Gold anyone?

DaveTheMus

I hold some Gold and Silver bullion... a small percentage of my portfolio...a hedge against a disaster or a punt on an enormous price spike, either way I think it has it's place.

planteria

i have a small part of my ISA fund in the S&W Gold Fund, and some Avocet Mining shares.

jabba42

I bought several gold and silver miners over the last few weeks and they are all up 15-20% at present. I buy ones with a market cap over 500 million as the ones with any less stand a good chance of going out of business if gold and silver continues to decline.


Not sure we are at the bottom yet but I will keep buying on pullbacks. When it does explode it is going to be mental.

TheTracker

No place for gold in my portfolio. Nor any commodity.

jabba42

TheTracker wrote: »

No place for gold in my portfolio. Nor any commodity.

I do not rule out anything that looks cheap. After a 3 year decline there is probably more to be made in commodities in the next few years than many other sectors.

lalman

I have been a relatively bearish individual over the last decade - even before the financial crisis in 2007/2008 when i saw western indebtedness climb and climb and climb... Fundamentally the world has an excess of capacity and China is exporting deflation to all of us.

Japan is in a zero sum game where they have to print money to keep the show on the road.

Europe is heading for deflation and long term stagnation and the US and UK are still the buyers of last resort...

So will all of the above... Gold prices haven't been shooting up to 2000 dollars... why? All of the countries i mentioned above (not sure about China) are borrowing at there lowest rates in history... why?

For me this isn't about the fundamentals anymore, the market isn't reacting to them anymore... just look as one example to Japan - went into recession for the 4th time in 6 years and over 2 days the market is up...

The market, commodities etc are all reacting to the potential intervention effects of governments. They know that if a recession occurs, there is little risk of a soverign crisis because someone will print more money or do something that will prevent the necessary correction from occuring... there will eventually be a point where they will completely debase there currencies but its likely to occur somewhere in the East first as the rule of law, property rights etc in the West is hugely valuable.

Although I don't hold any gold - it doesn't mean I wouldn't in the future but I would not own any Gold mining stocks - I think its madness to do that.

As Gold price goes up - that asset that can't be moved and as these assets tend to be in volatile regions of the world they are susceptible to government nationalisation, takeovers and rebel fighting....

pop_gun

kidmugsy wrote: »

If I had access to a local safety deposit I would probably buy gold coins - Sovereigns or Britannias. If I gave up the insistence on being local, I could use the Royal Mint's new scheme. Since gold is an insurance against fiat currency disaster, I'd prefer not to have that money in funds.

I kept thinking about this also. But this thinking was preventing me from owning the coins so I decided to buy coins and keep them in a drawer. They're not safe but no one knows they're there. Hidden in plain sight so to speak.

James_B.

TheTracker wrote: »

No place for gold in my portfolio. Nor any commodity.

I'm thinking of buying two 1kg bars, both because they make nice paperweights and conversation pieces and because if everything goes to hell I can put them in my pocket, drive to the ferry, and leave with them.

It's never a bad idea to have a get-out plan.

They will diversify my portfolio as well, which is useful, but I've no reason to believe that they will in crease hugely in price over any predictable period.

Archi_Bald

James_B. wrote: »

if everything goes to hell I can put them in my pocket, drive to the ferry, and leave with them.

Good luck paying your ferry ticket and your steak and chips and your hotel with your gold bars. Keep some for the return journey as the two bars won't keep you for life, and with the way things are going no Brit would get any social outside Britain.

hornmeister

Gold is of no use? The Electronics & Technology industries beg to differ. Mind you I was told there's more gold per ton of old mobile phones than there is in a ton of mined material, so maybe the smart money is with recycling.