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Investors urged to be cautious amid clamour for gold


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Investors urged to be cautious amid clamour for gold

By The Nation

 

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Investors were advised to beware of volatility amid the rise in gold price.

 

 

Gold price in Thailand was expected to hit Bt31,000 per baht weight, an expert said.

 

MTS Gold chief executive Nattapong Hirunyasiri said gold price in Thailand continued to rise, reflecting the uncertainty following the Covid-19 pandemic and unrest in many regions.

 

"People believe gold is worthy of investment, while there are various types of investments, such as gold bars, gold ornaments, gold contracts, and gold funds that meet the needs of people of all ages," he said.

 

"However, investors must manage their investment portfolio carefully because the gold market still faces volatility, while they should study thoroughly before investing in this precious metal to prevent risks and create opportunity to take profits."

 

He expected gold price to hit Bt31,000 per baht weight as the spot gold price continues to hit a new high due to the weakening dollar.

"Gold's next resistance level is US$2,100 per ounce," he said.

 

"Factors that are boosting the gold price are the Covid-19 pandemic, governments and central banks' efforts to stimulate the economy due to uncertainty following the global economic slowdown, the US-China trade war, and blasts in Iraq and Lebanon," he added.

 

Source: https://www.nationthailand.com/business/30392669

 

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-- © Copyright The Nation Thailand 2020-08-09
 
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4 minutes ago, mr mr said:

i wonder if the trillions of dollars being printed world wide will have any effect moving forward.

probably yes, as gold traditionally been perceived as safe haven and good investment in time of confusion, uncertainties and wars...

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Buy low, sell high. It's all a matter of timing. I doubt buying gold is a good investment at the moment, but if you want security it's probably OK. I always wonder how (ordinary) people store it; like, it's a prime target for theft. Always put me off the gold thing. 

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2 hours ago, nausea said:

Buy low, sell high. It's all a matter of timing. I doubt buying gold is a good investment at the moment, but if you want security it's probably OK. I always wonder how (ordinary) people store it; like, it's a prime target for theft. Always put me off the gold thing. 

Have you ever heard about safetyboxes at a bank?

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57 minutes ago, Isaan sailor said:

If you want gold without the storage risk, buy gold funds.  But as the previous poster noted—price seems high now.

Nothing beats physical gold, with funds you always depending of a third party.

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Nobody knows the effect that the trillions of dollars being thrown at individual economies around the world will have on inflation and the future health of each country's currency. Nobody knows which economies will fare best and which will suffer the most. In times like these you need an asset that's independent of any country and provides a safe hedge against the huge uncertainty in individual currencies. That's gold. Later in the year, as the economic damage becomes clearer, it's likely that the gold price will start to fall back and the less fortunate currencies will take the strain instead. 

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5 hours ago, Isaan sailor said:

If you want gold without the storage risk, buy gold funds.  But as the previous poster noted—price seems high now.

Unless it's a bunch of fake IOUs. Look at what happened with China's recent gold scandal for an example of one such case. Physical gold will always trump funds, futures, options etc in terms of actual safety. Just up to you whether physical ownership is worth the hassle over potentially having supply issues if/when SHTF.

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Oxymoron... two contradictory opposing ideas coming together... that would be a high price of gold and now purchasing it as an investment. Back home we call that an oxymoron. Should have invested in gold when the price was low... or am I missing something here?

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16 hours ago, rooster59 said:

He expected gold price to hit Bt31,000 per baht weight as the spot gold price continues to hit a new high due to the weakening dollar.

I'm sure later if he's proved wrong, he can simply 'claim he miscalculated'.

It seems to be a quite popular thing to say at the moment.

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22 hours ago, Isaan sailor said:

If you want gold without the storage risk, buy gold funds.  But as the previous poster noted—price seems high now.

Can these gold funds be trusted?And how does one trust a gold fund?

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Gold will easily hit $2500 within the next year, more likely within the next 6 months. It’s still ok to buy at this price, but silver might be a better investment (silver might double).

 

Some gold “gurus” are predicting 3 to 5k gold, I’m not saying it’s impossible but would be a stretch. I’m selling my holdings at 2500 gold unless I see a clear path upward when that is hit, and silver right before it hits 50.

 

The current conditions are ripe for a gold and silver bubble as we saw in 2011/12 but will probably be more comparable with the 2017 bitcoin bubble in magnitude. Buy now or regret later, but don’t be greedy and sell when you have a nice profit. 

 

If you have a US, UK or Euro brokerage account you can buy “physical gold” ETF. These are ETF backed by real gold / silver / etc bars, the so called paper gold. 
Obviously they’re not as good as holding real gold and won’t save you in a total system collapse but good luck not getting robbed and shot outside of your house in that scenario. These ETF offer a decent exposure to risk trade off for most investors.

As always, do your own research before you buy into any of these, but there are good ones out there.
 

I’m not going to go into the reasons for my predictions but they obviously have to do with the money printing. There’s lots of places to read about this, YouTube videos, etc, so you make up your own mind.

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On 8/9/2020 at 5:30 PM, Tounge Thaied said:

Oxymoron... two contradictory opposing ideas coming together... that would be a high price of gold and now purchasing it as an investment. Back home we call that an oxymoron. Should have invested in gold when the price was low... or am I missing something here?


Yes it is nothing short of an "oximoron". What to do? Be part of this current particular "oximoron" with a reduced capital engagement. But shift a good part of your liquid assets into grains (corn/wheat) as currently nobody wants to hold this stuff. Apply reverse "oximoronic" circumstances in your (long-term) financial favour.


OR: Buy low, sell high. Applicable to Commodities only, not individual Stocks. Worked for me during the last 40 years.
 

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