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Published on August 13, 2007

"Gold has proved to be an asset that can balance your investment portfolio. When the stock market is rising, gold may not outperform, but when the stock market is down, gold becomes the asset that gives your portfolio something to cheer about," said Boonlert.

Although the global gold price has started to rise lately, the current market price is average for the year so far, he said.

"Taking into account the baht's appreciation, the current price is okay for long-term investors to allocate some bucks to bullion. However, don't invest all of the money you plan to spend in gold. Start with only a quarter of it," Boonlert advised.

The gold price in the global market almost broke the US$700 (Bt23,800) resistance point,

rising to $691.40 per ounce. However, as the baht appre-

ciated about 5 per cent against

the dollar, the gold price in the local market did not rise accordingly.

In the local market, the price of gold peaked at Bt11,400 per baht (15.244 grams) in February and bottomed at Bt10,400 per baht last month. The price is moving within a range of a few hundred baht.

Boonlert said that apart from the fact that gold's value appreciated over time, investors were likely to get extra gains from the baht, which is expected to depreciate from the current level.

He recommended that investors record the price of gold when they buy and find the average capital-investment cost. When the gold price in the market surges ahead of the average price, investors should sell some to take profit.

However, Boonlert does not recommend that intra-day traders invest in gold.

"Those who are successful in gold investment are those who don't time the market. They follow the gold price for a while and consider when the gold price has dropped to a level at which they are comfortable investing. Then they wait until the price rises to where they are satisfied [with the returns]."

Gold bullion aside, Boonlert has a personal interest in gold coins and has several in his collection.

"The main point is to give me personal satisfaction. Indirectly, the value of the gold coins also appreciates," he said.

Ausiris, the first Thai gold shop to improvise on the lines of securities brokerage firms, launched its gold investment service in November.

Its has four branches where investors can trade gold, with one more to open at CentralWorld later this year.

The company also accepts gold from other bullion houses.

Piyarat Setthasiriphaiboon

The Nation