Head to Bangkok for Coconuts…and Gold!

35

I’m sipping on a freshly cut coconut in Thailand…

It tastes so good!

It occurs to me: Thailand’s not just great for food. It’s also an excellent destination to buy cheap gold jewellery.

I don’t mean cheap and nasty. I mean top-quality, 24-karat gold without the hefty margin that you’ll pay in Australia.

Interested? The one place you cannot go wrong is Chinatown in Bangkok.

This little town is sparkling with gold shops on nearly every street corner. It’s typical for this part of the world.

No matter where I go in Asia — Korea, Japan or Hong Kong — I know it won’t be long before I come across a shop selling 24k gold jewellery.

You can collect gold rings, necklaces and other jewellery items in Asia for roughly the same cost as buying plain bullion from a local dealer here in Australia.

The point being, you get all the workmanship for practically nothing!

In my opinion, that is a bargain!

I’ve ridden gold’s boom-and-bust cycle for years now.

It really has got me thinking…

Why does the Asian culture adore gold? This matters when it comes to the outlook for the gold price. I’m going to share my forecast with you below.

But first, I need to introduce myself…

So many ideas to share with you

My name is Jonathan Evans. Call me Jono. I’m a former financial adviser who has been trading and investing for nearly a decade.

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I’m also your new editor for the weekend edition of Profit Watch. I’ve got a heap of ideas to share with you.

Gold is just one market I’ll cover.

Now let’s go back to the gold market…

It’s tempting to link Asia’s love of gold to the stories we hear of government corruption and the money laundering of the rich.

But it goes much deeper than that.

Gold is part of Chinese tradition, for example. It is ingrained in Chinese customs and is part of their way of life.

Typically speaking, gold prices tend to increase during December to February.

No wonder. Swiss exports of refined gold to Hong Kong increased by 70% over the prior year during January 2018[1].

This is because one of the most popular times for the Chinese to purchase gold is during Chinese New Year (CNY).  A lot of dealers around Asia will factor in a ‘CNY premium’ as they gear up for the festive period (keep this in mind as a buyer!).

The use of gold in Asia during times of celebration — particularly surrounding traditional Chinese weddings — marks a cultural difference to the West.

You might not know that gold jewellery is often given in the form of a three-piece set.

It’s usually a combination of a necklace and pendant (or bracelet) along with a ring or earrings.

Still, something worries me long term when it comes to gold demand in Asia.

Women are only bearing 0.71 baby girls over their lifetime, according to statistics.

In 2010, there were 51 million more men than women in China and this number has continued to grow since.

This makes for a shrinking outlook for wedding-related gold demand. There’s also evidence that gold’s appeal is losing lustre for India’s young.

These are important trends to follow. Demand for gold in Asia is a huge part of the market. Should this go down, then gold may not perform as it has done previously.

There is one upside to this possibility, though.

You would be able to buy gold cheaper on your next Asian trip!

I hope you enjoyed my first introductory wrap-up.

Before signing off, I want to provide you with a snapshot of what to expect from me as I take the helm of the weekend editions of Profit Watch.

Ideas galore — and it starts right here

I’m pumped to join Callum’s team. In my view, this is the kind of resource investors are missing here in Australia. Most people focus on the negative. Bad news sells, I guess. But does it lead you to the opportunities?

My intention is to not only present those opportunities each week, but also to bring you transformative ideas to help you identify and trade them.

What ideas will we explore?

Here’s a few examples…

  • Take one of the exciting developments taking place in the technology sector right now: 5G. What if I said that every single tech service in the next five years will be linked to 5G technology? Seems far-fetched? Well, not according to Telstra’s CEO Andy Penn, who recently said, ‘During the 2020s we will start living in a world where virtually everything that can be connected will be connected via 5G.’ Like Penn, I also believe 5G will be the catalyst for massive change to the world as we know it.
  • Then there’s the developments in self-driving cars and the technology that’s enabling it. In 2018, Telstra and Lexus began trialling new technology called C2VX. This technology will enable our vehicles to theoretically talk to each other in real time. Right now, this is being tested over 4G. Soon, this technology will be delivered right through the 5G network. And when it does, we’re looking at a revolution in transport akin to when the horse and cart was taken over by the combustible engine.
  • I’ll also impart my deep knowledge and study of markets cycles. More specifically, I am going to show you how cycles repeat with remarkable consistency. I’ll show you how to use them as your guide to where the world is likely going. Right now, much like what happened at the dawn of the information age in early 90s, I hold a firm belief that technology is hot. And for the next two years, 5G, robotics, virtual reality and cloud computing are going to provide huge opportunities to profit.

Point is, I want to use these weekly wrap-ups to hand over everything I’ve learnt from the last decade in the markets, in bite-sized, easy-to-interpret and actionable steps.

This ranges from the big-picture global economic events…down to the weekly update on the Australian financial markets.

I also intend to provide you with forecasts here and there. These will cover a range of different sectors, including cryptocurrencies.

I guarantee that in every single weekly update, there will be a takeaway just for you.

According to the Chinese zodiac signs, 2019 is the year of the pig.

The pig symbolises wealth.

So, here’s to a profitable 2019.

Until next week,

Jonathan Evans,
Contributing Editor, Profit Watch


[1]Gold Has Longstanding…’, Cambridge House International, Feb. 24, 2018

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