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Discussion Groups
The discussion group by the research and education team is setup to provide a platform for experienced investors to impart and showcase their knowledge to their fellow peers. Current market situation as well as world financial markets outlook will be discussed during the start of the discussion. This will then be followed by individual presentation on one’s research and in depth reading.
The idea of such discussion is also to expose members to various “real life” individual techniques and also to allow one to speak of their own philosophy confidently. What is ultimately aimed to achieve in these discussions group meetings is to harness the knowledge of students, who may be private investors, and to educate the masses who are keen to be future investors themselves. Eventually, some of these students may become professionals in the finance industry themselves and certainly, there is no better time other than now for these zealous students to begin their investment careers.
Dates: 10 Sept and 29 Oct
Time: 530pm to 630pm
Conducted by: Toh Chin Sheng, Aditya, Joshua Tan as well as Research Sub-Committee members
Venue: Seminar Rooms (To be confirmed)
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Gold: To Invest Now or Not?
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Quick Survey
26 out of 30 IIC research members vote for ‘Not to Buy Gold Now'.
Download your discussion slides here.
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Pros: Buy Gold Now
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- Good store of value. Although its price may fluctuate, but with the current uncertainty in US economy, the price may result in upward trend. However, the gain from gold may be low.
- Credible thing to transact during crisis. Even though many people say that we are already in recovery stage, nevertheless, the crisis has not ended yet.
- US government keeps printing money at least for now. Thus, there is a probability of the lowering of US$ value. People (especially Americans) may then predict that investors will resort to use gold for investments and as a form of security against possible inflation (a hedge against inflation).
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Cons: Do Not Buy Gold
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- Fundamental Analysis (FA) doesn't apply, as it is a commodity, not company. Therefore, it is very difficult and inaccurate to predict the price of Gold using FA. Based on the comments (from various sources quoted during the presentation), there is a possibility of collapse.
- Not good investment for non-American. Gold is more relevant to US than anywhere else. Beside, there are many other alternatives for investment than can generate more return and allow us to predict better. For long term, it's better to invest in stocks, why do we have to wait for Gold price to exceed $2000 or $1500 barrier?
- Deleveraging process. Money giving out now may not compensate the money taken out before.
- Euro taking over US$, taking reserves away from US$.
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Things to Bear in Mind
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- Do not invest more than 10% in any portfolio. Diversify to reduce the risk of loss.
- It is actually better to buy Gold at the start of crisis then sell it during crisis. So just wait till the Gold price drop first near to its original level.
- Consider to invest gold in other currency, e.g.: AU$ (major currency for commodity) and Euro.
- Today, bonds and commodities may be going up. Look up the past, everything goes up and down together.
- Where are the bond yields? Go Up.
- Should technical analysis be used?
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