Gold, lost its Glister?

sabretoothtigger

Generali wrote: »

Wozza has some good stuff to say on gold:

http://investorplace.com/2012/05/why-warren-buffett-hates-gold/

WB is right but he looking at the business not the gaps between them. We all know its just a shiny metal that dont rust

If it can aid trade and reduce price volatility. If thats so and if that need is rising, this price fall isnt a worry to me personally.

Its a margin call, stay liquid

Investec gold saw 8% drop but as he is holding about 4% in visa and mastercard I dont think the manager is a straight bug exactly. Adding some and looking for gold to react/hold this price as relative to QE2 action.
We are in replay and its still normal though the very simple 12 year bull market theorem is shot for now

I was already in cash from selling Japans rise and fall in Yen so in some ways it could be ideal. Depends if gold ever recovers, I dont think its a sucker bet but anythings possible I guess. It certainly looks cheap and unpopular

Old_Slaphead

Ark_Welder wrote: »

Not even a VAT registered business can reclaim VAT in all circumstances. That paid on business entertainment, being one.

I agree - and there are a few other situations where companies pay small amounts VAT on minor items of expenditure but it doesn't really support the sentiment of your generalised comment that "companies pay VAT".
What VAT registered companies do is collect it on behalf of HMRC.

Ark_Welder

Old_Slaphead wrote: »

I agree - and there are a few other situations where companies pay small amounts VAT on minor items of expenditure but it doesn't really support the sentiment of your generalised comment that "companies pay VAT".
What VAT registered companies do is collect it on behalf of HMRC.

The original comments were in response to a generalised comment. So along with 'some pay more vat than others', those comments are correct. Yours are wrong. Get over it.

atush

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?

They are always here crowing when it goes up, and trying to get newbie investors into it.

Perelandra

atush wrote: »

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?

They are always here crowing when it goes up, and trying to get newbie investors into it.

Keeping quiet, to benefit from the buying opportunity?

gadgetmind

atush wrote: »

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?

This is *always* the way it works, but TBH it's the way it is with house prices and even share prices. While you or I may regard dips that bring these assets into value territory as an indicator to rebalance into them, others go into "run to the hills and avoid" mode.

I'm not sure whether the gold bugs have sold in a panic, bought more, or just shut the hatch of their bunkers until it all blows over. What I do know is that they'll be back. Maybe not for decades, maybe not the same people (or at least not the same user names!) but they'll be back.

Glen_Clark

Generali wrote: »

Wozza has some good stuff to say on gold:

http://investorplace.com/2012/05/why-warren-buffett-hates-gold/

Great Link, Thanks. Warren Buffet is absolutely right, of course
The fact that Gold has done better than Buffet over the last few years just shows how Money Printing turned conventional sensible investing upside down.

merlingrey

atush wrote: »

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?

They are always here crowing when it goes up, and trying to get newbie investors into it.

I'd rather be a goldbug or a stockbug than a cashbug.

Obviously you need some cash and liquidity (emergency,keeping powder dry) but beyond that i'm happy to average down on stocks and gold.

Picked up 3 sovs @ £225 each earlier .

The physical demand vs spot price are way out of whack, go on ebay people are bidding up £250-280 for a sov.

Even for 2013 ones with zero numismatic value.???? supply shortages?
The coins have their own market.

BTW anybody know where i can get a 2012 one (the 3D style George dragon) non-proof ?

sabretoothtigger

atush wrote: »

What I want to know is, where are the Gold bugs today? After yesterday's crash in the price?

I got about 22% in gold companies. Thats pretty buggy because if gold had gone up instead of down it'd register as over 50%

I do reduce when its higher though, I might have a similar amount in other commodities so really Im very heavy on the basic materials aspect.

Look up that sector and its been doing bad. Property has been the hot sector of the last year but this is an area bought into directly by QE so I would hope so ?

I said earlier I would (have) top up anyhow.
Price doesnt determine value, look at ratios for a better guess.
Dow in gold ounces is 10.67

20 is about the extreme of gold 'failure' and 1:1 would be the impossible dream for bugs so as a rough guage, this grand fall is just a normal I guess

merlingrey

sabretoothtigger wrote: »

20 is about the extreme of gold 'failure' and 1:1 would be the impossible dream for bugs so as a rough guage, this grand fall is just a normal I guess

Like in 1980 when both dow and gold was 850, which was the time to sell gold and buy stocks.

1:1 today would be about $15,000 an ounce, obviously if it hit that level a sensible person would sell and buy stocks.

But 1980 was after a falling market, so what do we actually mean by 1:1 going forward? it could be dow 5000 and gold $5000.

edit: http://www.google.co.uk/finance?cid=983582

mind you it was flat during the 1970's except for a nasty blip down to 1974, after 1980 gold crashed and stocks rose until in 2000 the dow vs gold was 40:1