Medan Kota

The price of gold has been a roller coaster ride during the past few months.  Many Chinese especially the old traditional grandma and grandpa often see gold as the traditional way of investment including some of the modern Chinese too.  They don’t believe in stock market for many reasons.  Any often, they buy the physical gold bar and keep it hidden in some corner of the house which surprisingly they build the secret place themselves too! but not at the BANK Safe Vault..

And how do they go about trading and making money out of it? First they deal the value/amount over the phone…  after which, they go to the goldsmith to collect the physical real gold bar and bring it home..  mind you, many of the rich in Medan, they do this on a weekly basis and deal in the volume of like 10kg!!!  that’s about US$270.000 in cash..  though they don’t walk around with the cash on hand, at least they are smart enough to they do bank transfer BUT the danger is at the part where you walk off the goldsmith shop with the gold bar on hand!!! and this goes the same way when they need to sell to make the profit…

worst of all, the trading value does not reflect the actual market price. The difference is almost $10!! To me personally, it’s the same as how you trade the gold stock only that you do not feel the physical ownership of it..  I have heard many of such stories and find it interesting….  to go through the danger of being rob off and the trouble of hiding the stuff as well as the times needed involve in the trading..  I would prefer the gold trading on the stock market…  and the current stock that trade gold with almost 1:1 in the actual gold price is the SPDR Gold Trust …  To see the most and latest update on the price of gold.. Bullion is the original source..

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