Putradinar | Malaysia

Article below is a summary of an article from BullionVault, Wednesday, May 13

A senior figure at JP Morgan Chase & Co claimed yesterday (May 12th) that Gold Prices could be as high as $1,300 per ounce in 12 months' time, Bloomberg reports.
The yellow metal has enjoyed a strong performance since the beginning of the credit crunch as people have bought it in their droves in an attempt to find a store of wealth.

However, Jan Loeys, global head of marketing strategy at the firm, has explained that the tide is turning and Gold Investment looks set to rise for another of its qualities - providing a hedge against inflation.
He told the news provider: "Over the next year or so, we think we are going to be crossing $1,000, probably going ultimately to $1,200, $1,300 just for inflation hedging and lack of supply.

"The buying we are seeing now in commodities is really hedging, hedging off the potential risk that we will see a spike in inflation."
Mr. Loeys' views were strongly backed up recently by Warren Buffett, the renowned investor and second-richest man in the world, according to the latest Forbes magazine data.

Speaking at the annual shareholders' meeting of his Berkshire Hathaway investment vehicle in Nebraska, he explained that the huge fiscal output in response to the recession will see the dollar slide in the coming months.

"What we are doing is borrowing from the rest of the world and building up government debt," he said. "The classic way of reducing the impact and cost of foreign debt is by reducing the value of the dollars you're going to repay them with.

# The highest point for today is $934.05

Article below is a summary of a news article from The Sun, Tuesday May 5.

Early this week, CIMB Private Banking gave an advice to its high net worth clients to invest in gold. Its co-head Alan Inn said gold is an effective portfolio diversifier due to its lack of correlation when held up with other assets. He said that most investment portfolio mainly focus on traditional financial asset like stocks and bonds. Below are the reason that he gave for his statement:

• There is a need for diverse portfolio investment to protect the portfolio against fluctuations in the value of any single asset class.



• Gold is an unique asset class on its own and has long achieved its status as a safe heaven investment in times of 'financial and geopolitical stress'.



• Gold has been an excellent hedge against inflation and currency values for the last 30 years and also been stabilizes one's investment regardless of 'cyclical factors or economic conditions'.



• Investment in gold can be in the form of gold bullion, Exchange Traded Funds, gold futures or stocks.

• This is an event by Islamic Banking and Finance students 08/09 to promote dinar and dirham beside revealing about the truth about what are causing all the economics problems around the world nowadays. Do come to this informative events to find out the truth and you won't regret it...

• Seminar And Bazaar Event 2009



• Seminar Theme : "In GOD We Trust, Medium of World Unity and.
  Armageddon forNovus Ordo Seclorum."



• Bazaar Theme : “Renaissance of the Souk: Reviving The Market"



• Venue : Dataran Pahlawan Megamall, Melaka



• Date : 1 & 2 May, 2009



• Organizer : Multimedia University, Islamic Banking & Invesment Student.
  2008/2009

Below is the news article from BBC News on Monday, 27 April 2009.

China has reported that it has been secretly increasing its gold reserves. It was able to keep it secret by buying domestically produced metal, almost doubling the amount of gold it holds to more than 1,000 tons.

China has the biggest foreign exchange reserves in the world, totalling almost $2,000 billion (£1.373 billion). An estimated two thirds is held in US dollars, though China has been backing away from the dollar as a reserve currency for a while.

Safe Investment?

Three years ago Beijing broke the peg that linked its currency, the renminbi, and the dollar. Then, just before the London G20 summit earlier this month, China suggested that the time might have come for countries to reduce their reliance on the US dollar as a reserve currency.

The Chinese move has given a small boost to the gold price, up $5.50 (£3.77) at $913 an ounce in London and a big boost to those traditional investors who believe that gold is still the safest store of value. However, bullion market experts say China's gold holdings are still far smaller than those of the US and other developed countries, and it was still buying US dollars. But still demand from China has pushed up the price of gold.

# If all other country have the same consciousness as China and not too depending on US dollar as their reserve, this will affect the gold price and market gold rush will occur. So grab your gold now before its too late!!!

Below is the Malay version of the article courtesy of www.chedet.com

1. Ramai juga yang bertanya berkenaan Dinar Emas termasuk juga BBC yang mengadakan wawancara dengan saya baru-baru ini.

2. Apa yang sudah jadi kenyataan yang tidak lagi dapat dinafi oleh negara-negara di dunia ialah sistem kewangan yang ada sekarang sudah gagal untuk diguna dalam ekonomi dan dagangan baik dalam negeri atau antarabangsa.

