Pendapat saya, jika ada duit lebih, beli emas. Tapi paling elok pada ketika harga nya menurun sedikit atau ketika berlaku 'correction'. Atau jika ada orang nak jual emas pada kita dengan harga di bawah 'market value', sambar je...
Don't invest everything on gold, say economists
KUALA LUMPUR: Don't put all your eggs in one basket and spend your money wisely, say economists when commenting on whether money should be used to buy gold for investment as prices have been escalating recently.
The price of gold has skyrocketed to RM190 per gramme from RM142 per gramme about a year ago.
Following the drop in the US dollar, consumers are displaying greater confidence in gold which is considered the best investment in view of the US debt crisis.
However, economists say despite its rising cost, gold remains an investment liability.
They cautioned investors not to place all their money in gold, although it may now seem like a sure bet as the price will eventually drop. Instead, the advice is to use the money on properties, food, oil and gas stocks.
Rating Agency Malaysia Berhad's (RAM) group chief economist Dr Yeah Kim Leng said the price of gold is rising because of falling US currency, and it is only natural that people turn to gold as a "safe haven" in such a scenario.
"In times of trouble, gold is always seen as a refuge for investors. It is only natural that people would seek gold and buy it as a substitute for the falling US dollar. While the price of gold may rise further, it is expected to dive when the dollar begins to picks up."
Yeah said the increase in gold prices is due to uncertainty in the market and should not be viewed as a continuous or permanent situation.
"It is better for people to buy oil and gas stocks or assets instead of gold," he said.
Bank Islam Malaysia Berhad's (BIMB) chief economist Azrul Azwa Ahmad Tajudin also warned that what goes up must come down.
"In times like this, investors will buy gold when currencies are down as a means to 'shield' themselves.
"It is common for gold prices to go up during times of an economic slowdown but it is really advisable to invest your money in stocks such as in oil and gas, and food and properties. This is because the market for gold is not fixed and therefore once the currency issue is resolved, we are bound to see a drop in gold prices later on."
Azrul Azwa said even though it is not wrong for investors to buy gold at this time, it would be much wiser if they use it for other things.
"Diversify your portfolio as you don't necessarily have to fix your target on just gold when you can buy other commodities."
Asian Strategy & Leadership Institute (ASLI) director and National Economic Action Council's (NEAC) globalisation committee member Tan Sri Dr Ramon Navaratnam advised potential investors to look to properties instead of gold as it would not give long-term financial returns.
"Do not put all your eggs in one basket. Diversify and look to other assets when looking to invest, such as properties, food or oil and gas. If you only purchase gold, that would be risky."
Ramon said this pertains to all forms of gold, be it Australian nuggets, Emas Kijang, Dinar of even the Canadian Maple Leaf.
"Gold is gold, it does not matter which kind or type, it still gold," he said.
In the US, gold prices pushed to new heights last Tuesday as investors digested the possible consequences of the lowered US credit rating and Europe's debt crisis on a slowing global economy.
Investors view gold as a safer bet amid rising worries about debt levels of the major economies and uncertain stock markets. The value of gold, unlike that of a currency, doesn't hinge on whether countries can make their bond payments, or on the vigour of their economies.
The metal's price has more than doubled since the recession began in late 2007, and its climb accelerated this summer.
Gold is more than a currency substitute or an investment for scared traders desperate to latch onto an asset that is not losing value. It is also a material used in industrial products and by consumers who will now have to pay more for engagement rings, gold crowns for their teeth and perhaps even electronics.
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