Gold

Early this week, I talked about how there is lack of investment opportunities for people like us to invest in. You can read it here.

Yesterday, I had a conversation on this with my friend. She told me to start buying gold, as jewellery – bangles, necklaces, earrings etc. It didn’t occur to me to buy gold although I know that gold appreciates in value over the long run. Plus, gold is considered as one of the save haven assets for equity investors, as it is negatively correlated with equities especially during most bear markets, and on long-term average and it yields positive returns during crisis such as the 2007-2008 subprime crisis and 2001 tech bubble. See the charts below (extracted from BCA Academy Research which I received last November).

I guess sometimes, traditional and simple investment still wins. Plus, every woman loves jewelleries, some may prefer diamond over gold. But for the price that I’m going to pay, I might as well buy something that appreciates in value and boost my investment returns.

Now the question is, how much should I set aside for this for a start?