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Circa 1.20 Against The Euro And A Cuckoo Pops Out Of Boe To Devalue

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regular as clockwork, circa 1.20 ish against the euro is the trigger for another cuckoo to spring out of the BOE to devalue by threatening QE.......its all so embarassingly transparent and amateurish......

http://www.telegraph.co.uk/finance/economics/8134134/Banks-Weale-Economy-may-need-more-stimulus.html

Race to the bottom baby! :D

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Race to the bottom baby! :D

Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

Surely to God you haven't just bought some gold?

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regular as clockwork, circa 1.20 ish against the euro is the trigger for another cuckoo to spring out of the BOE to devalue by threatening QE.......its all so embarassingly transparent and amateurish......

http://www.telegraph.co.uk/finance/economics/8134134/Banks-Weale-Economy-may-need-more-stimulus.html

In fact so transparant and anataeurish that it has been completely ignored by the markets. Pound up vs euro today.

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

When you say 'went physical' what % of your investments have you used for this? Surely if it's between 10-20% as a sensible part of a mixed investment then £30 an ounce wouldn't matter?

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I'm guessing this would be a bad thing at the minute?

Not according to Alex Jones and his chum Ted. Gold is going to the $2500. (Which variety of $ is anyone's guess.)

Edited by hedgefunded

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

Here's something interesting (relevant bit in bold/black). If we take it that the price of gold is determined by real interest rates today's price of gold should perhaps be $1240 (Bernanke's jackson Hole's speech was on August 27th). That's forgetting that inflation expectations have risen since then mind you.

http://www.businessi...allying-2010-11

The dollar is rallying and stocks aren't getting killed. Maybe that's because the up-move has nothing to do with the risk on/risk off paradigm.

Greg Anderson of Citi explains:

The proper explanation for EUR and JPY weakness overnight has nothing to do with domestic economic weakness, nor with risk appetite either. As has been the case for the past several months, the true underlying driver is US yields. US yields rose significantly on Friday, with the 10-year Treasury yield adding 13bp (to 2.79%) and the 2-year adding 3bp (to 0.50%). The rise in yields occurred in on a risk-off day in which the S&P 500 lost 1.18%, as previously noted. Today, US yields are higher, with the 10-year up another 9bp (to 2.88%) and the 2-year up another 5bp (to 0.56%) in what appears to be a risk-on environment, with S&P 500 futures up roughly 0.4%.

For the moment, US yields appear to be rising independent of what is happening in equity or commodity markets. Yields in the 2-10 range are now essentially the same as they were at the time of Bernanke's Jackson Hole speech, which would suggest that the Fed's QE2 measure has failed to have a permanent impact. Such a result would probably delight the EM central banks who are the biggest holders of US Treasury debt and who have been critics of QE2 at venues like the IMF and G20 meetings. If US yields continue to rise, they will drag the USD higher with them. However, it is important to note that the Fed's QE2 purchases barely began last Friday. It will undoubtedly take time for those purchases to have an impact on yields, but to the extent they do, today's USD strength will be undermined. We warn against getting too bulled up on the buck at this juncture. The USD needed to correct a bit higher, which it has, but the fundamentals for a bigger USD rally have yet to present themselves.

The good thing about his analysis, is that it will prevent you from lazily ascribing the euro weakness to "Ireland" or something similar. Bear in mind, too, that in May, the first time the PIIGS crisis really flared up, US yields compressed on a risk-off play, so while the current situation may rhyme with that, it's not a replay.

Edited by _w_

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

Fear not. I bought between Dec. '08 and Feb '09, average price of £643Oz. Gold had a great run until March '09, then the first round of QE happened (if you don't count Bush's one, which the media don't seem to). That restored some confidence in the financial markets and gold took a kicking into the summer of '09. I had some doubts then (only minor, but doubts all the same). However since then it recovered strongly, there have been some smaller bumps on the way, but boy am I glad I bought gold.

Metals, like many markets are volatile. S0d's law says the moment you take the plunge is the moment things reverse. However, the reversal you've experienced is only short term, it may be days, it may be weeks, it may (unlikely I think, but you never know) be a few months before you see any serious gains and in the mean time you may experience some short term losses (although only if you cash out and realise them). Just remember the medium to long term prognosis for gold is very bullish. 100k in a savings account paying 3% is still losing you £1600 a year (officially with RPI at 4.6%, believe the govt. inflation figures at your peril) anyway, so bare that in mind too.

In a couple of years time you'll be thanking your lucky stars you bought at today's prices, mark my words.

If you need a shot in the arm to restore your confidence, in the face of short term volatility, try:

www.zerohedge.com

It's an American site (there's a few UK contributors on there too), so there's a US bias to it, but they are bang on with the stories they cover. The articles and comments there will bolster your confidence in gold no end, they talk a lot of sense. It can be a bit heavy on the economics sometimes, but it lifts the curtain on a hell of a lot. If you have the patience to read and understand, it makes clear just how bad things are and how strong the case is for gold. Flippin' heck, I love zerohedge so much my PS3 has hardly been used these last few months. Going to have to buy CoD:Black Ops and try to break the addiction ;)

In summary, gold will probably continue to be a bumpy ride, but well worth it in the end. Here's my favourite quote chart, the 5 year charts make the volatility in the up trend plain to see, but at the end of the day the trend is obvious:

http://www.usagold.com/gold-price-forex.html

Edited by General Congreve

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

Remember "the trend is your friend". The trend for the last decade has been up but not without pullbacks. Do ignore Realist Bear as well...

