Gold price fear near three-year lows of $1,312 an ounce

On Thursday , gold price trend move to near 3 years low at USD 1,312 an ounce . Fundamental effect from surge of US dollars directly to all major commodity prices. The dollar has pushed higher as the prospect of new Fed money has diminished in light of Bernanke's statement. The euro was down a further 0.5 per cent at $1.3217 Thursday while the dollar rose 1.3 per cent to 97.90 yen. The benchmark New York oil price was down $2 at $96.48 a barrel, while the gold price slid 4.6 per cent t, or a little over $61 to near three-year lows of $1,312 an ounce.

There is a risk we could see an even bigger sell-off if the $1,300 level is breached significantly, the time line for the Fed exit strategy is very much data dependent and based on a whole host of economic indicators between now and next summer, gold prices have slid sharply as the dollar goes sharply bid across the board.


For five years, the Fed has been pursuing an aggressive monetary policy to shore up the U.S. economy, which was battered by the financial crisis. Now that the U.S. economy has shown signs of improvement.

The dollar surge also effect negatively on stocks market all over the world. Stock market in Asia down, for Tokyo's Nikkei 225 down 1.7 per cent lower at 13,014.58 while Hong Kong's Hang Seng index tumbled 2.9 per cent to 20,382.87.  In Europe, the FTSE 100 index of leading British shares was down 2.2 per cent at 6,209 while Germany's DAX fell 2.3 per cent to 8,007. The CAC-40 in France was 2.2 per cent lower at 3,756

Using gold as safe heaven is at jeopardy right now . Gold price was reduce about 18.2 % from June 2012 to USD 1571 to USD 1285 per ounce today , Friday 21 , June 2013 . At this alarming rate , commercial gold investors were panicking. It will take a few months or a year to recover from this event . In April 2013 , gold trader surprise by sudden hiccup when gold price trend to below USD 1500 and now after 3 months , the price reduce to about USD 1300 per ounce .

Will gold losing it attractiveness for investor safe heaven ? Yes , it about time to be caution about gold . Losing 20% value of a year investment is too risky for safe heaven investment .

Will gold losing it attraction for retail buyer ? No . It will not . Lower gold price is major key for small stockist and trader . It is time to buy gold . One good thing about trading real physical gold is , there were alway buyer or seller in whatever trend the gold spot market go for direction.


In Malaysia, fear of losing for gold value already wide spread in investor forum and social chat board. Small trader , gold stockist and sell agent were busying to explain for what happening right now and support for gold long term investment.

Will gold price prevail itself as safe heaven ? Personally , i do think gold price will recover . What gold market need is time . But , investors will not wait another few years to just recover 20% loss . If aggressive action taken , many more investor will cut the loss and move on to other opportunity.


These event might be worrisome. It could trigger for worst closing price and bring gold price to lower pricing zone .

From other view , technically gold price chart was in constant bull market for years . With double top in yearly chart , it about time for bear market and correction.

Finally , can gold price reach USD 2000 per ounce as per hot investment news in 2012 ? I believe , it could be happening event right now. If gold loss it value USD 200 per ounce over slightly 2 months , it could increase in same manner .

Gold is gold for whatever flat money give it value. In old barter way, 1 gold tael is 1 teal tea leaf or a bucket of grain or 10 long yard of cotton.

Read More

Gold bullion and silver investment in Malaysia .

 Gold and silver as an  investment 

Using gold and silver as an investment were acceptable and norm ways to diversify your investment nest. You can invest on bullions, coins or jewellery made of gold or silver and waiting for right moment to sell it for profit . In Malaysia , gold was sell by local manufactures and distributor by introducing and producing their own brands .

There were many excellence goldsmiths and distributor for international recognize brand like PAMP Suisse. Gold coin and silver coin products were making into several types that applicable to Malaysia market.

Popular gold products. 

Primary type of gold popular in Malaysia was jewellery at 91.6% purity or 22K gold . Most gold shops sold and purchase this type of gold jewellery . The goods were sold base on their weight, design and craftmanship . The shop will charge base on current market price and extra charges for craftmanship. Secondly, gold bar and coins with purity 99.99% or 24K .

These product popular among gold investors and collectors. There were two major different of coin products that differentiate Malaysia gold market with others. . Their very own produce `Kijang Emas ` (Barking deer ) gold coins weighted either 1 oz, ½ oz and ¼ oz respectively. This product issue by Malaysia central bank and distributed by major local banks . Another product is gold `dinar` coin weighted by several size of 4.25g , 8.5g or 21.25g and 42.50g.

 Buying or selling Spread . 

All gold shop are having their own selling or buying spread . Their business plan was simple. Higher spread value and they are making profit. When your are selling or resale of gold, the shop try to buying at lowers possible price, make a new jewellery from that gold and sell it at higher rate. Most gold shop have worst gold price spread between 12 - 15% of gold value . Gold bullion offer much more better spread rate between 5% -9%. Several bullion manufacturer's publish their rate following world spot market and offer an hourly updated price.

 Investment opportunity's

Gold products purchases were tax free investment. No tax apply for selling or buying gold in Malaysia and also no tax for export or import of gold products. There is requirement for export permit and Malaysia central bank approval. Gold was considered as precious metal that can be use as collateral for obtaining private loan. The typically pawn brokering service give your gold appraisal value and give money up to maximum of 60% value of your gold at market price. Using pawn brokering service will give you option to inquired more gold . You only need to invest 40% cash to buying more bullion. It is continue into several tiers . It is advisory to repeat the process up to 3 times or less. The last gold bullion is key to unlock your investment . An increased in gold price will give effect directly to your total assets values less all loan taken and payments. What will happen if the price is decreasing ? There several new option can be done. 

