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ESP Gold Chat                                                                                   Aug 28, 2013

 

Hold on to that Gold your mum gave

On my Aug 2 Gold Chat, I was explaining the relationship between Gold price and Malaysian Ringgit value.

At that point in time, One US$ was about RM3.25. Now each US$ is worth RM3.34. Almost 3% drop in value in about three weeks. Similarly, retail Gold price in Ringgit has increased from RM155 to RM170 per gram (22K), more than the 3% drop in Ringgit value.

Combined with the falling Ringgit versus the US$, other factors are also driving Gold price up.

Latest among which is the Middle East tension in the form of Syria. Or maybe Gold price was just looking foran excuse to come back up after getting beaten middle of this year.

Whatever the reason, fundamentally, Gold seems to have become a darling for risk averse investors again. Gold has been a reliable back up plan for many centuries before and I do not think anything is going to change that for the next few decades.

If your mum did not give you any Gold jewelry, not to worry, come and check out Emas Sri Pinang’s KunciGunungEmas which is an innovative way of buying Gold jewelry through small One Gram Gold payments at your convenience. You can grow your mountain of Gold for your children!

 

Gulam, Emas Sri Pinang Sdn Bhd

Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

ESP Gold Chat                                                                                   Aug 28, 2013

 

Hold on to that Gold your mum gave

On my Aug 2 Gold Chat, I was explaining the relationship between Gold price and Malaysian Ringgit value.

At that point in time, One US$ was about RM3.25. Now each US$ is worth RM3.34. Almost 3% drop in value in about three weeks. Similarly, retail Gold price in Ringgit has increased from RM155 to RM170 per gram (22K), more than the 3% drop in Ringgit value.

Combined with the falling Ringgit versus the US$, other factors are also driving Gold price up.

Latest among which is the Middle East tension in the form of Syria. Or maybe Gold price was just looking foran excuse to come back up after getting beaten middle of this year.

Whatever the reason, fundamentally, Gold seems to have become a darling for risk averse investors again. Gold has been a reliable back up plan for many centuries before and I do not think anything is going to change that for the next few decades.

If your mum did not give you any Gold jewelry, not to worry, come and check out Emas Sri Pinang’s KunciGunungEmas which is an innovative way of buying Gold jewelry through small One Gram Gold payments at your convenience. You can grow your mountain of Gold for your children!

 

Gulam, Emas Sri Pinang Sdn Bhd

Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

 

 

ESP Gold Chat                                                                       Aug 17, 2013

 

 

 

Has Gold Price Bottomed?

 

 

Gold price has been on a steady up trend last three weeks. There has been some dips in prices along the way but the trend has been up.

 

In fact, international gold price hit a two month high of US$1375/oz last night. It is a matter of time the local prices in Malaysia will start moving up further.

 

After the sharp drop in April and further consolidation, it seems we may have seen the worst of Gold price downtrend. Analysts will tell you that “trend is your friend”.

 

If the price trend looks upward, do not ignore it. I believe it is going to be a rough ride. The US economic data is patchy, sometimes positive and sometimes not so good. Europe still in recession. The US Federal Reserve’s meeting on September 17 and its signals will be important to watch out for. So, its not going to be straight up all the way for the Gold price. There will be some surprises along the way.

 

Meanwhile, let me stress again, if you are a long term investor with a one to two year outlook, what you see now in Gold price might very well be a bottom and better to start accumulating Gold now. Also check out our innovative Kunci Gunung Emas payment program for Gold!

 

Gulam, Emas Sri Pinang Sdn Bhd

 

Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

 

 

ESP Gold Chat July 21, 2013

 

 

ESP Gold Chat                                                                                   Aug 2, 2013

 

 

 

Gold Price and Malaysian Ringgit

 

Although in US Dollar terms the Gold price has been going sideways down last ten days, the Gold Price in Ringgit actually has been steady or in fact has moved up early this week.

 

This is because of the steep drop in Malaysian Ringgit value over the last one week versus the US Dollar. The global credit rating agency Fitch changed its outlook for Malaysia to “Negative” this Tuesday and this caused many investors to panic and sell Ringgit and Malaysian shares.

 

Fitch has outlined that Malaysian deficit is growing, government debt increasing while government revenue is not keeping pace. Increasing debt while revenue not keeping pace is always a problem to anyone and this applies to a country also. When this happens, one of the first impact is your currency value, it goes down relative to countries with a stronger balance sheet.

 

So, the moral of the story is, (no, its not about spending within your means) that Gold is a nice hedge to protect your wealth. Holding all your wealth in cash may not be a wise decision in the medium and long term. Some say, “well, I will buy properties”. Not bad but do not forget that the property you buy in Malaysia will also be sold back in local currency and any property price increase will have to cover not only interest cost of borrowing but also the depreciation of the currency value.

 

If you are planning for a nice overseas holiday, paying for your child’s overseas education or simply shop for foreign made goods in the near future, you might want to consider some savings in Gold so that even if prices go up in Ringgit the value of Gold in Ringgit would have provided some hedge.

