Gold price all times high GBP and climbing

RealElement47

MaxiRobriguez wrote: »

Gold is already in an extended bull market. It quadrupled in five years in the run up to and then immediately after the GFC because Capitalism itself was about to die.

Since then, equities have recovered and them some, which should have been funded by reduction in safe assets like bonds and gold but both of these asset classes have risen since then as well.

The elephant in the room is QE and ZIRP. If central policy starts to move away from this then stocks, bonds and gold will all start to fall. If central banks inject more liquidity into financial systems and investors buy it then they're going to buy stocks not gold.

I don't foresee a major bull market in gold from here over the next few months years.

The last bull market in monetary precious metals in the 1970s ended with gold all the way upto $850 and silver to $50.

Gold has already doubled that high silver not even a quarter

Peter_Williams

A lot depends on the USD retaining its place as the world's reserve currency and payment system.
The US govt has now stated it will use force again to defend the dollar.

The increased gold holdings by China and Russia have probably started to concern the US govt.
The US govt is not happy with Facebook trying to launch Libra and have pretty much put a stop to it.
Facebook and Google are essentially puppets of the US govt, so they'll do as they are told.

Peter_Williams

RealElement47 wrote: »

The last bull market in monetary precious metals in the 1970s ended with gold all the way upto $850 and silver to $50.

Gold has already doubled that high silver not even a quarter

Silver is an industrial (as well as monetary) metal.
It will be weaker in any industrial slowdown. The peak in the GSR usually indicates a recession.

As soon as the govt officially announces a recession, the GSR will drop, as the metals markets are forward looking - whereas govt statistics are backward looking.

Peter_Williams

chucknorris wrote: »

Quite, especially when there has been no income paid from it, when will these PM nutters realise that property pays rent and equities pay dividend income, and you still have the opportunity for capital gains.

I consider physical precious metals an insurance, not an investment.

chucknorris

Peter_Williams wrote: »

I consider physical precious metals an insurance, not an investment.

But you are losing out on the opportunity cost of investment, that is what I meant. I do not consider insurance to be of much value, I don't have any form of insurance, other than car insurance and property insurance included in the service charge of leasehold property (even our home is not insured). Although I am a member of the dog's trust, not only to help them, but also to cover myself for the third party liability for my dog.

I only see insurance of value, if you can't afford to pay or absorb the consequences.

Peter_Williams

chucknorris wrote: »

But you are losing out on the opportunity cost of investment, that is what I meant. I do not consider insurance to be of much value, I don't have any form of insurance, other than car insurance and property insurance included in the service charge of leasehold property (even our home is not insured). Although I am a member of the dog's trust, not only to help them, but also to cover myself for the third party liability for my dog.

I only see insurance of value, if you can't afford to pay or absorb the consequences.

Gold is a physical asset that can be held outside of the financial system.
Having millions in a share portfolio isn't much good if the banks are shut and the website down / closed.
How are you going to access your money?

chucknorris

Peter_Williams wrote: »

Gold is a physical asset that can be held outside of the financial system.
Having millions in a share portfolio isn't much good if the banks are shut and the website down / closed.
How are you going to access your money?

I have a diversified portfolio, my wealth is not just stored in equities:

29% Investment property
27% Equities (excluding REIT)
16% Fixed pension (DB)
13% REIT
8% Cash
7% Individual corporate bonds

I don't really buy into doomster's spiel, although I accept that in a worst case realistic scenario, access to cash might be limited for a short time. But my income is quite substantial so I have a very healthy cash flow.

triathlon

RealElement47 wrote: »

Not just the GBP but the JYN and several other major currencies. And many many smaller currencies are seeing escalating gold prices.

Stock markets are crashing and currency wars picking pace. China are winning the race to debase, the race to the bottom in currencies, mind you the UK aren't doing too bad in devaluing their currency.

Is the gold price off to the races?

Gold, silver, Bitcoin

Nothing is ever going to rebalance the awful mistake of not entering the property in the last couple of decades.

Peter_Williams

chucknorris wrote: »

I have a diversified portfolio, my wealth is not just stored in equities:

29% Investment property
27% Equities (excluding REIT)
16% Fixed pension (DB)
13% REIT
8% Cash
7% Individual corporate bonds

I don't really buy into doomster's spiel, although I accept that in a worst case realistic scenario, access to cash might be limited for a short time. But my income is quite substantial so I have a very healthy cash flow.

If you're confident that your income is secure and that you will always be able to access your cash (assuming you are paid by bank transfer, not cash in hand?). Plus if you're happy for the govt to know about all your assets / savings, then I agree, don't bother to hold physical gold.
Physical gold is really about privacy and security and you pay a price for that.

Peter_Williams

triathlon wrote: »

Gold, silver, Bitcoin

Nothing is ever going to rebalance the awful mistake of not entering the property in the last couple of decades.

Have a look at UK house prices measured in gold over the past 100 years.