Gold, lost its Glister?

Ark_Welder

DiggerUK wrote: »

Ark Welder...Paulson seems to be one of the major holdouts against selling according to this from Bloomberg. But he has a more ideological support for gold. Most hedgies and institutions are rumoured to be selling heavily.....but why did it start.

Similar article re. Pauslon in yesterday's FT (or might be today on the hardcopy). Headline: Gold’s fall costs Paulson $1.5bn this year

Video from 5th April, which, I believe, can be accessed for free: http://video.ft.com/v/2277476584001/The-woes-of-gold

I have noticed negative sentiment building for some months - and more than just my natural disinclination. Perhaps the approaching 20% fall since 2011 USD peak, the relative failure of Cyprus to cause buying, and the latter's decision to sell reserves - with the potential knock-on of other EU members doing similar - has triggered simultaneous sell signals.

There is also increasing attention to USA interest rates, and when these might start to rise. Hedgies etc would have less incentive to hold Au due to the increased opportunity cost of doing so. Combine the wish to sell with the ease of trading ETFs...

Ignore stock and bond markets, the USA economy has been ticking up, and inflation expectations [edit] have been ticking down. How sequestration might affect either of these later in the year is anyone's guess: a bit open on that one, as yet. Also, there are still potential problems with debt in China too, plus the slowing of the rate of increase in GDP, plus how succesfully China can move to a more consumption-led rather than investment-led growth model.

So, might just be a coincidence of circumstances meeting herd mentality. Different circumstances in a month's time having a different effect. I'll be interested in what S.Lyon has to say on the matter in the next Trojan fund factsheet.

merlingrey

sabretoothtigger wrote: »

A mix of all ideas is sensible, the WB idea I wouldnt buy it all so I wont buy any is slightly off for us smaller players. He has a team to manage cashflow every day, we dont. So buy his shares if you like his advice that would be fair.

Buffett says:
“If you put your money into gold or other non-income- producing assets that are dependent on what someone else values that in the future, you’re in speculation,” he said. “You’re not into investing.”

I wouldn't mind but in 1998 he bought 130 million ounces of si1ver, seems like a hypocritical thing to say.

lvader

Gold is a good hedge to cover a variety of scenarios, it's worth holding some even if you think it's still going down. For people that don't have any the current prices represent a good level to start buying.

markwilkinson

Ive bought a bit more (physical) in the last 24 hours.

Happy with the price I paid.

DiggerUK

Be nice, or the cat gets it!! :cool:
..._

purch

merlingrey wrote: »

Buffett says:
“If you put your money into gold or other non-income- producing assets that are dependent on what someone else values that in the future, you’re in speculation,” he said. “You’re not into investing.”

I wouldn't mind but in 1998 he bought 130 million ounces of si1ver, seems like a hypocritical thing to say.

Nothing hypocritical.

He was speculating.

The sage is not against speculating in asset prices, he just likes to point out the difference between investing and speculating.

Those who cannot tell the difference are the one's who usually lose out.

purch

padington wrote: »

How are you taking this Purch ? if you sold that bar last week and bought it back today you could have bought a real bar with the change.

Are you reading this as a major blip in what still is fundamentally a bull market or the defacto start of a bear gold market ?

If you are adequately hedged and know what you are doing a move such as this is an opportunity.

The secular bull market has been broken, but it is way too soon to tell if we have entered a proper bear market.

As the Digger say's.

Until we know, who and why it is hard to know what the outcome will be.

I won't be selling physical Gold, but I have been hedged against a large fall in price for a long time.

P.S. I am still !!!!!! that my post revealing who "they" are was removed

gadgetmind

purch wrote: »

P.S. I am still !!!!!! that my post revealing who "they" are was removed

http://en.wikipedia.org/wiki/Illuminati

Read it while you can as it could be pulled at any moment.

LisbonLaura

DiggerUK wrote: »

Be nice, or the cat gets it!! :cool:
..._

Flamish McFuggle likes to post short term gold charts too.




I can remember when six shillings & three pence bought a gallon of petrol. IIRC that was around 1967.
I think there might have been some currency debasement since then, so 'saving' in the currency doesn't seem a good idea to me.
Plus owning more than one or two houses is maybe verging on the greedy in a land of a supposed shortage in available roofs over heads?

Ark_Welder

A chart of the UK gold price with a slightly longer timeframe:

http://www.goldmadesimplenews.com/wp-content/uploads/2012/09/beer-inflation-adjusted-gold.png