Although I am seriously thinking of buying more gold, I have not done so. After having done some calculations, my investments in gold did not make me good profits. This is because of the exchange rate loss. I bought gold in Jan 2010 at US$111. It is now US$134. Taking into account exchange rate loss(my home currency is S$), my total gains, based on 40 shares, is just $600, a 10% gain for 1 year of holding. Not exactly exciting returns.
Alexander Green, in his Investment U newsletter, also warned, "If you pile into the barbarous relic at these prices, you may get the same shellacking that Internet investors and real estate speculators got a few years ago." He also advised, "But if you own gold purely for speculative purposes, do yourself a favor. Take profits now."
Therefore, no more adding to my existing holding for now.
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