Alternate Investment

Despite the bad news all over, I was in a brief conversation with a couple of friends and we discussed a few investment alternatives. I have not done my homework nor am I versed in these areas, but am just thinking out loud.

Forget about big ticket investments like properties or long term investments like land or Unit Trust and Funds. Look towards short term investments, that can even be prolonged or juggled with at our comfort and will.

These investments I like to think aloud, requires lower commitment, and has a short term exit when necessary. One could invest for a period as short as one month, or for years, with little restriction.

GOLD
As the greenback weaken from 2007 t0 2008, price of gold climbed. Gold is the closest alternative to currency thus during uncertain times, gold price tends to head north.

In recent times, as US dollar strengthen, gold price came down, to nearly US$800 per ounce (from above US$1,000 per ounce in 2008). In the second half of 2008, gold price dropped to just above US$700 per ounce before recovering. Recent Israel conflict (started about a week ago) has driven gold price up to nearly US$850 now.
(source : gold http://www.kitco.com/charts/popup/au1825nyb_.html )

Crude oil price hover around US$150 per barrel in June 2008 before heading south till it went below US$40 per barrel in December 2008. Crude oil price started climbing with the Israel conflict too.
(source : Crude Oil http://www.californiagasprices.com/crude_chart.aspx )

Would Gold be a good investment for the short to mid-term? It appears promising but risky. Some organisation/companies offers gold investment with a promised return of between 1.5% to 2% per month. This allows investors to invest in Gold for short terms, thus reducing risk.

Currency
Currency investment (forex) has always been around, be it good or bad times. In times when a country's currency is strengthening, it is worthy of investment. Apart from higher interest earned for Time Deposit with the banks, the appreciation of the currency gives more returns than what interest you could earn.

Before considering which currency to place your funds into, do your home work on what is the driving factor for the currency to appreciate or depreciate, before putting your money where your heart is.

Example. US Dollar was as low as about S$1.25 vs US$1.00 but had climbed in recent times. Australian dollar had plunge to A$0.944 against S$1 today.

Knowing the driving factor can help investor spot the upward or downward trend and avoid unforeseen losses.

Most work hard for their money. Why not make money work hard for you?