Gold, lost its Glister?

merlingrey

http://www.kitco.com/news/video/show/Reset/283/2013-04-12/Reset-Draghi-Did-It-April-12-2013

jimjames

bigoll wrote: »

http://uk.finance.yahoo.com/news/after-12-years-of-boom-gold-prices-bust-175201756.html

Suddenly cash ISAs don't look so bad.....Perhaps a rocky period ahead for investments though it should even itself out over time.

I disagree that cash ISAs don't look so bad but at least it shows some of the gold investors that prices don't always go up. Investments will always go up and down.

Equities may be at a temporary plateau but regardless of capital value you are getting over 3% from FTSE and 4% plus dividends from income funds which beats any cash ISA. Also then long term capital growth buying into the market at what could be a good time.

Glen_Clark

bigoll wrote: »

http://uk.finance.yahoo.com/news/after-12-years-of-boom-gold-prices-bust-175201756.html

Suddenly cash ISAs don't look so bad.....Perhaps a rocky period ahead for investments though it should even itself out over time.

I don't understand why everyone quotes the Gold price in $US - even your Yahoo link that is supposed to be about UK finance.
Gold has not done so bad compared to UK £pound

ColdIron

Or GBP has fared poorly against gold

MoneySaverLog

PM's are looking cheap today, bargains to be had ;-)

merlingrey

Glen_Clark wrote: »

I don't understand why everyone quotes the Gold price in $US - even your Yahoo link that is supposed to be about UK finance.
Gold has not done so bad compared to UK £pound

This is a fair point because if your earnings are in pounds you should not pay mind to the dollar price, the £ price is what you pay.

For most of the last year gold has traded between £1000-1100 and has tested £980 a few times.

That said we might be heading back to £750 if other countries start paying debt down in gold, it will have a cascade effect on paper trades and fear led selling.

But the thing to think about is who is on the other side of the trades and why, those central banks want all the gold to palm off all the printed monopoly money onto those countries "we take your gold and in return you get a sack load of paper." bargain..:rotfl:

It will work for a while, might even have a deflation effect until QE3 + 4 that is.

Shaolin_Monkey

Interesting post bowlhead. However I do think it's a valid question at least worthy of some consideration. The gold price in dollar terms now is roughly where it was in April-May 2011 (call it $1500 per oz). The Dax Global Goldmining ($) index however has already slumped back to roughly the same level it was at in December 2008, when gold prices were $8-900 per oz. I accept that an equity is geared, and therefore magnifies movements in the price of the commodity. But considering the ferocity of the sell off in gold miners, and given that the equity market is forward looking, is the expectation for lower future gold prices (and/or significantly higher future costs) being priced into the equities?

Glen_Clark

Most of those buying gold do so in the hope of selling it on - not many want a useless lump of metal for its own sake. So the price of gold depends on one factor - the bigger fool factor. You depend on a bigger fool than you being prepared to pay an even more ludicrous price than you did.
Once the gold has been bought by the biggest fool of all the price will crash. There is nothing else to support it.

Glen_Clark

MoneySaverLog wrote: »

PM's are looking cheap today, bargains to be had ;-)

whats a PM?

MoneySaverLog

Precious Metals as a whole