Is it time to move to other options?

Aro · 1 Is it time to move to other options? Sun Jun 05, 2011 2:32 pm

Aro

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After much debate in my mind and given the current global conditions does it make sense to move to GOLD as an reasonable/consistent investment tool. Even though you may not get as higher returns in the short term as a long term investment gold makes good sense. Gold appreciation has been phenomenal in the last 10yrs and i don’t see why the demand of gold should reduce given current global conditions.

I ve also attached a trend analysis of price appreciation of gold in the last 10yrs FYI.

http://www.kitco.com/charts/popup/au3650nyb.html

The growth has been from apprx UDS 200+/Ounce to approx USD1500+/Ounce which is approx 250%+ growth. Of course this is over a 10yr period and hence time needs to be factored in. However given that gold does not carry any major risk factors (compared to other investment options), this is one investment option that i personally feel has a bright future.

Do share your thoughts

Slstock · 2 Re: Is it time to move to other options? Sun Jun 05, 2011 3:31 pm

Slstock

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Aro wrote:After much debate in my mind and given the current global conditions does it make sense to move to GOLD as an reasonable/consistent investment tool.

Even though you may not get as higher returns in the short term as a long term investment gold makes good sense.

Gold appreciation has been phenomenal in the last 10yrs and i don’t see why the demand of gold should reduce given current global conditions.

I ve also attached a trend analysis of price appreciation of gold in the last 10yrs FYI.

http://www.kitco.com/charts/popup/au3650nyb.html

The growth has been from apprx UDS 200+/Ounce to approx USD1500+/Ounce which is approx 250%+ growth. Of course this is over a 10yr period and hence time needs to be factored in.

However given that gold does not carry any major risk factors (compared to other investment options), this is one investment option that i personally feel has a bright future.

Do share your thoughts

Any major risk factor : How about if they uncovers mountain of gold making it a less scarcer commodity!

Joking part, yes gold has always being a good investment option but I think the current gold prices seems to be at a peak after recent run. If you are looking very long term buying gold at a better price ( not right now) is good.

Akalanka · 3 Re: Is it time to move to other options? Sun Jun 05, 2011 5:30 pm

Akalanka

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When talking about gold , i do have some idea little fancy may be , but i think it can work in the current cse situation and world gold price.

If we are going to invest some money on gold, it will mostly be a log term investment . So have to hold money for couple of long time. in this period also if we can utlize the money invested on gold it will be nice , i think

So if a investor buys gold then he can mortgage them in a bank and can have the money back, and should be extremely care full about the interest rates , if the interest rates go down , should clear the mortgage debt and can mortgage again in low rate, if the interest rate goes high its purely benefited.

Then with the money , now can invest in the CSE , with utmost care and knowledge. and can go for long run with fundamentals and also with rallys. but in this the investor should always keep him in the safe side , with a margin of loss which can be bearable.

so in the end after a long run like about year by earning a gain from CSE that is higher than the interest for the mortgage debit, the investor become profitable. At that time the gold price will had reached more higher leaving two way profitability to the investor.

This idae may be kinda of fictional or fancy... but i ve been thinking of this little time and would like to hav some nice comments regarding this...

duke · 4 Re: Is it time to move to other options? Sun Jun 05, 2011 5:39 pm

duke

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not only gold you have other investments, like property, starting your own business e.g. fast food, even collecting stamps and coins. it would be second nature for a CSE trader to invest in rare stamps and coins. just like illiquid stocks. Smile

Aro · 5 Re: Is it time to move to other options? Sun Jun 05, 2011 5:48 pm

Aro

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Akalanka wrote:
When talking about gold , i do have some idea little fancy may be , but i think it can work in the current cse situation and world gold price.

If we are going to invest some money on gold, it will mostly be a log term investment . So have to hold money for couple of long time. in this period also if we can utlize the money invested on gold it will be nice , i think

So if a investor buys gold then he can mortgage them in a bank and can have the money back, and should be extremely care full about the interest rates , if the interest rates go down , should clear the mortgage debt and can mortgage again in low rate, if the interest rate goes high its purely benefited.

Then with the money , now can invest in the CSE , with utmost care and knowledge. and can go for long run with fundamentals and also with rallys. but in this the investor should always keep him in the safe side , with a margin of loss which can be bearable.

so in the end after a long run like about year by earning a gain from CSE that is higher than the interest for the mortgage debit, the investor become profitable. At that time the gold price will had reached more higher leaving two way profitability to the investor.

This idae may be kinda of fictional or fancy... but i ve been thinking of this little time and would like to hav some nice comments regarding this...

Good one mate .. i like your thought on this ... a good perspective to consider

Akalanka · 6 Re: Is it time to move to other options? Sun Jun 05, 2011 5:50 pm

Akalanka

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duke wrote:not only gold you have other investments, like property, starting your own business e.g. fast food, even collecting stamps and coins. it would be second nature for a CSE trader to invest in rare stamps and coins. just like illiquid stocks.

yep ur right, but as u have mentioned illiquidity itself means that the investor should go to find a customer .which will be little difficult with day to to day actvities..

I too hope i could turn all my coins and stamps collection in to cash. . .. Very Happy

xmart · 7 Re: Is it time to move to other options? Sun Jun 05, 2011 7:41 pm

xmart

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Read this one,

http://www.cnbc.com/id/37688389/A_Gold_Mine_in_Afghanistan_Wait_About_10_Years_Gartman

http://www.foxnews.com/world/2010/06/14/discovers-t-minerals-afghanistan/

This is not a pullback at all, US already initiated their mining at afgan, it confirm gold, copper, lithium etc. that may affect world gold and copper prices.