I have mentioned in my year end annual review (My Sweet Retirement Annual Review of 2016) that I will be keeping a lookout for gold prices in 2017, hoping to fulfill my dream of owning a gold bar. The chart above shows the price in US dollar for the PAMP Gold Bar – 100g. You can observe from the chart the price of gold has broken down from the parallel uptrend over the period from February 2017 to current July 2017.
The current price of the PAMP Gold Bar -100g is US$3,982.95. There is a 2.98% spread. The price of this gold bar is US$3,713.55 on 20th December 2016.
I am not an expert in investing in precious metal. Can investors advice if it is the right price or time to buy gold now or will it plunge further?
Gold runs on emotions.
If you feel that a lump of gold is what you want, then just go and buy one. There is definitely some pleasure in holding it in the hands, as, indeed, has been shown by its popularity over the last few thousand years.
If you want it as an investment or store of value you will be disappointed. Treat it as an expensive ornament and you will be happy. At least until you get bored and want to sell it.
I had about 15% of my money in gold for a decade. I could never work out why it went up or down in price. Sold the lot and put the money to work in the stock market. A good decision.
Gold could head up to USD 1900 again, or it could collapse to USD 700 or go up and down in some range.
Nobody knows.
At least in the market, CapitaMall, for example, will still have a thousand or two lease agreements, people will still buy stuff and eat in malls and the real estate has a utility value.
Thanks for the advice!