Why Gold will Rally

This article is extracted from BullionStar, a Singapore gold and silver bullion company where you can buy gold and silver at competitive prices.

The collapse in gold price from a high of USD$ 1,900 per ounce in August 2011 down to USD$ 1,340 has led many investors to wonder whether gold will continue its downward spiral.

One of the most powerful price indicators is the net positions by professionals who hedge gold. These hedgers are not those speculators or traders in the commodity market, but rather, most of them are legitimate hedgers who are owners of mining companies. They use options and futures contracts to hedge their position, to ensure a positive fiat-margin on the mining.

If they don’t hedge, it is usually an indication that the market will turn bullish because these hedgers hope to profit from a rise in the price of the commodity. Conversely, if there is an increase in the net short position, it would be an indicator of a bear market looming.

Currently, the hedgers are the least net short in a dozen of years. This means that they have not been so bullish on gold since it was priced at USD$ 300 per troy ounce. If you choose to follow these insiders, now would be the time to buy gold.
Most wealth builders buy physical gold to diversify risks in their portfolio. They understand the importance of balancing return with risk and hence, buy bullion to mitigate the potential correction in the stock market or wild fluctuations in the currency exchanges.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Magically yours,

SG Wealth Builder

Read more

Build a New Investing Brain

Since young, I always thought that there must be a scientific approach towards investing. I don’t believe that intelligence play a part when it comes to investing because I have seen many smart professionals lost their hard earned money in the stock markets. I have also seen not-so-educated friends making huge piles of money from their investments. So the perennial question: is investing a form of art or science?
While we cannot change the external environment, we can certainly control our own thoughts and actions. Many people mistakenly thought that the market is our greatest enemy. Actually they are wrong. The greatest enemy is yourself. Your decisions, thought processes, actions and personal experiences shape your investment destiny. To truly succeed in investing, we must know our own self and do self-assessments. Otherwise, it will be very hard to change the way you think in order to change the way you invest.

As an investment advisor to high net worth individuals, Wai-Yee Chen has spent years watching her clients make investment decisions—some good decisions and some not-so-good decisions. Though confronted by the same market variables, those clients often make very different choices with very different results. Here, Chen argues that it’s usually not the data that affects investor decision-making as much as the way investors themselves think. In NeuroInvesting, Chen argues that investors can change the way they think in order to change the way they invest. She presents four elements that affect investor decision-making and reveals how investors can rewire their brains to make better investing decisions for better returns.

  • Uses neuroscience to explain how successful investors think different
  • Written by an experienced investment advisor who works at one of Australia’s premier retail brokers
  • Explains investing using real-world stories about investors from an advisor’s perspective

When it comes to

Read more

BullionStar Singapore: Strong Buy Signal on Gold

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Crisis? What crisis? One could be forgiven for thinking that the plunge in gold price during the second quarter of 2013 could spell the end of one of the longest bull-run for the world’s gold markets. But apparently this was not the really the case, at least not for physical gold. According to the May 2013 press release from The World Gold Council (WGC), demand for bullions and jewellery, which makes up of 72% of global demand, has seen a surge following the mid-April price fall. This has left many retailers in China and India running out of stocks and refineries having to introduce waiting lists for buyers. On the other hand, gold-backed ETFs have seen outflows of 350 tonnes out of a total of 2700 tonnes held, from January to end of April.

The divergence in behaviours reflects the dichotomous nature of investment in gold, with consumers who prefer bullions and jewellery behaving very differently from investors of paper gold. This phenomenon indicates that even if there is an outflow of investments from the paper gold market, there will be always be a ready market among Indian and Chinese consumers. This is because the global appetite for gold is driven by Asian consumers, who remained confident in the long term prospects for gold. Indeed the profile of physical gold investors differs from paper gold investor. The former usually views gold as a safe long term investment for hedging against systemic bank failures and for decreasing portfolio performance volatility. The latter consists of investors who dabble in paper gold and are usually traders or speculators holding short term investment horizons with a view to trade gold for quick returns.

