My Trading Adventure

Time to buy gold?

CP TEH
Publish date: Sat, 04 Oct 2014, 06:23 PM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
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A report taken from WSJ : Gold prices fell to a four-year low after stronger-than-expected U.S. employment data intensified investors' concerns about how soon the Federal Reserve would raise interest rates.

The price of the precious metal has been sliding for months, as investors keep a close eye on the Fed. Higher interest rates would likely damp demand for gold, which doesn't pay any interest. While the central bank isn't expected to make its move until next year, investors trying to get ahead of the Fed could push gold to end 2014 lower for a second year in a row.

The U.S. economy added 248,000 jobs in September, the Labor Department said Friday, beating economists' forecasts of a 215,000 gain. It was the fastest pace of job growth since June.



Has gold lost its glitter?

I will never buy gold ... but one could trade gold in many ways. We do have FGLD (future market) which is not liquid. We could go long-short ... but the risk might be too high for many of us.

Will consider gold/silver as it is at low now ... but low will go lower, right?





TEH

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Discussions
Be the first to like this. Showing 5 of 5 comments

matakuda

ai...main mas pulak...

2014-10-04 19:42

miapancho

stock market is still on uptrend,,for long time..why asking people to buy gold..asking people to deviate their fund into gold,,just because CP TEH already sold all of his shares

2014-10-05 00:24

optimuss

Post removed.Why?

2014-10-05 00:53

calvintaneng

There Are 4 Schools of Thought on Gold

1) DR. MARC FABER - Perpetual Gold Bull. Bought at US$250 & still buying.To Marc Gold is A Form of Insurance. Protection of VALUE Against Fed Money Printing Press!
Thanks to Marc Faber. In Year 2005 I think Calvin also bought Gold at US$320

2) JIM ROGERS - Buy Gold As Another Undervalue Commodities. Like rice, sugar or corn. He is a very successful self made tycoon living in Singapore.

3) GEORGE SOROS - A Trader Bought & Sold Gold at US$16,000. After selling Gold shot past US19,000. Then it retraced downward. Calvin Sold All His Gold Position at US1,700 (Ha! Calvin beat George Soros! Nice feeling.)

4) WARREN BUFFET - Doesn't believe in Gold At All. Warren said that all the known Gold in the world could be compacted into the size of a football field. Gold has an industrial application in small quantities. Mostly held as treasures, jewelry or as another form of investment.

Reason Why Warren Doesn't Buy Gold

BECAUSE GOLD ON ITS OWN DOES NOT CREATE VALUE FOR LIFE!
All Companies Create Value For Humanities by Giving Goods or Services.

1) A Company Exists To Produce Goods - Houses, Cars, Food & All things Useful.

2) Another Form Is In Services - Telecommunication, Health Care & Other Services.

They Are All Useful To Lives - Yes In Practical Daily Application. As For Gold - It Is Nice To See, to hold & to have. Nothing more. So it doesn't create or add value to life.

What Is Calvin's View?

A Combination of The 4 Schools of Thoughts

1) Gold is indeed a Form of Insurance. When Saigon fell many Viet boat refugees fled. Calvin visited the Viet Refugees in Spore Refugee Camp. One Vietnamese Guy said he left everything - he left 12 cars in Vietnam while running away. Only thing he managed to get out is Gold. Gold is portable. That gave him some precious capital. So not all is lost. Gold is a form of Insurance against war and losses!

Have to go for lunch now.

To be continued....

2014-10-05 12:11

calvintaneng

Calvin's View On GOLD Part 2

It is Ok to have a little Gold as a Form of Protection Against Money Printing. However, like anything in this world be it real estate, commodities, works of art, aroawana, japanese koi fish or even Gold we can overpay for a good thing.

Is Gold worth US&250, US$500, US$1,000, US$1,500, US$2,000, US$10,000 or US$1,200, US$800 again?

You see although Gold has an Intrinsic Value the Value itself can be bidded Up or Down by Human Fear or Human Greed!

So at US$250 Market Has Underpriced Gold & Gold Overshot on the downside & at US$1,900 plus (Calvin wanted it to cross US$2,000) it Overshot on the Upside!

So there is A FEAR & GREED INDEX FOR GOLD

You should buy Gold When The World is pessimistic on it & you will surely have to sell it into the Greatest Euphoria when the World goes GaGa over it!

Again - to win you Must Be A Contrarian.

Now Gold has broken US$1,200.

Is it cheap to buy or is it still expensive?

No one can be 100% accurate here.

Get ready some cash.When the "modus operandi" of money printing crashes Gold will skyrocket in price.

The Million Dollar Question is when?

One year? Two Year? 5 Year or 10 Year Later in 2024?

Of Course Crash Will Come Some Day - By & By. But When?

Since we don't have the concrete answers - LIFE MUST GO ON!

Follow Warren Buffet in buying up USEFUL COMPANIES THAT PRODUCE GOODS & SERVICES FOR ALL HUMAN BEINGS - This we KNOW FOR SURE.

People still sleep on beds, brush their teeth, put on clothes, drive their cars, go to school, eat & drink, make phone calls, surf the net, buy, sell shares, post in i3 Forum.

SEE? THE EARTH IS ROUND. AND THE WORLD GOES ON! THE CIRCLE OF LIFE CONTINUES!

AND LIFE MUST GO ON & ON & ON!!!!

2014-10-05 15:02

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