Recently I'm applying for a housing loan. This is my planning of 3rd house solely for investment. But loan application of $100K , with re-payment period of 30 years was rejected by the bank.
Why is this happen at first place ?? I know my income is good enough for a such loan, but after discussion with the bank officer , she tells me ...my monthly commitments is more than 60%, which banks treat as above loan limit. I feel sad ... but this makes me think ... there is no point of investing if your monthly loan commitment more than the limit ..... now , where should I focus ?? Keep on investing or reduce all my bad debt and than think of investing ?
Now have to plan how to reduce my monthly loan commitment, and than later plan on investment.
Sunday, March 27, 2011
999.9 Gold bar
Ok , as per plan I've bought the 50 gram 999.9 gold bar with a price of $7968. Re-sale my 20 gram bar for $3010. That's a handsome return of 20.6% in 1 year. Actually I bought the 20 gram gold bar last year February. Its only been year , not 2 years as per my previous post.
My precious holding the 50 gram precious bar ... :)
Now, lets wait the price appreciate again, hope it can reach $1500 dollar per-ounce as predicted. With the Japan disaster, most probably the price of the yellow metal will go up.
I still believe, invest in precious metal will some how won't let you down in long run .......
My precious holding the 50 gram precious bar ... :)
Now, lets wait the price appreciate again, hope it can reach $1500 dollar per-ounce as predicted. With the Japan disaster, most probably the price of the yellow metal will go up.
I still believe, invest in precious metal will some how won't let you down in long run .......
Monday, March 21, 2011
Gold Bar or Gold Saving Account ?
Lately, I’m focusing on Gold investment. As you can see, the price of gold has climbed dramatically from $85 a gram 2.5 years ago, till now $145 a gram. That's an appreciation of almost 70% in 2.5 years!
Wow... say you bought a gold of 100gram in 2008, the price will be somewhere Rm8500 give and take. You cash out now with a spread of 4% (Public GIA account), you can have an immediate cash of $13900 ... a gain of Rm5600 or a handsome return of ~ 60% in 2 years. That's a 30% return a year !
Can FD match that!? I' haven’t touch on the inflation part of the currency yet !
Actually I did open a Public GIA account in 2008 and buy 23 gram of gold with $85 a gram , but I partially sold ( 13gram ) of gold few months later and make a profit of $130 and sold another 8 gram when the price climb to $96. Another small profit of $85. In total I make a gain of ~12% in 4 months time. I still keep the 2 gram till now ….
I have heard about Public Gold selling 999.9 gold bar, with less spread somewhere in 2010. So, for just to give a try and of course excitement of holding a 20gram gold bar, I bought a unit for $2490. The current price of the bar ( minus the spread of 6.8 % ) is $3008 today !
Decided to bought another gold bar today for $3200 , but on the other hand , decided to buy a bigger qty. The next option I have is the 50gram bar. The selling price of this bar is at $7962 today pricing.
Now this is the trickier part …..
As I know, saving regularly on unit trust can help on dollar-cost-averaging, I thought if we practice the same technique in gold buying can actually lead me to something ….
Now lets do the math :-
20g – Buy price (2009) - $2490 – 1 gram is $124.50
20g – Selling price ( 2011) - $3008 – 1 gram is $150.40
Gain of $25.9 a gram or 20.8%
Option 1 :-
I buy another 20 gram of 999.9 bar
20g – Buy price ( 2011) - $3200 – 1 gram is $160
Thus my holding of gold is 40 gram now with average buying pricing of $ 142.25 / gram. The spread of 20g gold bar is ~ 7%. Thus, my yielded price of 40g gold is $152.21 / gram.
Option 2 :-
Resale the 20g bar for $3008 ( With gain of $518 )
Buy a 50 gram of 999.9 bar instead.
50g – Buy price ( 2011) - $7962 – 1 gram is $159.24
Thus my holding of gold is 50 gram now with average pricing of $ 148.88 / gram. The spread of 50g gold bar is ~ 6%. Thus, my yielded price of 50g gold is $157.81 / gram.
