Gold, silver and Bitcoin as insurance.

Long time readers of my blog might recall that I hold some gold and silver.

Some readers might find this surprising since value investors like Buffett and Munger do not believe in holding precious metals.

In case you are relatively new to my blog and want to find out more, please read the following blog:

Why investors for income buy gold and silver?

I don't want to rehash the old blog.

Too lazy. ;p

Anyway, it has been many years since I bought more gold and silver.

When I took a look recently, I found that, together, gold and silver formed only 2% of my portfolio.

This is lower than what I think I should have as insurance against fiat currencies.

I was watching some videos on the topic when I stumbled on a video by Robert Kiyosaki who has always said that keeping some gold and silver was sensible.

However, in that particular video, there was a twist because he was also talking about Bitcoin and why we should keep some.

That was very intriguing to me as I don't remember him talking about Bitcoin before. 

To be fair, I don't follow him and what I know about him is probably dated.

The last time I blogged about him was in 2013:

Rich Dad, Poor Dad!

Anyway, long time readers might remember what I thought of Bitcoin before.

If you don't remember or if you are new, read this blog:

My final word on Bitcoin and friends.

Like the Dollar, Bitcoin was a currency to me but unlike the Dollar, other than being a digital currency, Bitcoin was not a fiat currency.

Then, while looking for more information, I found a video by Kevin O'Leary who said that institutional investors are looking at Bitcoin not just as a currency but as a property to hold.

So, just like gold, many institutional investors are looking to hold some Bitcoin.

Why?

They believe that Bitcoin is digital gold and, just like gold, Bitcoin is supposed to be a good store of value.

Digital gold for a digital age.

The truth is Bitcoin has gained recognition and a higher level of acceptance. 

It has become increasingly mainstream.

The network effect is very strong here.

Source: Investopedia.

So, if we believe in having insurance against fiat currencies, we might want to hold some gold, silver and also Bitcoin.

I already have some gold and silver.

After watching those videos, I started thinking of getting some Bitcoin.

I admit that I am a dinosaur when it comes to tech stuff.

Don't even have Whatsapp.

I am very set in my ways and relatively comfortable with what I am doing and what I already have.

In a more recent blog on retirement drawdown strategy, I said that, in my retirement, I don't want to worry about outliving my savings.

So, my retirement funding strategy is such that I would probably never have to draw on my savings. 

In fact, my savings could even grow in my retirement.

See:
Retirement drawdown strategy.

However, never say never.

Murphy's Law.

Fiat currencies are very flawed, after all, and having a crisis mentality and getting some insurance is probably a good idea.

So, I believe we need some insurance for this which is why I hold some gold and silver.

Just like how I stepped out of my comfort zone this year when I got some exposure to Chinese tech stocks, I decided to step out of my comfort zone once more to get some Bitcoin.

Why not simply get more gold and silver?

I could do that but, like I said earlier, digital gold is for a digital age.

I don't know what the future will bring but I really like "Sword Art Online" and "Log Horizon."

Is the Metaverse all hype or would it become mainstream?

I don't know.

I made the decision to get some Bitcoin some time after I decided to get some exposure to Chinese tech and both decisions surprised me for a short while.

Why a short while?

Well, considering that the prices of Chinese tech stocks and Bitcoin had already plunged significantly, maybe, it wasn't so surprising that I got interested when I did.

Anyway, the plan was to have Bitcoin make up 2% to 3% of my portfolio.

Then, together, gold, silver and Bitcoin would form 4% to 5% of my portfolio.

Ray Dalio's perspective on having a small percentage of our portfolio in Bitcoin for the sake of diversification resonates with me:

Still, I have only bought a tiny bit of Bitcoin so far and it isn't even 0.5% of my portfolio yet.

Why did I not buy more?

To invest in Chinese tech was to invest in undervalued productive assets and I nibbled even though price was down trending.

It was just to get a foot in the door.

In comparison, I cannot tell if Bitcoin is undervalued nor is Bitcoin a productive asset.

Bitcoin is just like gold and silver.

Alamak! 

How like that?

All I have to depend on is technical analysis.

