Sunday, December 02, 2007

Invest in Gold

Larry Haverkamp wrote this article about investing in gold in October 2006. At that time, the price of gold was USD 580. After 1 year, the price has shot up to USD 850 (increase of 46% in USD). But USD index dropped by 12% during the same period. The net gain is 28%


http://newpaper.asia1.com.sg/columnists/story/0,4136,116119,00.html


As Gold is too expensive now for investment, this is an opporunity to look back at what was written a year ago.


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3 comments:

Priyadi said...

I wouldn't put all my money in gold, but gold is great as a hedge against the risk of major financial crisis. when that happens, stocks will plummet, but gold will rise sharply. at least that's what we experienced in Indonesia in 1997-1999. Singapore is much more resistant to this kind of crisis of course, but there's no harm setting aside a portion of our long term investment in gold. i personally set aside 10-15% of my long term investment in gold. consider it as an 'insurance premium' against the risk of a crisis.

i've made a post comparing the growth of gold prices against Jakarta Composite Index here: http://priyadi.net/archives/2007/07/17/saham-vs-emas/
it is in bahasa indonesia, but i think you can understand the charts. someone should make the same comparison but with STI and SGD.

December 02, 2007 12:54 PM
Anonymous said...

Yes, gold has low correlation with stock. A good asset class for diversification.

December 02, 2007 6:26 PM
Anonymous said...

I feel sorry for the people who bought gold above $820... should have bought it cheap at $600.

Maybe they should consider averaging down by buying more when gold is on the way down.

December 04, 2007 2:06 AM

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