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Realistbear

Sterling Soars As Gold Slumps

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Gold: 1162.90 -20.20 -1.71%

1 GBP = $1.55387

Looks like the UK currency is everyone's favourite--even at the expense of gold. Normally, the market sees the UK as the high risk bet given that our debt is far in excess of the other G7 and there is still no plan to reduce it. Safe haven status now with the pound at the expense of gold which is not fulfilling the promise of soaring with the SDC and other areas of risk.

Pound up/gold down is a strange brew.

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Uk goldbugs offloading their positions to buy houses? :blink:

I'd say so. Now prices have dropped half a percent of so everyone is piling back in!

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Uk goldbugs offloading their positions to buy houses? :blink:

They wish.

A couple of goldbugs go in the local , i reckon their position would buy them a 15 year old caravan at best.

What amazes me most about them is that they think they're some sort of guru because they have few south african coins in the drawer at home and that any other investment class is second best.

They bore me to tears.

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They wish.

A couple of goldbugs go in the local , i reckon their position would buy them a 15 year old caravan at best.

What amazes me most about them is that they think they're some sort of guru because they have few south african coins in the drawer at home and that any other investment class is second best.

They bore me to tears.

:o Prepare for abuse, sir.

Not by me, btw ;)

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They wish.

A couple of goldbugs go in the local , i reckon their position would buy them a 15 year old caravan at best.

What amazes me most about them is that they think they're some sort of guru because they have few south african coins in the drawer at home and that any other investment class is second best.

They bore me to tears.

Their local is obviously not in Glasgow, otherwise they'd be ex-gold bugs !!! :lol::lol:

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Currently reading 'Dying of money', the 1974 book about the hyperinflation of the Weimar Republic. Here's the link to the pdf., original copies selling on ebay for upwards of £650 quid apparently (no doubt to stupid banker types who are just waking up to the mess they've created):

http://richtoscano.com/dyingofmoney.pdf

I'm only up to chapter 7, but there are some great quotes which resonate with the current situation the West finds itself collectively in, I haven't got time to retype them here (can't cut and paste as pdf is a scan of the original book), but the most telling part is about how investors still mistook the post WW1-German mark as a great investment, even as copious amounts were being printed, simply because it was assumed that because it was the World's strongest economy it would make good on it's debts. It was only some time further down the road when investors realised en masse that they'd never get their money back, that the Mark was dumped by all investors in a huge panic, causing hyperinflation in Germany and the loss of a great amount of wealth for almost all investors in the Mark (unless they were the very first ones to get out).

Parallels with the rush back into the dollar and more recently the paradoxically strenthening pound perhaps?

I'll stick with my gold thanks, despite the fact it is being blatantly manipulated down in the past few weeks. When the reversal comes it will be brutal. So long suckers.

And no, I'll be buying houses with my stash when they get to a minimum of 10 ounces for your average 3-bed :) Then it's slum-landlording it all the way :)

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Gold has 'slumped' by the massive amount of $19.60 per ounce. :lol:

1.5% drop in value of any asset in 1 day puts into perspective the annual rates on cash savings doesn't it?

A 5.7% fall in the last month may cause a bit of knuckle-chewing too. ($1255 to $1184)

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Currently reading 'Dying of money', the 1974 book about the hyperinflation of the Weimar Republic. Here's the link to the pdf., original copies selling on ebay for upwards of £650 quid apparently (no doubt to stupid banker types who are just waking up to the mess they've created):

http://richtoscano.com/dyingofmoney.pdf

Thank you for the link, I've wanted to read this for some time.

I missed out on Gold though. Perhaps I should - following the timeline suggested by the book - invest in arms manufacturers(?)

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Well the US dollar is looking like its gona get thrashed!

At some point interest rates will have to be jumped up in a desperate attempt to save the currency.

This will with out doubt plunge the country into Depression.

All its gona take is something to start the stampeed.

Just like the German Music disaster.

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Thank you for the link, I've wanted to read this for some time.

I missed out on Gold though. Perhaps I should - following the timeline suggested by the book - invest in arms manufacturers(?)

Stay calm, stay liquid. Keep your sterling where it will be accessible on demand, ie. not tied up in a BTL or a bank that will need bailing out by the FSCS. We're likely in the next deflationary cycle right now and it could take many months for gold to bottom. This could set up the last great buying opportunity. If not, well you'll just have to average up from a small core position or sit out and chill out.

Just my 2c.

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Well the US dollar is looking like its gona get thrashed!

At some point interest rates will have to be jumped up in a desperate attempt to save the currency.

This will with out doubt plunge the country into Depression.

All its gona take is something to start the stampeed.

Just like the German Music disaster.

The cycle begins again. The $ sinks and European exports collapse due to an overvalued Euro/pound.