Very dangerous for me as I am probably somewhat rusty and could get tetanus from the exercise.

Anyway, I am in no hurry to have Bitcoin form 2% to 3% of my portfolio.

I will take my time.

Bitcoin's price is very volatile and big price swings are pretty normal.

Looking at the chart, I see what is possibly a bear flag, Bitcoin could go higher before plunging again in price.

So, after getting my smallest toe in the door earlier in the week, I will pace myself and accumulate whenever price swings lower.

I might get some Etherium too as that's the runner up to Bitcoin in terms of market cap so that I wouldn't be putting all the eggs in one basket.

However, Etherium is not exactly digital gold and, so, exposure to Etherium should be relatively small.

What about Litecoin?

Litecoin is digital silver like Bitcoin is digital gold.

However, buying Litecoin using Gemini, the crypto exchange I signed up with, requires me to use Bitcoin to do so.

So, to avoid paying more commission, I will mostly stick to Bitcoin.

OK, back to the present.

Drumroll, please.

I have done it!

I am a newly minted holder of Bitcoin.

2022 is turning out to be a year of surprises on a personal level.

 

Like I said, after my initial tiny purchase, the strategy is to accumulate mainly Bitcoin whenever its price weakens.

With this strategy, if Bitcoin weakens in price, I buy more and if Bitcoin appreciates in price, it means I wouldn't have to buy as much to have it hit 2% to 3% of my portfolio.

So, whichever direction Bitcoin goes, I am good with it.

OK, long time readers know I believe in keeping an emergency fund.

Emergency fund is in a chest labelled: "CODE BLUE!"

See:

How much should we have in our emergency fund?

All my gold, silver and Bitcoin will go into another chest.

This chest will be labelled: "CODE RED!"

Please note that I am not getting Bitcoin because of some get rich quick idea. 

We want to be careful as there are people who would pitch it that way.

Source: MAS.

Remember, nobody cares more about our money than we do!

Recently published:
Recession is coming and cash is trash.

Related posts:

1. Investing with some common sense.

2. Nobody cares more about our money than we do!

3. Largest investments updated (1Q 2022.)

$500K in gold and waiting for stock market crash.

Gold is not a productive asset.

Hi boss!

Like to ask you on a topic (precious metals) rarely mentioned on your blog. I love precious metals (gold and silver) and anything in gold I can wear. I liquidated all my shares in 2013 in anticipation of a market crash that didn't happen till date.

If I were to liquidate all my gold today, I will get back 500k. 

I like to ask should I continue to keep the metals waiting for the crash or should I divest (part or all) and return back to the share market. Should I practice patience (since 2013) and continue to wait for precious metals to go up 50-100%? Or return back to the stock market for dividend play?

Hope to hear you speak to yourself. 

Thanks boss!

Hi,

I don't know what is going to happen in the future.

I do know that:

1. Physical gold and silver do not generate income despite what some people might con-veniently claim. However, we can make or lose money trading gold and silver.

http://singaporeanstocksinvestor.blogspot.sg/2012/04/fraud-taking-money-from-some-adults-is.html

2. Physical gold and silver do have value and keeping some as an insurance is not a bad idea. They form a small percentage of my portfolio.
http://singaporeanstocksinvestor.blogspot.sg/2016/07/why-investors-for-income-buy-gold-and.html






If you have decided that you want to invest for income now, I would suggest that you sign up for Dividend Machines and learn the ropes first:
http://singaporeanstocksinvestor.blogspot.sg/2017/02/financial-freedom-through-building.html

It will help shorten your learning curve.
Best wishes,
AK

Buying investment grade gold in Singapore?

Reader says...

Hi AK, would like to check with you on gold products.




1) What are some of the products if we we would like to use CPF to purchase gold? Is it recommended to purchase using CPF?

2) For purchase of physical gold, are there any considerations when purchasing? Understand UOB gold should be quite cost efficient if you purchase minimum weight.

3) Why is gold bullion coin is more expensive than pamp gold bar

AK says...

Read:
Why investors for income buy gold?

1) I believe the opportunity cost for using our CPF savings to buy gold is rather high.

I will not give up the risk free returns to speculate on gold.




