any gold/commodity expert here?

[No use for a Name]

i'm quite sucky in commodities..
received this as a qn

Gold rose 14.3% to US$1.624 an ounce in the first nine months of the year. However, XAU, a widely followed index of gold mining stocks, ended September with a loss of 18.4%, a far worse perfromance than metallic gold and even worse than 10% loss for the S&P index.

what are the reasons for the discrepancies above? Also the outlook for he price of gold in the first six months of 2015???

anyone able to help a lost student here?

i apologise if it's deemed inappropriate here.

 

[alexchia01]

i'm quite sucky in commodities..
received this as a qn

Gold rose 14.3% to US$1.624 an ounce in the first nine months of the year. However, XAU, a widely followed index of gold mining stocks, ended September with a loss of 18.4%, a far worse perfromance than metallic gold and even worse than 10% loss for the S&P index.

what are the reasons for the discrepancies above? Also the outlook for he price of gold in the first six months of 2015???

anyone able to help a lost student here?

i apologise if it's deemed inappropriate here.

Gold and Gold Mining Companies are 2 different entity.

Gold price goes up, does not equal to Gold Mining Stocks go up.

Gold is just a precious metal, nothing more.

Gold Mining Companies have all the problems relate to any company, high cost in mining and sometime poor management issues.

You can't collate them together.

S&P have even less relation with Gold.

Nobody knows how gold is going to perform in the next 6 months. All I can share is that Gold price seems to have found a good support, there is a good chance that gold would rise from here. I already start buying some Gold and I think it's quite safe for others to buy too.

Remember, Gold is just an insurance against inflation. Like all insurance, you want to buy a little. Don't put all your savings into Gold, unless you plan to start a Gold Jewelry Shop.

 

[No use for a Name]

Gold and Gold Mining Companies are 2 different entity.

Gold price goes up, does not equal to Gold Mining Stocks go up.

Gold is just a precious metal, nothing more.

Gold Mining Companies have all the problems relate to any company, high cost in mining and sometime poor management issues.

You can't collate them together.

S&P have even less relation with Gold.

Nobody knows how gold is going to perform in the next 6 months. All I can share is that Gold price seems to have found a good support, there is a good chance that gold would rise from here. I already start buying some Gold and I think it's quite safe for others to buy too.

Remember, Gold is just an insurance against inflation. Like all insurance, you want to buy a little. Don't put all your savings into Gold, unless you plan to start a Gold Jewelry Shop.

for the outlook part, wont increase interest rate for fed & usd strengthen, wont result in bearish situation?

 

[alexchia01]

for the outlook part, wont increase interest rate for fed & usd strengthen, wont result in bearish situation?

Normally, I don't predict what is going to happen when FEB increases interest rate, if they ever increase rate.

All I do is trade what the market tells me.

One thing for sure is that there will definitely be a reaction when the increase is announced. In the short-term after the announcement, market is likely to go down, but for how long and how much depends on the sentiment of that time.

 

[boompipi]

Do u all buy physical gold bars, coins?

 

[alexchia01]

Do u all buy physical gold bars, coins?

Depends on your preference, bars and coins are equally good.

Although, bars are slightly cheaper than coins.

 

[Dividends Moderator]

In the market, investors traded cash for gold when they the value of money is affected by economy, its an insurance. Other than that, traders trade gold commodity just to generate profits and nothing else

 

[Shiny Things]

Do u all buy physical gold bars, coins?

None of the above. If you're really hellbent on buying gold, the smart way is to buy the GLD ETF (it's listed on the NYSE) instead of buying actual lumps of actual stuff that you then have to keep somewhere.

 

[bakuten]

None of the above. If you're really hellbent on buying gold, the smart way is to buy the GLD ETF (it's listed on the NYSE) instead of buying actual lumps of actual stuff that you then have to keep somewhere.

I beg to differ. That's the dumbest way to own gold if you are owning it as an insurance. ETFs are for speculation/investment and most definitely not as an insurance.

The whole MF Global fiasco has showed exactly why.

 

[bakuten]

for the outlook part, wont increase interest rate for fed & usd strengthen, wont result in bearish situation?

I still maintaim my view that.

The fed failed to raise interest rates after QE1/QE2...my guess is QE3 will be the same and QE4 is not far from the horizon.

 

[alexchia01]

If you want to trade Gold then Buy Gold ETF or Gold Futures.

If you want to keep Gold as an insurance then Buy Physical Gold.

There is no right or wrong, just what is your objective?

 

[boompipi]

If you want to trade Gold then Buy Gold ETF or Gold Futures.

If you want to keep Gold as an insurance then Buy Physical Gold.

There is no right or wrong, just what is your objective?

I assume I will be looking at the long term as insurance. Maybe instead of buying handbags for my wife, maybe Gold will be a better alternative for her to keep as investment.

We can cash out as a supplement to our retirement fund 20-30 years down the road or when price is good.