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Sterling And The Euro Going Bye Bye


Realistbear

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HOLA441

The euro was worth $1.23 a year ago and has climbed fairly steadily since then. You make far too big a deal of these day-to-day fluctuations. Look at the trend.

I tend to agree but sometimes we get a Soros event when a crash goes down unexpectedly. Bit like that event in 1980 when the trend suddenly reversed and all hell broke loose for those that diodn't get out in time.

Bottom line: its all a gamble and nearly impossible to predict. When I dumped sterling back in, IIRC, 1992 due to a move to the US I just had a gut feeling the pound at over $2.00 was not viable. Right now, I can't see the $ (LT will be good but ST and MT looks bad) or £ being that viable TBH. But against the Euro both look a bit more tasty.

Edited by Realistbear
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HOLA442

The euro was worth $1.23 a year ago and has climbed fairly steadily since then. You make far too big a deal of these day-to-day fluctuations. Look at the trend.

Yep there was a massive hooha on here when the £ looked to be edging below 1:1 on the € and 1:1.30 on the $

So relative to that - these figures are actually pretty welcome to those in £.

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HOLA443
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HOLA444

I tend to agree but sometimes we get a Soros event when a crash goes down unexpectedly. Bit like that event in 1980 when the trend suddenly reversed and all hell broke loose for those that diodn't get out in time.

Bottom line: its all a gamble and nearly impossible to predict. When I dumped sterling back in, IIRC, 1992 due to a move to the US I just had a gut feeling the pound at over $2.00 was not viable. Right now, I can't see the $ (LT will be good but ST and MT looks bad) or £ being that viable TBH. But against the Euro both look a bit more tasty.

To my knowledge, RB, you have never recommended buying euros. I wouldn't expect you to start now.

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HOLA445

To my knowledge, RB, you have never recommended buying euros. I wouldn't expect you to start now.

To be sure to be sure. Never liked the Euro because Europe lacks political consensus for when the going gets rough and its about to get very rough indeed.

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HOLA446

I tend to agree but sometimes we get a Soros event when a crash goes down unexpectedly. Bit like that event in 1980 when the trend suddenly reversed and all hell broke loose for those that diodn't get out in time.

You mean when you lost your money by betting on gold?

Unlucky. I can see why you're bitter against holding it now.

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HOLA447

OMG, the dollar has just crashed half a cent in 30 minutes!!!!! A dollar will be worth nothing at all by Monday week if this continues!!! Head for the hills!!!

"I find that the most exciting times are when there is a frenzy of either buying and selling and the bigger the dips, up or down, the greater thrill I get."

Gordon Gekko

Well said that man. :lol:

Edited by Realistbear
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HOLA448

$ = Euros 1.41030

$ = £1.61093

All a bit annoying really as it came just a bit too late for our house purchase! Still have LT savings in $ which will be the safest place as the Soveriegn debt crisis unwinds in Europs and the UK starts to pay for Brown and Balls mess.

Don't beat yourself up. I sold gold 18 months ago, could of got more by hanging on longer, but we both made a profit on our trades. Does the possibility that someone else could theoretically have made a slightly greater profit really matter?

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HOLA4410

Don't beat yourself up. I sold gold 18 months ago, could of got more by hanging on longer, but we both made a profit on our trades. Does the possibility that someone else could theoretically have made a slightly greater profit really matter?

Nope. Overall, I did okay when I take into account that I sold sterling back in the early nineties for over $2.00 and then lived in the US until 2003. £ hit $2.13 at one point about 3 years or so ago so I guess $1.61 is not bad overall.

And you are right, a lot of people think they have done well but still hold that which could do an overnight crash. Its happened before and will no doubt happen again and sooner than many are ready for I daresay.

I have cashed in most of my $ to buy a roof over my head and that was the long range objective. 20% off on Sterling and about 25% off the house compared with peak. Just have to be satisfied as I was getting tired of waiting and the stress of moving every few months due to LL wanting to sell was a bit much.

Edited by Realistbear
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HOLA4411

Looks like you did right keeping some of those $ .

