Buying in to Gold

sabretoothtigger

Gold was highest in pounds this Feb past thats because pound was also weak then so I guess like you say its mostly not about gold being in demand that much or it would show for us even

http://www.lbma.org.uk/?area=stats&page=gold/2009dailygold

I need to graph the GBP figures on excel, google docs is crap


Gold is a non performing asset, much better to choose a good countrys currency and invest there. Im wondering if investing in Japan would be better then gold or actually I'd prefer australia



Gold reaches 1000 dollars an ounce for the first time in history apparently, Peter Schiff has a party? (actually it did it March 08 too I thought )

http://www.youtube.com/watch?v=_z4ZYtsCq6E&feature=sub

GTG

Many countries in the world are debasing their currency by increasing the money supply in order to inflate away debt. Gold will protect against this.This is the cause of inflation i,e increasing the supply of money and credit in an economy.

The US say by printing but what they are hiding is that the so called printing actually creates a debt for the country repayable to the privately owned Federal Reserve. Yes it is not government owned but the shareholders are the big banks. Citigroup and J P Morgan own approx. 50% who charge the government(taxpayers) interest, for what? This monetry system is responsible for much of the worlds ills, Bill Still's new film "The Secret of Oz" due for release shortly should reveal all.

Here's an excellent podcast on gold... well worth a little of anyones time.

Why Gold Is The Currency Of The Free And Idle

http://commoditywatch.podbean.com/2009/07/04/why-gold-is-the-currency-of-the-free-and-idle/

Chart for gold in GBP's... use the drop down menu under "currency"

http://www.bullionvault.com/gold-price-chart.do

Enjoy

GTG

sabretoothtigger wrote:

Gold is a non performing asset, much better to choose a good countrys currency and invest there. Im wondering if investing in Japan would be better then gold or actually I'd prefer australia

[FONT=Arial, Helvetica, sans-serif]Gold’s recent push above $1,000 an ounce is finally catching Wall Street’s attention. And yet many of the talking heads on TV still rush to say that gold is not a good long-term investment, that it’s “dead money” because gold doesn’t really do anything.[/FONT]
[FONT=Arial, Helvetica, sans-serif]That’s a lie. Gold does something very important — preserve your wealth in an age when paper currency can be printed by the metric tonne. And gold has been doing a lot more than that since 2001. Take a look at this chart showing the 10-year performance of gold vs. the S&P 500 …[/FONT]

http://www.uncommonwisdomdaily.com/the-secret-bull-market-2-6739

Using the bullion vault link on the post above you can also call up the gold chart in yen and oz dollars, you will see from it that gold has at least doubled in the last five years of this bull market. No dividends but when the bear market resumes in stocks it's unlikely in most cases that divis will be maintained and/or compensate for the falls in stock values.

cloud_dog

Interesting interview with an opposing view to the 'Gold Will Reach for the Moon' view:

http://www.commodityonline.com/news/Elliott-Wave-Will-gold-fall-back-to-$500-21021-1-1.html

Well worth reading and understadning the implicatrions.

EDIT: MSE must have changed something (a while ago) because you need to click the URL link to add a URL rathe than just cut/paste - Hadn't used this before. Must be something to cut down on spam).

DiggerUK

Cloud Dog,
Your link didn't work. I get all Homer Simpson glazed eyes with wave charts, follow what they say, but can't praise or condemn something I don't understand.
http://www.commodityonline.com/news/Elliott-Wave-Will-gold-fall-back-to-$500-21021-3-1.html

Well worth keeping this site in favourites, they do give a fairly balanced view, with a favouritism towards the gold bulls 'n bugs.

*Anybody interested in 1/2 Nuggets @ 310, (about 2% over spot as of today) +p/p.
http://www.coininvestdirect.com/main.php?a=11&id=6

*Edit, special offer closed.

GTG

The Chinese will keep the price of gold up, as a result of years of trade surpluses with the US they have currency reserves of approx. 2 trillion in the rapidly depreciating USD. They have been progressively buying up world wide natural resources companies and stock piling commodities over the past few years to diversifiy out of the dollar. That appears to be slowing , they are net sellers of USD's and gold looks to be their choice of hard assets now.

http://www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html

Their ultimate aim may well be to promote the renminbi/yuan as a replacement world reserve currency for the dollar with their currency being backed by their gold reserves.

DiggerUK

GTG,
I think as far as changing the world reserve goes, China is punching way above it's weight. There is also the small problem of them getting burnt as easily as everyone else if the dollar tanks.

In many ways it seems that the dollar is like the banks, too big to be allowed to fail. But fail or not, it's days seem short as number one reserve.

