Gold, ETFs and Mutual funds

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Gold, ETFs and Mutual funds

Postby sssdarlings » Wed Jul 27, 2011 11:06 am

I keep reading that the above are good options to add to one's portfolio. Any views to share? How can these be bought?

Anybody still buying gold or gold stocks?

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Re: Gold, ETFs and Mutual funds

Postby tankee » Wed Jul 27, 2011 11:16 am

gold price is all time high now due to economy uncertainty, so IMHO, kind of risky to invest in gold now.

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Re: Gold, ETFs and Mutual funds

Postby MadScientist » Wed Jul 27, 2011 11:43 am

sssdarlings wrote:I keep reading that the above are good options to add to one's portfolio. Any views to share? How can these be bought?

Anybody still buying gold or gold stocks?


Be careful, by the time you are reading about it in mainstream media, the parabolic run as occurred. That's how many get caught.
Casein point, the Silver run just this year... Many got caught. In the Silver crash when it dropped from 50 to 34 within a week or so!

You can add the Gold ETF ( not today! ) via a couple of mechanisms... By buying the GLD ETF which is dominated in USD.
You can buy through your usual stock broker in SG, buy using under CPFIS using your OA excess (amazing right?)
You can also buy ( my preferred choice really ) through Superfund... Which are for accredited investors, means a tranche of 200K one shot, or a net worth of > 1 million ( or somewhere in that ball park ).
Another way is to buy from Fundsupermart... Eg. First State Global Resources fund. This fund has Gold components as well as other commodities like oil and energy, etc.
Or... You can DIY buy direct from the US brokerage using a Thinkorswim account, amongst many other mechanisms within like options.

Now that I told you so much... Do nothing.
The market will always be there...

Find out first what is suitable for you.
Get advice on how to go about each.
Educate yourself on the happenings of the world... This is very important as USA is currently squabbling about their debt ceiling due Aug 2, next Tuesday!



On another note, some (like myself) are looking into an ETF for fear. The VIX/VXO indexes are aka fear indexes. And there is an associated ETF to it called the VXX. When markets panic, this ETF goes up according to the fear index levels.



Now... Every instrument you choose has inherent risk... I reiterate that point, has risk.
SO, go find a good financial advisor... And seek second opinion. Then mull over it and use good money management to add in portfolio... But only after you educated yourself enough to get a foothold of what's going on.
Otherwise, you FA has to be very very good.
If you need some recommendations, can always ask....

All the best!

PS. I need to qualify... I am not an IFA - yet. I am just a MadScientist. :celebrate:

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Re: Gold, ETFs and Mutual funds

Postby UncleLim » Wed Jul 27, 2011 12:59 pm

Thank you, MadScientist! I think you covered almost all the bases in a single post. :goodpost:

On and off, we will read some news about gold and its cheaper cousin, silver. But along with the news come a lot of investment methods (called instruments or vehicles) that rough track the value of these precious metals. If they all sound too complicated for you, there are simpler ways to invest. The simplest is to buy gold or silver coins. But if you have a sizable kitty and do not want to bother with locking up stacks of coins, you can open a Gold or Silver Savings account with UOB. These "simpler" methods cost you slightly more but are easier to "buy and forget", incurring very little time and effort to manage. A good conservative way to buy is to put aside a bit of savings into your gold or silver each month, regardless of price. Eventually everything averages out and you won't have to be stressed out watching Bloomberg charts every hour.

The more sophisticated ways can be more cost effective and allow you to realize your gains quicker. But ETFs, options and trading directly on commodity exchanges can be a minefield to the layman. :slapshead: So do your research and decide what you want your gold and silver investment to achieve for you before taking the plunge. :imdrowning:

Investment in gold and silver stocks such as miners is another kettle of fish and should be left to pros and goldbugs. Their stock prices do not necessarily correlate with the actual commodity prices so again due diligence is required.

:smile: :smile:

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Re: Gold, ETFs and Mutual funds

Postby MadScientist » Wed Jul 27, 2011 1:20 pm

Thanks for the compliments Uncle Lim..