2) I buy gold bullions from UOB.

The Kilobar is probably the most value for money, weight for weight.

However, it isn't practicable for most of us and not very practical.

My choice is the 1 oz bullion.




3) Bullion coins of same weight from different mints can differ in prices but UOB sell them at the same price.

It doesn't matter coins or bars.

If we are buying as an insurance, it is sensible to simply go for best value.



Related post:
Singapore Precious Metals Exchange.

Why investors for income buy gold and silver?

It has been a long time since I blogged about having some precious metals in our portfolio and some newer readers might not even know I blogged about gold and silver before.


What do gold and silver have to do with investing for income?

Sounds like a scam?






If you think like this, congratulations! 

You will never fall victim to Geneva Gold and their friends!


Gold and silver coins can be mesmerising. 

I know. 

They look so shiny and beautiful. 

They twinkle, reflecting light. 

They look almost like they are winking at you.

I have a friend who fell so much in love with the two silver coins I gave him as birthday presents that he went and bought many more in different designs. 

I gave him bullion coins but he went and bought proof coins with numismatic value (i.e. worthy of collection). 

Oh, dear.


Anyway, why do I have gold and silver in my investment portfolio? 

Are they investments?






Many people say that we should have some precious metals in our portfolios. 

The late Dennis Ng had 7% of his portfolio in gold and silver, if I remember correctly. 


Dennis was concerned with the excessive money printing in the world and this is also why Jim Rogers says we should have some gold.


Fiat currencies are flawed. 

Governments around the world can print as much of their own money as they like. 

The supply is, theoretically, limitless. 






This infinite supply of paper money is unlike gold and silver as their supply is finite. 

Technology has not found a way to synthesize gold or silver.

Basic economics tells us that, over time, excessive money printing leads to immense inflationary pressure.

So, if you think that I buy gold and silver as an insurance against fiat currencies, you are right.






Of course, if we are traders, we can trade some gold and silver for profit. 

However, if we are investors for income, then, buying gold and silver requires an understanding that although precious metals are not income generating assets, they are probably important enough assets to keep some.

I can hear some protesting.


Yes, gold and silver are not income generating assets and it will even probably cost us some money to hold them. 

OK, even if we do not keep our gold and silver in a safe storage facility, we would still incur opportunity cost as the money used to buy gold and silver could have been invested in income producing assets instead.


Ouch. 

Yes, I know the feeling.

Do you believe in insurance? 

In the purest (and correct) form, insurance is an expense. 

It is not free of cost. 

It is not an investment. 

It doesn't generate income.

The elderly understand and believe in gold as they see it as a store of value.

I remember when gold got cheaper in years past, my grandma would go to the goldsmith to buy more gold. 

Not the best way to buy gold as I would have bought gold bullion coins instead but why did she think the way she did and did the thing she did?

I like to think that I understand.







So, should you buy some gold and silver? 

I suppose it will depend on what you believe in.


Related posts:
1. Where to buy gold?
2. Silver bullion coins.
3. Silver savings account.

Why we should buy the biggest and most expensive home?

Bro, good, knock some sense into her head!






Whenever I tell people not to buy a home that stretches their finances to the max (and beyond), often, I would get the reply that if they don't buy a home that is as big as possible, that is as expensive as possible, they might not be able to afford something like it in future due to inflation.

I have blogged about how our homes are really consumption items and not investments although it is hard for many to accept that especially when they see real estate prices in Singapore sky rocketing in recent years.




Of course, in recent months, the mood has become a tad more cautious but many people still think of their homes as investments and assets which are a good hedge against inflation. 

A recent argument put forward by someone along this line provided the catalyst for this blog post.

That someone said recently that if I were willing to buy some physical gold and silver as a hedge against inflation, why not a bigger and more expensive home?

Well, I have to say that my motivation for having some gold and silver is, in fact, an insurance against the flaws of fiat currencies. 

Embedded in that motivation, therefore, is the belief that precious metals are a hedge against inflation. So, this person is right in this respect. 

However, his understanding is incomplete.

The vast majority of us have to use leverage in the purchase of a home. 

A home purchased with a loan is a liability for the next 20 years, 25 years, 30 years or whatever the duration of the loan should be.

