22 September 2011, REUTERS.
Did the gold rush go bust?
22 Sep 2011, REUTERS.
Gold selloff normal, bull run still on, says Henwood.
I still believe that precious metals will do well over the longer term. I looked at silver's weekly chart in an earlier blog post today and the longer term uptrend is intact.
Gold's technicals look stronger than silver's and its price is still trading above the 100dMA at US$1,634.58. The 200dMA is currently at US$ 1,522.65 and would be the support to watch if the 100dMA should give way completely.
6 comments:
Hi AK,
So, are you planning to buy gold or the $USD?.
seems like USD/SGD is getting stronger and way too fast.
What's your view on gold and USD?
Hi JJ,
The longer term fundamentals are for gold to go higher and the US$ to go lower. In the shorter term, technically, the dollar was oversold and gold was overbought. Things are going through a period of adjustment now. I won't buy the dollar and will buy more gold at support. :)
Hi AK,
I have similar sentiments with you. However, looking at the actions done by the fed not to print more money via QE, could it be a sign that the fed has pull their act together to address the countries deficit?
If you were to invest in gold, may I know what way you will do so?. Ie. The cheapest and most economical way.I checked last week UOB does not have any gold or silver savings acct anymore.
If I may know, what is the percentage size of your gold portfolio in comparison with stock. Somewhat recently feel unease to put 80-90% in equities.
Hi JJ,
If you follow Dr. Marc Faber's thoughts, you will agree that QE3 has already started. By promising to keep interest rates ultra low till 2013, that's QE3.
With interest rates so low, there is little opportunity cost in investing in precious metals which, of course, do not generate cashflow. So, we could see the prices of precious metals go up again after this period of adjustment.
I did not know that UOB no longer has gold and silver savings account. I still have my silver savings account and bought more silver at US$36/oz as you may know.
For gold, I actually have physical gold bought from UOB in the form of 1oz Maple Leaf coins. I don't trade gold. I keep it as an insurance against the flaws of fiat currencies and much higher inflation which could hit us.
If you want to trade gold and silver, you could consider the ETFs but these are things I have no experience in.
I am underinvested in gold and silver right now. I would like to see at least 5% of my wealth in precious metals.
Hi AK,
Thanks for your views and insights.
As always it is always enjoyable to read a brutally frank and sincere comments from you to your readers.
Keep it up,..:)
Hi JJ,
Brutal? Oh my. I will try to do better. ;)
Post a Comment