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Gold in UK touching high price of 20 weeks back.
DiggerUK
Posts: 4,992 Forumite
At the London Fix today gold was back to 856GBP, close to it's high of 866GBP on June 8th.
http://www.lbma.org.uk/pages/?page_id=53&title=gold_fixings&show=2010&type=daily
As can be seen, the difference is in the US$ price, 1247US$ in June, 1372 US$ today.
The reason gold has not flown higher in UK being that the pound was about $1.45 in June, and is about $1.60 today.
http://finance.yahoo.com/q/bc?s=GBPUSD=X&t=1y&l=off&z=m&q=l&c=
As many reports are concluding, the masters of the universe are all in the game of tanking their currencies in a desperate attempt to get a trading advantage. It has been called "The race to the bottom"
http://www.guardian.co.uk/business/2010/oct/10/imf-currency-row-foreign-exchange
As Ben Bernanke confirmed today, even more printy printy is on the way from the USA. The BOE and the UK Chancellor said much the same last week. Currency debasement is still top of the agenda it seems.
http://www.bloomberg.com/news/2010-10-15/bernanke-sees-case-for-further-action-on-economy-with-too-low-inflation.html
So, as you can debase paper money, but not gold, gold is still a safe buy at these prices.
For those who doubt the wisdom of investing your savings in gold, all I can ask you to do is reconsider your position when QE3,4, 5 and 6 are upon us.
As usual I ask that all posts be kept to one screen/page in length.
http://www.lbma.org.uk/pages/?page_id=53&title=gold_fixings&show=2010&type=daily
As can be seen, the difference is in the US$ price, 1247US$ in June, 1372 US$ today.
The reason gold has not flown higher in UK being that the pound was about $1.45 in June, and is about $1.60 today.
http://finance.yahoo.com/q/bc?s=GBPUSD=X&t=1y&l=off&z=m&q=l&c=
As many reports are concluding, the masters of the universe are all in the game of tanking their currencies in a desperate attempt to get a trading advantage. It has been called "The race to the bottom"
http://www.guardian.co.uk/business/2010/oct/10/imf-currency-row-foreign-exchange
As Ben Bernanke confirmed today, even more printy printy is on the way from the USA. The BOE and the UK Chancellor said much the same last week. Currency debasement is still top of the agenda it seems.
http://www.bloomberg.com/news/2010-10-15/bernanke-sees-case-for-further-action-on-economy-with-too-low-inflation.html
So, as you can debase paper money, but not gold, gold is still a safe buy at these prices.
For those who doubt the wisdom of investing your savings in gold, all I can ask you to do is reconsider your position when QE3,4, 5 and 6 are upon us.
As usual I ask that all posts be kept to one screen/page in length.
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Comments
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So you are saying that we should still buy gold at this high price because the $ is weaker against the £.
What will happen when it strengthens again?0 -
So you are saying that we should still buy gold at this high price because the $ is weaker against the £.
What will happen when it strengthens again?
I understood the reason to buy gold is because your currency is getting weaker not gold getting stronger. The fact they print more money means their..er...is more money to go around and therefore everything will be inflated - so hedge against that by 'selling' your sterling for gold to lock in today's value of prices before your money loses more value.0 -
If the USD/GBP exchange rate was the same today as it was in June, then we would be looking at price of gold (POG) being nearly 950GBP an ounce.......the reason to buy gold is because your currency is getting weaker not gold getting stronger. .........
Spooky or what, only 50 pound short of a grand an ounce!!!0 -
http://www.coininvestdirect.com/en/
Received an email notification off CID, about a special offer of a gold coin available from Saturday morning, 16/10/2010.
No idea what is on offer, "Caveat Emptor"
I have used this firm.
Edit: It's a 1/20th ounce Panda @ 46.33, 8%+ over spot, + p&p.
Not a good deal in my opinion.http://www.coininvestdirect.com/en/gold_coins/panda_2010_1_20_oz_gold_20_yuan.html0 -
So you are saying that we should still buy gold at this high price because the $ is weaker against the £.
What will happen when it strengthens again?
Yeah, the currency rates moving can mess with the prices of equities, commodities etc priced in anything other than Sterling.
I worry about the GBP/USD rate too with the wild swings we have had the last 3 years and further QE.
Good thing with Gold and other commodities and some ETF's is that spread betting allows you to bet in £'s per point movement in the Dollar price.
Maybe a slightly bigger spread but it saves on the currency exchange costs anyway. Unfortunately I missed a lot of the rise in Gold but made a futures spread bet 12 weeks ago and will hang in there for a while yet just rolling over the bet whenever the contracts end.0 -
A total aside, but I find the expression 'printy printy' a hilarious one
0 -
Yeah, the currency rates moving can mess with the prices of equities, commodities etc priced in anything other than Sterling.
I worry about the GBP/USD rate too with the wild swings we have had the last 3 years and further QE.
Good thing with Gold and other commodities and some ETF's is that spread betting allows you to bet in £'s per point movement in the Dollar price.
Maybe a slightly bigger spread but it saves on the currency exchange costs anyway. Unfortunately I missed a lot of the rise in Gold but made a futures spread bet 12 weeks ago and will hang in there for a while yet just rolling over the bet whenever the contracts end.
what are you betting on? gold? Not sure I understand what you mean, if you have an open position at a buy in gold from 12 weeks ago you must be seriously in the money.0 -
edinburgher wrote: »A total aside, but I find the expression 'printy printy' an hilarious one
This was plagiarised from (dare I mention!!) a poster on HPC.
My other fave is from Liam Halligan, a journalist on The Sunday Telegraph, who calls it "funny money"0 -
If Osbourne is so clever, why hasn't he thought of the obvious solution? Just print off about £958 billion, in crisp new tenners*, pay off the national debt. Surely Martin Lewis would be proud of him, paying off the debt first!
[* Or would it be better to do $1.5 Trillion in crisp $50 notes. Obama would never notice.]
Or failing that, I note that the interest alone on the National Debt equates to 4.47%.
So, come on sunshine, get NS&I to do a 4% cash ISA, and save 'loads'a'money'.0 -
Whilst on the note, just a silly question. When purchasing gold should one buy it in dollar or pound? Or does it not make any difference?
I earn in dollar so I can buy it for dollar prices without converting my money. If this is the case, can someone suggest which is the best place to benefit from buying in dollar without loosing on the exchange since I earn in USD.0
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