THE DOLLAR IS COOKED... citizens are seeking alternatives

here is Gold-in-Yen : Breaking out!

(from David Fuller's website)
On Gold - Thanks to Ramesh Chandiramani for forwarding these links which tell of increasingly easy ways of investing in gold internationally. Firstly here is section from a story on China where private investors can now invest directly in gold.

Gold bullion became available to Chinese individuals as an investment option for the first time since 1949 as the small gold bars began selling in Beijing Wednesday.

The first batch of gold bullion went on sale to individuals in the capital city’s China Art and Crafts Plaza, Guiyou Plaza’s Jianguomen and Fangzhuang outlets, as well as Caishikou Department Store.

The bullion was processed by Zhongjin Gold Co Ltd, China’s largest gold processor, and Zhaojin Gold and Silver Refinery Co Ltd.

"In addition to the pure bullion, Caishikou also sell the gold bars with sheep patterns, which are a little more expensive because of their decoration," according to Wang Chunli, general manager with the Caishikou Department Store.

The gold bullion was divided into 11 categories, ranging from 10 grams to 1.25 kilograms, with the purity g of all reaching 99.99 per cent.

This second story from the Wall Street Journal tells how it is now possible to invest in gold on a trip to the supermarket. Here is section:

Gold investing in Japan may soon be as easy as picking up a pack of cigarettes at the neighbourhood convenience store.

Bringing a whole new level of convenience to gold investing, trading giant Mitsui & Co. plans to offer its "gold accumulation plan" through select IY Bank outlets in Ito-Yokado Co. supermarkets, with a possible move to 7-Eleven convenience stores in the future.

"We are happy to have this opportunity to offer this product through our broad alliance with IY Bank," Eiki Okada, a Mitsui spokesman, said.

Gold accumulation plans, or GAPs, have become popular in Japan in recent years and are now offered by several firms, including Sumitomo Metal Industries Ltd. and Mitsubishi Materials Corp.

Under these plans, a fixed amount is automatically withdrawn from a member’s bank account each month and invested in gold. Investors are able to avoid the premiums usually charged for gold bars and coins. Also, by investing small amounts over a long period of time, they can avoid the risk of investing a large amount at the wrong time.

These plans are attractive to individual investors, as the minimum monthly requirement is usually only 3,000 yen, or about $27.

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My view -These two stories help to illustrate our point that we are at the beginning of the second psychological perception stage in this bull cycle. That is, where investors start to see that precious metals can be a good store of value relative to all fiat currencies. Have a look at the Chart Library for gold in a number of different currencies, here is gold in yen.


@: http://www.fullermoney.com/x/default.html

Dr B,

How would you suggest investing substantial sums in Gold? (i.e. 10K+).

Goldmoney seems to be a good option, but do you have experience/knowledge of this outfit? Is it reliable?

CS

Dr B

How would I invest in a gold fund and is this the same as buying physical gold e.g is it as safe and likely to hold value?

Thanks

Dr Bubb,

I was surfing yesterday looking for opinion that the price of gold could collapse - I always like to get contrarian views before I step into risk, just to get a feel for the downside.

The only argument I could find was this: that central banks could abandon gold altogether and sell their holdings. As banks hold 25% of all the world's gold, such a move would drive down gold prices for decades, possibly holding the price down in double figures. The article argued that this had happened to silver in the C19th, hence the chronically low returns on silver over the last 200 years. Some central banks have abandoned gold - I believe Canada is one such.

I don't find this argument all that convincing. Silver has never seriously competed with gold as a premium medium of money. The banks surely hold gold for the same reason individuals do - part of a balanced portfolio. If the fiat system crashed, bank gold would provide a basis for rebuilding the currency. Or at least, that is the way I read it.

What do you make of this threat? Could the banks conspire to knock this gold rush on the head?

Gold bullion backed securities exist on the LSE.
http://www.goldbullion.com/

If you're not planning on holding it for a long (4+ years), the annual management charge doesn't weigh in too heavily at 0.4%. Selling after 4 years will cost you 1.6% in AMC fee + any tracking errors and the cost of getting in and out of this LSE-listed security. So, for short term holding, this is probably cheaper and way less hassle than physical gold.

Goldmoney looks relatively more expensive because of a spread of up to 3%, unless long term. Goldmoney also asks some small transaction and monthly fees (a dollar or two)

I've not used either, but I plan to buy GBS.

Regarding Gold bullion backed securities (GBS.L) - does anyone know if these can be held in an ISA?

Ta.

http://www.streettracksgoldshares.com/


what do we think of the shares offered on this site?

Just went and did the deed and bought some 'Gold Bullion Securities' on the LSE. Now I just need Gold to become the next big thing....

I'm also looking to move cash into gold. I've been considering Goldmoney, GBS.L, Golden Prospect, as well as Kitco's Gold Pool account

Goldmoney seems to be the easiest to use, but has a steep bid-offer spread.

GBS looks cheaper, but my online sharebroker doesn't deal GBS online. Also because they are shares, you have to pay stamp duty i think

Golden Prospect looks good, but this is an investment fund in mining companies rather than bullion, so carries extra risks and costs

Kitco has a very cheap spread for their pooled gold account, but they are based in Canada i think and they only accept wired money / bankers drafts which is annoying

I've also considered Merrill Lynch Gold & General, but this has the highest costs of all, with a huge spread plus management charges

Any thoughts on which is best?!

Hi there Tonification,

GBS are not liable for stamp duty and the bid/offer spread is very narrow. The mains costs are your dealing fees (12.50 with Squaregain) and the 0.40% per year fee associated with GBS. Not too bad.

My favourite so far is an allocated account with Goldline (Baird & Co)

goldline

For larger amounts you looking at 2.25% above spot to buy -1% to sell spread 3.25% with storage fee around £20 / kilo per year.

Hi Riser

Do you have an exact link to the allocated accounts with Goldline?

I've bought physical gold from these before but never sa anything about allocated accounts.

Sorry if I'm being thick but I can't them anywhere on the site!

All they give is a number to ring for details, probably because the rates depend on the type of accounts and quantity you would like to own.

Im happy buying gold but will it be open to the same manipulation as any other money ?

http://www.energygrid.com/business/2003/01ap-moneygame.html