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Review of my investment in Gold
27 Dec 2022 (183 views)  

1. The following chart shows the gold price for the past 10 years. It was trading around $1,300 USD for several years up to mid 2019.It jumped by 50% to trade above $2,000 by mid 2020. It corrected to a low of $1,620 by mid 2022 and has since increased to $1,800. 

2. Some analyst expected gold to increase in 2023 by 50%, perhaps to reach $2,700 or higher. The reasons are:

a) A recession in the US may cause interest rate to fall, and a rush to an alternative gold. 
b) The central banks around the world increased their purchase of gold significantly during 2022.

Quote

Global central banks own about one-fifth of all the gold ever mined, with reserves topping 35,500 metric tons (MT). They acquired the vast majority in the last decade, when they became net buyers of the metal.

Central banks purchase gold for a number of reasons: to mitigate risk, to hedge against inflation and to promote economic stability. In a mid-2022 survey, the World Gold Council (WGC) said that 61 percent of the central bankers it polled expect global gold reserves to increase over the next 12 months. Nearly three-quarters of respondents cited the precious metal’s “long-term store of value” as a guiding factor in gold purchases.

Central banks are expected to continue as net gold buyers in 2022. Twenty-five percent of the WGC's survey respondents indicated plans to grow their gold reserves, up from 21 percent last year. And for the second year in a row, no respondents indicated that their institution is planning to decrease its gold holdings.

3.  I have $94,000 USD invested in Gold ETF (GLD) and a Barrick Gold (GOLD). It now shows a loss of $,500. I bought these stocks two years ago. At the worse point, I saw a loss of $30,000. It has reduced, with the recent recovery in the gold price. 

4. I intend to invest another $100,000 USD in these assets. 

Tan Kin Lian

Note - I am giving a personal view. This is not "investment advice".



Review of my investment in Gold
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1. The following chart shows the gold price for the past 10 years. It was trading around $1,300 USD for several years up to mid 2019.It jumped by 50% to trade above $2,000 by mid 2020. It corrected to a low of $1,620 by mid 2022 and has since increased to $1,800. 

2. Some analyst expected gold to increase in 2023 by 50%, perhaps to reach $2,700 or higher. The reasons are:

a) A recession in the US may cause interest rate to fall, and a rush to an alternative gold. 
b) The central banks around the world increased their purchase of gold significantly during 2022.

Quote

Global central banks own about one-fifth of all the gold ever mined, with reserves topping 35,500 metric tons (MT). They acquired the vast majority in the last decade, when they became net buyers of the metal.

Central banks purchase gold for a number of reasons: to mitigate risk, to hedge against inflation and to promote economic stability. In a mid-2022 survey, the World Gold Council (WGC) said that 61 percent of the central bankers it polled expect global gold reserves to increase over the next 12 months. Nearly three-quarters of respondents cited the precious metal’s “long-term store of value” as a guiding factor in gold purchases.

Central banks are expected to continue as net gold buyers in 2022. Twenty-five percent of the WGC's survey respondents indicated plans to grow their gold reserves, up from 21 percent last year. And for the second year in a row, no respondents indicated that their institution is planning to decrease its gold holdings.

3.  I have $94,000 USD invested in Gold ETF (GLD) and a Barrick Gold (GOLD). It now shows a loss of $,500. I bought these stocks two years ago. At the worse point, I saw a loss of $30,000. It has reduced, with the recent recovery in the gold price. 

4. I intend to invest another $100,000 USD in these assets. 

Tan Kin Lian

Note - I am giving a personal view. This is not "investment advice".