Firstly , typical pawn broking periods can be extended for 6 months or more . This will give your extra time for price movements and trends changes. 

Secondly, buying more gold when prices were at downtrend. You can a get lower average price per gram from total gold that you own . When the trend change , it is possible to sold it with profit. Buy back policy and customer trust. Gold bullion business were monopoly by several local Malaysia gold manufacturer like PG gold and CGPC gold. 

Several others small minor manufacturers which selling under their own brands. Gold can easily traded by buy , sell or exchange . For example your are having 5 units of 1gram gold bullion. When someone interested in 5 grams bullion you can sell all 1 grams bullion in exchange of 5gram . All manufacturer have this buyback policy to increase sale , flexible and encourage people to make saving in form gold bullion. It is also function as trust and confident for the manufacturable able purchase back their sold gold as needed . Trading gold bullion in Malaysia was still at new stage . 

Using internet and social networking to discuss , review and advertisement , online gold trading was a very successful and comparative business . Many stockist buy or sell almost the same brand name . The only advantages that the stockists had were differential gold stock in weight and stockist location. As a gold stockist , they were making profit in tier sale commission and gold exchange scheme as a gram is a gram of gold . I.e. 5 items 1 gram for 1 item of 5 gram of gold . There many more future development and facilities like safe deposit rental and delivery service for valuable metals or exchange center for gold could be increase the people knowledge and start to invest in gold .

Read More

How to trade gold in Thailand commodity market.

How to trade gold in Thailand commodity market. 

Gold trading was one of the most lucrative businesses in the world. Every single minute's gold was a trade on the spot market and bulk gold market scene, what we call a physical gold market.

A major gold bullion distribution and the trading house which doing their part in UK London Metal Exchange, US CME and Europe Swiss Credit Suisse Gold.

Apart from using gold as financial portfolios for country economics, mega company investment schemes like Goldman & Sach, what drive the world market gold consumption?

Use of gold in industry and manufacturing. Many of this company have lock and order gold for next two years. All the main metals use in industries were purchase in the form of future nature.

It is the people who appreciate gold who drive gold market consumption. As i say market consumption, not gold price. The daily gold spot price effect by speculator and brokers for small commissions.

Gold in Thailand commodity market

People all over the world, using gold in jewelry and gold artifact or gold bullion. The purpose of gaining the yellow metal was an investment, personal appreciation and tradition like a wedding ceremony.

Western gold jewelry standard start with 14K to 18K purity and most Asia country use gold as much as 22K to 23K gold purity in their jewelry. The differential in gold preference standard makes Thailand using their gold design, color, purity, and weight.

Thai gold has more beautiful yellow color, beautiful design jewelry that i think made ages to produce, the textured surface, gold flake alike leave. They even have money tree look a like from gold and the important `bath` weight for gold . 1 bath equivalent to almost 1/2 troy ounces or 15.24g.

Using this requirement, Thailand Future Exchange (TFEX) have a future investment product base on gold market that drives Thailand gold trading. It was to meet local demand and appreciation for gold. Thai people have been buying gold for ages. Pass from grandmother to granddaughter; gold was seen as saving and sense of security.

There two type of the main products. First, ten bath gold delivery in the spot or up to nearest future three months. Second 50 bath gold delivery which at a larger quantity. Both products is having 23K or 96.5% gold purity.

Thai gold does deliver in the commodity market.

Their price is affected by world spot market price and controlled by TFEX regulations. What makes it is a major different from spot gold markets like CME gold future is that there is physical gold delivery upon completed purchase contract. The contract for spot ten bath gold contract can be concluded in 4 days. You are expecting to get real gold in weight about 152.4 g.

Secondly, the market can be reached easily by people. There were about 20 or more selling agent or big gold shop with a reputation that approve by TFEC to make the trade. Normal trading house register with TFEC can provide selling and buying gold commodity process as per normal broker. The gold market maker or selling gold shop are providing many other services as well. They clearly can do as below,

1. Buying or sell gold at daily spot price

2. Future spot gold order, i,e, short selling

3. Opening accounts for online and telephone booking

4. Received deposit of gold order, not regulated. Normally 10% - 15% of total contract value.

5. Delivery and  Collection of gold

6. Keep safe, or vault services.

There several operating gold wholesaler that doing business at higher professional level. Gold shop like MTS , Hua Seng Heng , YLG, Classic Gold Group .

Now how can you sell the Thai bath gold or short selling? Put it away so much easier; you make a call to the gold shop where you buy or any approve TFEC broker house, get the market selling price and got the order number. If the contract concluded, you have to deliver the gold to their office before 12 pm next day. The business will be completed within four days, and you will have your money in the cheque or deposit into account by Thailand clearing house. There are always commission charges apply.

There are other ways to safe guard your gold. You can option for the gold shop to keep your gold in their vault. They will issue a gold certificate for your gold item saving. This is same as paper gold saving in ETF gold scheme, but a big different is your can walk to the gold shop and demand your gold anytime.

In reality, Thai people do not scare to show their wealth. Gold is put on a show for family status and wealth. Most Asia country uses gold as the measurement of status, hobby, and prospecting to have good wife or husband.

For the most Muslim country, using gold and silver are appreciated for substitute currency. There was once an idea to made everyone use the same currency . I think that day will come in long future and i hope to save enough gold for my future generation. Not for wealth but the reminder of the great color of gold, if gold is depleted one day. Try yourself to trade gold in Thailand commodity market and watch the investment grow if you doing done correctly. 

Read More