3. Keputusan Bretton-Woods selepas Perang Dunia Kedua ialah semua matawang negara di dunia ditentukan nilainya mengikut nilai tukaran dengan matawang Amerika Syarikat.


4. Tetapi di tentukan juga yang nilai Dolar Amerika ialah sebanyak 35 Dollar untuk satu ouns emas. Ini bermakna secara tidak langsung semua matawang dinilai mengikut sekian banyak emas.

5. Di masa itu semua matawang adalah kukuh. Tetapi Britain, pada tahun 1966 telah turunkan nilai Pound British. Malaysia telah rugi banyak kerana simpanan (reserve) kita adalah dalam matawang Pound. Pada satu masa Pound yang bernilai Ringgit Malaysia 8.30 telah turun kepada Ringgit Malaysia 3.60.

6. Kemudian Presiden Richard Nixon membuat keputusan bahawa Dollar Amerika tidak lagi terikat dengan emas. Amerika telah tolak apa yang dipanggil sebagai "Gold Standard". Amerika juga memutuskan bahawa pasaran akan tentukan nilai Dolar Amerika.

7. Tetapi negara-negara lain masih percaya akan kekuatan ekonomi Amerika dan meneruskan ikatan nilai matawang mereka dengan Dollar.

8. Satu lagi keputusan dunia antarabangsa ialah nilai dagangan antarabangsa ditentukan dengan nilai Dollar Amerika dan bayaran juga dibuat dengan Dollar Amerika. Ini menyebabkan permintaan bagi Dollar Amerika menjadi kuat dan sekali gus menjamin nilai Dollar Amerika tidak jatuh walaupun tidak lagi diukur dengan sekian banyak emas.

9. Pada satu masa dahulu bank besar dibenarkan mencetak dan mengeluarkan "Bank Notes" sebagai wang yang sah dipergunakan. Kemudian pemerintah mengambil alih pengeluaran matawang.

10. Bank mengeluarkan pinjaman daripada modal dan deposit oleh pelanggan. Kadang-kadang jumlah pinjaman melebihi wang yang ada dalam bank. Tetapi ini dihadkan. Walaupun demikian pinjaman yang dikeluarkan kerap kali jauh lebih banyak dari had yang ditentukan.

11. Apabila pendeposit mengeluarkan simpanan mereka beramai-ramai maka bank tidak mampu untuk membayar balik kepada pendeposit kerana semua wang telah diberi pinjam bahkan lebih daripada itu. Dalam keadaan ini bank mesti di selamatkan (bail-out) oleh Kerajaan.

12. Melihat bahawa bank boleh mengeluarkan pinjaman hampir tanpa had (unlimited) maka penyangak pun merancang untuk guna duit bank yang tidak terhad ini untuk meraih keuntungan atas angin. Maka berlakulah dagangan matawang, pinjaman kepada peminjam yang keupayaan membayar tidak terjamin, penjualan pinjaman yang dikeluarkan oleh bank kepada syarikat insurans dan syarikat gadaian (mortgage company) dan lain-lain. Jumlah semua transaksi ini amat besar, bernilai berbilion dolar. Apabila ramai peminjam tidak dapat bayar hutang atau servis hutang, maka mereka yang membeli pinjaman bank dapati mereka akan rugi berbilion dolar.

13. Dan banyak lagilah penyalahgunaan sistem bank Barat yang dilakukan. Demikian Amerika dengan kekayaannya yang besar sekalipun tidak dapat menampung berbilion dolar kerugian oleh bank, syarikat, insuran, syarikat mortgage, hedge funds, merchant dan investment bank dan lain-lain.

14. Sesungguhnya sistem bank dan matawang Barat sudah gagal. Dunia harus kaji untuk menggantinya dengan sistem lain termasuk perbankan Islam dan dagangan dengan matawang khusus seperti Dinar Emas.

15. Tidak seperti duit kertas emas tetap mempunyai nilai dimana-mana dalam dunia. Dinar Emas dicadang hanya untuk menyelesaikan bayaran dagangan antarabangsa.

16. Apakah ada cukup emas dalam dunia untuk dijadikan wang antrabangsa? Sudah tentu tidak.

17. Tetapi kita tidak perlu bayar dengan dinar emas sepenuhnya. Memadai jika kita bayar cuma lebihan antara import-eksport antara dua buah negara.

