is investing in shares as easy as...

[marco]

I agree. But gold will increase in price. Watch this space.

 

[wizdumb]

found an interesting link on moneyweb, its called 101: For beginners seems like a pretty good place to start learning

 

[milomak]

Gold has always been the hedge against falling markets. When the markets go south then gold goes up as people switch to gold as a safe haven.
I lost 35% before I switched to GLD. If I had stayed with my equities I would have lost another 15%.
But having switched I gained 27%. So I can add 27+15= 42%. This is my "theoretical gain".
Gold has tested $1000 twice and has a new benchmark at $900+. The consenses is gold to reach $1200 this year, so it is not too late to take this gamble as it is $930+- at this time.

not long before october last year consensus was for brent higher than $150.

gld has not been a hedge against falling markets. it may have been the case that it was a hedge against inflation when markets were falling.

in the time period you considered, what have other commodities like oil, copper, and platinum done. please also provide us with the dates you evaluated.

 

[Sly21C]

I just wonder, is it possible for someone to trade for a living? Is it possible for someone to use maybe his or he savings of about R100 000 and use that to trade and get an income from trading?

 

[DJ...]

I just wonder, is it possible for someone to trade for a living? Is it possible for someone to use maybe his or he savings of about R100 000 and use that to trade and get an income from trading?

Yes, but not with R100k...

 

[marco]

My dear Milomak, how do you invest in oil, copper and silver? You can't. Unless you invest in the Equity Co's that mine them. As we all know, Equities are all going south. No bottom to be seen yet.
You can invest in gold via ABSA as NewGold. ie GLD.
This is bullion and not in a mining co. that can drop like a stone even when gold price goes up.
China's plan did not affect the markets as thought, so gold went up. It is now following the Euro and not the dollar.

 

[marco]

Oh, dates. Last 4 months I have gained 22% with GLD as with today. Was more but dropped somewhat and is gaining again.
My only fear is that the $ might loose value.

 

[DJ...]

My dear Milomak, how do you invest in oil, copper and silver? You can't. Unless you invest in the Equity Co's that mine them.

You're kidding me, right? You do realise that you're just investing in a derivative and can do the exact same for any commodity? You don't own any gold, the derivative price tracks the price of the underlying asset, in your case being gold but in many other cases can and is oil, copper, silver, platinum etc...

 

[marco]

DJK, unlike other derivatives, I have direct exposure to gold and can trade it as any other share on the JSE.

 

[marco]

Those others you mentioned YOU CANNOT.

 

[marco]

SLY, you can do active trading if you know the markets. Day trading is the only way to make money(apart from gold). If my missus would let me, I would do it. This is actually detrimental to the growth of the markets as when the market goes down the DAY TRADERS shove money IN. Normally the next day it goes up and the DAY TRADERS sell off their profits that same day. They do this over and over making 3 to 5% per day.

 

[DJ...]

DJK, unlike other derivatives, I have direct exposure to gold and can trade it as any other share on the JSE.

Those others you mentioned YOU CANNOT.

1 - that's BS

2 - you're trading a gold derivative - simple as that.

Not sure what you're trying to argue now...

 

[marco]

So what. I have direct exposure to physical gold. I can trade it as I want. This is bullion and belongs to me.

 

[PeterCH]

I just wonder, is it possible for someone to trade for a living? Is it possible for someone to use maybe his or he savings of about R100 000 and use that to trade and get an income from trading?

Yes. Japanese housewives often made more with the Yen carry trade than their husbands - they made a lot of money. When they pulled out last year and returned to the Yen - currencies like the AU dollar plummeted and the Yen went up. It was forex trading via a PC.

 

[marco]

Gold ETFs allow you to make a physical investment in the metal without ever having to make room for it in your safe. The most well-known gold ETF in SA is NewGold, which has been developed by Absa. Each NewGold "share" represents 1/100th of one fine troy ounce of gold. You can buy NewGold like other JSE share.

 

[DJ...]

So what. I have direct exposure to physical gold. I can trade it as I want. This is bullion and belongs to me.

Gold ETFs allow you to make a physical investment in the metal without ever having to make room for it in your safe. The most well-known gold ETF in SA is NewGold, which has been developed by Absa. Each NewGold "share" represents 1/100th of one fine troy ounce of gold. You can buy NewGold like other JSE share.

An ETF is an exchange traded fund. As an investor you create the capital but you as an individual do not take ownership of the gold at all - that bullion does not belong to you as you are investing in a Newgold debenture - essentially, you are a creditor to Newgold who secure your investment via an investment in gold, which directly exposes you to the gold price without holding actual rights to the gold.

For someone who invests, you evidently don't know a great deal about what you're investing in. It's like stating that investing in the fixed income market entitles one to the assets of the bond issuer - well this is slightly true depending on the 'events of default' clause in the prospectus as creditors are high up on the list in the event of bankruptcy, however you will not take ownership of the gold. Nobody on the settlement side is physically authorising a piece of gold now be chopped off and labelled with your name - you are merely exposing yourself to the gold price in a fairly secure fashion...

 

[Sly21C]

Yes, but not with R100k...

With how much then? R 1 million?

SLY, you can do active trading if you know the markets. Day trading is the only way to make money(apart from gold). If my missus would let me, I would do it. This is actually detrimental to the growth of the markets as when the market goes down the DAY TRADERS shove money IN. Normally the next day it goes up and the DAY TRADERS sell off their profits that same day. They do this over and over making 3 to 5% per day.

Since I don't like my job at all, I think I will be a full time online share trader in a year's time, a year's time because I need to save so I can trade and I need to educate myself about the market. Last week I wasn't busy at work and I decided to trade when I wasn't busy and I made 3% for the whole of last week, not bad for someone who doesn't know a lot about the market.

Yes. Japanese housewives often made more with the Yen carry trade than their husbands - they made a lot of money. When they pulled out last year and returned to the Yen - currencies like the AU dollar plummeted and the Yen went up. It was forex trading via a PC.

And I remember watching an an episode on CNN two years ago before this reccesion about young chinese people quiting the jobs, putting all their savings into the stock market and becoming full time day traders and becoming millionaires in a year.

 

[Sly21C]

SLY, you can do active trading if you know the markets. Day trading is the only way to make money(apart from gold). If my missus would let me, I would do it. This is actually detrimental to the growth of the markets as when the market goes down the DAY TRADERS shove money IN. Normally the next day it goes up and the DAY TRADERS sell off their profits that same day. They do this over and over making 3 to 5% per day.

Madonna once said that "Poor is the man whose pleasures depend on the permission of another." I'm just saying.....

 

[DJ...]

With how much then? R 1 million?

It's dependant on your experience and skill so there really is no set rule of thumb. In excess of R1m if you're planning to make a living from it straight away and it's also dependant on how you invest and what you're investing in...

 

[marco]

DJK, it does not matter. I still have exposure to gold price. ABSA will not go bankrupt and duck with my shares. Also I think it is time to sell GLD. Buy again when it has bottomed. I have made a good profit.