Wait and see for gold

Just wanted to echo and expand further what Tun M said at Invest Malaysia on Tuesday about investing, specifically (also highlighted in my yesterday’s post):

  • Money saved must be invested in good assets that will appreciate in value such as gold, land, buildings [Tun M]

  • With the decreasing purchasing power today, your savings will dwindle faster if it isn’t invested [Tun M]

This is also ties back to what my MD said on his panel to the question of “where would you invest if you have $100,000 now” – “max out your ASB first, then EPF”.

Couldn’t agree more. That’s been our motto (my husband and I) and we are aiming to do for our son too. As for other additional assets to invest in, Tun M mentioned gold. I mentioned before about the benefits of investing in gold, you can read it here.

If you had invested in gold 6 months ago, you would have earned about 8% (the price went up from $1200 to $1300). See the chart below.

gold
Source: https://goldprice.org

But I don’t think the trend will be the same in the next 6 months. Gold is one of the safe-haven assets so investors will opt for gold if their risk appetite is low and they are jittery about the equity markets and fixed income to a certain extent. However, the current sentiment indicates that investors are upbeat and there could be a potential rally in 2nd half of 2019. But that was before Fed’s dovish announcement made yesterday which caused the Treasury’s yield to fall and followed by the stock market subsequently. Because of that gold spiked up to a high of $1316 yesterday.

So let’s see. I’m going to wait for gold to reverse back slightly before I start investing in it.

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