By now, any self-respecting wealth builder would have known that gold price has fallen to its lowest levels since September 2010. The precious metal has dived more than 20 per cent this year and is probably on course to its greatest annual slump since 1981. The market trend looks frightening to many investors, and even renowned commodities big player such as Jim Rogers (who is based in Singapore) has been steering clear of gold.
In light of the current situation, readers may think that many Singaporeans are having cold feet and giving the yellow metal the cold shoulder right now. But they may be wrong. According to The Straits Times article on 22 June 2013, goldsmiths and jewellery shops are having a brisk business selling jewelleries as the price tumbles to record low. In fact, according to the article, Ho Bee Goldsmith and Jewellery business manager Jessica Chia, the company has seen a rise of 30-40 per cent increase in sales from March to June this year compared to last year.
The key reason for the plunge in gold prices may be due to the impending slowing down of US Federal Reserve’s money-printing programme, commonly known as “Quantitative Easing”. Investors, especially small players, should view it as a window of opportunity to buy bullion at reasonable prices, rather than avoid investing in the precious metal.
Magically yours,
SG Wealth Builder