As to the current pog I think a combination of miners de-hedging, CB's buying not selling, and demand holding up year on year, it could be the $1k plateau is here for a while yet.
If you have a read through this thread from Kitco, in particular the link in post #23, you will see that there is what appears to be quite a story developing.
https://www.kitcomm.com/showthread.php?t=49424

Sadly a thread that started on this issue died the death here.
http://forums.moneysavingexpert.com/showthread.html?t=1937647

sabretoothtigger

DiggerUK wrote: »

Cloud Dog,
Your link didn't work. I get all Homer Simpson glazed eyes with wave charts, follow what they say, but can't praise or condemn something I don't understand.
http://www.commodityonline.com/news/Elliott-Wave-Will-gold-fall-back-to-$500-21021-3-1.html

Well worth keeping this site in favourites, they do give a fairly balanced view, with a favouritism towards the gold bulls 'n bugs.

*Anybody interested in 1/2 Nuggets @ 310, (about 2% over spot as of today) +p/p.
http://www.coininvestdirect.com/main.php?a=11&id=6

*Edit, special offer closed.

That seemed like a good offer, how much is a sovereign worth nowadays. Probably a better price then them because they are so small, however it wouldnt be tax free like british currency is.
If a loaf of bread does end up costing 10 pounds and gold soars then in theory those people invested could owe alot of it in tax






With elliot its like they are saying yes the waves are getting your feet wet right now but we've checked the tide times and soon prices will retract greatly except in their version there is 5 different types of waves I think it is

However clever and independently thought out that might be, they could still just be wrong because circumstances this time appear so different.

I personally would be inclined to believe them overall ,just because the cliche of 'its different this time' is probably said many times for every generation of people but I think we're basically making the same mistakes they have been making for centuries in various ways.
The elliot wave thing came out of the 30's when they also devalued the worth of the dollar so it still has relevance I guess.

Also remember that speech brown said, we've eliminated boom & bust. Basically thats just a puffed up way of saying 'its different this time' and obviously completely wrong.

http://www.youtube.com/watch?v=aCQREoAmsu0


Anyway they say gold will retract as all assets will suffer some deflation. It doesnt make sense but the market being caught off guard and therefore suffering a big adjustment would be how these things play out.
Expectations are always priced in as soon as they can be by the millions of people constantly trying to make money off the next guy.

Im more geared to inflation but I wouldnt say they are wrong, something about it rings true

sabretoothtigger

GTG

DiggerUK wrote: »

GTG,
I think as far as changing the world reserve goes, China is punching way above it's weight. There is also the small problem of them getting burnt as easily as everyone else if the dollar tanks.

The dollar is tanking and China is a creditor nation with massive cash reserves and stock piles of commodities. The western world or at least the US the UK and some of europe are massively in debt to a large degree to foreign bond holders. The wealth and power is shifting to the east.

In many ways it seems that the dollar is like the banks, too big to be allowed to fail. But fail or not, it's days seem short as number one reserve.

As to the current pog I think a combination of miners de-hedging, CB's buying not selling, and demand holding up year on year, it could be the $1k plateau is here for a while yet.
If you have a read through this thread from Kitco, in particular the link in post #23, you will see that there is what appears to be quite a story developing.
https://www.kitcomm.com/showthread.php?t=49424

Sadly a thread that started on this issue died the death here.
http://forums.moneysavingexpert.com/showthread.html?t=1937647

Yes I'm aware of Barrick retiring it's gold hedges, when a producer does something like that you would have thought that would be a bullish signal. However they started hedgeing in 2003 I think it was and look what happened then, chances are this could be a contrarian indicator! Deflation is the real world situation for many countries and if it was n't for the pounds depreciation against other currencies I think we would be in the same boat. Like other countries we do have deflation in most assets which debt is required to purchase e.g. property. IMO we are close to entering the next phase of credit tightening when stock markets will sell off and the bear market will resume. The fifth wave down in the Elliot Wave count could be nearing it's completion on the dollar index which means with in the next few weeks or even days the dollar will bottom out and turn up again. That will signal the resumption of the bear market. Chances are gold will sell off in unison but the chinese will be there to buy the dips IMO. Many gold bugs are predicting hyperinflation but I don't see that. The deflationary wealth destruction that is taking place will continue to do so until debt is purged from economies to more realistic levels of sustainability, perhaps 1-2 years. After that there maybe a chance of high inflation if the authorities do not act quickly enough but I doubt we will see hyper inflation.

Here's as an excellent audio interview with Elliot Waves' Bob Prechter (deflationist) on deflation and inflation http://www.netcastdaily.com/broadcast/fsn2009-0905-3a.mp3

Enjoy.