The gold contract for December delivery climbed to $1,004.70 on the Comex division of the New York Mercantile Exchange, according to Bloomberg. Gold for immediate delivery also breached the $1,000 mark, climbing to $1,002.73 an ounce.
The metal, which has gained 14pc so far this year and is on course for its ninth straight year of gains, is often bought by investors as hedge against the threat of inflation as well as a weaker dollar.
Gold futures reached a record $1,033.90 an ounce in March last year as the world grappled with the economic fallout from the global banking crisis.
"The reasons to own gold as an investment case make sense," Greg Gibbs, a strategist at the Royal Bank of Scotland, told Bloomberg. "It is a hedge against policy makers losing control of fiscal and quantitative monetary policies."
The latest figures show that investors are buying more gold. 222.4 tons of bullion were snapped up in the second quarter, 46pc higher than the same period in 2008, according to the World Gold Council.
Saturday, September 12, 2009
Thursday, September 10, 2009
"Capital Protected"
On 9th September 2009, Monetary Authority of Singapore(MAS) banned the use of the phrase "capital protected" for structured investment. It is a good move, and Malaysia should do the same because many investors are confused between "capital protected" and "capital guaranteed". In Capital protected, the investment is not necessary protected in the sense that investor may not get back 100% of their investment at maturity, whereas in "capital guaranteed", investors will at least get back 100% of initial investment at maturity.
Thursday, September 3, 2009
How to be Good with Your Money
How to be Good with Money
by Susannah Hickling February 2009
Most of us probably resolve to be more sensible with money in these times. We're going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don't need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get you from profligate to prudent this year - while still enjoying life.
• Find out if your books balance. Get out all your bank statements and work out how much you've earned - include benefits and interest on savings - and how much you've spent over the past year.
• Bank online and check your balance twice a week. This will give you a clear idea of what's going in and coming out.
• Junk useless direct debits. Don't just go on paying for that life cover you don't need.
• Build up a rainy-day fund. Set up a monthly direct debit to put money aside in a high-interest account.
• Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours - to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.
• Buy now, pay at once. If you can't afford something one month, wait until the next.
• Use your credit card sparingly. Pull out the plastic when you absolutely have to have that half-price dress in the sales. But always pay it off before it incurs any interest.
• Always shop around when contracts - like your internet and mobile phone service provider - come up for renewal. Don't forget to ring your existing provider to see if it can offer you something better.
• Buy treats with reward points schemes. Use all those points you've accumulated on your various cards to give yourself a treat. Spoil yourself - after all, you deserve it.
Source: Reader Digest
Monday, August 24, 2009
Retirement
It is general true that many Malaysians are ill prepared financially for retirement. As reported by EPF,within 3 years of withdrawal upon retirement their funds are exhausted. Basically, when these Seniors were younger they did not have the opportunity to be exposed to financial planning, unlike nowadays we have many financial planners as well as plenty of financial information and products. However, it is better to start somewhere for the Seniors.
Read the following..
Malaysians less confident about preparing for retirement
By LAALITHA HUNT
LOTS of working adults are paralysed when it comes to planning for retirement. Most people will delay this as long as they can, possibly due to their lack of knowledge about financial matters.
Generally, the more knowledgeable an individual, the more confident he is in taking control of his financial destiny, which usually is about securing a comfortable retirement.
A recent study by the non-profit Employee Benefit Research Institute in the United States found that only 13% of Americans said they were confident of a comfortable retirement – drastically reduced from 27% in 2007.
Figures in Malaysia show a similar sentiment. The AXA Life Outlook Index findings for 2009 indicate that Malaysians’ satisfaction with their preparation for retirement has dropped. In 2007, 23% were confident about their retirement years, but this has since dipped to 14%.
While many working Malaysians are reasonably financially literate, certain groups are less so and therefore less confident in managing their finances. This is a worry considering that the elderly make up an increasingly large proportion of our society.
Demographic and socio-economic forecasting provider Global Demographics Ltd forecasts senior citizens (those 50 years and above) to increase from 15% to 25% of the total Malaysian population over the next 20 years.
As the Malaysian population ages and retirement looms for many, the issue of financial literacy in a retirement planning context has become particularly salient.
Abacus for Money chief executive officer Carol Yip says that there is no single product or solution available to guarantee one’s comfortable retirement.
She notes that the main asset likely to be available to most working Malaysians upon their retirement is their Employees Provident Fund contribution.
Other assets may include property, shares, unit trusts, term deposits, inheritance, insurance, government pension as well as emerging private pension funds.
Yip asserts that individuals must increase their level of financial literacy so that they can go cherry-picking from the wide array of products available in order to ensure a comfortable retirement.
Besides the usual means of consulting financial planners and reading financial magazines to improve financial literacy, Yip calls upon employers to provide training to their staff in order to empower them with financial knowledge to plan their future.
Yip also encourages retirees who are in the early stage of retirement to equip themselves with financial knowledge in order to wisely invest their money so as to protect it from inflation as well as to provide recurring income over the medium term.
The senior citizen population of 50 and above in Malaysia as well as regionally is said to be rapidly expanding into a large, affluent market.
MasterCard Asia Pacific, in a study, estimates that the spending power of the retired population in Malaysia to exceed US$10bil (RM35bil) by 2015 – more than double the figure from 10 years before.
Madam Chong (not her real name), 56, who recently retired but is still an active investor with a moderate risk profile, was looking to diversify her portfolio.
The ideal product that she is looking for is one that can offer recurring income with double-digit returns annually, monthly or quarterly. It should also be capital-guaranteed as well as easy to liquidate with no penalties over five to ten years.
“I was prepared to consider regional investments with a slightly higher risk,” she says.
After looking around, she discovers that there are no such products that meet all her criteria except for two that offer returns between 6% and 7% per annum, but require high deposits of RM250,000.
“There are a couple of insurance companies that offer returns of about 4% annually with smaller deposits,” Chong says.
Given the current economic uncertainty and the absence of investment products specifically catering for retirees, Chong reiterates the need for retirees to be financially savvy instead of just depending on advice from third parties to manage their wealth.
Read the following..
Malaysians less confident about preparing for retirement
By LAALITHA HUNT
LOTS of working adults are paralysed when it comes to planning for retirement. Most people will delay this as long as they can, possibly due to their lack of knowledge about financial matters.
Generally, the more knowledgeable an individual, the more confident he is in taking control of his financial destiny, which usually is about securing a comfortable retirement.
A recent study by the non-profit Employee Benefit Research Institute in the United States found that only 13% of Americans said they were confident of a comfortable retirement – drastically reduced from 27% in 2007.
Figures in Malaysia show a similar sentiment. The AXA Life Outlook Index findings for 2009 indicate that Malaysians’ satisfaction with their preparation for retirement has dropped. In 2007, 23% were confident about their retirement years, but this has since dipped to 14%.
While many working Malaysians are reasonably financially literate, certain groups are less so and therefore less confident in managing their finances. This is a worry considering that the elderly make up an increasingly large proportion of our society.
Demographic and socio-economic forecasting provider Global Demographics Ltd forecasts senior citizens (those 50 years and above) to increase from 15% to 25% of the total Malaysian population over the next 20 years.
As the Malaysian population ages and retirement looms for many, the issue of financial literacy in a retirement planning context has become particularly salient.
Abacus for Money chief executive officer Carol Yip says that there is no single product or solution available to guarantee one’s comfortable retirement.
She notes that the main asset likely to be available to most working Malaysians upon their retirement is their Employees Provident Fund contribution.
Other assets may include property, shares, unit trusts, term deposits, inheritance, insurance, government pension as well as emerging private pension funds.
Yip asserts that individuals must increase their level of financial literacy so that they can go cherry-picking from the wide array of products available in order to ensure a comfortable retirement.
Besides the usual means of consulting financial planners and reading financial magazines to improve financial literacy, Yip calls upon employers to provide training to their staff in order to empower them with financial knowledge to plan their future.
Yip also encourages retirees who are in the early stage of retirement to equip themselves with financial knowledge in order to wisely invest their money so as to protect it from inflation as well as to provide recurring income over the medium term.
The senior citizen population of 50 and above in Malaysia as well as regionally is said to be rapidly expanding into a large, affluent market.
MasterCard Asia Pacific, in a study, estimates that the spending power of the retired population in Malaysia to exceed US$10bil (RM35bil) by 2015 – more than double the figure from 10 years before.
Madam Chong (not her real name), 56, who recently retired but is still an active investor with a moderate risk profile, was looking to diversify her portfolio.
