Friday, August 12, 2011

Protecting our wealth in the impending economics crisis 1

Since 1970, SGD has lost more than 94% against gold
As crisis looms, our ministers are urging people to save. see this and this. But right now, our negative interest rate is punishing savers and rewarding speculators. Besides, as US embarked on QE to infinity causing Sing dollar to be debased in real terms, we'd be fools if we park our monies in banks. Hence, a logical person will invest in precious metals, especially gold and silver.

Hoarding gold is the best to hedge against government's money printing. In Singapore, PAP will blame bad weather, demand of China..etc for food prices or other commodities hike. If we have a gold back Sing dollar, we can only see prices getting cheaper.

Where and how to buy gold
Physical gold bullion can be obtained from UOB with a hefty 7% GST. The best place in the world to buy physical is HK, for 0% GST. HK Bank of China is quite a reliable retailer. Buying coins incurs a higher premium but reduces the risk against counterfeiting.

Beware of GLD
GLD is the only gold ETF currently listed in SGX. GLD is never fully allocated and the fact that GLD's gold is being stored in the vault of HSBC is a strong indication of scam. HSBC is being speculated among the pundits to be one of the largest shorts in the gold future market.

Beware of UOB precious metal saving account
UOB PM saving account look extremely suspicious as with many similar PM accounts offered by other financial institution. First, there is no way to find out whether UOB's account is fully allocated. In the case of non-allocated account, you can be sure that once COMEX default, UOB is going to follow suite.

The days of hedging inflation by property are over
Over the years, corrupt PAP has collude with cronies jacking up property, and pushing ever more Singaporean to park their wealth there. Right now Singapore's property is over leverage, and worse, good collaterals are gone as salary get depressed.

And if we priced property in gold, it barely budges since 1970s, even though the population exploded more than 150%.
Property priced in SGD and priced in gold.
Year 1960 as 1 unit.
Since 1960, property has increased 25 times if priced in SGD, and 1.5 times if priced in gold.

1 comment:

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