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Ruffneck

Gold Hits New Record Of $1,258 Per Ounce

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Looks like RB was right about gold crashing when it dropped 12 dollars a couple of weeks ago.

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7838323/Gold-price-hits-new-record-of-1258.html

The afternoon gold fix on the London Bullion Market hit a record high due to a weakened dollar and poor economic reports for the US.

Marcus Grubb, Managing Director of Investment at the World Gold Council, said: "Against a backdrop of sovereign risk in Europe, the release of weak employment numbers in the US on Thursday brought the dollar down from its recent highs rekindling fears of a double dip recession and gold duly performed in its role as a dollar hedge.

"In addition, World Gold Council figures released today, highlight that total sales by European central banks have amounted to just 1.8 tonnes since the third central bank gold agreement began in September of last year, which is significantly below historical levels."

Mr Grubb said gold’s scarcity and attraction as a preserver of wealth in uncertain times continue to resonate with investors.

Investors' concern that loose monetary policy will unleash inflation is among the factors prompting interest in tangible assets such as gold.

Jeremy Charlesworth, manager of the Moonraker Commodities fund, said: "If you mass produce something then it will lose value at some stage. Quantitative easing is undermining the value of Western currencies and assets.

"Yet the European Union has decided that the solution to the debt crisis is even more debt and confidence in the recovery package has now evaporated. When people abandon bonds and Western currencies they will look for real assets, which can't be created at the touch of a button. The gold market really does have the bit between its teeth at the moment."

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hmm Frank:

  • Interests:Ignoring idiot goldbugs

idiots that would most likely have helped you over the last few years?

The key word is idiot. There are sensible gold bugs, such as Errol, but they are outnumbered by the numpties.

I find it ironic that a website set up to reject bubble thinking:

property only ever goes up, you can't lose with property, my house is my pension

has spawned a section that repeats a very similar mantra

gold only ever goes up, you can't lose with gold, my gold is my pension

And justifies that thinking, as you have just done, by saying it has gone up over the last few years. So by that measure you must have been rushing to buy property in 2007 as it had gone up a lot before then and hence that was a good reason for buying it.

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The key word is idiot. There are sensible gold bugs, such as Errol, but they are outnumbered by the numpties.

I find it ironic that a website set up to reject bubble thinking:

property only ever goes up, you can't lose with property, my house is my pension

has spawned a section that repeats a very similar mantra

gold only ever goes up, you can't lose with gold, my gold is my pension

And justifies that thinking, as you have just done, by saying it has gone up over the last few years. So by that measure you must have been rushing to buy property in 2007 as it had gone up a lot before then and hence that was a good reason for buying it.

I don't recall see anyone stating it in these terms you mention Frank! Gold and Silver are simply the perfect hedge against, well....any possible outcome of the crisis. It could be inflation, deflation, stagflation, one then the other. Either way they cause FEAR. Gold will rise and Silver posibly even more through this process. There will be ups and downs, but the trend is up. Gold is still cheap in historical terms and Silver even cheaper. And yes it probably will form a bubble and eventually settle at a lower price than in the midst of a collapse. Sounds like you should buy some Frank. Now that would be using your loaf.

Edited by plummet expert

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I don't recall see anyone stating it in these terms you mention Frank! Gold and Silver are simply the perfect hedge against, well....any possible outcome of the crisis. It could be inflation, deflation, stagflation, one then the other. Either way they cause FEAR. Gold will rise and Silver posibly even more through this process. There will be ups and downs, but the trend is up. Gold is still cheap in historical terms and Silver even cheaper. And yes it probably will form a bubble and eventually settle at a lower price than in the midst of a collapse. Sounds like ypu should buy some Frank. Now that would be using your loaf.

Read some posts by G Man,d2thdr and General Congreve!

As I have said before I think it's a good idea to hold some gold. I think Realist Bear is as bad as the two I have just noted with his "gold to collapse" posts. A sensible investor is neither for nor against gold, they view it as one form of investment.

I don't think it's cheap anyway. Historical records are no measure or I'd be rushing out to corner the market in tulip bulbs.

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Read some posts by G Man,d2thdr and General Congreve!

As I have said before I think it's a good idea to hold some gold. I think Realist Bear is as bad as the two I have just noted with his "gold to collapse" posts. A sensible investor is neither for nor against gold, they view it as one form of investment.

I don't think it's cheap anyway. Historical records are no measure or I'd be rushing out to corner the market in tulip bulbs.

Another bitter paper bug

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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