Sunday, August 21, 2011

Defaulting CPF 10: CPF says gold is purely speculative investment

With the relentless rise of gold price, Singaporean have seen Sing dollar plunge to another record low, with S$2257 against 1 ounce of gold, on last Friday trading. Sing dollar has lost against gold, 25.5% and 14.5% of its value since the beginning of the year and start of August respectively. The current Sing dollar debasement is going to persist and we can say bye bye to our savings.

A little more than one year ago, I wrote an email to CPF suggesting that we should be allowed to keep our savings in physical bullion. Below is the reply I received.

The explanation of CPF is really absurd, by describing gold as a "purely speculative investment". Gold is money since 5000 years ago. The price movement of gold is not due to changes in value of gold per se, but rather, gold acts as a thermometer telling the whole world that PAP is printing monies. Gold is allocated investment limit of 10%. The other riskier asset class -- stock gets 35% and property gets 100% shows that PAP hates gold to the core.

In addition, CPF does not really allow us to put 10% of our savings in gold, but rather GLD ETF or UOB gold account. These are the most fraudulent gold investment vehicle. (I have positions in GLD using CPF and will get out of it when I sense things go wrong)

GLD and UOB are not fully allocated. They are merely fraudulent vehicles to prolong the fiat currency by channelling investment into themselves instead of physical bullion, so as to suppress bullion prices.

Gold is the ultimate protector of wealth that our government wants to deprive us. Without savings in gold, we cannot prevent stealth confiscation of wealth by PAP's money printing. And PAP is hell bent on robbing our wealth.

1 comment:

Anonymous said...

Highly agree that gold is money since long long time ago and gold is still money today and future.

The way Singapore Government look down on gold is good for gold bug like me.

This prevented the mass get into this niche market and stir up unnecessary bubble. If you are smart and long term looking, you will know what to do even with the obstruction by the government.

Just look into 2 Giant ASIA governments and how they encourage their citizen to accumulate gold. Both of them are well known to be fond of gold since ancient times, and their economic fundamentals and booming middle class working population will support the gold market.

Join me accumulating this shiny metal and we will be laughing all the way to bank real soon. (in 2013)