Only a home that is fully paid with our own money is an asset. 

Before that, we might have control over the property and the ability to enjoy using it but we do not have ownership of the property.





Another point is that if we have developed a crisis mentality, we would know that having some precious metals as insurance also makes sense because they are portable. 

Our home, even a shoebox apartment like mine, is not portable. 

Well, there are exceptions, I suppose, and those who live in caravans and houseboats might be the really smart ones.





Finally, precious metals usually form less than 10% of our wealth, for those of us who have them. 

However, for most of us, our homes easily form 50% or more of our wealth. 

This is why people say that Singaporeans are asset rich but cash poor. 

That asset they are referring to is usually our home.

"Professor Benedict Koh, director of the Singapore Management University's Centre for Silver Security, says the asset-rich, cash-poor phenomenon is an outcome of over-investment in property. And the proportion of such seniors is only going to rise as the population ages, say Prof Koh and other observers.


"Ms Peh Kim Choo, director of Hua Mei Centre for Successful Ageing, is worried that the asset-rich, cash-poor problem will be exacerbated as baby-boomers retire over the next 20 years. This is the generation that entered the workforce after CPF and the message of home ownership were introduced, she says.


"As more of these folk retire, says Ms Peh, "that is where we will see a lot more of the asset-rich, cash-poor situation". It cuts across both public and private housing, she notes. Her centre has counselled such seniors living in larger HDB flats."

Source:
http://www.straitstimes.com/the-big-story/case-you-missed-it/story/asset-rich-cash-poor-retirees-speak-20131203

What makes thinking that we should get the biggest and most expensive homes we can afford now because real estate prices will always go up in the long term particularly risky is complacency, the lack of a contingency plan, the lack of a crisis mentality.

Of course, vested interests would want to propagate the belief that there is never a bad time to buy a home and we don't have to time the market.

Apart from questions we should be asking these vested interests, we should ask ourselves some questions.


What if we were to lose our jobs? 

What if we were unable to continue working for any reason? 

What if we had bought at the peak of the market? 

What if the property market should crash in the next few years?


Do we have the financial resources to cope in such instances and if we should have some financial resources, would these financial resources remain strong or weaken in tandem?





I have been through a few economic cycles. 

I have seen how bad the bust in an economic cycle could be and how they affected families and friends.

It could be that this time it is different as I certainly do not possess the ability to look into the future.

However, we might want to remind ourselves that although history does not repeat, it does rhyme.




Related posts:
1. Disastrous investments in the property market.
2. Singapore properties will surely make money.
3. Two questions to ask buying investment properties.
4. Buying a home within your means.
5. Buying a property: Affordability and value for money.

Where to buy gold? Not from Suisse International.

The main reason for me to buy gold is to guard against the inherent problems of fiat currencies which are very flawed. So, having some physical gold, to me, is an insurance. 

All of us need some insurance and having up to 5% of our wealth in the form of gold isn't excessive.

Why not buy gold and receive income from it? 

Yes, that was what some entities out there told some "investors". Unless you do not read the news at all, you would have heard of such cases. 

If you know of other entities which are still saying this, trying to make you part with your money, be afraid. Be very afraid. 

Oh, while you are trembling with fear, do everyone a favour and report these entities to the Monetary Authority of Singapore (MAS).

Please don't be like Mr. Louis Tan who put in $40,000 and persuaded his friends to do the same because he would get a better rate for himself if he were to bring in more business for the company.




Mr. Louis Tan is ignorant, greedy, selfish and soon to lose a few friends.

Report these entities to the MAS and you could be saving people like housewife Y.H. Yang who is 53 years old and seem set to lose $2.2 million, her life savings which included money she received after selling her ancestral home in Shanghai.

We had Genneva Gold in 2012 and Gold Guarantee in 2013. Now, we have Suisse International.

Read report: here.

"After we joined, we also brought our friends in because (Suisse) promised to give us better returns and sell us gold at a cheaper rate if we recommended others," said operations manager Louis Tan, 36, who put in $40,000 last June. 