What bothers me is that Brown seems to have pulled it off. Sinks us into 4 TR in debt with seemingly no way out but no financial consequences in either a full blown HPC or currency devaluation. Was the man a genius after all or are the world markets simply placing trust in the UK that the 4TR debt is contained?

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Thank you for the link, I've wanted to read this for some time.

I missed out on Gold though. Perhaps I should - following the timeline suggested by the book - invest in arms manufacturers(?)

Wouldn't hurt to transfer some of your pounds into gold incrementally over the coming weeks and months (to smooth out price volatility) if you want to buy yourself some cover. Even if gold crashes because the financial mess we're in magically (and I mean magically) sorts itself out, then if you've got a cautious 5-10% of your wealth in gold as a hedge (I say cautious cos I'm in for 45% of my cash wealth) in won't be a big deal to lose half your investment if, for example, gold suddenly folds in two (and it rarely moves at more than a snail's pace compared to the stock market - so you've got time to get out if it goes against you). If on the other hand sterling (and the dollar and euro) implode, that 5-10% hedge could turn out to be the best investment decision you ever made.

Your point on investing in arms manufacturers is a good one. Obama is gearing up to attack Iran, firstly to detract from the mess the US economy is in and secondly to help out their 'friend' (friend of certain elements of the US establishment - not the real American people), good old hegemonic, racist and religiously intolerant, Israel. Don't expect Britain will be far behind either, after all we are responsible for creating the monsterous canker that is Israel. Just hope I get to enjoy the fruits of my wise investments before the religious zealots start WW3 and kill us all.

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Gold has 'slumped' by the massive amount of $19.60 per ounce. :lol:

I make it GBP747 from a high of GBP869 in june, which is 14% down. But that's just me...

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The cycle begins again. The $ sinks and European exports collapse due to an overvalued Euro/pound.

What bothers me is that Brown seems to have pulled it off. Sinks us into 4 TR in debt with seemingly no way out but no financial consequences in either a full blown HPC or currency devaluation. Was the man a genius after all or are the world markets simply placing trust in the UK that the 4TR debt is contained?

Read the 'Dying of Money', link in earlier post, it'll help explain as it's happened before.

It's blindlingly obvious to the financially educated that sterling shouldn't be strengthening, but most people are just too plain f*cking thick and are throwing good money after bad. The longer their idiocy continues the earlier retirement will be, so not complaining.

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And no, I'll be buying houses with my stash when they get to a minimum of 10 ounces for q

your average 3-bed :) Then it's slum-landlording it all the way :)

Greed is good, no doubt :rolleyes:

Goldbugs = BTLers = ?

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Wouldn't hurt to transfer some of your pounds into gold incrementally over the coming weeks and months (to smooth out price volatility) if you want to buy yourself some cover. Even if gold crashes because the financial mess we're in magically (and I mean magically) sorts itself out, then if you've got a cautious 5-10% of your wealth in gold as a hedge (I say cautious cos I'm in for 45% of my cash wealth) in won't be a big deal to lose half your investment if, for example, gold suddenly folds in two (and it rarely moves at more than a snail's pace compared to the stock market - so you've got time to get out if it goes against you). If on the other hand sterling (and the dollar and euro) implode, that 5-10% hedge could turn out to be the best investment decision you ever made.

Your point on investing in arms manufacturers is a good one. Obama is gearing up to attack Iran, firstly to detract from the mess the US economy is in and secondly to help out their 'friend' (friend of certain elements of the US establishment - not the real American people), good old hegemonic, racist and religiously intolerant, Israel. Don't expect Britain will be far behind either, after all we are responsible for creating the monsterous canker that is Israel. Just hope I get to enjoy the fruits of my wise investments before the religious zealots start WW3 and kill us all.

Word is that Sarkozy is going to strike Iran first as the EU has placed full blown sanctions on them. The UN seem to be out of it. Don't forget, the EU nations are far more militant than us vs. the perceived Moslem threat centred in Iran with legislation vs. Burkas etc. There are DEEP seated fears vs. perceived Moslem threats among the EU nations and France is possibly sitting on the biggest powder keg of them all given the ethnic make-up of the Paris suburbs. Barack Hussein O'Bama has Moslem ties in his family don't forget which explains the recent hostility vs. Israel who are the sitting ducks if the Iranians go for a first strike. Most of the Moslem nations have vowed to finish the jobs the Nazis began and it goes back more than just a few centuries.

The Russians will probably keep supplying Iran with necessary hardware to fight the West but I doubt they will first strike Europe or the US. China will take out the North Koreans if they get out of hand as the Chinese are doing well business-wise with the South and the US and the EU are their biggest customers. Iran buys nothing in comparison which means China will let Iran sink into a bright flash and not turn a hair.

Best bet is to support the Iranian people against the mad Ayatollahs. The "Greens" have stood up against the brutal Armourdinnerjacket regime and its a pity they did not pull of a regime change.

