Gold Panda Coin - Bling Bling to the max!

I finally collected my 1 oz Gold Panda coin from the Singapore Mint branch in Orchard Central 2 weeks ago. Before I show the awesome pictures, I will like to share my thoughts on gold.

Reasons to invest in gold:

• The US is hovering near to a default. I know they managed to raise the debt ceiling this year (at the last freakin possible second!). But what about next year? And the year after next? The "debt ceiling debate" will rear its ugly head next year. Sadly, the America has a rather heavy debt burden. Some people say, technically, USA will not go bankrupt because they can print as much money as they need. However, this will further devalue the US dollar, leading to global inflation since most commodities are priced in US dollars.
• The European nations are facing their own debt crisis too. Greece, Ireland and Portugal are old news. In fact, Greece is proof that whatever the EU did last summer, is not working. The focus now is on the supposedly stronger countries like Italy, Spain, France and even Germany! Looks like the dreaded domino effect is taking place. The debt contagion is spreading slowly but surely. Even if the government somehow managed to avert the crisis this year (which I think they won't), I am positive this debt fiasco will blow up again next summer in 2012. The riots in London just shows how deep the social malaise is in Europe. Youth unemployment is getting ridiculously high.
• Basically, the Western World is "kicking the can down the road". This will not end well.
• Volatile markets are pushing more investors worldwide to buy bonds and gold. Even central banks around the world are stockpiling gold reserves. The demand is strong. 

Alright then, enough with the financial jargon talk. It's time for some pictures!

Front: Mama Panda with Baby Panda living happily in the bamboo forest. ^^

Pandas are a prized national emblem, being uniquely native to China. 

History also associates them as royal pets of emperors. 

Back: The Prayer Hall for Good Harvests at the Temple of Heaven. This magnificent 15^th century landmark in Beijing is also a UNESCO World Heritage Site.

In conclusion, I feel that in this uncertain and volatile world today, it is prudent to have a little gold in your portfolio. Of course, do not start selling your stocks and dump all your money into gold. Experts advise having 5% - 10% of one's portfolio in gold. Right now, my gold holdings is close to 5% of my portfolio. It is a comfortable allocation for me. But if gold is not the thing for you, it is fine. Just enjoy the pictures! ^^

Feel Free to leave your comments below!

Peace Out,

Dividends Warrior

Gold as an insurance against financial armageddon

Hey friends! Recently, I realised I have not been blogging about investing. So, I will like to share something I did before starting on my dividend investing path in 2009. 


Just a quick recap in case you are visiting my humble blog for the first time. I used to have a phobia of stocks, thanks to constant "scare tactics" and "brainwashing" by my conservative parents (who went through the Asian financial crisis). When Lehman Brothers' collapsed and the financial markets nosedived, I felt really relieved that I was not part of it. I just read the financial news everyday for fun and amusement. I even laughed at the plight of those greedy American banks. 


The Fed started QE1 and TARP. The US dollar depreciated. H1N1 was ravaging the global economy. There was extreme fear in the world markets. The world was on the brink of financial armageddon. So what did I do? I did something strange. Instead of picking stocks at historic low prices in March 2009, I bought 2 gold coins. o_O" I thought "Gold will always have value but currencies can become worthless overnight."


I bought the gold coins at the UOB main office. There was no queue at the gold-selling counter. People queueing up at the other counters were looking at me in a weird way. Hahahahahaha. They were stealing glimpses at the gold coins while I was choosing which ones to buy. Even the bank teller who was serving the queue beside me was fascinated by the coins.  But the female bank personnel serving me was rather nonchalant. Maybe she sees gold coins everyday until sianz liao. Or she can see but cannot take, even more sianz. Lol. The best part was that I was only wearing a cheap t-shirt, bermudas and sandals. Muahahahahaha! I dunno why, but I felt embarrassed. 

Half ounce Canadian Maple Leaf gold coin (~S$870, inclusive of GST)

Almost the same size as the 50 cent coin beside it. 

Half ounce Australian Kangaroo gold coin (~S$900, inclusive of GST)

The gold coin is much heavier. I can actually feel the weight on my hand!

I wanted to have a little insurance against financial armageddon. Experts suggest having 10% - 15% of one's portfolio in gold. For me, gold makes up about 2% of my portfolio. The price has increased quite a lot too. By the way, I love how the gold coins glitter. I can spend a good 10 minutes admiring and staring at them every day. I really dun know why. But I feel good and also a little more secured with some gold in my possession. Maybe there is really something special about gold that captures people's eyes and hearts.


So, do you have any gold in your portfolio? If yes, why? If no, why not? Comment below. ^^




Peace Out,
Dividend Warrior