The MACD is declining after completing a bearish crossover in positive territory. Crossing into negative territory could send price lower. It would have to form a higher low to see price recovering. Having said this, the longer term uptrend, at this point in time, is very much intact.
I would look out for a basing process before buying more.
Gold and silver do well when there is a lot of fear in the air. With the governments of major economies dovish with signs of more monetary easing, equities have gained favour. Risk is on again.
12 comments:
US stocks swung higher Thursday as the market appeared to show optimism about a potential deal in Washington to prevent the economy from going over the "fiscal cliff."
The Dow Jones industrial average gained 59.75 points, (0.45 per cent), to 13,311.72 at the close.
The S&P 500 rose 7.88 points (0.55 per cent) to 1,443.69. The Nasdaq Composite climbed 6.02 points (0.20 per cent) to 3,050.39.
With an end of the year deadline looming, Washington continues to wrangle about the so-called fiscal cliff, a combination of tax hikes and spending cuts that, in the absence of a political deal, could take the world's biggest into recession.
- AFP/fa
The equity markets are just too confident, not so sure if that general consensus of an agreement will materialize between the White House and the Senate.
But then again, its just hard to see how US(collective) will allow themselves falling over the cliff. We should see, 2013 is just around the corner.
Waiting for silver to bottom as well.
Hi so1trg,
I think you and I (and a whole bunch of others) are waiting to bottom fish. ;)
The longer term fundamentals certainly suggest that anyone who is able to should have a % of their total wealth in precious metals.
The fundamental may seems to suggest so but its interest negative to be holding gold/silver.
1) cause negative cashflow ie have to pay to hold gold for long time ie not productive
2) when when the investment be realised? Will your profits from investing in gold be < than the holding costs
3) paper gold is so much cheaper to hold vs real gold but it doesnot come with the same doomsday scenario.
Hi So1trg,
With interest rates so low, the opportunity cost of holding physicals is almost negligible.
Of course, a person with a trading mentality and a person with a crisis mentality would approach the topic differently. Paper would be better for the former while physicals would be better for the latter.
Personally, I am more of the latter now. I aim to have 5% of my total wealth in physical precious metals. About 10% of my income goes to paying for life insurance. 5% for physical gold/silver as insurance does not seem excessive. :)
Hi AK, I used to buy gold coins (maple leaf, singapore mint etc) from UOB HQ at Raffles Place in the past. I like physical gold as it is nice to look at, nice to hold and you can keep it just close to you, under the pillow or in the cabinet.
As I don't go to Raffles Place nowadays, I wonder where I can buy gold coins from reliable sellers (beside UOB). Could you advise?
How about gold passbook? Any charges for that?
Regards,
C.S.
Hi CS,
I did the same thing you did. I have not bought gold bullions from anywhere else and I don't have any experience with gold savings account. :(
"Gold has been correcting for 15 months. And it has been going sideways since September 2011. It would not surprise me if that correction continues," says Rogers.
"If gold goes down more, I hope to buy more. If it goes down a lot, I hope to buy a lot more."
Rogers cautions investors about 2013. Difficult times likely ahead, and investors better know what they are doing.
"Only invest in what you know a lot about. If you don't know anything about stocks, don't invest in stocks.
"It's better to do nothing. Put your money into a bank and earn 1/2 percent if that's what it takes. It's better to do that then lose 1/2 percent per year. If you don't believe me, try it for a few years."
Source:
http://www.mining.com/gold-has-done-something-this-year-that-no-other-major-asset-class-has-ever-done-jim-rogers-31148/
Hi Ak,
Happen to be doing some research and ran into your blog.
Qn 1: Any views of Gld Us$ listed on sgx? For someone whose pretty convinced on investing in Gold.
+ve I see
- below/near nav currently
- usd is cheap vis a vis sing$
-ve will be currency risk
Qn 2:
At current prices, u still prefer silver?
Tks and a belated xmas from a first timer!
Hi mc,
I believe in the longer term fundamentals of precious metals. These have intrinsic value and cannot be printed at will.
However, I am inclined to believe in Jim Rogers that gold is overdue for a correction. Of course, this does not mean that one would take place. It simply means that the chances are much higher now. So, I would be buying again in such an instance.
I am less sanguine about the US$ and buying anything denominated in US$ runs a real risk of forex losses for us in S$ terms, everything else remaining equal.
I have a preference for silver even now because of the gold/silver ratio which I have blogged about.
When I first blogged about it, 1 oz of gold could buy 70 oz of silver. Today, it is 1 to 50. The historic high was 1 to 15. Of course, when would it hit 1 to 15 again is much harder to say.
See:
Gold or silver?
Merry Christmas. :)
Gold plummeted to just below $1,400 an ounce Monday morning, its lowest price since March 2011.
Slower than expected first quarter growth in China was the catalyst for today's drop (following a $60 decline last week on reports that Cyprus is planning to sell some of its gold reserves).
Gold is now trading 27% below its September 2011 high of $1,920.
Source:
http://finance.yahoo.com/blogs/daily-ticker/gold-loses-another-6-monday-era-gold-over-123319133.html
On gold, Cramer said that the commodity "got too high," and when the U.S. economy remains steady there is a certain amount of people who will get out of gold. "I think that gold is an insurance policy. I hope that I never have anything happen to me, but I still buy insurance."
Source:
http://finance.yahoo.com/news/cramer-tipping-point-great-stocks-144251518.html
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