Tuesday 28 August 2012

If Fed Reserve launch QE 3.....means print money....inflation risk is heightened..........likely commodities price will rise.....that will also push the stock market up as well.....what will happen to listed companies owning commodities like Noble, Sakari, Plantation etc? Other central banks are likely to print money as well..ECB and China stimulus...

Good to own some Gold or silver...silver has much higher upside potential than gold....gold might be capped close to USD2000...while silver (currently only USD 30) might explode to USD49 ( last year's previous high).....Try not to buy physical gold or silver as there's a large spread (between buy and sell price)...not to mention the storage and selling issues.....

Buy gold or silver ETF in SGX or CMC markets. Pls find out more about these instruments and understand that commodities are very volatile in nature!

This is a good website to track movements of silver:

http://stockcharts.com/h-sc/ui?s=$SILVER&p=D&yr=1&mn=0&dy=0&id=p12807082824

i apply the same technical analysis to buying silver...buy when the price cuts the 20/50/100/200 days moving averages and becomes supported by each.....At the current moment, price is already above 200 dMA....depending on what Fed Reserve says...it might drop and then rise again  later or shoot up after the Jackson hole meeting if QE3 is coming.

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