Read more

Biosensors reported poor Q1 FY2014 results

Biosensors total product revenue for the quarter ended 30 June 2013 decreased by 6% to US$65.0 million from US$69.0 million recorded in the previous year’s corresponding quarter.
Total interventional cardiology revenues decreased by 7% to US$60.9 million in the quarter ended 30 June 2013 from the US$65.7 million reported in the previous year’s corresponding quarter due to a drop in the Group’s drug-eluting stents (“DES”) sales mainly as a result of the Group’s efforts in reducing distributor channel inventories in China in anticipation of China new tenders pricing taking effect.

Biosensors continues to see strong, double~djgit sales growth in EMEA and Asia Pacific regions. Sales of critical care products remained constant at US$3.4 million in the quarter ended 30 June 2013, compared to US$3,3 million in the previous year’s corresponding quarter.

Total revenue, including licensing and royalty revenue, for the quarter decreased 11% to US$76.6 million from US$86.3 million in the previous year’s corresponding quarter. The table below shows the Group’s revenue and the principal components of the revenue, as a percentage of total revenue, for the periods indicated:

stock market

Cost of sales and gross profit:
Overall gross margin for products was 75% for the quarter ended 30 June 2013, compared to 81% for the previous year’s corresponding quarter. Gross margin reduction was attributable mainly to our distribution activities in Japan for the Nobori stents, coupled with the consolidation of the Group’s newly~acquired Cardiac Diagnostic Business, which has a lower gross profit margin.

Operating expenses:
The Group’s total operating expenses for the first quarter were US$41.9 million compared to US$39.5 million for the first quarter in the previous year, an increase of 6% over the prior year’s corresponding quarter.

  1. Sales and marketing expenses
    Sales and marketing expenses increased 19% to US$26.6 million for the quarter ended 30 June 2013 compared to
Read more

K1 Ventures Declared Dividends of $0.02

K1 Ventures shareholders’ funds increased from $338.7 million at 30 June 2012 to $349.9 million at 30 June 2013. The increase was attributable to profit for the year of $54.6 million offset in part by dividends paid to shareholders of $32.5 million and other comprehensive expense of $10.9 million.
The profit for the year ended 30 June 2013 was primarily attributable to a net profit of $19.3 million from the sale of the Group’s investment in McMoRan Exploration Co. (“MMR”) and $27.7 million of investment income from Knowledge Universe Holdings LLC (“KUH”). The other comprehensive expense for current year was mainly attributable to the sale of MMR as the value was realized and transferred to profit & loss.
Stock investing
K1 Ventures total assets of $638.1 million at 30 June 2013 increased by $10.6 million compared to the previous year end driven by cash distributions received from investments including the sale of MMR, partially offset by dividends paid to shareholders. The increase in fixed assets resulted from the purchase of rail
equipment and locomotive upgrades at Helm. The decrease in investments mainly arose from the sale of MMR. The decrease in stocks was mainly due to the disposal of held for sale six-axle locomotives.Group total liabilities of $256.1 million at 30 June 2013 were $1.5 million lower than the previous year end. The increase in provision for taxation includes $10.4 million attributable to the sale of MMR during the current year. This includes a reversal of $6.2 million deferred tax liability recorded at the prior year end.REVIEW OF GROUP PERFORMANCE

K1 Ventures’ revenue of $168.0 million for the year ended 30 June 2013 was $89.3 million above the prior year driven by $55.6 million from the sale of the Group’s investment in MMR and an increase in investment income of $18.9

Read more

Billionaire Kwek claimed that home prices may slip 5%

Over the last two weekends, my wife and myself visited private condominium showrooms of D’Nest, Urban Vista and Q Bay. We were not planning to purchase our second property at the moment but is visiting the showrooms just to have actual sensing of the market. Even though there has been much media coverage on the state of private home in Singapore in recent years, we feel that “seeing is believing”. It is more important to have actual sensing of the market because that will provide better picture of the market dynamics.
Well, according to an article in PropertyGuru, Executive Chairman of City Developments Limited (CDL), Mr Kwek Leng Beng forecasted that private home prices in Singapore are expected to drop by up to five percent due to an oversupply of residential properties from 2014 onwards. He went on to state that private home prices would likely drop by five percent from now until 2014 if all the cooling measures implemented by the government remain in place. He urged the government to lift some of its cooling measures, such as the two year “qualifying certificate”for developers. With these qualifying certificates, it will be suicidal to keep buying land at high prices just because we want a land bank,” Kwek said.
SG Wealth Builder

To put things into perspective, the current housing situation is not truly due to demand and supply dynamics. The private home market has witnessed huge gains in prices in recent years because of the hot money flowing from foreign countries such as United States and China as a result of loose monetary expansion. Cash rich investors poured in funds to pump up prices of local private homes. Therefore no matter what policies that are going to be or have been implemented by government, they will have limited effectiveness to cool the

Read more

Record Bankruptcy for US City, Detroit

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. 

