Sterling gold price hits new high 03/05/2010

PasturesNew

I'm 100% cash.

Exocet

PasturesNew wrote: »

I'm 100% cash.

I'm 25%. Until pay day when I'll be back up to 100%.

Cleaver

<serious mode>

One of the things I like about this little board is the stories behind stuff. It's great to hear fc123's experiences in retail, IveSeenTheLight's stories behind the properties he rents out, Generali's experiences in life etc. etc. There's loads of people like this on here, giving colour to topics and stories that can be a bit dry in real life. Having both the financial aspect and a bit about the personal life of the person allows you to put their decisions and opinions in a bit of context. It's much better than just reading about a subject on wikipedia, for example.

There's a thread on the Savings & Investment board that I often look at where people like Tradetime, tonygee, SabreToothTiger, cloud_dog, StevieJ and a few knowledable others discuss the UK stockmarket. I have never posted on it but it's a great read: respectful opinions of each other's investments, reasons behind their buys and a great deal of insight in to what is going on and how this effects equities. It often makes me go off and look at some of the shares they are interested in. Again, it's the reasoning, background and opinion that makes the thread interesting.

This is what I'd like from the gold and silver fans, but you never get it. I'd like to hear their circumstances in life, the percentage of money they've allocated to gold and silver, what is in the rest of their portfoilio (or why there isn't anything else in it if there isn't). What are their future plans? What's their target price? What do they see doing with the money once it's reached a target price? What's their exit point if the price drops? What price would tempt them back in? What age are they, and how does this relate to how much they have invested in it?

Apologies if this comes across as critical Ash and MrEnglish (and feel free to correct me if I'm wrong) but you don't ever give any of this interesting information. We get a few stories on some whistle-blower who got hit by a car, graphs showing house prices compared to gold and links to pretty awful websites or videos which just ramp gold or silver (similar to those awful property websites which do the same thing). We also get vague comments like "it won't be inflated away" or "it's better than paper money Cleaver". Which doesn't really say anything.

Maybe I'm wrong, but it all sounds a bit amateurish when compared to the thread I refered to above. These people seem to be quite seasoned investors and they are always questioning and second guessing themselves. They have confidence, but never any real certainty that what they are doing is 100% right. But they have a strategy that seems to change over time, and it makes very interesting reading. You guys don't seem to have any of this.

Shame really, because a bit more insight, opinion, intelligent analysis and reasoning behind silver and gold investment would interest me as I don't know much about it. Around 5% of my portfolio is in a gold-based fund, but that's more because I've read that's a sensible thing to do rather than a decision that gold is an amazing investment.

I'm not sure why I typed all of that when Asheron never bothers to type more than 12 words back. Ahh well.

</serious mode>

kabayiri

Cleaver wrote: »

Shame really, because a bit more insight, opinion, intelligent analysis and reasoning behind silver and gold investment would interest me as I don't know much about it. Around 5% of my portfolio is in a gold-based fund, but that's more because I've read that's a sensible thing to do rather than a decision that gold is an amazing investment.

My bro-in-law is a trader dealing in commodoties like gold, oil, silver.

I took his advice to buy gold. That's as serious as I get. He explained the reasoning to me, but I'd struggle to put it across as well as he does.

I'm not interested in pushing it to others. You get plenty on here defending an asset like houses, but poo-pooing others who spread their investments more widely.

In my view a house bought at peak of market is a highly leveraged investment. It possibly has more upside than gold, but it is damn hard to shift on when things go sour.

It's never been easier than today to buy and sell into gold, and gold-based investments. How you manage the risk is up to you.

JamesU

During the Jubilee in 1977, QE2 gold sovereigns retailed at £24.95 (and this was certainly not just the gold price/content). Over 33yrs at 7% annual compounded interest, a gold sovereign today should be worth £233 which is not too far off the mark.

So an asset with a return of 7% excluding inflation. I do not understand what all the fuss is about with gold.

JamesU

Asheron

Approximately 30% of my annual income I save / invest
20% of my portfolio is Gold and 60% Silver.

Cleaver wrote: »

I don't expect you to actually tell anyone Asheron, but what percentage of your gross income do you save / invest and what percentage of that overall portfolio is directly invested in gold?

Cleaver

Asheron wrote: »

Approximately 30% of my annual income I save / invest
20% of my portfolio is Gold and 60% Silver.

Thanks Asheron.

So, you invest 25% of your income in to gold and silver and up to 80% of your savings? Do you worry about having so much in one (or at least two very smilar) asset?

I own certain shares and / or funds that I have a lot of faith in, but don't have the courage to put 25% of my income in them. Each to their own I guess.

Asheron

I own Gold and Silver because I am seriously worried about our economy. And long term debt obligations. I am also concerned about the amount of Paper Currency being printed. Which I believe will de-value the Pound and cause inflation.
I believe Physical Gold and Silver cannot be manipulated like Paper currencies. And throughout history appears to have held value.
I will never sell all my Gold and Silver, But will consider owning less if and when this financial crisis is over which I believe will be 20 years from now.
I personally believe the stock markets are a fair ground of corruption so I don't get involved.

Cleaver

Asheron wrote: »

I own Gold and Silver because I am seriously worried about our economy. And long term debt obligations. I am also concerned about the amount of Paper Currency being printed. Which I believe will de-value the Pound and cause inflation.

In the short term though, QE and other measures (in part) have caused the FTSE to rise over 60% in around a year. Were you not tempted to jump on that short term gain even with the long-term view that things are rather f*cked?

Asheron

Sure, I have had a couple of missed opportunities I guess I'm just playing it safe and don't want to be part of what I believe is a FTSE sucker's rally.