Sterling gold price hits new high 03/05/2010

Doctor_Gloom

JamesU wrote: »

Where do you keep your physical gold?

It'll be buried in the back garden I expect as that's where all serious loopers hide their valuable stuff.

Cleaver

Asheron wrote: »

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.

Fair enough, and thanks for the insight. I'm not sure I would see putting 25% of one's income, yet alone portfolio, in to one asset as 'playing it safe', but there we go.

DiggerUK

There is an old wives tale about not putting all your assets in one pot.
But investing in one market that is bonds, equities and cash is, in reality, just one pot tied to the economy as a whole.
The economy being the pot, which is going to pot.

In the boom times you can do nicely with traditional market investments. Just one problem in carrying on with the same philosophy in the bust. It won't work.

Gold is a preserver of what you have got. If you judge that the boom still has legs, then go with traditional investments. I just don't see anything that looks like green shoots. Only acres, and acres, of debased paper money.

As to our current portfolio development, it started in 2004 with a decision to consolidate into 1 part gold, 1 part NSI Index Linked, and 1 part cash ISA.
That has now morphed in to 2 parts gold and 1 part NSI IL.
Rainy day is in Cash ISA and Premium Bonds. The reason being that me and Mrs.D feel that monetary inflation is the biggest worry, and price inflation a secondary worry.

And yes, as we can keep averaging in under the current price of gold, we would happily buy more. Up to and including 100%.

jim83

I own a large amount of gold, but I will be the first to admit that many of people banging on about it on forums are fairly ill-informed and have simply bought into a potential asset bubble.

I own it purely because I want something liquid and low-risk and I see it as the strongest currency at the moment. When the world economy looks as if it is stabilising, I will then likely swap it for whatever sovereign currency looks best. But I certainly do not expect to get rich out of it, I merely hope to preserve purchasing power.

The vast majority of gold/silver rumours I have encountered have either been completely unproven (assassination attempts by JPMorgan) or naive misunderstandings of the market/asset (100:1 leverage in paper ETFs, only a few years worth of silver left to mine).

The bubble mentality in silver is most alarming, though. If you look on youtube there are pyramid schemes popping up left, right and centre ('silver snowball', 'numis network', 'xag network', etc) and idiots are buying into them thinking it's a one-way road to riches. I am not certain of many things in this world, but I am 100% sure that the majority of these people are going to get burned.

I expect to be selling my small speculative quantity of silver soon.

DiggerUK

Gold threads.
Don't they get right up your nose.
http://www.youtube.com/watch?v=2zQr8Rwp1tk

chucky

could someone tell me what dividend or yield gold and silver investments pay?

DiggerUK

chucky wrote: »

could someone tell me what dividend or yield gold and silver investments pay?

If you are in paper gold/silver/pm's , miners, or ETF's you get a dividend.
Physical is all down to capital growth.

chucky

DiggerUK wrote: »

If you are in paper gold/silver/pm's , miners, or ETF's you get a dividend.
Physical is all down to capital growth.

where can i get some of this action?

it sounds like i can't lose.

DiggerUK

chucky wrote: »

where can I get some of this action?
it sounds like I can't lose.

Long term you cannot lose, but as it is mainly a way to preserve what you have accumulated, it is no short cut to massive riches either.

Best described as the riskiest way to get rich quick.

Having said that, a blessed speculator could have made 70+GBP an ounce if you bought in January this year.
http://www.lbma.org.uk/?area=stats&page=gold/2010dailygold
Spooky and unusual times.