Saturday, October 31, 2009

Gold investment, anyone?

My unit trust agent once told me, " if you have enough money, you can always try to invest in gold, buying the gold coins or gold bullions depends on how much money you have."

According to him, investors generally buy gold as a hedge against any economic, or currency-based crises. These crises include investment market declines, currency failure and even inflation. I guess the wisdom left by our Chinese ancestors should be considered as they always keep their asset in buying gold and pass on to generations.

As the market is fluctuating recently, a lot of people has opted for gold investment. It doesn't mean gold price will always stable, it is driven by supply and demand too.

However, including Gold in a portfolio of stocks, bonds and cash can substantially help offset market fluctuations and reduce the volatility of one’s own portfolio. So, be it gold coin or gold bullion, one can consider gold investment as a method diversification in one's portfolio. I am still on the way saving for the investment, hopefully I will join the crowd one day soon! How about you?


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