The Gold thread

walk2dewater said:
This issue has been covered earlier in the thread. I’ll summarise for you:

Gold is a ‘currency’, albeit a unique one. Personally, I count it (bullion anyway) as part of my range of cash/currency type holdings. To me a 20gram Credit Suisse bullion bar in my pocket is same as €300.

Yes, the big bet is a severe decline in the US$ but the bet really extends to all fiat currencies. People who fear for the purchasing power of their €, US$ or £ income stream are buying gold. People who see overvaluation in traditional assets [stores of wealth] are converting those assets to gold.

For people earning and living in Euros, yes you are betting on the situation you describe; gold rising in euros. However, my belief is that gold will rise against all fiat currencies. E.g. I doubt we’d see €0.20 to the US$, that would be absolute economic chaos unless it happened over many decades in a controlled fashion. Maybe we’ll see €0.50 in our lifetimes, but even at that there would be severe problems.

The bottom line is you always want to own assets that are rising in value vis a vis other assets. Residential property values just about everywhere are wildly exaggerated on virtually any basis and should, at minimum, slowly decline in value from here vis a vis other assets. Same can be said for stocks generally. Bonds, again generally, look like poor value since CB rates are going much higher [despite the fact that they’ll have less effect since its cost-push inflation and inflation expectations have already taken off.]

What’s left then is gold and prec metals, energy of all types incl renewables, base metals, and agricultural commodities, all of which are STILL historically cheap compared to the assets mentioned above.
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I think this is a very important point. If confidence in the dollar is badly hit and it falls then the euro and sterling and the yen will fall with it. This is because the dollar is now the world's reserve currency. Gold used to be the worlds reserve currency but over the last 40 years it has steadily been replaced by the dollar as central banks around the world have gradually reduced the amount of gold they hold in favour of paper currencies. The bank of england famously sold off a huge chunk of their gold in 2001 at $270 an ounce just as gold was hitting the bottom of its bear market. Therefore I think the pound could suffer more than the dollar in the short term especially as North Sea oil is declining dramatically. At the same time oil and resource rich countries like russia have been increasing their gold holdings. Therefore it is not the euro or sterling you should be turning to in the case of a dollar fall but the russian rouble, some of the asian countries and just holding gold itself. I read an article which said that gold always goes to where the wealth is being generated. Now gold is leaving western countries and is going to russia and asia.
 
I would like to purchase Gold and will be doing so for the first time. Anyone suggest an Irish broker ?
 
more to the point, I would like to purchase Gold the same way as I have purchased shares. I don't want physical gold, I don't way to store gold, I want to be able to sell as quickly as you can a share cert
 
niceone said:
more to the point, I would like to purchase Gold the same way as I have purchased shares. I don't want physical gold, I don't way to store gold, I want to be able to sell as quickly as you can a share cert
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"GLD" trades on US exchanges, "IGT" trades in Toronto, and theres one in London by Lyxor (symbol escapes me at the mo)
 
If gold goes much higher I think I will start shorting it for the carry interest. Leveraged at 25:1, scale in at 20% chunks over an extended period, depending what way it goes. I'm not around next week but I'll see the week after where its at.
 
plaudit said:
If gold goes much higher I think I will start shorting it for the carry interest. Leveraged at 25:1, scale in at 20% chunks over an extended period, depending what way it goes. I'm not around next week but I'll see the week after where its at.
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Brave move. I know traders who think it is headed for $1000 oz by year end. Doubt it myself but keep your stops tight.
 
niceone said:
more to the point, I would like to purchase Gold the same way as I have purchased shares. I don't want physical gold, I don't way to store gold, I want to be able to sell as quickly as you can a share cert
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Why not get real physical gold?
No storage costs and easy to hide somewhere in the house or garden.
Gold is touted as safe in some future financial crisis or even meltdown.
I for one would not like to wave my gold shares for redemption at some bank or trading house in this financial crisis scenario.:eek:
In such a chaotic situation there would be such greed that one would most likely be holding worthless paper.:mad:
And it is very nice to have nice shiny gold coins with nice designs to hoard and feel and count.:D
Yes. Very comforting indeed.:)
 
"And it is very nice to have nice shiny gold coins with nice designs to hoard and feel and count.:D
Yes. Very comforting indeed.:)"

well i have some very nice shiney gold coins,trouble is none of the gold dealers seems to be interested as i have emailed main ones and still waiting on an answer
 
ainya said:
tried them 6 weeks ago still no reply
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Why not ring them or call into them - they are based in Fitzwilliam Square. Perhaps your coins aren't worth much or you haven't provided sufficient detail. An email mentioning you have several shiny gold coins is likely to be ignored.

Alternatively, take some snaps and sell them on ebay.
 
Do posters think the recent reversal of power in the America will have any effect on future gold prices or is the situation too far gone at this stage to have any real impact.

I been painfully watching the price of gold going up this past few weeks as I have researched it quite a bit about it and believe it is definitely a good investment going forward.

Funds to buy is the problem and am praying that our sale agreed property in Dublin can move forward without any delays. It is only then that I could put any significant amount of money in.

Expect to close in four/five weeks but just watching the price going up daily (I know it can also come down!) is pretty frustrating.

In the meantime I can only prepare. Do posters know of any good online brokers (In Ireland or outside) where I can purchase ETF's but also trade in equities.
 
Gold up, US$ down...
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see the 4:50pm segment
 
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... interesting gold article...

...not sure I would be keen to invest against this background

....any opinions,?
 
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