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NESDB: Don't buy gold without thorough study


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Bangkok Post

15-09-2008

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NESDB: Don't buy gold without thorough study

 

People, particularly retail investors, must study information and analyse investment in the gold business carefully and thoroughly before making an investment decision, according the National Economic and Social Development Board (NESDB).

 

 

NESDB Secretary-General Amphon Kitti-amphon said individual investors, who speculate on gold prices at present, must maintain awareness precautions and adhere to the sufficiency economy principle as strictly as possible because they can suffer losses when gold prices continue to drop.

 

 

He advised potential investors in the gold business to have a strong financial position with large capital, be in a position to buy gold for investment, or have a desire for a risk diversification.

 

 

Dr Amphon said gold prices would normally move in the same direction with oil prices. When fuel prices surged in the past, prices of commodities including steel and gold alike would soar accordingly because it is expected that the inflation rate will increase in tandem with the fuel prices.

 

 

Under the present circumstances, numerous investors are uncertain about holding substantial amounts of cash and have been turning to speculate in gold.

 

 

At present, Dr Amphon noted, crude oil prices overseas had already dropped below US$100 per barrel. It resulted in a continued drop in gold prices. No one could predict to what level the oil prices would decline.

 

 

"Retail investors who jump into gold to speculate in the market must remind themselves frequently that they are at risk. Investments made without a sufficiently careful and thorough study are at risk of experiencing great losses," Dr Amphon added. (TNA)

 

 

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