Gold and Silver and the China Factor

[wemakebread]

And there is more ...

Gold price dip on profit taking (Dec 09)
http://www.masteryourfinance.com/forum/ ... php?t=1057

Jim Rogers "quite sure" that Gold will hit $2000 (Oct 09)
http://www.masteryourfinance.com/forum/ ... .php?t=997

Why I bought Gold & Silver (Apr 08)
http://www.masteryourfinance.com/forum/ ... .php?t=919


This is meant to give a more holistic view & compare the analysis on Gold/Silver across the years.


Other useful resource:
1. Live Gold price http://goldprice.org/live-gold-price.html
2. Gold price history http://goldprice.org/gold-price-history.html
3. Silver price history http://silverprice.org/silver-price-history.html

[Dennis Ng]

Thank you Dennis for your comments.
I am aware of the risk of 25 % but if I hold the gold for 3x6 months I have recovered from the risk and can hold on for a nice passive income.
If I understand you right you think that the company might not stick to their promise to buy back the Gold at the formerly fixed price but just close shop?Is there any safeguard against this in your opinion? Other then not doing the deal?
Thanks for your patience

Hi r8n2,
if and should Gold prices drop drastically, the company can just walk away and investors are left holding on to the Gold. Even if prices do not move, you lose at least 25%, if prices drop, you would of course lose more.

What does the company do that enable them to pay you 18% per year return by selling you gold at 25% higher price? If the company cannot explain this well, then you need to question whether their business model is sustainable or not.

There are many ways to get Passive Income. For instance, I bought Suntec REIT at S$1.10. Suntec REIT earns rental income from Suntec and pays about 12 cents dividends per year (over 10% yield), and the market value REIT is S$1.85....and is rental income from Suntec sustainable? I think so.

My business also generates passive income for me, and I know my business is sustainable as well.

So, why should I put money into something (this Gold thingy) that I have doubt about the sustainability of the Business Model?

Of course, if they can explain how they can pay 18% returns to investors per year on a sustainable basis, then I might change my mind. In the meantime, I remain skeptical.

I read in the papers that Sunshine Empire used to promise to pay 24% returns for people who invest with them. Many people "invested" money with the company.....in the end it turns out to be a scam.....

[r8n2]

Thank you will go through the info and come back if required
very helpful