On 19th July 2013, Detroit became the largest city in United States history to file for bankruptcy protection after piling up debt of more than USD$18 billion. For more than a decade, the city has been borrowing money to pay for its expenses and fund its expensive pension system. Apparently, the breaking point came about after Detroit failed to reach agreements with the bondholders and creditors to restructure the city’s debt out of court.

People who are familiar with The Federal Reserve’s money creation process would not be surprised by Detroit’s bankruptcy. Since President Nixon decoupled the link between gold and the U.S dollar in 1971, it effectively ended any form of gold peg internationally. Without any convertibility to gold by any currency, governments all over the world are free to create as much fiat money as they wish without any restriction. As a result, debt levels began to climb. At this point of writing, U.S debt alone amounts to more than USD100 trillion.

The dire consequence of our current debt-based system is that it could get out of control, resulting in hyperinflation and social security problems. Today, Detroit faces the tricky problem of obtaining bailout from the Federal government because of its credit rating junk status. Unemployment and crime rates in the city are high. Creditors are expected to wrangle with the pensioners for the city diminished wealth. Henceforth, BullionStar believes that in such a scenario, there could be complete loss of personal wealth, unless that wealth is held in gold.

Read more

The Myths about Gold Bullion

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Despite the surge in financial risks during the Great Recession, gold bullion continues to be absent in most institutional and individual investment portfolios. Global pension funds and insurance companies with trillions of dollars’ worth of assets continue to overlook gold as a form of sustainable wealth protection insurance. Many individuals have also misunderstood gold and ignored the substantial benefits of owning gold. All these misconceptions are due to the prevailing myths about gold bullion ownership.

One of the top myths is that gold is a bad investment compared to equities. This myth seems to have its roots in the 1979-1980 rally when gold reached $850 per ounce. Those who had bought gold during this peak cycle would have to wait for about twenty-eight long years in order to break even. However, those who bought gold on 15 August 1971, when President Nixon cut the link between gold and the dollar, would have a different story to tell. Gold was priced at $38.90 per ounce and those who purchased at that time would have enjoyed a gain of about 5000 percent, surpassing Dow Jones gain of about 1500 for the same period. So the moral of the story is, if you buy any form of investment at a cyclical peak, you will have to wait a long time to break even.
When we talk about gold, it is important to differentiate between paper gold and physical gold. Paper gold refers to Exchange Traded Funds (ETFs), gold shares or options and futures. These products are better suited for speculators or traders seeking fast returns. There are risks involved for paper gold, such as counterpart risk. Physical gold refers to bullion –
Read more

Shape your child’s financial destiny

As a wealth builder, I considered it my duty to help shaping my child’s financial destiny. A few days ago, I bought an endowment plan after much financial planning with my wife. The policy was purchased under my name but eventually when it matures twenty years down the road, we plan to use the money for our daughter’s university fees.
We thought that since I am the sole breadwinner, the policy should insure me, so that in case if anything happened to me, the policy can still sustain and provides for my daughter’s education fees.
Beyond this saving plan, I hope that my daughter will grow up cultivating a good saving habit and develop prudent personal finance skills. This is important, especially so in an expensive city like Singapore. To this end, my wife and myself think that parents have a critical role in shaping their child’s financial destiny.

Lead by example
Contrary to what many parents thought, toddlers by as early as 14 months, are masters at reading social cues. This means that children often observe and take the cues from parents’ life habits. If your financial situation is consistently in a bad shape, you are not going to convince your child when you try to educate him/her on financial prudence. Always remember to walk the talk and lead by example. If you want to inculcate good saving habit in your child, make sure that you practiced it as well. Reduce your debts and closely monitor your expenses. You will be surprised that over time, you child will pick up these good habits even if you didn’t tell him/her.

Right values
Occasionally, point out to your child the difference between needs and wants. If your child can appreciate the difference, he/she will be able to appreciate the value of

Read more

Powered by WishList Member - Membership Software