Thinking of buying gold bars !!

Bullfighter

buddy143 wrote: »

Just looking at the gold prices, I am thinking of buying 2 gold bars (each 100grams) in Birmingham.
anybody had any experience? Can we make any bargaining? I know in India, we do it but is it the same here as well in the jewellery quarter?

I would stick to obviously verifiable, recent legal tender as units of exchange such as South African Krugerrands or British Sovereigns.

Gold bullion bars are harder to sell since you have the burden of proof in terms of provenance and authenticity. A 1976 Krugerrand or 1928 Sovereign are quite hard to fake...

Ark_Welder

My question was more along the lines of whether this is a legitimate enterprise.

If the company has difficulty raising just $2million from local banks, why not try ones in the Bolivian capital city?

Why go for 400 x $5000 investors instead of 4 x $500000? 4 larger investors has to be cheaper to service than 400.

Is the date on the example share certificate indicative of when the 'sceme' started? If it is then how has the company still doesn't have 400 investors after one year? And from a worldwide audience.

Why is their registration and logon process insecure? i.e. no https

Their terms and conditions state that for purchased items monies must first be received, but they are free to cancel the order for any reason and that a refund will be made with deductions for 'costs and fees associated with cancelling the order'. Undisclosed costs and fees.

A Bolivian company owned by a Panamanian corporation with a Florida mailing address



And no, corporate finance using bonds is not the same as equities - for either the company or the investor.

Ark_Welder

SergeyLEM wrote: »

How large was the biggest correction in gold?

Don't have the figures in Sterling, but I wouldn't expect there to be a great deal of difference over a short number of days (famoust last words...)



Peaked on 21st Jan 1980 at $850. All percentages are from that price, and dates are all 1980:

22nd Jan ..... $737.50 ..... -13.24% ..... +1 day
28th Jan ..... $624.00 ..... -26.59% ..... +7 days
20th Feb ..... $606.00 ..... -28.71% ..... +30 days
19th Mar ..... $481.50 ..... -43.35% ..... +57 days - the low for the year.

Bounced around for the year and finished at $589.75. Then trended up for a few years, then down for about 15 years, finally hitting a low of $255.95 on 2nd April 2001, a return of -69.89%.

But over longer periods, exchange rates come into play a lot more due to gold being priced in USD.

[edit]

Source: USA Gold, London AM fix 1980

cinderfella

Agreed, Gold is about at it's peak now. All the bad news has been dicounted in the price more or less.

DiggerUK

Ark_Welder wrote: »

Don't have the figures in Sterling, but I wouldn't expect there to be a great deal of difference over a short number of days (famoust last words...).......Peaked on 21st Jan 1980 at $850........

LBMA Fixes. Put in favourites.
These are highs, lows and averages for 1980.
..._

shaun_from_Africa

Agreed, Gold is about at it's peak now

I've no idea if this will turn out to be the case, but I do remember many people saying exactly the same thing when an ounce of gold was $800, $900. $1000 etc.

Ark_Welder

DiggerUK wrote: »

LBMA Fixes. Put in favourites.
These are highs, lows and averages for 1980.
..._

Thanks. Figures for GBP are:

21 Jan ..... £371.066
22 Jan ..... £323.820 ..... -12.73%
28 Jan ..... £275.740 ..... -25.69%
20 Feb .... £265.789 ..... -28.37%
18 Mar .... £219.013 ..... -40.98% (low in USD for the year)
22 May .... £215.577 ..... -41.90% (low in GBP for the year)
31 Dec .... £247.118 .....-33.40%

Roland_Flagg

Stock markets to fall much further (after a small rally),
and Gold to go over $2k by end of October.
That's my prediction.

DiggerUK

Ark_Welder wrote: »

....Figures for GBP are:
21 Jan ..... £371
22 May .... £216 (low in GBP for the year)
Average.....£264

Allowing for inflation using The B.O.E. calculator, then adding on 5% to allow for the fact that the B.O.E. only calculates up to 2010, we find out that the low and average for 1980 come in at £758, and £927 at today's prices.


As gold at £900 per troy ounce is history, what will the bubble queens have to say when the one day spike at £371, which inflates to £1303 today, is itself history. :silenced:

And I bet that the happy band of pensioners, who put a few sovereigns by for their retirement, are sulking the most. :beer:
..._

Ark_Welder

DiggerUK wrote: »

As gold at £900 per troy ounce is history, what will the bubble queens have to say when the one day spike at £371, which inflates to £1303 today, is itself history. :silenced:

Perhaps that it took 30 years to recover that spike in real terms? Gold's 'problem' in the 80's and 90's is that there were other, better performing, assets, so it lost the popularity contest. My view is that its problem now is that it is winning the popularity contest - and that ETFs have made its 'availability' more widespread and easier to buy. Sales by ETFs - especially the speed of the trade - is where gold's next potential problem lies because ETFs are (should be..?) easier for investors to sell than physical. But economy-wise, there seems to be more reasons for holding than selling - that usually means it's the time to sell!!