GIC diversifying into gold?

[dysentry]

abit late in the game, but still a good hedge against weak currencies and inflation...

http://seekingalpha.com/article/125656-gold-demand-is-high-and-will-dictate-prices?source=feed

Quote :

Demand for gold remains extremely robust with broad based demand from both retail and pension investors but also now from very large players such as high net worth individuals, hedge funds, sovereign wealth funds (Government of Singapore Investment Corp - GIC) and central banks diversifying into gold.

 

[Trout]

Given that they hired Chip Goodyear, they'll probably be going deep into miners now...

maybe its time for me to divest my holdings in GLD and GDX since GIC is coming to town, and they always seem to be a step late...

Agrium, Potash, PetroBank, Mosaic, Archer Daniels Midland here I come...

 

[RealSingaporean]

read the link below before u invest in gold.

http://www.sammyboy.com/showthread.php?t=18593

 

[londontrader]

2007 was the year of the carry trade.
2008 was the year of the safe haven trade.
2009 is shaping up to be the year of the deflation trade (ie. hedge against deflation).
I wonder if 2009 will also be the year of currency wars?

 

[londontrader]

Given that they hired Chip Goodyear, they'll probably be going deep into miners now...

maybe its time for me to divest my holdings in GLD and GDX since GIC is coming to town, and they always seem to be a step late...

Agrium, Potash, PetroBank, Mosaic, Archer Daniels Midland here I come...

Dear Trout,

There is an emerging view that the commodity boom and bust in the last 5 years suggests a natural limit on how much investment money these markets can absorb before price-setting mechanisms become distorted and prices unmoored from supply and demand fundamentals. The problem is not the just the overall amount of money that investors have poured into commodity markets, but its concentration at certain points along the futures curve.

Maybe something that Chip and his gang at Temasek should think about ie. a potential boom driven by financial reasons as opposed to fundamentals?

cheers

 

[Trout]

Dear Trout,

There is an emerging view that the commodity boom and bust in the last 5 years suggests a natural limit on how much investment money these markets can absorb before price-setting mechanisms become distorted and prices unmoored from supply and demand fundamentals. The problem is not the just the overall amount of money that investors have poured into commodity markets, but its concentration at certain points along the futures curve.

Maybe something that Chip and his gang at Temasek should think about ie. a potential boom driven by financial reasons as opposed to fundamentals?

cheers

Hi FTSE Trader,

I'm a peak oil believer (as much as people scoff at that idea now when oil has tumbled down to the 40s/barrel), and I do believe wars will be fought over food, energy and fresh water pretty soon...which is why I'm in the water-treatment/environmental remediation field, investing in food production stocks, and trying to grow algae for food, fuel, polymers and mineral recovery (yes, its possible to recover minerals this way, but still early stage)...

I do think energy prices will ramp up and down in sharp spikes over the next couple of years, as a shrinking supply jacks up prices, and demand gets hammered down shortly again due to speculators piling in, before going on a permanent rise possibly in 2012-2013...

Cheers,
Trout

 

[londontrader]

Hi FTSE Trader,

I'm a peak oil believer (as much as people scoff at that idea now when oil has tumbled down to the 40s/barrel), and I do believe wars will be fought over food, energy and fresh water pretty soon...which is why I'm in the water-treatment/environmental remediation field, investing in food production stocks, and trying to grow algae for food, fuel, polymers and mineral recovery (yes, its possible to recover minerals this way, but still early stage)...

I do think energy prices will ramp up and down in sharp spikes over the next couple of years, as a shrinking supply jacks up prices, and demand gets hammered down shortly again due to speculators piling in, before going on a permanent rise possibly in 2012-2013...

Cheers,
Trout

I share your rather bullish view and am beginning to see $ lining up for the next commodities run. However, my point is that these markets are still unable to absorb too much liquidity. Hence I do expect bottlenecks (eg. mkts in contango) and rather high volatility when the next run gets underway. It's going to be a market that requires a trader's skill set and risk mgt. I am of the view that so called "long term investors" (GIC etc.) should tread carefully in these waters. Have already witnessed enough "long term" $ burned during our recent commodities bull and BUST.

Meanwhile, happy trading

cheers