Didn't last long.....

WTF?_2

Generali wrote: »

Yeah, the FTSE's got a long way down to go IMO. It looks like stonking value at the moment in terms of yield but they'll fall away as profits get smashed by the credit crunch and recession.

I'm sure there'll be time for the odd rally or 2 along the way though to draw in the unwary.

We could see the end of the Cult of Equity as most baby boomers really can't afford to lose a big proportion of their pension pot this close to retirement.

I have to admit it's looking like massive deflation at this stage. But what will the results of the money-printing be down the line? Anyway, got rid of my gold holding at a modest profit but I'll be leaving the results in the trading account to quickly buy back in should another catastrophe beckon or indeed, the value drop nice and low.

The loss of value in stocks is simply incredible - glad I didn't hold any personally and aren't retiring any time soon.

Hmmm, has anything gone up in value over the last couple of weeks? Has all that 'missing' money just gone to cash or bonds?

Realy

!!!!!!? wrote: »

Anyway, got rid of my gold holding at a modest profit but I'll be leaving the results in the trading account to quickly buy back in should another catastrophe beckon or indeed, the value drop nice and low.

Not a dig how did you do that?
I thought you purchased at $750 when it was $2 to the £
You must have sold above $867 to get a profit.
If you did fair play as the market as been below that for quiet a time the last couple of weeks.

WTF?_2

Realy wrote: »

Not a dig how did you do that?
I thought you purchased at $750 when it was $2 to the £
You must have sold above $867 to get a profit.
If you did fair play as the market as been below that for quiet a time the last couple of weeks.

Bought at a smidgen below £13800 per kilo in the middle of September, sold at just under £15100.

The point wassn't to profit, it was to hedge against financial calamity. With all the deflation indicators coming in the trend is down and it seems that no major financial institution is about to go bang. Hence the pressure is off and gold is falling back.

Not as much as stuff like other commodities have done though.... everything seems to be falling in price as people flee to cash/bonds.

I still think that at some point down the line we are going to see some very nasty effects of all the cash that has been thrown into the system ....... then it's time to take out the insurance policy again.

Realy

!!!!!!? wrote: »

Bought at a smidgen below £13800 per kilo in the middle of September, sold at just under £15100.

.

Nice one. A wise idea buying in £'s

WTF?_2

Realy wrote: »

Nice one. A wise idea buying in £'s

It's pretty awkward to do it any other way unless you already have a dollar account with some dollars to your name in there.

Buying gold actually acts to preserve against sterling dropping as well as a safe haven in times of trouble. Most of the gains in recent weeks were more due to the pound dropping against the dollar rather than a stellar increase in the gold price. I think it only hit something like $930 per troy oz even during the darkest depths...... that's a long way off the >$1000 it hit around Bear Stearns in March but in sterling terms it was an all-time high.

Generali

Realy wrote: »

Nice one. A wise idea buying in £'s

My experience is that you still buy and sell the gold in $ but there is a 'hidden' FX trade when you buy and sell. It's called an 'out of currency' trade.

Dithering_Dad

!!!!!!? wrote: »

The point wasn't to profit, it was to hedge against financial calamity. With all the deflation indicators coming in the trend is down and it seems that no major financial institution is about to go bang. Hence the pressure is off and gold is falling back.

I still think that at some point down the line we are going to see some very nasty effects of all the cash that has been thrown into the system ....... then it's time to take out the insurance policy again.

If your gold was bought to hedge against financial calamity and not to make a profit then why do you not still have it? Or do you feel that the calamity is receeding and we're heading into better times?

Just confused because you're one of the most bearish people on this forum and so I assume you think there are worst times ahead (I believe you have said as much). If this is the case, and knowing that events seems to be changing on a very rapid basis, then it doesn't seem to make sense to dump your Gold just as things are really starting to get bad?

I understand that you can buy back in at a lower price, but if things are as bad with the economy as you constantly state, then the £ could be devalued before you get the chance to rush back to gold. Also, as the gold market is global, you might be asleep in your bed while the economy collapses and the gold price soars?

StevieJ

!!!!!!? wrote: »

Bought at a smidgen below £13800 per kilo in the middle of September, sold at just under £15100.

The point wassn't to profit, it was to hedge against financial calamity. With all the deflation indicators coming in the trend is down and it seems that no major financial institution is about to go bang. Hence the pressure is off and gold is falling back.

Not as much as stuff like other commodities have done though.... everything seems to be falling in price as people flee to cash/bonds.

I still think that at some point down the line we are going to see some very nasty effects of all the cash that has been thrown into the system ....... then it's time to take out the insurance policy again.

I have news for you, the flood of money is not into bonds.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aoe_62WgtVdU&refer=home

Generali

StevieJ wrote: »

I have news for you, the flood of money is not into bonds.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aoe_62WgtVdU&refer=home

It looks like we've hit a 'death spiral'. Assets are losing value so people withdraw their money from asset markets so assets lose more value so more people withdraw their money...........

It only ends when assets are such a screaming buy that even my Grandma can see it (she died in 1974).

It's a good time to buy stuff that gives a good dividend stream and should continue to do so. Beer companies, utilities, confectionary perhaps, fags maybe(??), big pharma(?).

sabretoothtigger

oil companies, banks are usually good