Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts

Gold Prices - Are They Headed Higher?

Since the Trump election, gold prices have been slowly gaining ground. Just recently, Citigroup head of metals and research, David Wilson, gave his views that gold prices could be headed towards $1,300.

Let's take a look at this wonderful graphic below, originally from this source on gold IRAs, to see how gold prices have moved with various significant events since 2008.


Will gold prices head higher with all the uncertainty? Or is there going to be a renewed phase of economic growth that might stop gold prices from rising further? With low interest rates coming to an end, will gold prices stabilise?

Let me know your thoughts.

Is Gold and Silver Still a Buy?

Earlier in February this year, I wrote a short post on whether it was the end of the gold bull run.  Of course, I couldn't say for certain that the bull run in gold was going to end.  After all, there are renowned investors out there who were still bullish in gold for the long term.  I wrote a more balanced post on some reasons to buy gold or silver.  After all, investing in gold is something that most serious investors will consider doing as part of their asset allocation.

For those who have been monitoring the gold and silver spot prices, you should be aware that gold and silver prices dropped drastically in yesterday's trading.  Gold ETFs like SPDR Gold (Ticker: GLD) fell by almost 10% in a single day with hedge funds rumoured to have started the huge sell off.  Well, a correction was more or less expected since billionaire Jim Rogers (who now lives in Singapore) said that a correction was due. In fact, Jim Rogers believes that gold prices will head towards US$1200/oz. He will probably start buying at that level.

But is this more than a correction?  Because it seems that we are now in a bear market for gold and silver.  Worries about inflation in the United States with all the money printing through the quantitative easing programs seems to be unfounded.  Inflation remains low to this day.  And besides, the stock market has been roaring on for quite a few months.  So investors in gold and silver have probably missed out on the bull run in the stock market and are taking the opportunity to liquidate their holdings since the supposed dollar crisis/crash has failed to occur.  Many traders probably closed their positions too especially if they bought at the highs of US$1800-$1900/oz.

Is gold and silver still a buy?  It probably is.  But one will probably have to wait for the right price.  And also be reminded that unlike stocks, gold and silver do not provide any form of cash flow or dividends.  It is almost simply a store of value and a hedge against hyperinflation or "catastrophic" events.  Could this be the reason why Warren Buffet is negative on gold?





Reasons to Buy Gold or Silver

Gold and silver seem to be back to their 2011 levels. iShare Silver Trust (SLV) is trading at $28.41 while SPDR Gold Trust (GLD) is trading at $156.22.  Well, gold and silver spot price are also trading around $1600/oz and $29/oz respectively.  The talking heads at Bloomberg and CNBC are all now suggesting that it might be the end of the gold bull run.  After writing the earlier posting yesterday, I thought about it and decided that perhaps a more balanced view ought to be presented.

So in this posting, I will throw up some of the reasons to continue buying gold or silver.

Firstly, the world's central banks are now net buyers of gold, purchasing gold like never seen before.  According to the World Gold Council, central banks accounted for 12% of total demand for gold in 2012.  The demand for silver also seems to be rising and the supply does not seem to be able to keep up (at least that is what the silver bugs' charts are telling us).

Secondly, with all the money printing by the Feds, inflation is almost certain.  Gold and silver are thus a good hedge against inflation since many view them as the true store of value.  Many of these proponents are also predicting that the dollar will soon crash and that somehow, someday, the entire world will go back to the gold standard.

Thirdly,  while the prices of gold and silver might have corrected a fair bit for this year, the global outlook still looks uncertain.  The US debt is reaching alarming levels, Europe crisis, etc.  So it is not surprising that people are bullish on these 2 metals since they seem to have a negative correlation to the overall stock market/economy.

In any case, the people who argue for investing in gold or silver are still sticking to their guns that another bull run is in the making.  Will they be correct?

The End of the Gold Bull Run?

Is this the end of the bull run for gold which has seen a meteoric rise over the past years.  Goldman Sachs has a 12 month forecast of $1,550/oz.  Gold has dropped 5 percent from the start of the year with investors like George Soros also cutting down his gold holdings.  Of course, one would be wise to heed the Warren Buffet's take on gold (even though it might be dated).  Many have also called gold the ultimate bubble while others are still quite bullish on this precious metal.  But with the US printing money with a vengeance, it is little wonder why many would want some kind of hedge against inflation.

Gold had hit an all-time high in Sept 2011 of slightly over $1920/oz.  Today, gold spot price is at $1597/oz.



Warren Buffett and others on Gold

I know that there are many people who are positive on gold and silver right now.  So it is good to take a look at the other side of the story so that we do not get too much group-think.

In this video, Warren Buffett says he would rather own a productive asset than gold.



Some time back, Wells Fargo also gave its outlook on the gold "bubble" and warned investors on being over invested in it.



Jeffrey Gundach's Picks and Outlook

Jeffrey Gundlach is co-founder of DoubleLine Capital LP and also its chief executive.  He correctly predicted the subprime mortgage disaster and is one of the world's leading bond fund manager.  In fact, he is sitting on cash because he sees bleak times ahead.  He is favoring protection over growth in the next 1-2 years.  He believes the opportunity for sitting on cash is much larger than if you were to be invested for growth now.

Regarding the European Union, he sees a possible break-up and does not think that the Euro is going to work.  The question boils down to Germany being able to forgo the gains that it had obtained from the single currency.

He recommends buying hard assets like gemstones, art, commercial real estate.  DoubleLine has also been buying the stocks of Chinese companies, U.S. natural gas producers and gold-mining firms.  It is funny that he is now into equities given that he operates bond funds.








Investments and Dividends for November

Made quite a few investments this month.  Bought into a few stocks/REITs:

  • 50,000 shares of Thakral
  • 10,000 shares of LMIR
  • 20,000 shares of Saizen
Dividends/passive income for November was quite okay.  Roughly $250.  Most of it were contributed by Gamco Global Gold and Natural Trust (GGN) and Armour Residential REIT (ARR). ARR is a mortgage REIT.  Both stock prices hve declined quite a fair bit but I will like to think that my strategy is one where I will diversify a bit into other stocks rather than focusing on just these two stocks.

I also bought some shares of the Coca Cola Company (KO).  


3 Monthly Dividend Stocks I Am Watching Right Now

There are 3 Monthly Dividend Stocks that I am watching right now.  The reason I am watching them is simply because I am bullish on resources and also because I like the fact that this stocks pay monthly dividends.  Of course, the stocks listed here are highly risky and might not be suitable for many investors.  

1.  Gamco Global Gold and Natural Resources Trust (GGN)

Well, GGN used to be called "Gabelli..." and then there was a name change to "Gamco...".  But GGN's dividend history since 2005 has been pretty neat to me.  To invest in this stock, you need access to the US market which should be readily available through most of the brokerages in Singapore.  Do note that there is a withholding tax of 30% for foreign investors so that means you have to deduct whatever dividends you are supposed to receive by 30%.  Do add in another few dollars for the processing/admin charges and you will realise that you actually need a sizeable investment for the yield to justify itself since there are so many REITs listed in Singapore that might give a better yield.  Nevertheless, as I am bullish on resources (especially Gold), I am thus thinking of accumulating more of this stock.

2.  Armour Residential REIT

If the above stock is risky, Armour Residential REIT I believe falls into the "super don't ever touch it " kind of risky.  It is frankly speaking not a REIT like one would expect it to be.  It is a mortgage REIT so there are many risks involved associated with interest rates and stuff.  Still, it pays out a neat dividend.

3.  Enerplus Resources

After divesting my canroys when there were all the tax changes and stuff, I am starting to zoom in again on "energy plays".  Enerplus Resources is one of those stocks that still pays monthly dividends.  It is an independent North American energy company with a diversified asset base of oil and gas properties across a variety of resource plays.  The monthly dividends for this are still good though they seem to have reduced recently.


[Note: This post should not be read as an invitation/recommendation/advice to invest in the stocks listed above.  The writer is vested in both GGN and Armour Residential REIT.]


GGN - Gamco Global Gold Trust Dividend History

GGN's (Gamco Global Gold & Natural Resources Trusts) dividend history is listed below.  They have been paying stable dividends over the past few years.  Though of course, past history is not indicative of future performance.  Vested.


Ex Dividend Date                                                    Dividends
  • Jun 13, 2012
     
    $0.14
  • May 14, 2012
     
    $0.14
  • Apr 12, 2012
     
    $0.14
  • Mar 14, 2012
     
    $0.14
  • Feb 10, 2012
     
    $0.14
  • Jan 12, 2012
     
    $0.14
  • Dec 09, 2011
     
    $0.14
  • Nov 10, 2011
     
    $0.14
  • Oct 13, 2011
     
    $0.14
  • Sep 14, 2011
     
    $0.14
  • Aug 15, 2011
     
    $0.14
  • Jul 13, 2011
     
    $0.14
  • Jun 14, 2011
     
    $0.14
  • May 12, 2011
     
    $0.14
  • Apr 12, 2011
     
    $0.14
  • Mar 15, 2011
     
    $0.14
  • Feb 09, 2011
     
    $0.14
  • Jan 12, 2011
     
    $0.14
  • Dec 10, 2010
     
    $0.14
  • Nov 10, 2010
     
    $0.14
  • Oct 13, 2010
     
    $0.14
  • Sep 14, 2010
     
    $0.14
  • Aug 13, 2010
     
    $0.14
  • Jul 14, 2010
     
    $0.14
  • Jun 14, 2010
     
    $0.14
  • May 13, 2010
     
    $0.14
  • Apr 14, 2010
     
    $0.14
  • Mar 15, 2010
     
    $0.14
  • Feb 09, 2010
     
    $0.14
  • Jan 12, 2010
     
    $0.14
  • Dec 10, 2009
     
    $0.14
  • Nov 10, 2009
     
    $0.14
  • Oct 14, 2009
     
    $0.14
  • Sep 14, 2009
     
    $0.14
  • Aug 13, 2009
     
    $0.14
  • Jul 15, 2009
     
    $0.14
  • Jun 12, 2009
     
    $0.14
  • May 12, 2009
     
    $0.14
  • Apr 14, 2009
     
    $0.14
  • Mar 13, 2009
     
    $0.14
  • Feb 10, 2009
     
    $0.14
  • Jan 13, 2009
     
    $0.14
  • Dec 10, 2008
     
    $0.14
  • Nov 10, 2008
     
    $0.14
  • Oct 15, 2008
     
    $0.14
  • Sep 12, 2008
     
    $0.14
  • Aug 13, 2008
     
    $0.14
  • Jul 15, 2008
     
    $0.14
  • Jun 12, 2008
     
    $0.14
  • May 13, 2008
     
    $0.14
  • Apr 14, 2008
     
    $0.14
  • Mar 13, 2008
     
    $0.14
  • Feb 12, 2008
     
    $0.14
  • Jan 14, 2008
     
    $0.14
  • Dec 27, 2007
     
    $0.25
  • Dec 10, 2007
     
    $0.14
  • Nov 13, 2007
     
    $0.14
  • Oct 15, 2007
     
    $0.14
  • Sep 12, 2007
     
    $0.14
  • Aug 15, 2007
     
    $0.14
  • Jul 13, 2007
     
    $0.14
  • Jun 13, 2007
     
    $0.14
  • May 14, 2007
     
    $0.14
  • Apr 12, 2007
     
    $0.14
  • Mar 14, 2007
     
    $0.14
  • Feb 09, 2007
     
    $0.14
  • Jan 12, 2007
     
    $0.14
  • Dec 27, 2006
     
    $0.06
  • Dec 11, 2006
     
    $0.14
  • Nov 13, 2006
     
    $0.14
  • Oct 13, 2006
     
    $0.14
  • Sep 13, 2006
     
    $0.14
  • Aug 15, 2006
     
    $0.14
  • Jul 13, 2006
     
    $0.14
  • Jun 14, 2006
     
    $0.14
  • May 12, 2006
     
    $0.14
  • Apr 11, 2006
     
    $0.14
  • Mar 15, 2006
     
    $0.14
  • Feb 09, 2006
     
    $0.14
  • Jan 12, 2006
     
    $0.14
  • Dec 28, 2005
     
    $0.18
  • Dec 13, 2005
     
    $0.14
  • Nov 10, 2005
     
    $0.14
  • Oct 13, 2005
     
    $0.14
  • Sep 14, 2005
     
    $0.14
  • Aug 15, 2005
     
    $0.14
  • Jul 13, 2005
     
    $0.14
  • Jun 14, 2005
     
    $0.14

One Stock that Pays Monthly Dividends

Have been holding on to this stock that pays monthly dividends for a few months now.  The stock is Gamco Global Gold & Natural Resources Trust (GGN).  It pays a dividend of US$0.14 every month and is currently trading at US$13.69.  After accounting for withholding tax rate of 30% (since I am not a US citizen), the dividends is slightly less.  There are of course exchange rate fluctuations to account for too.

I just bought another 200 shares recently bringing my total holdings to 500 shares.

GGN is a close ended fund (CEF).  The fund's objective is as follows:

The GAMCO Global Gold, Natural Resources & Income Trust by Gabelli is a non-diversified, closed-end management investment company that seeks to provide a high level of current income. The Fund's secondary investment objective is to seek capital appreciation consistent with the Fund's strategy and its primary objective.
Under normal market conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating of companies engaged in "gold-related" activities. In addition, the Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production or distribution of natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals and minerals as well as related transportation companies and equipment manufacturers


The dividends declaration for July, August and September 2012 also remains at US$0.14.


  • The distribution for July 2012 will be payable on July 24, 2012 to common shareholders of record on July 17, 2012. 
  • The distribution for August 2012 will be payable on August 24, 2012 to common shareholders of record on August 17, 2012. 
  • The distribution for September 2012 will be payable on September 21, 2012 to common shareholders of record on September 14, 2012. 




GAMCO Global Gold and Natural Resources Income Trust (GGN)

Just bought another 200 shares of Gamco Global Gold and Natural Resources Income Trust.(GGN).  GGN pays out a monthly dividend of US$0.14.  The dividends have been paid out steadily over the years so I thought I should just load up more of it when the market is down.  Bought 200 shares at US$14.60 which is slightly lower than my previous purchase price.

Dividends and Passive Income for April 2012

Dividends and passive income for April 2012 was close to $600.  This was contributed mainly from selling off my Pacific Andes rights and collecting the dividends that were also paid out by Pacific Andes.  Pacific Andes is a stock that I have been holding for some time now but I just did not feel comfortable taking a bigger position so I did not subscribe to the rights issue.

The rest of the money actually comes from the monthly dividends that I receive from Gamco Global Gold and Natural Resources Trust (previously called Gabelli but now re-named as Gamco).  GGN (the stock ticker symbol) provides me with $30+ dollars per month.  That is after the 30% withholding tax deduction which is quite huge if you ask me.

Nevertheless, I am satisfied with April 2012's dividends and passive income received. May 2012 should also be a good month for me.

[17 May 2012 Update:  Actual dividends for April was actually above $700.  Realised that I underestimated the dividends and sale of rights arising from Pac Andes]

Dividends from Ascott REIT and Gamco Global

Received dividends of $609.45 from Ascott REIT and $31.59 from Gamco Global Gold & Natural Resources Trust.  Not bad for the month of February.

Will probably be looking at reinvesting the dividends into some other REIT.  There are quite a few REITs and I am thinking of diversifying across the various sectors (e.g. industrial, commercial, residential, hospitals, hospitality , etc).

Will probably need to give it further thought.

Fortune REIT

Bought Fortune REIT some days back.  Cannot remember when.  First time I have entered into this .  I like the brand name behind the REIT that's all.  The exposure to retail malls in Hong Kong was also a factor.  Just wanted to diversify out of my Ascott REIT, First REIT, etc holdings that I have.  Well, Li Ka Shing owns Cheung Kong which listed Fortune REIT.  So that is a plus point for just owning a small investment in Fortune REIT.

Also collected my first cheque for Gamco Global Gold Trust.  After deducting withholding tax and stuff, I only pocketed slightly over S$30.  Bleah..

First REIT and Ascott REIT Declare Dividends

First REIT just declared distribution/dividends of 1.93 cents per share.  A quick look at First REIT's dividend history gives me some sort of confidence to enter this REIT again.  I had previously sold off my entire shareholdings in it but have recently entered into it again buying 10 lots of it recently.  Since the distribution is paid quarterly, it looks like I will be receiving a small bonus every 3 months.  Not too bad for some passive income.  Based on my 10,000 shares, I figure that I will be receiving around $193 for Feb 2012.

Ascott REIT had also declared their semi annual dividends of slightly over 4 cents per share.  I currently hold 15 lots in Ascott REIT so that should also provide me with a neat sum of around $600 for Feb 2012.

I am also still waiting for my dividends from Gamco Global Gold Trust (GGN).  This is a monthly dividend stock and though the dividend is paid on 24 Jan, I figure that I will only receive the cheque in late Jan or early Feb.


Investing In Gold

Gold is one of the most valuable and desirable substances known to man. For many years it has been a status symbol as well as a form of currency since the days before money. It is also the most popular material for making jewellery, with roughly half of all gold being used in this way.

Gold Price


For many years, the price of gold was a relative standard for currencies around the world. This started to change in the 1970s when the value of the US dollar stopped being linked to the price of gold and finished in 2000 when the Swiss Franc was the last currency to remove the link.

Like all commodities, it is possible to treat gold as a short-term and long-term investment. Over hours, days or weeks, the fluctuation in the price of gold on an exchange allows traders to buy and sell for hopefully a profit. With luck or skill, a gold trader can buy some gold at a low price, sell it at a higher price and buy more when the price drops. Repeating the process allows an investor to make a lot of money, but if it goes wrong they could make a loss on each trade.

Historically, the price of gold has risen at a steady rate making it a great safe investment. In fact, during the recent financial crisis many people turned to gold as an alternative way of saving. This is a relatively safe way of investing in gold, but still leaves you with the problem of finding somewhere to keep it safe. Most experts recommend that gold is a rainy day investment, like an insurance policy that should be kept until you absolutely need to sell.

Gold Coins/ Bullion


Another way to invest in gold is gold bullion coins. These cost slightly more than the spot price of gold, but are easier to buy, trade and store than larger pieces. Typical sizes include 1/10oz, 1/4oz, 1/2oz and 1oz. The governments of the UK, USA, Canada, China and most other major world powers mint these coins, so they are very reputable.

Mining Stocks or Close Ended Funds


Apart from investing in physical gold itself, one can also invest in the mining companies that are involved in gold production.  There are also certain funds that invest in various mining stocks.  One of these close ended funds is Gamco Global Gold & Natural Resources Trust which pays out a monthly dividend.  If you have been reading and following this blog, you probably know that I have loaded up on GGN just recently..


Storing Gold

Many major banks will store gold for customers, as will specialized gold exchanges and trading houses. You can even walk in to some banks and hand over your money in exchange for a gold ingot. Once you have carried this heavy bar home, you need somewhere secure to store it. If you do not have anywhere secure enough then most banks will have a vault that you can use for a fee.

Every major bank and most of the governments in the world store gold. Since the start of the economic woes in 2007, the world banks have become net buyers of gold which shows just how great an investment it really is.

This desire for gold and its scarcity and it being difficult to obtain means that it should continue to keep its value, but like anything the price of gold is not immune to market fluctuations and could even crash.

Bought more Gamco Global Gold, Natural Resources and Income Trust

After reflecting on some of my investment thoughts for 2012, I entered into another position to buy GGN which currently gives a monthly dividend of $0.14 per month.  The fund's investment objective is to provide a high level of current income. Overall, I think I am pretty bullish on commodities and thought that this might make a good investment since it is a close-ended fund which invests primarily in the equity securities of gold and natural resource companies.

My entering into a position in this stock was also partially influenced by Bryan Perry (who wrote the book about 25% Cash Machine) was bullish on this stock. This purchase makes it my first stock purchase for the year 2012 and I thought I better log it down so that I do not lose track of my investments.




Investment Thoughts for 2012

Today is the 10th day into 2012 and I realised that I have not thought out my investment plan, made any resolutions or done anything fruitful in the past 10 days!  And there has been this constant nagging in my head that tells me that I ought to focus my attention on a few things and try not to spread out my efforts too thinly.  So perhaps now is a good time to update on what are some of my thoughts for 2012.  This includes some of my personal reflections and does not constitute any investment advice.

Passive Income - Monthly Dividend Stocks and Real Estate Investment Trusts (REITs)

High on my list is perhaps creating a passive flow of income for myself either through stocks that provide monthly dividends or REITs which either provide quarterly or half-yearly distributions. For monthly dividend stocks, one has to turn to the US market.  One of the monthly dividend stocks that I have bought into is Gamco Global Gold (GGN).  REITs on the other hand are easily available on the Singapore Stock Exchange or SGX.  I am looking at diversifying my REITs holding as I am currently heavily invested in Ascott REIT.

Gold is Money and Nothing Else


For those of you who have been following me, you are perhaps aware that I have been looking towards silver both as a means to hedge against inflation as well as just for collecting purposes.  Buying silver in Singapore is still limited to only a few shops but hopefully this certain industry/sector will slowly develop.

Investing in this Site


I have also decided that I ought to invest a bit more time and money on this site.  This includes some facebook advertising as well as my plan to work on a eBook.

These are all still works in progress but I certainly hope that the perfectionist in me does not cause me to procrastinate or be paralysed such that I do nothing at the end of the year.  It has been my longest desire to write a book and an eBook might just serve that purpose.

How Silver Coins Are Made

I thought this was a rather informative video on how silver coins are actually made.  The video also shows how the die is made.  Enjoy.

Monthly Dividend Stock - Gamco Global Gold Natural Resources (GGN)

Just bought 200 shares of Gamco Global Gold Natural Resources (GGN) on the US stock exchange.  It is a stock that provides monthly dividends.  Yes, not many people are aware that there are stock that actually pay out monthly dividends.  The monthly dividends is around US$0.14 per month.  Anyway, it is only a small investment  and I will probably invest more if I have spare cash.

GGN was previously named Gabelli Global Gold Natural Resources before the recent name change to Gamco Global Gold Natural Resources.

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