It was easy to convince their friends to join because the company promised them about $1,000 a month, which worked out to a 20 per cent return, for every kilogram of gold they bought.

Remember, scams come in many shapes and sizes. They could be as small and simple as some magic stones but they could also be quite sophisticated and much bigger like oily pods, plots of land which should be profitable or houses which are ecological.  

Ecological? Green is the color of money, isn't it? 

Related post:

1. Taking money is like taking candy from a baby.

2. Advice from a fraudster.

3. Thought process of scam victims.

How to be truly "rich" when the world collapses?

There is a very interesting article in the weekend edition of The Business Times. It is by Cai Haoxiang and he asks the question "What asset do you flee to when the world collapses?"

We have heard people saying that bonds are now a bad idea and that equities are preferred. So, many are invested and even fully invested in the stock market. No emergency fund? No war chest?

Singaporeans, of course, have a never ending love affair with real estate with many thinking that real estate prices on our tiny island will only see prices going higher. 

Someone told me that there is never a bad time to buy a property. Well, never say never. Those who bought a property here before the Asian Financial Crisis in the late 90s just broke even recently.

Then, there are the bears who believe that a correction is overdue and that the longer the bulls continue charging, the bigger the correction is going to be. 

There are people who do not believe in the rally. What are they doing? Staying 100% or close to 100% in cash and waiting to buy assets on the cheap.

However, in a situation where the world economy really collapses like in 1929, who wins?

"... how long can Singapore survive if there is a sustained global economic crisis? With zero natural resources and an economy heavily dependent on global trade flows, Singapore's economy is especially vulnerable when nobody wants to trade and people worry about clean water and edible plants, not chemicals and electronics.

"In rich, sophisticated Singapore populated with financiers, lawyers and plenty of middle managers, skills actually useful to survive an economic collapse might be startlingly in short supply...

"Build up a set of skills and contacts that people will want in good times and bad and you will never go hungry for as long as you live."

We could have tons of money, even gold and silver coins. Could they be worth more than food and clean water if these should suffer from scarcity? If Singapore's economy should go into a tailspin, would the FTs still want to come here? Who would rent all the spanking new condominiums which have been built? Could we see vacancy rate in the double digits?

"... gold can't be eaten... try convincing the chicken rice seller to take your Bitcoins as you fend off squatters from your multiple properties."

A sobering read with a dash of humour. Get a copy of this weekend's edition of The Business Times. The article is on page 5.

Disclosure:
AK71 is a shareholder of SPH. Every copy of The Business Times sold could contribute to AK71's financial well-being.

Related posts:
1. How to tell if you are rich?
2. Jim Rogers: Why I won't sell gold?
3. Never lose money in real estate?
4. Change to become richer.
5. The Millionaire Next Door.

Selling everything to buy more silver!

The latest issue of The EDGE provided me with much food for thought. However, the article on buying physical silver ended with a paragraph which if ingested might require us to take some digestive enzymes.

"There's going to be another big crash, we are really near it now," said Chin Kuan Yew, a businessman ... who sold all his properties, including his condominium, to buy more metal. "You have on the one hand the US printing money and the European Union is on the brink of collapse."

Although I advocate that all who can afford to do so should have 5% of their wealth in physical gold and silver as a form of insurance against the inherent flaws of fiat currencies, I feel that Mr. Chin is being somewhat extreme.

Selling his properties could be a good move because with the ongoing aggressive building, it is more likely than not that we would see a situation of oversupply in Singapore in the coming years which would mean lower rental rates and lower property prices.

Having most of his wealth in precious metals, however, smells of paranoia.

Related posts:
1. Gold and silver: Still important assets to own.
2. Never lose money in real estate and REITs?
3. Buy gold and silver as insurance.

Lightweight and good looking @ US$66.99 each:
Titanium 8mm Ring

Buy gold and silver as insurance.

Anyone who is regularly reading news on personal finance would have come across articles on why gold and silver prices are set to rise even higher. Marc Faber and Jim Rogers, both people I respect, are just two prominent figures who have put forth compelling reasons to own some gold and silver.

Personally, when I started this blog, I also wrote about the real value of gold and why silver would be a better buy than gold after I researched the gold:silver ratio. I started a separate blog on the precious metals later on because I want to concentrate on blogging about investing for income here at ASSI.

