Gold in UK touching high price of 20 weeks back.

DiggerUK

It will not matter what currency you buy in. If when the time comes to sell, you are in UK, then you will get paid in pounds. You will also convert USD to local currency, without paying a commission, no matter what country you sell in. Cool huh!

That's why gold is described as an international currency. Gold's major use is as international currency, usually as a security in forex exchanges from one country to another. Which is why central banks need their gold reserves.

DiggerUK

This piece from L.H. in today's Sunday Telegraph outlines the case for concern about printy printy, and last weekends dismal IMF conference that received minimal coverage in the media.

"...International investors, deeply alarmed by the Western world's wildly expansionary monetary policy and the related destruction in the value of paper currency, are starting to park their wealth in assets "that governments can't print more of". The obvious manifestation of this is the price of gold, which hit another record on Thursday. Silver has also just reached a 30-year high, and is set to scale $25 per ounce...."
http://www.telegraph.co.uk/finance/comment/liamhalligan/8068335/Chinas-not-the-villain-if-the-West-tries-to-debase-its-debt-through-QE.html

rockitup

getzegold wrote: »

what are you betting on? gold? Not sure I understand what you mean, if you have an open position at a buy in gold from 12 weeks ago you must be seriously in the money.

Yes, just an up bet on Gold futures for my spread betting.
The bet I placed is at £'s per point on each Dollar rise in the price of the Gold Futures. If I was buying Physical Gold or an ETF whether it was priced in Dollars or Pounds then I would still be at the mercy of the GBP/USD exchange rate. If that went the right way it could add to my profits but if it goes the other way the result ain't so good.

The bet is quite well in profit now but I will keep it in place as I don't think Gold will return to the price I bought at. Even if it does drop 10% below the price I bought at it won't break my account.

I also bought units in Blackrock Gold & General but they are on a monthly purchase through HL.

I had been looking at investing in Gold since it was just over the $900 mark but always thought it wouldn't go much higher... how wrong I was.

I bet Digger Mansions is being extended with all Digger UK's profits... good luck to him, done well.

getzegold

rockitup wrote: »

Yes, just an up bet on Gold futures for my spread betting.
The bet I placed is at £'s per point on each Dollar rise in the price of the Gold Futures. If I was buying Physical Gold or an ETF whether it was priced in Dollars or Pounds then I would still be at the mercy of the GBP/USD exchange rate. If that went the right way it could add to my profits but if it goes the other way the result ain't so good.

The bet is quite well in profit now but I will keep it in place as I don't think Gold will return to the price I bought at. Even if it does drop 10% below the price I bought at it won't break my account.

I also bought units in Blackrock Gold & General but they are on a monthly purchase through HL.

I had been looking at investing in Gold since it was just over the $900 mark but always thought it wouldn't go much higher... how wrong I was.

I bet Digger Mansions is being extended with all Digger UK's profits... good luck to him, done well.

Gotcha, and wise policy. Pity tho your not using a leveraged spread bet account and buying ounces instead of points your profits would be much higher.

sabretoothtigger

Ive read sterling will go to 1.7 and 1.8 dollars

To some extent gold just goes up when dollar goes down. Gold becoming a main currency for people or store of wealth is quite slight, the price will rise slow I think
ie. the people of poor nations still love to hold dollars as their worldly wealth. places like Zimbabwe have no currency they just hold dollars and south african rands

These people have no space in their lives to carry lumps of gold, its a rich mans game for now. Till main banks seriously switch away from dollar, gold wont really shoot up

getzegold

Didn't gold go from £750 ish july to £850ish oct even tho the pound has appreciated against the dollar? how does that work with gold only goes up when the dollar goes down scenario?

DiggerUK

sabretoothtigger wrote: »

Ive read sterling will go to 1.7 and 1.8 dollars

Hey stt, keep posts to one screen/page thank you.
It isn't a request so harsh is it. Please edit your post.

sunil1234

DiggerUK wrote: »

Hey stt, keep posts to one screen/page thank you.
It isn't a request so harsh is it. Please edit your post.

why do u ask that?

DiggerUK

sunil1234 wrote: »

why do u ask that?

'Personal taste' is the short answer.
I just think that on a forum, any point of view that cannot be made in a precise way, and ends up as sheets of wallpaper, disrupts a smooth flowing conversation. After all, we are not rewriting the Encyclopedia Britannica.
It's just a small request I make to posters who want to respond to a thread I start.
Badger all I can do to enforce it, but the world is as we find it, not as we would like it.

DiggerUK

rockitup wrote: »

....... I bet Digger Mansions is being extended with all Digger UK's profits....

As we have not sold any, we don't have a profit to put on the table.

I always used to get quietly annoyed, when being regaled with tales of how much profit someone had made because the 'value' of their house had gone up.