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Gold strategy in the current economy

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On 28/02/2019 at 14:29, chronyx said:

Thanks Errol that's a superb piece of info

+1   Interesting finds out there from Googling quotes from Errol's post.

https://seekingalpha.com/article/1016161-basel-iii-and-gold?page=2

https://www.zerohedge.com/news/2018-11-14/gold-re-monetization-much-closer-many-realize

"For the first time in 42 years, gold is being brought back into our financial system as money."

Wonder what Durham Born makes of this with his reflation cycle knowledge. Does this have implications for / coincide with interest rate movements?

39 minutes ago, Fletcher said:

Higher lows on the monthly chart.... looks like gold is a buy around 1280 for another push higher 

Wonder how most people buy on here. For me still holding ETF backed by physical bought in 2016 @ $1170.

Edited by Arpeggio

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On 28/02/2019 at 13:11, Errol said:

.......The Basel III rules due to be introduced on 31/3/19, move gold to the position of a Tier 1 asset at 100% valuation.........

Exactly which Basel 3 are you referring to.

The Basel 2 had three tiers, gold could be put in highest risk tier 1 with  50% haircut, or treated same as cash in tier 3 with a zero risk weight.

Under the new Basel 3 rules,  tier 3 has been done away with, which means gold can only be placed in tier 1.....at an 85% haircut!!!    Did you honestly think that you wouldn't get pulled up by me for posting trash again. Do your research.

 

Try these for starters.

 EU Ministers reject easing of liquidity rules for gold trading.  https://uk.reuters.com/article/uk-gold-regulation-nsfr/eu-ministers-reject-easing-of-liquidity-rules-for-gold-trading-idUKKCN1PI12Q

And that follows from...EU Parliament agrees to ease liquidity rules for gold trading.   https://www.reuters.com/article/gold-regulation-nsfr/eu-parliament-agrees-to-ease-liquidity-rules-for-gold-trading-idUSL5N1UU5UT

 

And if you want further proof of how ,meaningless Basel 3 is, apart from the fact that Basel 2 was just as meaningless, you get ample proof that any area of the worlds banking systems, central or commercial, can do what the hell they like when you read through this updated little  gem..._   http://bmg-group.com/wp-content/uploads/2019/02/Gold-A-Zero-Risk-Monetary-Asset-with-Update-Reformatted.pdf

 

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On 03/03/2019 at 00:00, DiggerUK said:

The Basel 2 had three tiers, gold could be put in highest risk tier 1 with  50% haircut, or treated same as cash in tier 3 with a zero risk weight.

My typo....tier 1 was considered lowest, not highest risk. Not that it seems anyone cared enough to notice. Obviously finding that the 50% haircut has increased to an 85% haircut must have proved quite a shock to many of you..._

 

 

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On 28/02/2019 at 13:11, Errol said:

Just a quick note to keep people thinking on the right track:

 

The Basel III rules due to be introduced on 31/3/19, move gold to the position of a Tier 1 asset at 100% valuation. Effectively, monetary gold is considered risk free.

This is part of the BIS/Central bank plan. There has been little discussion of this rule change. They will accumulate gold in massive quantities and then 'allow' it to rise 10 fold over the course of time - thereby fixing the solvency issues they all face.

maybe time to load up on some sovereigns 

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On 03/03/2019 at 00:00, DiggerUK said:

And if you want further proof of how ,meaningless Basel 3 is, apart from the fact that Basel 2 was just as meaningless

 

9 hours ago, DiggerUK said:

Obviously finding that the 50% haircut has increased to an 85% haircut

 

So which is it? If Basel is meaningless who cares if Basel also quantifies a haircut. 

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On 05/03/2019 at 09:28, chronyx said:

So which is it? If Basel is meaningless who cares if Basel also quantifies a haircut. 

You really should do your homework, and I'd recommend you don't crib what Errol does, especially with some of the dodgey sources he visits.

 

The Bank of International Settlements (BIS) has no regulatory jurisdiction over states or their banks. Basel 3 is open for central banks and governments to interpret as they feel best. A pirates code for bankers; rather apt if you think about it.

It means that the US can treat gold entirely differently to the EU for instance. The reality of Basel 3's new regulations is that they are nothing more than the new self regulation of old. Good here innit..._

https://www.bis.org/fsi/publ/insights11.pdf

"There is currently no international guidance on how best to adopt global banking rules in a national context. While the Basel standards are designed for ‘internationally active banks’, that term has intentionally never been defined by the *BCBS. This provides flexibility for national authorities to determine the scope of application of relevant Basel standards. As such, national authorities need to determine how to apply the Basel standards in a manner that is proportionate to the characteristics of banks in their jurisdictions."

 

*BCBS, Basel Committee on Banking Supervision

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Yield curve inversion.....no interest paid on gold, what happened to the interest on property, used to cover the loss in growth.;)

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Gold going for an undulating walk, it ain't climbing no mountains...diamonds are drifting downwards.... far too many excellent imitations, not so fashionable... Bling not in. 😉

 

 

 

 

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Quote

The total trade deficit widened from £8.9bn to £18.3bn, driven partly by a sharp increase in imports of cars and gold.

my emphasis

Quote

The trade in goods deficit in the first quarter widened to a record: £43.3bn including non-monetary gold, which rose by £6bn.

