During the webinar I hosted featuring financial market economist Shan Saeed, one of the listeners asked whether the price of gold would drop further and the prediction on that. Watch the video below about Shan Saeed’s opinion, which is based on fact, not speculation.

I’ve shared what I know about silver, energy sector, and agriculture commodities. I am bullish on all of these because these commodities have, for the past five years, risen from 30% to 150%. Even palm oil, which is quite volatile right now, is still bullish in the long term. This is based on the fact that global consumption on emerging markets is high. People are getting wealthy, and they want energy, and they want to consume more oil and more food. So, the prices for these commodities will probably rise in the long term. Also even though the gold price has dropped for a few days and is probably a good buy right now, I am still bullish on it for the long term.

As for my prediction on gold, I think gold prices are only taken at 30% for downturn in April and fall back against consolidation as part of gain. When I say “fall back”, it means the price will go down. When I say “consolidation”, it means prices will go up. But, as always, you have to assess your risk appetite and you have to do your research. I’m not an angel. I’m not a smart person who would say, “Okay, tomorrow World Bank said we’ll be touching $1,500 per ounce.”

The fundamentals, I would say, for gold and silver are very, very strong. I’ve assumed this simply because the governments will continue to print money and they will continue to have an ultra-accommodative monetary policy. “Accommodative Policy” means they will continue to print money.

Governments will continue printing money. There will be currency war, and every country would like to keep their currency as low as possible to boost exports. But, this is not the solution. The long-term solution to the failing economies is to let them go bankrupt – let them start all over again. Once they go bankrupt, they will be in a better position to turn around their economy, and boost exports and productivity.

My assumptions are based on the government piling on debt. They will continue to print money, and they will continue to have low interest rates or negative interest rates. “Negative Interest Rates” means your interest rates subtracted from inflation is negative, which means you have negative savings in your bank account. These “negative effective interest rates” will have a positive impact on gold and silver.

U.S. Dollar right now is a fraud currency, but some investors still think that the U.S. Dollar is a “safe haven” as there are not enough “safe havens” available in the market right now. This causes the investors and other people to prefer to take position in the U.S. Dollar. But, the fundamentals for the U.S. Dollar are not strong.

So far, I see gold and silver continuing to upsurge. Having said that, I would urge you to research before you buy gold and silver. To quote my friend,

“Gold is a strategic asset investment for the rich men to stay rich, and silver is just like a poor man’s gold.”

So, if given a choice between gold and silver, I would say that silver, being so cheap right now, is a good option.

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Personal finance author and trainer

    1 Response to "Is it a Good Time to Buy Gold & Silver Now?"

    • ZFS

      In term of currency, i think many currency are much better at hedging for inflation for ringgit such as singapore dollar. See how much SGD rises over the decade relative to MYR. Even USD is not bad thinking about the prospect of our government..I have some investment in gold, but i can’t never understand the value that people tags on it. When it comes to people giving it value, people can also detach their feeling to it and render gold worthless.

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