Thread: 30K Investment
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Old 11-01-2013, 01:45 PM   #24
GamerSg
Junior Member
 
Join Date: Jul 2005
Posts: 22
Oki, for the record, these are today's gold prices in SGD
We return in 1 yr or so and see how much gold costs then, whatever gains made would be profit, losses = tuition fees... fair?

Gold and Silver Prices
Source: UOB Precious Metals
United Overseas Bank Limited . Far Eastern Bank Limited
Rates as at 11 January 2013
Description Currency Unit Bank Sells* Bank Buys
CAST BARS SGD 1 KILOBAR 66082.00 65842.00
GOLD CERTIFICATE SGD 1 KILOCERT 66082.00 65882.00
GOLD SAVINGS A/C SGD 1 GM 66.08 65.88
GOLD BULLION COINS SGD
KILOCOIN (GNC) 66511.00 66206.00
SGD 1 OZ 2138.00 2068.00
SILVER PASSBOOK ACCOUNT SGD 1 OZ 37.98 37.33
Please do not take this as investment advice to invest in gold. Im just stating that gold reflects true inflation. If you think inflation will continue at the same rate as in the past 12 years, gold will be a good form of protecting your purchasing power. I see gold as a vehicle to save, not investment. Someone who bought gold in 2000 did not make 400% return to me, he merely preserved his wealth.

I cannot predict what MAS will do this year or tomorrow.
Maybe it will do the "right thing" and stop printing and inflation maybe go to 0%, or maybe it will jump down the cliff with Abe and friends.

But the M1 and gold price are clear that in the past 12 years, SGD has had a net inflation of 400%. Also note that there are years where MAS kept the money supply relatively constant. Your actual experienced price rise in food may be around 200%-300% due to mitigation by increased food production/efficiency. Property OTOH may have increased more than money supply due to government policy of allowing large influx of foreign labour and restrained housing supply.
I use gold/silver as a barometer because its supply is relatively fixed in the world, unlike housing where more can always be built or food which is consumable and can be affected by weather, increased production.

I don't know what DBU is either

Last edited by GamerSg; 11-01-2013 at 02:10 PM..
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