Buying in to Gold

cgnao

deemy2004 wrote:

I would not say its 'excellant time' to buy gold. Excellant time would have been 3-4 years ago when it was trading at 260, and not 450 its current price.

What's wrong with futures markets ? Afterall they determine the price of gold, without their liquidity gold would be trading at $35 !

And remember gold is priced and traded in dollars so a fall in the $ will devalue the sterling value of your gold by an equal amount, thiis it would need to rise substantially.

Gold Analysis -
the Gold bull market is now going into its 5th year, with little sign that the market is peaking, yet, so does suggest higher prices, thus likely targeting 500, which represents some 11%, now if you bought gold and if the dollar did not fall, then your profit after costs such as commission and storage would be what ? 4 or 5% ? Thats IF you got out at the peak.

On 11 December last year, when you dismissed my suggestion to buy gold, one ounce was £226.

Today, less than a year later, the price has increased to £262 i.e. +16%.

And that despite the dollar not falling (it has actually gone up from 0.52 to 0.56 GBP i.e. approx 8%).

Need I say anything more?

Protect yourself.

deemy2004

cgnao wrote:

On 11 December last year, when you dismissed my suggestion to buy gold, one ounce was £226.

Today, less than a year later, the price has increased to £262 i.e. +16%.

And that despite the dollar not falling (it has actually gone up from 0.52 to 0.56 GBP i.e. approx 8%).

Need I say anything more?

Protect yourself.

LOL.. THE £ has FALLEN ! So off course the sterling value would have gone up ... :rolleyes: The $ price of gold is, $472 now and was about 440 then ? - So its up 7% .... crude oil would have been a much, much better bet in either sterling or dollars

The indian investment trust I recommended in December or early January is up about 45% ... so yeh I would rather have 45% then 15%

And, yeh I did recommend 3, and all three are up 17%, 30%, 45%... so would I have invested in gold then instead ? I don't think so !

Offcourse, I'll give you this, in that a profit is STILL a profit so the what 15% in sterling is still a good gain - So well done ! But I can't see the Gold price doing a say Cairn Energy ... I think the mistake your making is that your completely fixated on one market, namely GOLD ! - Now if you want to invest in commodities that are primed for growth - perhaps you need to take a look at the soft commodities

Lyncroft

Deemy - Any other tips then?

meheraltaf

Sorry can I interrupt for a moment;)

Quite surprised that people here in this country think of investing in gold or is it the trend:question:-I am not an economist but plain common sense tells me the fluctuating paper currency is something we need to be warned about when making an investment in gold or we end up being victims of the markets.

Usually the gold is priced in dollar, so lot depends on the dollar value, and then if the stock market does well, the price of gold usually seen to fall, it raises in value mostly during any political disasters though.

deemy2004

Lyncroft wrote:

Deemy - Any other tips then?

The posts I made in late 2004 and at the start of the year still stand namely those stocks, and FOUR investment trusts

as ever do your own research and investing is for the long-term, as long as the market continues to trend higher, continue to ride the bull for as far and for as long as it will go !

I especially favour the eastern europeans, oils, and india for obvious reasons... did nearly a year ago and still do, nothings happened to change my mind.

New Stocks ? - Back in March I think I posted (can't remember if I did or did not ?) About vodafone as a good long-term bet / investment

At the moment I am looking to add more eastern europeans to my portfolio and also some microsoft !!

cgnao

I told you last year to buy gold. Now it's up 15%. This is just the beginning.

I now tell you: sell the pound, the dollar, houses, bonds, stocks and shares. Buy gold, euros and swiss francs in short term deposits with safe banks.

See you in a year's time!

deemy2004

cgnao wrote:

I told you last year to buy gold. Now it's up 15%. This is just the beginning.

I now tell you: sell the pound, the dollar, houses, bonds, stocks and shares. Buy gold, euros and swiss francs in short term deposits with safe banks.

See you in a year's time!

Errr - talk about blanket statements .. :rolleyes:

Point for point

GOLD - Yes the break to new highs is bullish and suggests higher prices and a continuation of the bull market.. but its not exactly a big mover.

DOLLAR - This is a tough cookie, as the £ is weak against the dollar hence, selling the $ against the £ looks like a bad bet !

HOUSES - The housing market has shown itself to be highly resiliant ! Its just refusing to fall !!! It is overvalued and thus at this point in time there are much better investments out there.. So perhaps I agree to a degree

BONDS - UK Bonds ? - Well this is a toughie, as in all likelyhood UK bonds will keep their value, as its highly likely there are more interest rate cuts due during the next 12 months.

SHARES - Sell Shares ??? You must be craaaazzyyy.. Its getting like it was with houses - Eeek my portfolio is up per month more than my salary... ! .... All the bad news does has not dented this bull market.. As ever - FOLLOW THE MONEY ...


EUROS - :rotfl: - Youve probably picked the weakest of all the major currencies to buy and hold... :rotfl:

Yep, lets do tally up in a years time... Though probably you will remind us at $500 in about 6 months time

meheraltaf

deemy2004 wrote:

Why not buy some land in Africa and start digging

........:D ......

cgnao

http://today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-10-06T200801Z_01_MAR641070_RTRUKOC_0_US-MARKETS-STOCKS.xml

NEW YORK (Reuters) - U.S. stocks closed lower on Thursday, with the S&P 500 on track for one of its worst weeks of the year, as a string of cautionary comments on inflation from Federal Reserve officials raised concerns about further interest-rate hikes.

---

http://news.ft.com/cms/s/7e19fc88-3699-11da-bedc-00000e2511c8.html

Jean Claude TrichetJean-Claude Trichet, president of the European Central Bank, on Thursday issued one of his strongest warnings yet that interest rates might have to rise to head off the inflationary consequences of higher oil prices.

In a significant toughening of the ECB's anti-inflation talk, he insisted "strong vigilance" was required because of upward pressures on price stability. "Everybody knows that we could move rates at any time," he said.

His comments, which pushed the euro more than 1 per cent higher to $1.2133, followed the acceleration in eurozone inflation to 2.5 per cent last month.

cgnao

deemy2004 wrote:

Errr - talk about blanket statements .. :rolleyes:
GOLD - Yes the break to new highs is bullish and suggests higher prices and a continuation of the bull market.. but its not exactly a big mover.

Yep, lets do tally up in a years time... Though probably you will remind us at $500 in about 6 months time

Six months later, gold is $640. And it's just the beginning...



Gold Reaches 25-Year High, Silver Surges on Investor Demand

April 19 (Bloomberg) -- Gold rose to a 25-year high and silver topped $14 an ounce for the first time since 1983 as investors snapped up precious metals as a hedge against inflation.

Gold is up 45 percent from a year ago and silver almost doubled as oil costs reached record highs. Prices paid by U.S. consumers rose more than expected in March, the Labor Department said today, touching off a flight to precious metals as a way to preserve purchasing power.

http://www.bloomberg.com/apps/news?pid=10000103&sid=aZGdz_D_ch14&refer=us