The ideal product that she is looking for is one that can offer recurring income with double-digit returns annually, monthly or quarterly. It should also be capital-guaranteed as well as easy to liquidate with no penalties over five to ten years.
“I was prepared to consider regional investments with a slightly higher risk,” she says.
After looking around, she discovers that there are no such products that meet all her criteria except for two that offer returns between 6% and 7% per annum, but require high deposits of RM250,000.
“There are a couple of insurance companies that offer returns of about 4% annually with smaller deposits,” Chong says.
Given the current economic uncertainty and the absence of investment products specifically catering for retirees, Chong reiterates the need for retirees to be financially savvy instead of just depending on advice from third parties to manage their wealth.
Thursday, August 20, 2009
Warren Buffet warns budget deficit harms dollar
Warren Buffett warns budget deficit may harm dollar
Warren Buffett has given warning that the US’s $1.8 trillion (£1.1 trillion) budget deficit could harm the purchasing power of the dollar, even though he admits the American economy “appears to be on a slow path to recovery”.
By James Quinn, US Business Editor
Published: 8:07PM BST 19 Aug 2009
Warren Buffett admitted that the American economy
Warren Buffett admitted that the American economy "appears to be on a slow path to recovery"
Mr Buffett, the world’s second-richest man and famed for his ability to make astute investments, believes that the “gusher of federal money” flowing in to the US economy could eventually fuel inflation and devalue the greenback.
In a comment piece in yesterday’s New York Times, Mr Buffett said that while he “resoundingly applauds” the efforts the Federal Reserve and both the Bush and Obama administrations have made to support the US economy, it does not come without a price.
Writing that the “US economy is now out of the emergency room,” he continues: “Enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects.”
“For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.”
Mr Buffett likened the threat of what he called “greenback emissions” to that of greenhouse emissions, before urging members of the US Congress to work to reduce the budget deficit by making changes to taxes and spending.
His comments were made as the Pacific Investment Management Company (PIMCO), warned that the dollar’s status as the world’s reserve currency will undoubtedly come to an end.
Curtis Mewbourne, PIMCO’s portfolio manager said in a report that “ we are clearly seeing a loss of status for the US dollar as a store of value”.
Warren Buffett has given warning that the US’s $1.8 trillion (£1.1 trillion) budget deficit could harm the purchasing power of the dollar, even though he admits the American economy “appears to be on a slow path to recovery”.
By James Quinn, US Business Editor
Published: 8:07PM BST 19 Aug 2009
Warren Buffett admitted that the American economy
Warren Buffett admitted that the American economy "appears to be on a slow path to recovery"
Mr Buffett, the world’s second-richest man and famed for his ability to make astute investments, believes that the “gusher of federal money” flowing in to the US economy could eventually fuel inflation and devalue the greenback.
In a comment piece in yesterday’s New York Times, Mr Buffett said that while he “resoundingly applauds” the efforts the Federal Reserve and both the Bush and Obama administrations have made to support the US economy, it does not come without a price.
Writing that the “US economy is now out of the emergency room,” he continues: “Enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects.”
“For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.”
Mr Buffett likened the threat of what he called “greenback emissions” to that of greenhouse emissions, before urging members of the US Congress to work to reduce the budget deficit by making changes to taxes and spending.
His comments were made as the Pacific Investment Management Company (PIMCO), warned that the dollar’s status as the world’s reserve currency will undoubtedly come to an end.
Curtis Mewbourne, PIMCO’s portfolio manager said in a report that “ we are clearly seeing a loss of status for the US dollar as a store of value”.
Tuesday, August 18, 2009
Credit Card Scam
Subject: Duped by credit card scam upon check in at Hotel
You arrive at your hotel and check in at the front desk. When checking in, you give the front desk your credit card (for all the charges for your room). You get to your room and settle in. Someone calls the front desk and asked for (example) Room 620 (which happens to be your room).
Your phone rings in your room. You answer and the person on the other end says the following, 'This is the front desk. When checking in, we came across a problem with your charge card information. Please re-read me your credit card number and verify the last 3 digits numbers at the reverse side of your charge card.
Not thinking anything you might give this person your information, since the call seems to come from the front desk. But actually, it is a scam of someone calling from outside the hotel/front desk. They ask for a random
room number. Then, ask you for credit card information and address information.
