Gold Stocks

wombat42_2

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mr_fishbulb

wombat42 wrote: »

Trouble is that the dollar's strengthening of late hasnt been good for gold. But long term the dollar may weaken.

If you are holding gold and the dollar strenghtens, it is a good thing as gold is priced in dollars so when you come to sell, it will buy more pounds

I,_Brian

I,_Brian wrote: »

Honestly can't agree - mining and oil stocks are getting tanked at present because a declining world economy hasn't the requirement for current volumes of raw materials, so you end up with over supply, which leads to slowed production, which leads to lower revenues.

I've been watching the gold chart here for the past few weeks expecting a huge spike:
http://www.metalmarkets.org.uk/

However, while there has been some activity, despite some of the worst ever weeks for equities, gold remains down since July.

I think you'll find many people are simply hoarding cash, and they'll only invest when market conditions show signs of improvement - in which case, it'll be a rush to buy equities on the cheap rather than "safe" gold.

Gold has already peaked IMO, and there's no big demand for supply.

2c.

Gold now trading at $720. Looks like I was quite right.

I,_Brian

GBP has fallen 12% against the dollar. Taken with the fall in spot gold prices from $850 to $720, that means another 15% loss.

Personally, I wouldn't use eBay prices to determine key investing decisions.

purch

that means another 15% loss

11th August the PM Gold Fixing was $855 oz @ 1.90 £ 450

Today's PM Gold Fixing was $ 712 @ 1.5415 £ 462

Looks like E Bay might be closer to the truth...........

tradetime

Interesting article Purch, :beer: