In my last post on gold, I mentioned that gold might provide a good hedge to the dollar. I am using SPDR GOLD SHARES for this example. Gold are traded in USD. I will combine the USD/SGD and GLD/SGD so as to see whether is gold stills a good hedge. Instead of taking all individual values from both charts, I just take values from beginning of each year. Please note that the 2010 values are estimated values from OCT 09.
I multipled USD/SGD and GLD/USD values together to get GLD/SGD. You can see that gold price keeps going up from 2005 to 2009 Oct. Even though market crash from 2008 to 2009, the value of gold in term of SGD still go up. Isn't it a safe haven investment? From $70 to $140, is about 15% compound annually.
Click here if you are interesting in how to buy gold.
Update: GOLD VS SGD (20 Nov 09)
4 comments:
how to invest in gold?
Hi,
Thank for visiting my blog. You may view my blog link below:
http://lifelongfreedom.blogspot.com/2009/10/how-to-buy-gold-for-hedging-purposes.html
Regards
your blog is really useful to me because i just started working for 3 months. By only earning money from my salary, i think i should do something else...
Hi,
You may want to take reference from my cash flow framework as a start. And try to read more.
http://lifelongfreedom.blogspot.com/2009/11/my-cash-flow-framework.html
Regards
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