Our local daily, theStar reported that gold prices are expected hit a record high this year as seen in this article dated 17th January 2013 below:
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| Full Article available HERE |
Hurrah indeed for gold owners if the price does indeed go up by the end of 2013. Franklin Sanders from the The-Moneychanger.com is targetting gold price to rise up till $3,130 an ounce as seen in this excerpt taken from Goldprice.org:
Obviously there are also other news/articles on the web predicting the opposite. For every positive news found on the web, there will always be an opposing view, something like the yin and yang of the World Wide Web. To maintain balance of the World, albeit a virtual one, one must have equal number of good and bad news in order to appease every single virtual netizen.
As for myself, I have a small portion invested into paper gold. I bought paper gold even before I started this blog and the reason is simple, I liked the convenience of owning gold without the hassle of owning and safekeeping physical gold. For those who have not heard of paper goal, here's a simple definition:
However, I would like to caution readers that investing in paper gold does come with certain risks. Since investing in paper gold is not insured by Bank Negara (the same goes for Unit Trust), there's a possibility that you might lose your entire investment if the bank you bought your gold from defaults. Considering that there is no physical gold being exchanged for your money, what you really own is a piece of paper or passbook stating that you own gold which in reality is non-existent. Purchasing paper gold is in fact placing your money and trust with the bank you are purchasing from. If you seriously believe that our local banks such as Maybank, Public Bank or CIMB can default or go bankrupt (tutup kedai, gulung tikar), then I suggest that you stay away from papergoal gold. Do correct me if I am wrong.
However, I would like to caution readers that investing in paper gold does come with certain risks. Since investing in paper gold is not insured by Bank Negara (the same goes for Unit Trust), there's a possibility that you might lose your entire investment if the bank you bought your gold from defaults. Considering that there is no physical gold being exchanged for your money, what you really own is a piece of paper or passbook stating that you own gold which in reality is non-existent. Purchasing paper gold is in fact placing your money and trust with the bank you are purchasing from. If you seriously believe that our local banks such as Maybank, Public Bank or CIMB can default or go bankrupt (tutup kedai, gulung tikar), then I suggest that you stay away from paper
If you like to know more about paper gold offered by our local banks try reading:
1. Gold Investment, paper style ~ article published by theStar dated 11 March 2012
In future, I'm hoping to look into purchasing physical gold (kena old fashioned abit). There's much to read up and learn before I make my first foray into physical goal. For now, I am contented with investing in paper gold and reading the yin and yang news from the World Wide Web.
Cheers and happy investing
MY Investor
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