STOCKS PLUNGE...GOLD SOARS!

Several postings back, I shared about the prospects of investing in GOLD. I mentioned about it being the best preserver of value, well this call is still strong now especially under the circumstances the global economy is going thru.

At time of writing, the FBMKL is trading at 1460.19, 36.8 points off - which equals 2.45% down. This is a continuation from yesterday's sell down where the index lost 27.44points or equal to 1.8%....this is also over 100 points off from its highest recorded mark of 1594.74.

Other losing market at this time are KOREA, -6.2%, HANG SENG - 5.54%, NIKKIE - 3.73%

Apparently blood is not only flowing in certain cities in UK because of the riots...but in the BURSAs too!

GOLD prices has been CLIMBING over the last 11 years and it looks to continue this trend. It touched USD1700 (RM5134) an ounce yesterday at the back of growing concerns of the global economic meltdown. With the biggest economy in the world (US) looking frail, ill and "on drips" much like a critical patient in ICU...the fear factor that is abound is causing a value wipe out of USD5.4 TRILLION! Europe is also in sick bay with doctors and nurses keeping watch of the pulse. But it has not been good news so far.

But...there is some pleasant news to most domestic equity investors - in that the MALAYSIAN market has seen the least value lost during this challenging period. This is perhaps due to the fact that most of the global funds managers and investors view Malaysia as offering the best of the worst economic environment and they have actually "flown-into" our shores with the substantial increase in FDI over the last 10months.

More and more investors are seeking "safe homes" for their money. There is just too much pessimism or nervousness associated with the economies and currencies of major nations. And they will continue to seek the GOLDen horizon.

Even the CHINESE government have recently called on all major governments to GO BACK TO more stable currency backing reserves...they meant GOLD!

This call was already BLARED loud and hard many years back when TUN M was our PM. Whether this will help the situation or not is debatable but in any case individual investors must take serious consideration to add GOLD in their portfolio if they have yet to.