May 25, 2014

Price Alone Isn’t An Indicator to Successful Investment

By Aldric

“Aiyoh! Why the price falls? I scared!”

You are not alone. Each day we hear news of economic uncertainty. Of market busts and booms. In a newspaper – I read The Edge Weekly – you can find mixed messages. But many people move according to price.

Gold: Price Driven Mistake


One point of time, the price of gold saw an increase. Between 2004 and 2012, it went from a 384 low to a 1889.07 high! A 392.11% jump! A bandwagon was created in the midst of the economic slowdowns post 2008 Sub-Prime Mortgage & 2011 EU Financial Crisis. People needed money desperately. Hawks and vultures having gold suddenly played with the assumption that gold – being a valuable metal – will constantly increase in price. Many jumped onto the bandwagon. Gold investment companies began popping like mushrooms after the rain.

People pressed for financial relief saw this as an opportunity. They saw a light at the end of their tunnel of fear.

In Malaysia, the Federal Government began to hunt down the unlicensed gold investment companies – and scams. Why? People are loosing money all of the sudden. As if adding fuel to fire!

But here is the historical picture:


Based on the graph, you can clearly see that the price of gold has huge spikes and a lot of plummets. Each time, many speculators and uneducated investors burn their pocket. Today, many are paying the price: the loans they took out continue to be paid, but the gold company is long gone.

Yes, the price of gold in 1850 was $18.93. In 2011, the same weight it priced at $1,571.52 (Source). Notice that overall, the price of gold is relatively stable. Yes, it increases, but it goes up steadily.

Despite it’s value, the demand grows organically. Here I am referring to the organic and genuine demand. Demand where gold is used in industries or as an input. Did you know that gold is used in computer processors? With the demand for computers, there is a steady rise in the demand for gold – not merely as an accessory, but as a commodity? This article shows us where else this age-old precious metal are used in industry: The Many Uses of Gold.

Seeing gold as an accessory or ornament no doubts illustrates how much it may be priced. But is it really the value?

Evaluating Investments – Are You After the Fools’ Gold?

Fools’ Gold, or pyrite, is a common mineral which many thinks are gold. It looks like gold, but it’s without the same value. Because the masses cannot really distinguish between the two, scammers like to use the fools’ gold to lure in their victims.

If your aim is to build a sustainable future and to realise your dreams, fools’ gold isn’t for you. In fact, the surface isn’t enough to convince you. Whether it shines like gold, or its price jumps like gold, you wanting to be an educated investor, and eventually a sophisticated investor, would ensure you are a step ahead, and a knowledge deeper.

Earlier you read about “demand for gold”. When investing your money, investigate the demand for the services or products of the company. During the DotCom bubble, people were interested in the”hot stocks”. They were looking for something new – something exciting. But businesses don’t profit on stocks alone.

In the same manner, economies are not determined solely and completely by the currency rate or the stock exchange. There are more fundamental issues that must be explored. If you’re worried that this is getting more complicated, relax. Take a deep breath.

It is our duty, I believe, to educate our clients, prospects and investors. Effectively, my peers and I are paid to know these developments. We are trained and licenced to be able to read and disseminate the information, subject to specialist consultation.

Whether you are investing as an individual, or as a company, you must have a team with you. You may have two, three or four unit trust consultants. Why? Just as you are entitled to a second, third and fourth opinion when it comes to your physical health, you should act the same way for your financial health.

Do You Have a Team?

In my case, I have 24/7 access to and meet weekly:

  • Two chartered public accountants – one specialising in individuals and insurances, and another handles the accounts of small and medium enterprises;
  • One sophisticated trader/businessman to make sure my recommendations and opinions makes sense;
  • Three lawyers who I meet weekly to advise me on not just financial products, but also legal developments and property investments;
  • I am guided and monitored by my Agency Manager, a Certified Financial Planner, who is meticulous in studies, observation and recommendation.

And this is just the advisory side. I understand my clients, investors and prospects may not have such a resource. You are more than welcomed to meet my team – they are ready to give professional and impartial specialist advice directly to you.

At the end of the day, your investments should give you regular income. Personally, you would be more alert and knowledgeable about investments as a whole.

So remember, price alone is never a guarantee. Don’t speculate your future away. Don’t gamble your money out because of not knowing. Have a foundation – and meeting me is commitment free.

Get in touch with me today at