Wild ride of gold prices is a lesson for investors

Wild ride of gold prices is a lesson for investors

The rollercoaster ride in the price of gold has spooked many investors. Early last week, it suffered a two-day rout of more than US$200, the steepest plunge since 1983, when the last bull market in gold was ending and the two-decade bear market began. So much for its reputation as a safe haven! It has since staged a recovery but is still down more than 10 per cent from the start of this month.

Thursday, 25 April, 2013, 3:03am 2 comments

Korean war fears could be a good thing for businessman with hotel on border

Lihua Hotel is expecting more business in Yanbian, a tourist gateway sandwiched between Russia and North Korea. Photo: SCMP

Peter Young couldn't care less about the gathering storm on the Korean Peninsula. For the Hong Kong businessman who operates in Yanbian, Jilin province, it could even be a good thing.

24 Apr 2013 - 10:19pm

CIC bullish on gold in face of price slump

Jin Liqun says gold will rebound.

A senior official at China Investment Corp says the US$500 billion sovereign wealth fund has exposure to gold, although "not on a big scale", and the fund is confident that gold prices will rise in the long run owing to limited global supply.

18 Apr 2013 - 5:52am

Beijing is key to city's fund success

Mainland funds may in future be sold in Hong Kong if an agreement is reached, giving the local industry a massive shot in the arm. Photo: Robert Ng

Proposals designed to make Hong Kong a "world fund factory" have won industry backing, but fund managers say that persuading Beijing to allow local funds to be sold to mainland investors remains the key.

18 Apr 2013 - 5:33am 1 comment

Hong Kong investors' confidence slips

Many investors fear the Hong Kong stock market will undergo a correction, with 61 per cent worried about the sustainability of recent gains. Photo: David Wong

Investor confidence slipped from 123 index points in December to 117 points last month, the JP Morgan Investor Confidence Index, based on a quarterly survey in Hong Kong, shows.

"The level of optimism seen last year has not been maintained, with some momentum lost," said Henry Tong, vice-president of intermediary business at JP Morgan Asset Management.

17 Apr 2013 - 4:56am

Gold doldrums in private bank-speak

Gold bars are seen at the Czech National Bank in Prague. Photo: Reuters

We’ve been expecting it to topple for ages. Most of the pundits have been trumpeting sky-high gold as the safe haven for so long that it seemed almost tumble-proof, but now here it goes. Downwards at speed. Today it’s plunged more than US$100 (HK$776) in just a few hours. Is it the result of Cypriot banks dumping the stuff to liquidate cash?

16 Apr 2013 - 7:00pm 1 comment

Supporters of the gold standard are usually set in their ways

Once bitten by the goldbug, it's hard to listen to reason. Photo: Bloomberg

News flash: recent declines in the price of gold, which is off about 17 per cent from its peak, show that this price can go down as well as up. You may consider this an obvious point, but it has come as a rude shock to many small gold investors who imagined it was the safest of all assets.

14 Apr 2013 - 2:15am 2 comments

Time to buy, StanChart tells local bargain-hunters

Time to buy, StanChart tells local bargain-hunters

The time is ripe for mid-term investors to find some bargains on the local stock market, now that a significant pullback since the beginning of this year has made shares fairly cheap, Standard Chartered Bank says. 

12 Apr 2013 - 5:43am

Myanmar's poor infrastructure holds it back but Hong Kong firms see opportunities

Buildings go up in Yangon, where infrastructure is unable to keep up with breakneck development. Photo: AFP

The 320-kilometre bus ride from the commercial centre of Yangon to Naypyidaw, the new capital carved out of the jungle by the junta in the past decade, takes 6-1/2 hours. But traffic jams are not to blame for the slow pace. On the contrary, traffic is only seen occasionally on the main route between the old and new capitals. Rather, substandard construction techniques are to blame for the slow, sometimes bumpy ride.

8 Apr 2013 - 4:04am 1 comment

Domestic investors' confidence in redback counts more than foreigners'

Domestic investors' confidence in redback counts more than foreigners'

I am one of the people who, in a small way, have helped this soaring take-off. I have personal holdings of yuan denominated investments and I have done reasonably well.

7 Apr 2013 - 1:42am

Rubbery numbers still add up to big role in Africa

President Xi Jinping arrives in Durban, South Africa, on a trip that also took him to Tanzania and the Republic of Congo. Photo: EPA

Although there is debate on whether China is Africa's top investor, analysts agree President Xi Jinping's visit to the continent underscores China's continued role as a major economic player there.

29 Mar 2013 - 4:16am

Cyprus bailout prompts fund managers to cut equity exposure

Cypriots take to the streets to protest the terms of the rescue package imposed by the European Union, the European Central Bank and the International Monetary Fund. The Cyprus bailout has sent shockwaves through global markets and fund managers are taking a more cautious stance. Photo: Xinhua

Renewed market jitters after the decision to rescue Cyprus have prompted some of the world's top fund houses to cut their risk profile to minimise losses in volatile global equity markets.

28 Mar 2013 - 5:25am

Rich Russians flock to Cyprus to salvage their investments

Russians with money in Cypriot banks are worried. Photo: EPA

They clustered in small groups on the plush couches dotted around the lounge of the Four Seasons hotel in the port city of Limassol. Nervous whispers and furtive glances revealed these were no ordinary tourists revelling in the sun on the Mediterranean island of Cyprus.

24 Mar 2013 - 9:16am

Investors may take risky path, says UBS

Investors may consider increasing riskier investments like stocks when inflationary pressure is mounting. Photo: EPA

Investors might consider adopting a riskier strategy in the second quarter, investment bank UBS said yesterday.

It said it expected the rebound in the A-share market to be sustainable owing to the economic recovery on the mainland.

Gao Ting, the chief China strategist at UBS, said the bank had overweighted the US and emerging markets, including the A-share market.

22 Mar 2013 - 4:19am

Investing in wine a tricky business

Investing in wine a tricky business

A traditionalist might argue that wine is too difficult to price and of too uncertain a provenance to be a sound investment. In fact, one asset manager, who refused to be named, implied that the strength of the wine investment market in Hong Kong was due to "too many gullible investors". Recent controversies around fake wine might seem to confirm that view, but advocates of wine investment point to a growth in prices that has averaged 13 per cent a year since the 1950s.

22 Mar 2013 - 10:04am