We know from numerous economic studies: people buy gold when they're worried. It looks like, in the first quarter of the year, economic growth was lifted - by anxiety. It's small, but you might call it a mini "worry-boom".

from 

https://www.bbc.co.uk/news/business-48225334

UK economy rebounds in first quarter

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Not long now before the annual In Gold We Trust report is released. I advise anyone with any interest in gold and the monetary markets to give it a read. The extended version is 150+ pages long so it provides a huge amount of detailed analysis (for free!).

https://ingoldwetrust.report/igwt-en/?lang=en

'Since 2007, the annual In Gold we Trust-Report is THE authoritative report on gold investing, and is required reading for anyone interested in the precious metal market. As a team, Ronald-Peter Stöferle and Mark Valek analyze the state of the global financial markets, monetary dynamics and their influence on gold price developments like no other.'

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On 07/05/2019 at 14:49, winkie said:

Gold going for an undulating walk, it ain't climbing no mountains...diamonds are drifting downwards.... far too many excellent imitations, not so fashionable... Bling not in. 😉

 

 

 

 

Everything is ramped up 

Gold silver diamonds houses bitcoin.

Cash is king.

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I'm still buying gold when I can - this is my logic:

Cash - Vulnerable to QE.

Stocks/Shares - In a bubble - Due a collapse - propped up by cash/QE.

Bitcoin/Crypto - Not practical for everday usage - its a bubble.

Property - Bubble - likely to fall (although I do want to get a house when it does for my own personal use).

Gold - Artificially surpressed with paper trading - when everything else crashes money flees to Gold.

 

I'm hoping that Gold hovers around £1k while I accumulate then it takes off.

Could be that I'm wrong, but whatever you put your money into is a risk and I think on balence Gold is the best option.

 

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its the everything bubble where cash is probably the worst thing currently. 

Hard to tell, have a permanent portfolio, adjust accordingly then your fine.

Or you could try and be lucky and recklessly pile into a single asset class, maybe get lucky, maybe not.  

With interest rates soo rubbish a job is worth a lot more that it used to be just due to the money it generates. 

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13 hours ago, APerson said:

Bitcoin/Crypto - Not practical for everday usage

Please do clarify. Genuinely interested why you think that. (I dispute that in case you didn’t guess :D)

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13 hours ago, APerson said:

Bitcoin/Crypto - Not practical for everday usage

Please do clarify. Genuinely interested why you think that. (I dispute that in case you didn’t guess :D)

Edit: actually don’t answer. I’ll get in trouble with that digger poster for being off topic. Buy gold!

Edited by dannyf

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10 hours ago, dannyf said:

Please do clarify. Genuinely interested why you think that. (I dispute that in case you didn’t guess :D)

  • Transaction fee
  • Bitcoin is slow (I know some others are faster)
  • Too complicated for normies
  • Too many competing standards
  • Central bankers will go apesh1t and shut it down if it gains enough traction/ or governments will make it illegal to protect fiat currency/control
  • Fluctuations make it unstable for everyday commerce

I'm not saying it couldnt take off, but I think Gold is a safer investment as a store of value that is likely to go much higher.

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Just now, APerson said:
  • Transaction fee
  • Bitcoin is slow (I know some others are faster)
  • Too complicated for normies
  • Too many competing standards
  • Central bankers will go apesh1t and shut it down if it gains enough traction/ or governments will make it illegal to protect fiat currency/control
  • Fluctuations make it unstable for everyday commerce

I'm not saying it couldnt take off, but I think Gold is a safer investment as a store of value that is likely to go much higher.

Also FYI i do hold a small ammount of Monero, but I'm not banking on it going anywhere - I just think it has the best usecase of all the cryptos as a privacy coin.

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Probably the best course of action is to pay those debts down on over priced assets while those are young enough why they still have time LOL

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On 23/05/2019 at 22:48, dannyf said:

.........Edit: actually don’t answer. I’ll get in trouble with that digger poster for being off topic. Buy gold!

I couldn't agree more!!,........all the same, gold has stuck around a thousand an ounce now since xmas.  No real signs for why? geopolitical and geofinancial factors are low. So whatever it is that has held the pog here is a bit mysterious.

 

Could be forgiven for feeling that an invisible gorilla is in the room. Danger signs don't seem at a higher level than normal, but they didn't see over obvious in 2007 either, we just knew they were there.

Day at a time, day at a time, day at a time........   .._

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On ‎15‎/‎05‎/‎2019 at 19:17, Errol said:

Not long now before the annual In Gold We Trust report is released. I advise anyone with any interest in gold and the monetary markets to give it a read. The extended version is 150+ pages long so it provides a huge amount of detailed analysis (for free!).

https://ingoldwetrust.report/igwt-en/?lang=en

'Since 2007, the annual In Gold we Trust-Report is THE authoritative report on gold investing, and is required reading for anyone interested in the precious metal market. As a team, Ronald-Peter Stöferle and Mark Valek analyze the state of the global financial markets, monetary dynamics and their influence on gold price developments like no other.'

The 2019 In Gold We Trust report is now available:

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Malaysia's Prime Minister proposes common East Asia currency pegged to gold

Mahathir said the proposed common currency could be used to settle imports and exports, but would not be used for domestic transactions.

https://www.reuters.com/article/us-malaysia-currency-idUSKCN1T00FX?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5cef831d5f25b20001a0f2ba&utm_medium=trueAnthem&utm_source=twitter

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