We just have to do a quick check online to see how much the prices of gold and silver have appreciated since I started blogging three years ago to see how well anyone who invested in these metals have done in that time.

My current attitude towards buying physical gold and silver is like my attitude towards paying for insurance. To own physical gold and silver is an insurance against the inherent flaws of fiat currencies. Just like how we put aside a certain sum of money annually to pay for our insurance policies, I believe that setting aside 5% of my annual income for the purchase of gold and silver as insurance is not too much.

So, am I saying that I do not buy gold and silver now with the hope of making more money in S$ terms? Well, if we think of gold and silver as a form of money, then, buying gold and silver in the hope of making more money in our home currency is like forex trading. It would make more sense to trade in paper gold and silver then.

Buying physicals would be more suitable for anyone with a crisis mentality.

I am posting this article here in ASSI instead of my blog on the precious metals because the latter's readers are probably conversant with the reasons why we should be in precious metals. I want to reach out to readers here in ASSI who might not have any position in the precious metals yet.

Let me guess. Some of you are probably wondering if it is a good time to buy now. Well, if we believe in the thesis that the precious metals are set to rise much more in price over the next few years and if we are holding them as insurance instead of trading them for short term gain, the question becomes less important.

Technically, there is some near term weakness and if we want to wait to buy lower, a 5% correction in price could see buyers returning. Remember, however, that technical analysis is all about probability, never certainty. It never hurts to hedge.

Related posts:
1. Silver bullion coins.
2. Gold and silver: Important assets to own.
3. Gold or silver?
4. Silver: Some views.
5. Silver: Weekly chart.

Fraud: Taking money from some adults is like taking candy from a baby.

If people promise us easy money, we should have to be very cautious. What is it about? How is it possible? Why is it so? Don't be a victim of fraud.

Just a few weeks ago, a client told me how he was given some physical gold for investing some money in a company. Apparently, the gold given to him was worth some 60% of the money he invested. In case the company went belly up, a new investor would only lose 40% of his capital.

The promised annual return was some 25% of the initial sum he invested, if I remember correctly. So, after holding for two years, an investor would be "safe" even if the company were to close down.

The person who got him involved in this "investment" was with him at the time and tried to get me to join them. After all, a consistent 25% annual return is a mind-boggling feat! Needless to say, I declined. Yup, I declined. It sounds too good to be true and probably is. This could be another OilPods or The Gold Label Pte. Ltd.

About OilPods: "More than 2,000 investors, mostly Singaporeans, were victims of this multi-million dollar Ponzi scheme, which involved purported investments in oil and gas. They were paid even before the oil was extracted, with existing investors receiving dividends from subscriptions of new investors." (The Business Times, 4 April 2012)

Another example of fraud has to do with land banking. In June 2010, the Monetary Authority of Singapore (MAS) issued a warning on Land Banking plots schemes warning they may be a scam with specific focus on companies offering land from the UK and Canada. (Source: Wikipedia)

A multi level marketing company, Sunshine Empire, was also in the news. The company had gathered up to S$189 million in funds through investment schemes, alleged to have never materialised and in fact a Ponzi scheme. Initial trial revealed that over S$115m were paid out as 'investment returns', while another S$40m were transferred to associates as 'interest free loans' and the remaining believed to have been expended or paid out to directors as fees. (Source: Wikipedia)

Unfortunately, there will always be people who would join the party. I dare say that a vast majority of the population is probably naive enough to believe in such "investments".

Money is hard to make and my heart always goes out to victims of fraud. Often, they are quite naive but hard working common people who just want a better return on their hard earned money.

I still remember how a female clerk in her 50s sent all her life savings of S$20,000, which, to her, was a princely sum, to an offshore investment firm after receiving a cold call promising her higher returns. She cried buckets later on.

Fraud: In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual. (Source: Wikipedia)

Yes, it is a crime! 

Fraudsters should be put behind bars for life!

Dr. Marc Faber: How not to lose money?

