week ago (organised by some group advocating Corporate Social Responsibility), and he recommended ST ETF. Wonder if it's as good as he claimed it to be.. Maybe that'll spark off a good discussion thread.
Cheers,
Tina =)
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