18. Jika sebuah negara mengeksport 100 juta Dinar kepada sebuah negara lain dan negara itu pula mengeksport kepada negara pertama barangan atau khidmat yang bernilai 110 juta Dinar, maka bayaran yang harus dibuat oleh Bank Negara negara yang pertama hanyalah 10 juta Dinar emas. Jika tidak ada Dinar Emas yang mencukupi maka bayaran boleh dibuat kemudian dengan eksport bernilai 10 juta Dinar.

19. Kita bukan sahaja boleh ada dagangan antara dua buah negara tetapi antara beberapa buah negara. Sebenarnya bank-bank mengguna cara ini untuk menyelesaikan bayaran cheque kepada beberapa bank yang telah terima dan mengeluarkan bayaran berasas kepada cheque lain-lain bank.

20. Sudah tentu akan ada banyak masalah pada permulaan. Tetapi pakar-pakar boleh cari jalan untuk selesaikan atau atasi kelemahan sistem Dinar Emas ini.

21. Bank Negara Malaysia pernah runding dengan sebuah negara lain dan penggunaan Dinar Emas memang boleh dilaksanakan. Tetapi entah kenapa Bank Negara Malaysia tidak dapat menjayakan sistem ini.

Smart investors always diversify. Wise investors always include gold in their asset mix. Unlike paper investments such as stocks, bonds, and even dollars, gold is always in demand. When the Internet bubble burst, a ton of tech stocks fell to pennies, even to zero. Since 1980, an ounce of gold has never been worth less than $250.

Constant demand
About 80% of the gold bought today is used to make jewelry. Gold jewelry is in high demand not only in the world's richest and most industrialized countries, but also in India, China, and other Asian countries, as well as in Latin America and Africa. The gold jewelry market is so diverse that when demand declines in one area, it is likely to rise in another. Furthermore, demand for gold jewelry tends to decline only during periods of economic downturn. But it is precisely during such periods that investment demand for gold rises rapidly.

Constant rarity
Companies can and do issue additional shares of stock, diluting the shares already held by investors. Governments print money and inject it into the economy, diluting the cash in your pocket and bank accounts. Even many non-paper assets, such as mass produced collectibles, are, well, mass-produced. Their supply is essentially infinite.

Gold, however, is one of the scarcest substances on earth. Tons of ore must be processed to produce an ounce of gold. According to the US Bureau of Mines, all the gold ever mined throughout history and throughout the world would build a cube measuring only 60 feet on edge. Furthermore, as relatively easy-to-mine sources are depleted, new sources of gold are harder and harder to find. And it takes, on average, about seven years to bring a new source of gold into commercial production, which creates a major gap between increasing demand and increasing supply.

Universal liquidity
Many hard assets do not have the liquidity of stocks and bonds. There are times when it can take months or even years to sell real estate, art, or collectibles such as carpets or antiques. Gold, in the form of bars or bullion coins issued by the US Mint and other mints, is traded on an active global market in North and South America, Europe, Africa, and Asia. It is always easy to buy gold and easy to sell it.

Nor are gold sales encumbered by the paperwork and government tax filings that characterize stock and bond trades. Even if stock markets fail, banks close, and governments are in crisis - in fact, especially under those circumstances - there are eager bidders for gold in every city and country in the world.

True diversification
Our parents told us, "Don't put all your wealth in one basket." Investment advisors also preach the virtue of diversification. But by "diversification" they often mean split your assets between stocks and bonds, and between large cap, mid-cap, and small cap growth and value stocks, with some international equities thrown in. Unfortunately, when the whole stock market swoons, especially when the bond market crashes alongside it, you can find yourself holding only one basket after all. Such scenarios can and do take place in real life, as many of us have discovered from reading about the Japanese stock market or about recent events in Argentina.


Gold, however, is a true portfolio diversifier. Its "correlation coefficient" with the price of global stock has ranged within plus or minus 0.4 since 1993, averaging around zero. That means that the price of gold does not vary with the stock market, but independently from the stock market. Owning gold really is holding another basket.

Always own gold
Constant demand, constant rarity, universal liquidity, and true diversification. These are among the key reasons a wise investor always owns gold as a portion of his or her portfolio. Although more investment advisors are recommending gold now than during the 1990s, most still ignore gold and favor holding only paper assets. They have no way of profiting from recommending buying physical gold, which may have something to do with their outlook.