Lets discuss Physical Gold!

[Firmament1987]

Hi all, i'm trying to consolidate all the understanding on gold(for myself and for others) into one thread on the first 2 post since i just started i realized that the questions i asked was generally the same as what others asked just that well the info are available.. all over the forum or net.. heeh.

 

[Firmament1987]

FAQ on Gold(if i have a wrong info on something please let me know) i'm still learning just bought physical gold yesterday and started to look at it only 3 days ago

1) Where to buy physical gold, regulated and safe
UOB, GSC
Bullionstar, Silverbullion
Bank of china(account creation needed therefore no link to post)

2) Where to sell Gold
If you buy from UOB, you can sell it to back to UOB, note UOB same for BOC, do note however if you buy from UOB or BOC keep receipt and seal intact, if missing receipt they will charge a premium, if seal broken they don't buy back

For other avenues(to be updated when i find out)

3) PAMP Gold, Suisse Gold, Bullion Coin, Pamp gold with hook, which should i buy?
Best textbook answer is choose the lowest premium as possible..
1oz is still 1oz gold...
-Contributed by micromousez

4) what is PAMP Gold and all these weird names?
PAMP is the name of the company and it stands for Produits Artistiques Métaux Précieux.. GNC is referring to Gold Nugget Coins from Australia.. And if you don't know, PAMP mint gold bars... Look at the LBMA list of good delivery bars for the list of gold bars from which mint are recognized..
-Contributed by makav31i

5) Physical gold vs Electronic gold
Advantage
1) Substantial and emotional security for some at least you won't kana like global _____ where the fund run and you get nothing update me on the name pls
2) Can be used in times of real crisis, paper gold can't
3) lower risk compared to electronic gold

Disadvantage
1) Higher Spread(what is spread?) its the difference between buying and selling price
2) inconvenience(need to go down to "shop" to buy)
3) due to the spread, it may be longer term
-contributed.. can't remember read alot of sources and alot of places

6)Gold savers account what are they?
Gold savers accounts are a form of trading account where you can buy and sell electronic gold online the main advantage and disadvantage is the simple reverse as above however these are additional

For Gold Savings Account: An annual administrative fee (in grams of gold) as low as 0.12 gram per month or 0.25% per annum. on the highest balance per month, whichever is higher. The fee is subject to GST, which will be deducted from your account in grams of gold.

An administrative charge of S$30 for the closure of the account within six months. The fee is subject to GST.

what does that mean? Assuming gold prices does not change from now(at 1950SGD) and you buy 3 ounce of gold, your account maintenance per year will be 99.05SGD so in a year your per gold need to make additional $33 to cover your account maintenance which is quite abit esp if you do it long term

So who is suitable for this account?
If you enjoy the convenience and do not need emotional security and wish to have a higher spread and importantly you gold a good amount of gold you can consider doing a gold savers account.

At the moment i only have info on UOB gold savers understand BOC also have gold savers account but don't have time to search it yet, when i got time i will update it with a comparison of the 2 accounts.
-went to UOB to check it out

7) what to take note when you buy gold?
If you buy from regulated companies or UOB, BOC generally i think you don't have to worry so much unless you don't trust them as well you can take the gold for identifying, however note that there is a charge and once opened from seal they do not buy back

8) What affects the movement of gold prices?
To be updated when i have more confirmed info

 

[Firmament1987]

Ok... from what i understand what affects gold prices...this may not be right its just from my understand and as said i started only 3 days ago. gurus pls help! i will update in the list of FAQs where possible

Things that causes Gold prices to climb
1) Stronger USD, this i realized i nv thought about it until i chanced upon it, as gold is traded in USD, a stronger then SGD currency means we have to pay more, if you buy when gold is low and USD is weaker then when gold climbs and USD is stronger its a double earn! although i'm reading something called a dollar index and still understanding it

2) Feds printing $ i'm personally properly confused by thisas fed prints $ the dollar value drops, therefore theoretically people go to gold for protection, however as they print $ there is quick $ therefore people jump in stocks... although the PNG image says that there is a disconnection in reality what i fully means i'm still finding out. but i know feds printing does affect how so researching

3) war breaking out i would like to ask guru why when war breakout or uncertainty in economy will oil drop? tot oil, gold, silver, copper and other commodity should rise when there is uncertainty? i mean.. oil for instance is like limited supply and by right if uncertainty pple should run to commodity for protection ma?

4) Economy downturn

5) others?

Things that causes Gold prices to drop
1) A stronger USD contridicary to what i mentioned in above 1) a stronger USD index will cause people to dump gold and buy USD

2) in theory of what i read, the rising of dollar Index

3) all the opp of the above

4) others?

 

[Profee]

I am no guru but just like to share my opinion.
Although gold copper oil fall under commodity, you shouldn't see them as the same as their demand vary.
People buy gold to store wealth and hedge against inflation or currency uncertainty. Gold don't give you yield and in fact it's negative yield as you gotta pay for the storage and insurance fees. So you can only earn $ from gold through speculation of price.
Copper and oil are mainly demand by industry so their prices usually reflect the health of the industry sector or economy. Same as gold, they are affected by supply and demand but they cost more to store as they are bulky. Not really a good investment instrument.
Since gold copper and oil demand vary, eventually they won't be heading the same direction all the time. You should take note of US dollar and Japanese Yen are safe haven. When there is uncertainty, investors will consider US treasury 1st then Yen and gold if there's currency uncertainty.
Just my 2 cents =)