I own paper silver (UOB silver account). Wished I had bought more.
The paper and unrealised return for silver so far beats the dividend yield plays that I bought around the same time.
Silver is 50% industrial use and 50% greater fool.
Guess what? Over the last weeks, I've been itching to buy a 100% greater fool block that just sits there.
Why?
While all these bailouts and easing by the Central Banks around the world are helping to put a floor and reflate my equities holdings (I not complaining), but all these money printing will come home to roost one day...
Just visit our neighbouring countries with all the zeros on their bills. It's easy to be a "paper" millionaire!
Another was the realisation that I need to own some physical precious metals. Physical silver would take up too much space. Gold is better.
When there's a crisis, and I need to flee out of Singapore like the South Vietnamese boat people in 1979, maybe some physical gold would come in handy to pay for my passage. I don't think the boat owners accepted paper money. Nor would I believe the banks will remain open just for me. Can kiss my paper silver and cash savings goodbye!
No, I not converting most of my asset to physical gold. Just enough to make me sleep better knowing that I can afford the plan B boat or air-ticket. Put the gold under my pillow like my ang pows when we were young?
I know, I am irrational! Singapore safe like Switzerland. But that's what scientists and government also tell the Japanese public on nuclear energy...
And my fingers were itching during the last few weeks when gold retracted to below USD 1600.
But the 7% GST for physical gold will only be waived this October in Singapore...
Thank goodness the bond markets are signalling bond investors are more afraid of a deflationary environment. If not how to explain why investors are OK with getting negative yields (US 10 year treasury)?
Hence I am betting that gold would not rise beyond USD 1700 by Oct this year.
Or so I hope.
If I take gold at USD 1600 today, plus 7% GST is around USD 1700.
This could turn out to be eggs on my face as a great example of penny wise pound foolish.
Imagine if gold would to zoom back to USD1900 end of this year.
LOL!
All this to save 7%...
Well, everything is a bet or speculation to me :)
Singapore Man of Leisure (welcome to my blog; just google it!)
