Invest in Gold?

Have you heard of this term “Old is Gold”? When human grows old, their functions slowed, their values are compromised, their memories waned and their usefulness may be reduced tremendously. Then the term “old is gold” had been coined to add value to aging people. Gold then became the measuring tool. Why GOLD? As everyone knows, gold is an unfading metal of great and undiminishing value.

With that in mind, shall we say that “Gold” is a valuable metal sort after by all. In other words we can summarise that “Gold” has value. Lets take a look at how much the value of gold has been moving from year 2003 till current:

1. 2003 - Gold at $382 dropped to $319 (-16%)
2. 2004 - Gold at $425 dropped to $375 (-13%)
3. 2005 - Gold at $536 dropped to $489 (-9%)
4. 2006 - Gold at $725 dropped to $560 (-22%)
5. 2007 - Gold at $841 dropped to $778 (-8%)
6. 2008 – Gold hit $1002 on Mar 17 then dropped to $786 on Aug 15 (-21.5%)

If you look at the above trend, you will see the fluctuated percentage is highest at 22% in a year and this year, gold has hit top value at $1002 per oz and has dropped back to $786 on 15 August, a reduction of 21.5%. Question is …. Is it at its lowest? Also, is it time to invest in gold yet?

Lets take a look at gold price compared to oil price…. Is there a trend for us to follow?

	Gold in USD	Oil in USD
31 January 2008	928.20	92.00
29 February 2008	975.00	101.00
31 March 2008	915.70	106.04
30 April 2008	876.60	114.06
31 May 2008	886.10	126.00
30 June 2008	924.90	143.00
31 July 2008	913.30	124.08
15 August 2008	786.00	113.77

Alright now, I have done a simple research and a true to life comparison, now you are the one to decide whether its gold you want to invest in and if yes, is it now that you want to go into gold….. the decision is yours to make and the money is yours to earn.

Happy Gold Hunting!!

Investing is personal

At times like now, most investors especially those who are new and inexperience; or even those who have already taken some gains earlier are in a predicament not easy to rid off. If you are serious investors with little experience, your brain might now be functioning like a washing machine, round and round with all the unanswered questions:-

• Dare I invest further?
• If I dare, what shall I invest in?
• Do I invest in gold, stock, share, bond, trust fund or commodities?
• If recession is settling in, how long will it last?
• Can inflation kill the economy?
• What is affected, who will be affected?
• What is the domino effect?
• Fuel hike .... affects daily commodities .... affects interest rate

Don't even bother to think that anyone can give you a perfect answer; not even God.

For the right answers, search within, you should know yourself well and you just need to re-ask yourself some of these questions:-

• What is my risk factor?
• Is it worth all the stress you are getting?
• Do you want to go on taking the risk?
• Can you afford to invest long term?
• How is your "gut" feeling right now?
• How much profit shall I settle for?
• How much loss (percentage and money wise) am I willing to take?
  

Frankly, investing is very personal. You and only you will be able to give you good advice. Use your logic.

"Wild Goose Chase" Investing Style?

I read with trepidation many investment advice being written these past few months of global uncertainties. Many of us investors are overwhelmed with all the well intended advice; however, what would be the right move? Do we invest in gold now or should we have switched to bond like a few months ago already? Do we go into commodities now that food prices are going up? Or do we go into oil and gas sector?

Whatever decisions you made or whatever action you had already taken; I am sure by now you would have been wiser but will not have ended up much richer or happier. Not now, not yet.

Time is still the essence. Whatever actions or non-actions by you, you will still have to bide by time to see substantial gains. It is still important to go on fundamentals and stick by your decision, your very own judgment, experience and research on facts and figures.

Avoid making hasty decisions and going on a panic selling, buying or switching. Any "Wild Goose Chase" on your part will only hurt your pocket and give you unnecessary stress. This is the time to use your head not your heart.

Deja Vu

Have you ever had this feeling that you have been there before when you visited a new place? Do you call that "deja vu"?