I like your perspective too... didn't know how the UOB accounts work so didn't comment on it.

Plus, you are right about the miners... those can rally 200-500%. Not for major portfolio additions but only for speculative funds.

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Re: Gold, ETFs and Mutual funds

Postby UncleLim » Wed Jul 27, 2011 3:44 pm

A link to UOB's gold and silver savings webpage for one and all..

http://www.uob.com.sg/personal/investments/treasury/precious_metals.html

The account works like this. Please do not be shocked by the simplicity!


- Open an account at UOB
- Give them Singapore dollars and UOB converts them into equivalent weight in Gold/Silver - So this is called "buying" gold/silver
- The weight is recorded in your account book

- To sell gold/silver, bring your passbook to a UOB branch. Tell them how much to sell... and UOB converts the weight of gold/silver into Singapore dollars and give you the cash

- You get profit when the price of gold/silver is higher when you sell :imcool:

That is all !

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Re: Gold, ETFs and Mutual funds

Postby MadScientist » Wed Jul 27, 2011 4:11 pm

UncleLim wrote:A link to UOB's gold and silver savings webpage for one and all..

http://www.uob.com.sg/personal/investments/treasury/precious_metals.html

The account works like this. Please do not be shocked by the simplicity!


- Open an account at UOB
- Give them Singapore dollars and UOB converts them into equivalent weight in Gold/Silver - So this is called "buying" gold/silver
- The weight is recorded in your account book

- To sell gold/silver, bring your passbook to a UOB branch. Tell them how much to sell... and UOB converts the weight of gold/silver into Singapore dollars and give you the cash

- You get profit when the price of gold/silver is higher when you sell :imcool:

That is all !


Hmm...

So is there any 3rd party deliverables caveat emptor in this accounting mechanism that you see?
Well, except UOB going bust...

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Re: Gold, ETFs and Mutual funds

Postby verykiasu2010 » Tue Aug 09, 2011 5:18 pm

UncleLim wrote:A link to UOB's gold and silver savings webpage for one and all..

http://www.uob.com.sg/personal/investments/treasury/precious_metals.html

The account works like this. Please do not be shocked by the simplicity!


- Open an account at UOB
- Give them Singapore dollars and UOB converts them into equivalent weight in Gold/Silver - So this is called "buying" gold/silver
- The weight is recorded in your account book

- To sell gold/silver, bring your passbook to a UOB branch. Tell them how much to sell... and UOB converts the weight of gold/silver into Singapore dollars and give you the cash

- You get profit when the price of gold/silver is higher when you sell :imcool:

That is all !


can short sell this type or not ? :evil: :evil:
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Re: Gold, ETFs and Mutual funds

Postby MadScientist » Tue Aug 09, 2011 10:40 pm

verykiasu2010 wrote:
UncleLim wrote:A link to UOB's gold and silver savings webpage for one and all..

http://www.uob.com.sg/personal/investments/treasury/precious_metals.html

The account works like this. Please do not be shocked by the simplicity!


- Open an account at UOB
- Give them Singapore dollars and UOB converts them into equivalent weight in Gold/Silver - So this is called "buying" gold/silver
- The weight is recorded in your account book

- To sell gold/silver, bring your passbook to a UOB branch. Tell them how much to sell... and UOB converts the weight of gold/silver into Singapore dollars and give you the cash

- You get profit when the price of gold/silver is higher when you sell :imcool:

That is all !


can short sell this type or not ? :evil: :evil:


I very much doubt so... At least not by this instrument.
There are ways with GLD, but unless it goes parabolic and one is sophisticated enough (or crazy enough), then shorting GLD is feasible. However, shorting gold is one of the things I wouldn't be doing at all even if it was parabolic. Look into gold's history... It makes parabolic rallies and then always recovers well.

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Re: Gold, ETFs and Mutual funds

Postby UncleLim » Thu Aug 11, 2011 5:07 pm

For those who feel that Gold has gone too far ahead, there is always Silver ....


http://www.google.com/finance?q=NYSE:SLV

http://www.google.com/finance?q=NYSE:PSLV

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