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Do ignore Realist Bear as well...

Second that. What makes me laugh is that every thread he posts, almost without exception, is bullish for gold. I'm sure he's just a wind up merchant and when all this is finally over he'll admit he was just having a laugh. He's probably counting his ingots as we speak! :lol:

Edited by General Congreve

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I bought Sovs as CGT free. Should there be any "G". :unsure:

I chose physiscal, as i believe more gold has been sold than exists.

Anyway, its a hedge, of sorts, roughly 12% of all i have. I didnt get that greedy/stupid.

House owned outright, no debt. Decent freelance job.

The £30 an ounce drop, so far, is not fundamental to the day to day, just very annoying.

Im looking at europe on the point of total implosion. In my gut i think ive done the right thing.

I can,wait. :)

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When you say 'went physical' what % of your investments have you used for this? Surely if it's between 10-20% as a sensible part of a mixed investment then £30 an ounce wouldn't matter?

Its about 12%. It plummeted the minute i bought it. Im more annoyed than rattled.

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Fear not. I bought between Dec. '08 and Feb '09, average price of £643Oz. Gold had a great run until March '09, then the first round of QE happened (if you don't count Bush's one, which the media don't seem to). That restored some confidence in the financial markets and gold took a kicking into the summer of '09. I had some doubts then (only minor, but doubts all the same). However since then it recovered strongly, there have been some smaller bumps on the way, but boy am I glad I bought gold.

Metals, like many markets are volatile. S0d's law says the moment you take the plunge is the moment things reverse. However, the reversal you've experienced is only short term, it may be days, it may be weeks, it may (unlikely I think, but you never know) be a few months before you see any serious gains and in the mean time you may experience some short term losses (although only if you cash out and realise them). Just remember the medium to long term prognosis for gold is very bullish. 100k in a savings account paying 3% is still losing you £1600 a year (officially with RPI at 4.6%, believe the govt. inflation figures at your peril) anyway, so bare that in mind too.

In a couple of years time you'll be thanking your lucky stars you bought at today's prices, mark my words.

If you need a shot in the arm to restore your confidence, in the face of short term volatility, try:

www.zerohedge.com

It's an American site (there's a few UK contributors on there too), so there's a US bias to it, but they are bang on with the stories they cover. The articles and comments there will bolster your confidence in gold no end, they talk a lot of sense. It can be a bit heavy on the economics sometimes, but it lifts the curtain on a hell of a lot. If you have the patience to read and understand, it makes clear just how bad things are and how strong the case is for gold. Flippin' heck, I love zerohedge so much my PS3 has hardly been used these last few months. Going to have to buy CoD:Black Ops and try to break the addiction ;)

In summary, gold will probably continue to be a bumpy ride, but well worth it in the end. Here's my favourite quote chart, the 5 year charts make the volatility in the up trend plain to see, but at the end of the day the trend is obvious:

http://www.usagold.com/gold-price-forex.html

Cheers General.

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Went physical last Tuesday.

Down almost £30 an ounce.

Almost from the moment i clicked the ******ing button. :angry:

Reassurance please General, i'm new at this.

you will be glad for it when everything else has got so sorry.

1-3-6 years should payoff well.

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I bought Sovs as CGT free. Should there be any "G". :unsure:

I chose physiscal, as i believe more gold has been sold than exists.

Anyway, its a hedge, of sorts, roughly 12% of all i have. I didnt get that greedy/stupid.

House owned outright, no debt. Decent freelance job.

The £30 an ounce drop, so far, is not fundamental to the day to day, just very annoying.

Im looking at europe on the point of total implosion. In my gut i think ive done the right thing.

I can,wait. :)

That is a fairly conservative hedge - it's sensible, tangible and looks pretty in your hands. If the price did fall you still have the opportunity to buy up more of the stuff lowering your average purchase price overall but please stop when you hit 20% of your portfolio. This applies to cash as well in a basket of currencies. Then there's shares but look for defensive stocks without the billions of pension liabilities (the ones that were once state owned etc etc).

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It's a thin market mate. Please do some reading - here are some reasons for recent moves. If it's a long term holding then good luck to you.

http://online.wsj.com/article/SB10001424052748704327704575614853274246916.html?mod=WSJ_Markets_LEFTTopNewsInt

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=andBqxN2EyQQ

Disclaimer: I have my suspicions but absolutely no idea where the gold price is headed.

Re: First link - Who's going to buy treasury debt if the Fed won't? Remember, why does the Fed need to buy it in the first place?

Re: Second link - Sure, a bit bullish for the dollar short term, but just cos Europe is in the p00 spotlight this month, it doesn't mean the US problems have miraculously disappeared and the dollar is a shining beacon of hope.

Edited by General Congreve

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.........................................Pretty BUBBLES in the air

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Actinides ** Th Pa U Np Pu Am Cm Bk Cf Es Fm Md No Lr

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Remember "the trend is your friend". The trend for the last decade has been up but not without pullbacks. Do ignore Realist Bear as well...

absolutely...its a new paradigm.

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  • 245 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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