Big dip for gold?

purch

Can't you guys work out that it is NOT gold prices that are falling, but the £ that is strengthening?

No.

Most of them can only see one side of the equation, which it's why it's so hilarious.

bendix

SilverStandard wrote: »

That is one way to look at it.

But in the last several years Gold has tripled and silver doubled. The pound hasnt halved in such a short space of time.

This bull market has a long way to go, and its not just because of devaluation of fiat currencies.

Yes, but this thread is about the last 2-3 weeks. During that time the global gold price in its MOST USUAL currency valuation - the dollar - has remained in a pretty tight range around $1180-$1200.

At the same time, the £ has increased from $1.49 to $1.56.

Ergo . . .

And your argument about it doubling is nonsense. It has DOUBLED in the currency of your choice. It hasn't doubled in many other currencies, such as the Aussie dollar. Nowhere near it. Gold has been a terrible investment for those buying it with the Aussie or Kiwi dollars over the last year or two.

I can't understand why you can't see that gold is as much as currency trade as it is a commodities trade. Even you gold bulls yourself talk about gold the only currency worth having, and then you totally ignore the influence of gold prices IN VARIOUS currencies on the price.

Oh, I give it. It's just too much like hard work. I can't be bothered anymore.

SilverStandard

Silver just kissed 11.10GBP. It doesnt seem to be showing on the physical bullion yet. When will the physical come down as well?

bendix

SilverStandard wrote: »

Silver just kissed 11.10GBP. It doesnt seem to be showing on the physical bullion yet. When will the physical come down as well?

And yet the price of silver in US dollars is up today. Sigh . . . .

SilverStandard

bendix wrote: »

Yes, but this thread is about the last 2-3 weeks. During that time the global gold price in its MOST USUAL currency valuation - the dollar - has remained in a pretty tight range around $1180-$1200.

At the same time, the £ has increased from $1.49 to $1.56.

Ergo . . .

And your argument about it doubling is nonsense. It has DOUBLED in the currency of your choice. It hasn't doubled in many other currencies, such as the Aussie dollar.

I can't understand why you can't see that gold is as much as currency trade as it is a commodities trade. Even you gold bulls yourself talk about gold the only currency worth having, and then you totally ignore the influence of gold prices IN VARIOUS currencies on the price.

Oh, I give it. It's just too much like hard work. I can't be bothered anymore.

So what are you saying exactly? Yes gold is a currency I dont think anyone has tried to deny that.

What I am saying is that depreciating all the fiat currencies around the world is not the only reason why my gold is now worth 3x what I paid and the race to debase is not the only reason why my silver has doubled since I bought it.

Also as all the currencies devalue even more THIS IS NOT THE ONLY REASON why gold and silver are in a bull run.

SilverStandard

So Bendix can we agree that its a great buying op here in the UK because the pound is making gold and silver very cheap for us?

bendix

SilverStandard wrote: »

So Bendix can we agree that its a great buying op here in the UK because the pound is making gold and silver very cheap for us?

No. We can't.

MikeJ74

I am interested what the reasons are for those who don`t think it`s good to buy gold and silver in this dip?

Bendix why do you not think so?

DiggerUK

SilverStandard wrote: »

So Bendix can we agree that its a great buying op here in the UK because the pound is making gold and silver very cheap for us?

My opening post for this thread was to give a heads up that the pog in the UK looked likely to tumble further.
I pointed out that a strengthening pound would make it advantageous to UK buyers of gold.
My suspicions have been borne out, and I am still recommending gold as a buy.
Today gold went down to kiss 740GBP, that's 125GBP below it's June 8th high, and 50 quid down since I started the thread.

I was always taught to buy low, maybe it is not low enough for some.
But an opportunity for some to be as rude as they ever were never seems to be passed over.

bendix

MikeJ74 wrote: »

I am interested what the reasons are for those who don`t think it`s good to buy gold and silver in this dip?

Bendix why do you not think so?

Because I can't get caught up in this 'gold is the be all and end all nonsense' that inspires these threads. I have gold in my porfolio, but no more than 5%. That's what I'm comfortable with, and that's the limit I'm sticking to.

I also think the pound will continue to strengthen against the dollar. It will be a long and sustained appreciation. Tie that to my suspicion that gold is overpriced generally, and it's a double whammy for me. I don't think gold will crash. I don't think it's in a bubble. I do however believe that it it's currently too expensive.

I could be wrong. You gold bugs will be convinced I'm wrong.

Fair enough.

My own investment and savings strategy has worked very well for me over the next few years. I shall be retiring well before I'm 50. I see no reason to depart from what's worked for me for the last 15 years.