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Observation On Gold Price During Start Of Crunch

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If you look at the gold chart for the last 5 years, you notice that during peak "scare" (Jul08-Dec08) gold price went down.

http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeCom&valecom=valecom

This lead me to think maybe it wasn't such a safe place to be for the next scare.

However... if you look at the price of gold in GBP, you notice that it held its value much better, ending the year a lot higher.

http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeLivre&valecom=valelivre

What happened, was the dollar went up in value because of its "safety" (LOL) which in turn reduced the price of gold (in $).

http://www.google.co.uk/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1282746480000&chddm=683&chls=IntervalBasedLine&cmpto=CURRENCY:GBPUSD&cmptdms=1&q=NYSE:GLD&ntsp=0

So assuming there is a run to the $ next time and gold "price" goes down, its value (to us living in the UK) would be the same.

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If you look at the gold chart for the last 5 years, you notice that during peak "scare" (Jul08-Dec08) gold price went down.

http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeCom&valecom=valecom

This lead me to think maybe it wasn't such a safe place to be for the next scare.

However... if you look at the price of gold in GBP, you notice that it held its value much better, ending the year a lot higher.

http://www.24hgold.com/english/interactive_chart.aspx?codecom=GOLD&chgecom=ChgeLivre&valecom=valelivre

What happened, was the dollar went up in value because of its "safety" (LOL) which in turn reduced the price of gold (in $).

http://www.google.co.uk/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1282746480000&chddm=683&chls=IntervalBasedLine&cmpto=CURRENCY:GBPUSD&cmptdms=1&q=NYSE:GLD&ntsp=0

So assuming there is a run to the $ next time and gold "price" goes down, its value (to us living in the UK) would be the same.

I am not sure myself. Gold in $ will increase as it gets more expensive. But what would be the effect on its value if in a $ etf as opposed to a £ etf. What would be best to have it in if the £ fell against the doller.

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I'm of the opinion that we will not see a repeat of 2008 when it comes to a heavy stock market sell-off.

Gold has come of age as the premier reserve currency and does not automatically react, as it once did, negatively to any stock market dips or dollar strength.

Any dips in gold have been shallow and seen robust buying which has quickly pushed the price back up.

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  • 142 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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