I have the greatest respect for Dr. Marc Faber and his insights have so far been spot on. In a recent interview, he said "I am ultra-bearish about everything geopolitically. In an environment of money printing, we have to ask ourselves, how do we protect our wealth? ... Where do we allocate the money?"

In summary:

1. Treasuries:

"U.S. government bonds are junk bonds," Faber said. "As long as they can print, they can pay the interest. But another way to default is to pay the interest and principal in depreciating currency." (AK71: Yup, countries inflating their way out of hard times has been done before.)

2.  Cash:

Specifically, the problem in Faber's view is the loss of purchasing power as inflation whittles away the value of money. (AK71: I believe he is referring more to the US$ and also the Euro. The S$ has been strengthening and we are still seeing inflationary pressures but it would be much worse for the US$ and the Euro.)

3. Stocks:

If you print money, stocks will not collapse. (AK71: I am sticking to my plan like glue! Remember my plan?)

4. Emerging markets:

Faber's own stock portfolio is centered on dividend-paying Asian shares, particularly in Malaysia, Singapore, Thailand and Hong Kong. These include a variety of real estate investment trusts and utilities. (AK71: Honestly, I knew that he was a fellow investor in Hyflux Water Trust but I did not know that he is also into REITs! I like this. Stick to the plan!)

5. Gold:

Faber is convinced that the price of gold will continue rising and that any pullback is a buying opportunity. And as a currency, Faber said gold should be held in its physical form and not in shares of gold miners or even exchange-traded funds. (AK71: I have recently replied to a reader that I feel that I am underinvested in gold and silver. However, being in Singapore and having S$ denominated assets, I feel much safer.)

Read complete article here.

Related post:
1. Sleep well at night with a plan.
2. Hedging and precious metals.
3. Hyflux Water Trust: Privatisation.
4. Staying positive on S-REITs.

A new blog on gold and silver.

I have started a new blog, "Investments: Gold and Silver."  All my future posts on precious metals would be in this new blog instead of ASSI.

Strictly speaking, the mission of ASSI is to talk about investing in the stock market and more specifically, investing to secure a reliable stream of passive income from the stock market. However, I have so many ideas in my head that I use ASSI to blog about all of them.

Investing in precious metals does not generate any cashflow at all. So, hiving off the section on precious metals would help to give ASSI a bit more focus.  If the new blog on precious metals works out nicely, I could hive off other sections of ASSI.  It's a bit like asking banks in Singapore to divest their non-banking assets not so long ago. There I go day dreaming again. ;)

I would like to hear what readers think about this idea. I am still a new hand at blogging and would need to learn through trial and error. Your feedback is invaluable. Thanks in advance.

Buying gold? Wait for a correction.

Jim Rogers predicts "more turmoil" in the currency markets, more problems in the stock market, weakness in bonds and, ultimately, inflation.

 
Posted Oct 06, 2010 07:30am EDT by Aaron Task

"Gold could correct for a few months [but] the bull market in gold is not over - far from it," he says. "I'm much more bullish on agriculture than I am even on gold. I own both."

In the meantime, he owns the Swiss franc, euro and yen but is not actively short any currencies, including the greenback.

In case of a correction, I see immediate support at US$1,250 an ounce, followed by US$1,200 an ounce.

Related post:
Gold can double from here over the next 5 years.

Gold and silver: New highs.

"Gold, up 2pc this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. On Tuesday, bullion for immediate delivery added as much as $13, trading at $1,326.97 an ounce in early London trading....

"Also on Tuesday, silver advanced to a 30-year high, increasing 1.3pc to $22.2319 an ounce – the highest level since September 1980. "

Read complete article here.

Related post:
Gold can double from here over the next 5 years.
Buy more silver on weakness.

Gold can double from here over the next 5 years.

"Despite all the hype about its multi-year rally, gold is actually lagging many other commodities in that it hasn't yet eclipsed its 1980 high on an inflation-adjusted basis, Holmes says, noting the same is true of silver."


Posted Sep 28, 2010 12:00pm EDT by Aaron Task

Gold hits another record high of US$1,308.00, the eighth time it has hit a new high in the last two weeks!  Read article here.

Related posts:
Buy more silver on weakness. 
Real value of gold.