Likewise in investing, many of us have had our very own "deja vu's" especially in these past few months. Many of our portfolios are on the dip, mostly around 30% to 40% below value, maybe even worst than that. However, even the most experienced investors and the pro's are not spared. So take heart; "you are not alone in this" if its any consolation.

Being affected whether minimum or aplenty; it is easy for us to say "Do not panic" when all you wanted to do is to give up but that is the trick........ I truly believe this "What goes up must come down but whatever has gone down will eventually comes back up". This is the time to test your resilience. Hang in there folks!!!

Rules of Life by Bill Gates

This has been circulating on the net for a while now but I just read it. Whether its true or not I find some of the points worth repeating to those who wish to read and learn. If you do not read it too seriously, it might just lighten your day! Have fun listening to the world's richest man.......

Bill Gates recently gave a speech at a High School about 11 things they did not and will not learn in school. He talks about how feel-good, politically correct teachings created a generation of kids with no concept of reality and how this concept set them up for failure in the real world.

Rule #1 :
Life is not fair - get used to it!

Rule #2:
The world won't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule #3:
You will NOT make $60,000 a year right out of high school. You won't be a vice-president with a car phone until you earn both.

Rule #4:
If you think your teacher is tough, wait till you get a boss.

Rule #5:
Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule #6:
If you mess up, it's not your parents' fault, so don't whine about your mistakes, learn from them.

Rule #7 :
Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.

Rule #8:
Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they'll give you as MANY TIMES as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.

Rule #9:
Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule #10:
Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.

Rule #11:
Be nice to nerds. Chances are you'll end up working for one.

Retirement Timeline

"Majority neglect retirement plan"; an article in The Star reads on 14 March 2008. Most of Malaysian have not prepared for retirement while those who have only started after age 40.

If you want to retire comfortably, it is definitely too late to start planning at age 40 not to mention wanting to retire rich and young. I asked myself "Why do we do that?" Merely because we are too busy with our daily life and kept putting off planning for our retirement because the word "retirement" sounds too far away?

Retirement is in fact the most important phase in one's life and I felt strongly that the timeline for retirement should begin the minute we finished college. Right, young people out there must think I am being ridiculous. You have not even started to earn money or gotten your first job, why should there be thoughts of retiring......

You are absolutely right, and that how the statistics ended ...."leaving it too late to plan for your retirement".

I was just suggesting that you start to plan towards your retirement. I am a strong believer of the phrase "If you fail to plan, you plan to fail" and it is necessary to include a retirement timeline to your aspirations and your life's goals.

Everyone should plan for their future and if your future plans include how and when you want to retire, it will help you have a clear view of how rich or how young you will retire. Planning this step of your future will definitely encourages and pushes you to achieve your life's goals faster and more effectively.

"You start to live once you do not need to earn to live!!"

Words of Advice for Stock Market Investors

With the "yoyo" market trends out there, everyone of us needs a dose of motivation to keep us going, to maintain our poise and confidence. Especially for new investors and the beginners, it is indeed a trying time as the market trend is so reactive, a lot of us are unsure what move to make.

Here is something I found in my newspaper clipping collections and I wish to share this piece of booster with you, a winning essay by Gan Hong Leong of Bentong, organised by SIDC published in the Focus column of The Star:

Words of Advice

For all stock market investors and speculators out there, here is Gan's advice:

Value for money you must insist

Buying in a downtrend you must resist

The trend is your friend

Follow it to the very end

Holding on to falling stock is unwise

Cut your losses quickly is advised

Never kill the golden goose when you have one

Never sell prematurely, let it run for once

Undervalued unpopular stock is never a fancy

Glamour stock is the choice normally

Join the crowd; enjoy the ride, if you wish

Be careful though, lest you fall out and vanish

The market is most tempting at the top

Lock in your profit before volume has a good drop

Sell your stocks when you love them most

Take your money and let the deal be closed

Buy when volume traded is at its lowest

The market will then be at its dullest

Investors should buy low and sell high

Traders should buy high and sell higher

Someday you will know what I mean

By then, you are a stock market dean.