A Golden Opportunity for Gold

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

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.

Bullion

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.

When gold prices were trading at record prices of USD 1800 per ounce during 2011-2012, many retail investors were priced out of the game. Now that the price has dropped, investors need to ask themselves whether this is the comfortable level for them to enter the market. In a bullish market, it is difficult for you to adopt a “buy low and sell high” strategy. You stand a higher chance of making money from gold in the long run only if you take action and invest during gold crises now.

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Magically yours,

SG Wealth Builder

Updated: June 10, 2017 — 2:56 pm

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