Gold going down as dollar goes up says Bloomberg.

http://www.bloomberg.com/news/2011-06-16/gold-snaps-two-day-advance-as-growth-concern-drives-selloff-in-commodities.html

Keeping US dollars has not been that good.

The US dollar has gone down in gold terms for 10 straight years, on average 18.4% against gold. Pound sterling is in second place at 18.3%. However, the pound has so far beaten all the major currencies, in relation to the greatest decline in a single year, with a whopping 43.8% notched up in 2008.

Bloomberg:lol: The US dollar trend is still down.

Edited by Take Me Back To London!
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HOLA4413

It hit 1.37 momentarily but the best time to have gone for it was when it was when it was in the low 1.40's. Howver, I was not sure about staying in this country then so whatcha going to do? I got out of Sterling for $ quite a few years back when it was comfortably above $2.00 so I guess I made about 20% overall. I am still about 30% in US $ so have a little hedge going.

I think Soros and Buffett are on the same page regarding "other things" as a commodities bust is long overdue and it will take everything down with it and thats when deflation cometh like a storm from the bowells of hell itself.

Of course, deflation is a walk in the park if you're up to your eyes in bad debt. I hear the banks and all the western countries and their indebted citizens are just crazy about deflation, they can't wait for it to arrive.

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HOLA4415

Keeping US dollars has not been that good.

The US dollar has gone down in gold terms for 10 straight years, on average 18.4% against gold. Pound sterling is in second place at 18.3%. However, the pound has so far beaten all the major currencies, in relation to the greatest decline in a single year, with a whopping 43.8% notched up in 2008.

Bloomberg:lol: The US dollar trend is still down.

You are Dominic Frisby of Money Week Magazine and I claim my 5 pounds! :lol:

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HOLA4417

Deflation is coming for you Mr Congreve, it's coming to get you, it's coming to take away your first bought Gold.

:D:lol::o

Do I detect nervous laughter coupled with uncontrolled nervous flatulence? :lol:

"Not yet Mr. Bromhead, not yet..."

Words spoken to Lt. Bromhead by Lt. Chard at the Battle of Rourkes Drift

WE have awhile yet before we revist another huge sell off in certain metallicky commodities, at least so the FT think:

http://www.ft.com/cms/s/0/4e3e0838-97af-11e0-9c37-00144feab49a.html#axzz1PSTxcLKy

US currency: Doubts cast on strength of dollar bounce
By Tanya "Tan" Powley
Published: June 16 2011 17:23 | Last updated: June 16 2011 17:23
The dollar has experienced a small rebound in recent months as concerns over the European debt crisis and a volatile commodity market drove investors into haven asset classes.
Worries about the US running a double-digit fiscal deficit, the inability of the US Congress to agree on a budget, and a possible federal government shut down saw the currency fall to 16-month lows against the euro and pound in April.
Concerns about the euro, following bail-out talks with Greece and Portugal, have increased the dollar’s popularity as a defensive short-term investment, according to Neil Looker, chief foreign exchange dealer at City Index.
George Davis, managing director at RBC Capital Markets, believes the dollar’s short-term corrective move will unfold over the next two months. The recent increase in margin requirements for silver and crude oil that has flushed out some speculative long positions in commodity markets is also likely to be a factor in bolstering the greenback, says Mr Davis.
“We believe this correction may have further to run over the short term,” says Mr Davis. “The negative correlation between commodities and the US dollar indicates that this may present the scope for additional short-term gains in the US dollar.”
.
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HOLA4420

Deflation is coming for you Mr Congreve, it's coming to get you, it's coming to take away your first bought Gold.

:D:lol::o

I really wish Benny and the Inkjets would let it happen.

Then, while gold may take a temporary hit, when the dollar, Euro, sterling et al have quickly crashed into nothingness (because they are wearing concrete boots made of unpayable soveriegn debt that will only grow heavier with deflation), gold will rise like a phoenix from the ashes and I'll get paid a lot quicker than waiting for this inflationary dog and pony show to play out :lol:

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HOLA4423

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