Sounding so professional that you do think you are talking to the front desk.
If you ever encounter this problem on your vacation, tell the caller that you will be down at the front desk to clear up any problems. Then, go to the front desk and ask if there was a problem. If there was none, inform the manager of the hotel that someone called to scam you of your credit card information acting like a front desk employee.
If you feel that the tips are useful, please forward it to your relatives, friends & colleague.
You arrive at your hotel and check in at the front desk. When checking in, you give the front desk your credit card (for all the charges for your room). You get to your room and settle in. Someone calls the front desk and asked for (example) Room 620 (which happens to be your room).
Your phone rings in your room. You answer and the person on the other end says the following, 'This is the front desk. When checking in, we came across a problem with your charge card information. Please re-read me your credit card number and verify the last 3 digits numbers at the reverse side of your charge card.
Not thinking anything you might give this person your information, since the call seems to come from the front desk. But actually, it is a scam of someone calling from outside the hotel/front desk. They ask for a random
room number. Then, ask you for credit card information and address information.
Sounding so professional that you do think you are talking to the front desk.
If you ever encounter this problem on your vacation, tell the caller that you will be down at the front desk to clear up any problems. Then, go to the front desk and ask if there was a problem. If there was none, inform the manager of the hotel that someone called to scam you of your credit card information acting like a front desk employee.
If you feel that the tips are useful, please forward it to your relatives, friends & colleague.
Thursday, August 13, 2009
Becareful with your Credit Cards!
Dear Brothers & Sisters,
I would like to relate an incident that my former colleague ( age 75 yrs) encountered at the General Hospital Kuchng (GH) on 8 th Aug, 2009.
My former colleague went to GH for a check up in the morning, in the process his wallet was picked by someone. After he realized what happened, he reported to the police immediately. By the time he got home around 10.00am the Bank called regarding his credit card and the officer asked whether he has used his card at several petrol stations that morning. He said no, as he has just reported to the Police of his lost. The Bank stopped the card. In fact, the thief has spent around RM600 at Everise, 4 th mile.
Well, this thing happened, but it is good for all of us to be careful with our credit cards. Thieves like to get Senior citizens, so you may want to pass this information along.
Tips about handling Credit cards:
1. If stolen, immediately report to issuing Bank to stop card(s). Important, so that who ever got hold of your card cannot use it like what I related above.
2. Report to the Police in order to secure a formal report for future use with the Bank(s).
3. While in Kuching, just bring along one card only ( if you have several cards ) to reduce your risk.
4. Keep the telephone numbers of the Banks handy so that you can call immediately you experience a card lost. ( Load the number(s) of the Bank(s) in your mobile phone.
5. NEVER keep your PIN numbers with your cards or in your wallet. Memorise the numbers.
These are immediate actions and not exhaustive. What ever it is please be careful.
God bless. Pray that you will never encounter this type of incident.
Brother in Christ,
Alwin
I would like to relate an incident that my former colleague ( age 75 yrs) encountered at the General Hospital Kuchng (GH) on 8 th Aug, 2009.
My former colleague went to GH for a check up in the morning, in the process his wallet was picked by someone. After he realized what happened, he reported to the police immediately. By the time he got home around 10.00am the Bank called regarding his credit card and the officer asked whether he has used his card at several petrol stations that morning. He said no, as he has just reported to the Police of his lost. The Bank stopped the card. In fact, the thief has spent around RM600 at Everise, 4 th mile.
Well, this thing happened, but it is good for all of us to be careful with our credit cards. Thieves like to get Senior citizens, so you may want to pass this information along.
Tips about handling Credit cards:
1. If stolen, immediately report to issuing Bank to stop card(s). Important, so that who ever got hold of your card cannot use it like what I related above.
2. Report to the Police in order to secure a formal report for future use with the Bank(s).
3. While in Kuching, just bring along one card only ( if you have several cards ) to reduce your risk.
4. Keep the telephone numbers of the Banks handy so that you can call immediately you experience a card lost. ( Load the number(s) of the Bank(s) in your mobile phone.
5. NEVER keep your PIN numbers with your cards or in your wallet. Memorise the numbers.
These are immediate actions and not exhaustive. What ever it is please be careful.
God bless. Pray that you will never encounter this type of incident.
Brother in Christ,
Alwin
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