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I make it GBP747 from a high of GBP869 in june, which is 14% down. But that's just me...

It's a worry, but on the positive side Zero hedge has uncovered that the BIS and the IMF seem to be involved in selling and moving record amounts of gold recently, but keeping it very hush, hush. It appears that the gold is being used to cover paper short positions of the big players in the market, who do not have the physical gold to cover increasing requests for delivery of physical gold (which has come about because there are reportedly believed to be 45 paper ounces of gold on the gold market to every real ounce of gold).

The discrepancy between paper gold and real gold means that ultimately the lid could be blown of the whole manipulation game, when the physical gold to fulfil orders runs out and gold will soar as a result.

Here's hoping the theory is well founded and that we eventually get there.

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Greed is good, no doubt :rolleyes:

Goldbugs = BTLers = ?

Not exactly, I'll be buying in when it's out of fashion and will therefore make a sound business out of it, plus I won't be BTLing exactly as I'll hopefully be buying more or less outright. A true BTLer uses leverage and contributes to distorting the housing market as a result.

I plan to make my money work for me, you might not like that idea, but If you want to keep working for the man until you're old and grey that's your call.

Edited by General Congreve

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It's a worry, but on the positive side Zero hedge has uncovered that the BIS and the IMF seem to be involved in selling and moving record amounts of gold recently, but keeping it very hush, hush. It appears that the gold is being used to cover paper short positions of the big players in the market, who do not have the physical gold to cover increasing requests for delivery of physical gold (which has come about because there are reportedly believed to be 45 paper ounces of gold on the gold market to every real ounce of gold).

The discrepancy between paper gold and real gold means that ultimately the lid could be blown of the whole manipulation game, when the physical gold to fulfil orders runs out and gold will soar as a result.

Here's hoping the theory is well founded and that we eventually get there.

I have heard it is far more than that with a ratio in the thousand to one. Bottom line: the "gold" market, whether paper or actual, has turned into a massive ponzi and investors may turn indiscriminate if a selling rush happens as it did in late 1980 after the peak in the high $800's.

Key support at 1150 is close:

1160.50 -21.60 -1.83%

Edited by Realistbear

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Not exactly, I'll be buying in when it's out of fashion and will therefore make a sound business out of it, plus I won't be BTLing exactly as I'll hopefully be buying more or less outright. A true BTLer uses leverage and contributes to distorting the housing market as a result.

I plan to make my money work for me, just me if you will, but If you want to keep working for the man until you're old and grey that's your call.

No, what you describe is not sticking it to the man, its becoming the man.

And no, I don't want to be the man

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Word is that Sarkozy is going to strike Iran first as the EU has placed full blown sanctions on them. The UN seem to be out of it. Don't forget, the EU nations are far more militant than us vs. the perceived Moslem threat centred in Iran with legislation vs. Burkas etc. There are DEEP seated fears vs. perceived Moslem threats among the EU nations and France is possibly sitting on the biggest powder keg of them all given the ethnic make-up of the Paris suburbs. Barack Hussein O'Bama has Moslem ties in his family don't forget which explains the recent hostility vs. Israel who are the sitting ducks if the Iranians go for a first strike. Most of the Moslem nations have vowed to finish the jobs the Nazis began and it goes back more than just a few centuries.

The Russians will probably keep supplying Iran with necessary hardware to fight the West but I doubt they will first strike Europe or the US. China will take out the North Koreans if they get out of hand as the Chinese are doing well business-wise with the South and the US and the EU are their biggest customers. Iran buys nothing in comparison which means China will let Iran sink into a bright flash and not turn a hair.

Best bet is to support the Iranian people against the mad Ayatollahs. The "Greens" have stood up against the brutal Armourdinnerjacket regime and its a pity they did not pull of a regime change.

The whole mad-mullahs story is cr@p. Iran has never attacked anyone since the days of ancient Persia and it desires nukes to protect itself (against the US on it's doorstep in Iraq, Saudi and Afghanistan who are continually Sabre-rattling, FundaMENTAL Israel with nukes to the West, unstable Pakistan and pro-west India with nukes to it's East). The US says the moment the Iranians have the bomb they will nuke everyone. Nonsense. It'd be suicide, it'd never happen. The Israeli's are a far bigger bunch of zealots than the Iranians and have attacked all their neighbours in their short conquesting, blood-stained history.

As for the Green revolution, sure Iran's elections probably weren't free and fair, but it's well known there was a fair amount of CIA involvement in backing up the Green revolution and giving it backing, not to mention the celebratory propaganda of it in the Western Media.

One other thing, Iran has the third largest oil and gas reserves in the world and they are easily accessible, unlike in the Gulf of Mexico.

Now, who are the real bad guys?

Edited by General Congreve

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  • 261 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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