 

I will also like to wish all our Muslim brothers and sisters a healthy, happy Hari Raya on behalf of Emas Sri Pinang. May your Golden wishes come true!

 

Gulam, Emas Sri Pinang Sdn Bhd

 

Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

 ESP Gold Chat July 21,2013

Should You Invest In Gold?

First, you need to understand what investment means and why you are investing in anything.
Some investments offer stable incomes, some provide a fall back during good and bad times while others simply give you good returns (you get back more than what you invested as principal and this is more than enough to offset inflation). Some of us simply invest in something because they are afraid they will spend the cash if they keep it as cash, just like me.
Gold may offer some of the above benefits. It does not pay you interest or dividend but over the last few decades and in the long term, it has provided stability in value by overcoming inflation. In fact, it has been said that the stability of Gold’s value is such that One Dinar Islamic Gold Coin (4.44 grams of pure Gold) was enough to pay for a Goat during Prophet Mohamed’s time and you can still buy a Goat today for the same One Dinar Gold Coin because Gold price has kept up with the fall in paper currency value. That same Goat (assuming it stays alive that long) will cost much higher in local currency now. In other words, the Purchasing Power of Gold is rather predictable over time.
So what do you want out of your investment? Think about it and make a decision.
Fund Managers who support Gold as an investment, often cite 2 to 10% as the value of Gold you need to keep versus your total investments. In other words, if your total investments is about RM100,000 including properties then you should consider anywhere between RM2000 to RM10,000 to be invested in Gold. Some of those who are bullish and strongly believe in Gold such as myself will have a much higher share.

 

 

Gulam, Emas Sri Pinang Sdn Bhd
Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

ESP Gold Chat July 14, 2013


GOLD IS GREAT?


Many great empires have risen and fallen during human history because of Gold. Even today, almost all central banks including Bank Negara Malaysia hold Gold as a federal reserve. What is so GREAT about Gold? Why don’t central banks hold Iron, Lead, Diamond, Mercury or even Silver?
The fact that Gold cannot be made by humans limits its supply and availability and hence it derives its precious value. Unlike Diamonds which can be synthesized by humans using current technology, Gold is an element that is truly made in the heavens.
All elements in the periodic table up to Iron is made at the core of Stars such as our Sun. The pressure and temperature at the core of our Sun is so great that lighter elements get compressed into heavier elements and finally end up as Iron. What about elements heavier than Iron such as Gold?
Well, you need a Star to explode. Even our Sun when it ends its life in about 4 billion years will not explode. However, only Stars bigger than our Sun (about 1.4 times the size of our Sun) will explode (called a Supernovae) as the Star collapses onto its own immense gravity. The Supernovae is so great that temperatures and pressures at the core of the exploding Star are beyond our comprehension and this causes Iron to fuse into heavier elements such as Gold. Although in small amounts, this Gold manufactured at the core of exploding Stars is then spewed into our Universe and some ended up in our planet Earth as it formed billions of years ago.
What a wonder! Now we know why Gold Glitters just like the Stars. Its unique properties such as its color, not reacting with most other elements, chemicals or even strong acids makes it even more precious. Its physical properties such as Malleability despite its density and durability makes it ideal for Jewelry.
Go for Gold. Next time you hold a piece of Gold in your hand, just reflect for a while that this unique element actually came from a Star that exploded billions of years ago somewhere in the Universe and now you are holding it or even owning it!

 

 

Gulam, Emas Sri Pinang Sdn Bhd
Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

 

ESP Gold Chat July 7, 2013

 

WHY IS GOLD PRICE FALLING?

 
Welcome to our first ESP Gold Chat. This is a short update on important Gold related events for our customers and fans of Emas Sri Pinang. Referring to the Disclaimer below, this opinion piece is not meant to help you speculate or provide guidance on what you should do, this is my opinion shared for everyone’s discussion.

So many people have asked me why is Gold price falling and why so rapidly? Well, the short answer to that is that the US economy (the world’s largest) is perceived to be back on track albeit slow economic growth. Other economic risks such as the European debt crisis seems to be under control, at least for now.

Being the largest economy, US serves to be a key driver of global growth including the Malaysian economy. With the injuries of 2008 financial crisis being slowly cured through time, the US dollar and its key economic indicators are looking up. So what has Gold got to do with it?

A lot, global funds are now back buying into US dollar, US equities and other interest or dividend bearing assets. Economists will tell you that Gold does not pay interest or dividend although I believe it does since it keeps up with inflation over the longer period.

Where is Gold Price heading? My opinion, short term still looks more to the downside as more positive economic news from global economies emerge including the possibility of US Federal Reserve reducing its bond buying program (in other words, printing more paper money).
However, long term (more than 2 years), where is all the paper money printed and being printed now going to go? What is Europe going to do to reduce its huge debt? More money printing. Gold price will have to move up in the long term to keep up with the falling value of paper money. That’s my call anyway. Good luck and JaminanBerzaman.

 

Gulam, Emas Sri Pinang Sdn Bhd
Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.

 

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