Option 3 :-
Resale the 20g bar for $3008 ( With gain of $518 )
Invest in Public GIA the whole lump sum including the capital for 50g bar.
Capital for 50g - $4954
Re-sale for 20g - $3008
Total - $7962
Current GIA account gold price is; Buying - $143.04 Selling - $137.51
Its going to give me 55.66 gram of gold. ( In numbers )
Pro of doing this
• Spread is less ~ 4%
• Save , no need to hold on physical gold
• Save , since Public bank is renowned bank in Malaysia
Con of doing this
• Cannot pawn the GIA saving book, you can do so with physical gold.
• Need to sell the units for immediate cash rolling.
Which option to choose ? mmmm …… Considering the spread of 6% for 50g bar, and the convenience of cash rolling and the current bull market for gold …… I think I will choose option 2 ….. What do you think ?
Wow... say you bought a gold of 100gram in 2008, the price will be somewhere Rm8500 give and take. You cash out now with a spread of 4% (Public GIA account), you can have an immediate cash of $13900 ... a gain of Rm5600 or a handsome return of ~ 60% in 2 years. That's a 30% return a year !
Can FD match that!? I' haven’t touch on the inflation part of the currency yet !
Actually I did open a Public GIA account in 2008 and buy 23 gram of gold with $85 a gram , but I partially sold ( 13gram ) of gold few months later and make a profit of $130 and sold another 8 gram when the price climb to $96. Another small profit of $85. In total I make a gain of ~12% in 4 months time. I still keep the 2 gram till now ….
I have heard about Public Gold selling 999.9 gold bar, with less spread somewhere in 2010. So, for just to give a try and of course excitement of holding a 20gram gold bar, I bought a unit for $2490. The current price of the bar ( minus the spread of 6.8 % ) is $3008 today !
Decided to bought another gold bar today for $3200 , but on the other hand , decided to buy a bigger qty. The next option I have is the 50gram bar. The selling price of this bar is at $7962 today pricing.
Now this is the trickier part …..
As I know, saving regularly on unit trust can help on dollar-cost-averaging, I thought if we practice the same technique in gold buying can actually lead me to something ….
Now lets do the math :-
20g – Buy price (2009) - $2490 – 1 gram is $124.50
20g – Selling price ( 2011) - $3008 – 1 gram is $150.40
Gain of $25.9 a gram or 20.8%
Option 1 :-
I buy another 20 gram of 999.9 bar
20g – Buy price ( 2011) - $3200 – 1 gram is $160
Thus my holding of gold is 40 gram now with average buying pricing of $ 142.25 / gram. The spread of 20g gold bar is ~ 7%. Thus, my yielded price of 40g gold is $152.21 / gram.
Option 2 :-
Resale the 20g bar for $3008 ( With gain of $518 )
Buy a 50 gram of 999.9 bar instead.
50g – Buy price ( 2011) - $7962 – 1 gram is $159.24
Thus my holding of gold is 50 gram now with average pricing of $ 148.88 / gram. The spread of 50g gold bar is ~ 6%. Thus, my yielded price of 50g gold is $157.81 / gram.
Option 3 :-
Resale the 20g bar for $3008 ( With gain of $518 )
Invest in Public GIA the whole lump sum including the capital for 50g bar.
Capital for 50g - $4954
Re-sale for 20g - $3008
Total - $7962
Current GIA account gold price is; Buying - $143.04 Selling - $137.51
Its going to give me 55.66 gram of gold. ( In numbers )
Pro of doing this
• Spread is less ~ 4%
• Save , no need to hold on physical gold
• Save , since Public bank is renowned bank in Malaysia
Con of doing this
• Cannot pawn the GIA saving book, you can do so with physical gold.
• Need to sell the units for immediate cash rolling.
Which option to choose ? mmmm …… Considering the spread of 6% for 50g bar, and the convenience of cash rolling and the current bull market for gold …… I think I will choose option 2 ….. What do you think ?
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