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crash 2005

Rush To Gold Pushes Prices Higher

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http://news.bbc.co.uk/1/hi/business/4478500.stm

The price of gold has continued its relentless climb and looks set to pass the $500-an-ounce level this week.

The metal's price hit an 18-year high of $498.75 (£290.66) in early trading on Monday.

This house price crash will continue to go ahead, but I think it will now be hand in hand with recession, and interest rate rises

Edited by crash 2005

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Guest Riser

Typical BBC spin, no mention of the fact that concerns over rising inflation are behind the increase and the suggestion that the price is just a bubble with investors buying into momentum. Pity the never suggest the same about rising house prices. Looking at the graph gold was worthless in 1968 :lol:

Pity the BBc report wasn't more like this one from todays Scotsman:

Brown's gold sale losses pile up as bullion price surges

Brown's gold sale losses pile up as bullion price surges

SCRUTINEER

BILL JAMIESON

HIGHER still and higher climbs the price of gold. It closed up late on Friday at $495.70 an ounce in London and was even higher in Hong Kong.

Since the start of the month, the precious metal has gained almost 9 per cent, and there is growing confidence among traders that it will break $500 before too long.

This is all deeply embarrassing for our Chancellor, Gordon Brown.

Remember how some six years ago he declared he would sell 60 per cent of Britain's gold reserves held by the Bank of England?

Many suspected the exercise was designed to inspire confidence in the then soon-to-be-launched European single currency. This was because some of the proceeds were to be earmarked for the purchase of euros.

In due course, Brown sold off 300 tonnes at just $275 an ounce - close to a 20-year low.

Roughly a third of the proceeds were then invested in euros - which then proceeded to plummet.

The gold price did not do much for a time. Now it has enjoyed a stunning rally.

The result is a stonking loss on those Gordon Brown gold sales. In fact, the Chancellor's disastrous foray into international asset management now looks to have cost the British people some £2 billion..............

....There are only 153,000 tonnes of gold above the ground and a maximum of 2,500 tonnes a year from mine supply. It sees only a low chance that in 2006 the gold price averages much below $450.

Modest forecasts suggest a 15-20 per cent gain by end 2006, or more than three times the UK's current government long bond yield. So some diversification into gold may start to appeal. "It is certainly less naive," it says, "than the investment industry's present consensus that government IOUs are a risk-free investment."

Edited by Riser

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did anyone hear about Russia, OPEC and China buying large quantities of gold?

if yes, can someone pls give me a link?

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There have been reports about Russia considering doubling their stocks of gold. If central banks stop selling and start buying, the price will certainly go up signifcantly... I'm still surprised by the speed of recent moves though.

Gordon, in a typical example of his fiancial acumen, sold off most of our gold at around $250 an ounce. Though, to be fair, Bank of England gold sales are one of the most accurate indicators of a bottom in the gold market, so maybe we shouldn't blame him for following the long tradition... certainly I made a few thousand quid from betting against the BoE back then.

Edited by MarkG

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_41085783_gold_prices_gra203.gif

This graph from the BBC article says much more about the reduced value of paper money since the gold standard was abandoned than it does about the value of gold.

Edited by Riser

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Yes, that BBC graph is quite funny, I'd like to see the inflation rate up against it. They also attribute the rise in gold to "strong jewellery demand" - Yeah right.

The mainstream media is starting to notice gold now, Slowley but surely it will drift into the public consciousness.

Drip drip...

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Not that i know anything about how to go about it but, I do have a bit of spare cash in the bank at the moment, is it still worth investing it in gold, given it's now "at an 18 year high"...? Or has anyone who didn't buy into it back when Gordon Brown was giving it away now missed the boat entirely?

Must admit it's stats like this that make me a very worried bear.

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Not that i know anything about how to go about it but, I do have a bit of spare cash in the bank at the moment, is it still worth investing it in gold, given it's now "at an 18 year high"...? Or has anyone who didn't buy into it back when Gordon Brown was giving it away now missed the boat entirely?

Must admit it's stats like this that make me a very worried bear.

There's plenty more about gold on the investment in general forum. It might also help you decide whether you've missed the boat or not.

Just for fun, have a look at that BBC graph again and imagine what it would look like if it was inflation adjusted.

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Yes, that BBC graph is quite funny, I'd like to see the inflation rate up against it. They also attribute the rise in gold to "strong jewellery demand" - Yeah right.

The mainstream media is starting to notice gold now, Slowley but surely it will drift into the public consciousness.

Drip drip...

Some of this rally IS demand led!!!!....and the Beeb have got that part right.

...as more of our jobs get outsourced to india,they become richer and buy more luxury goods....including jewellry....and the indians have a particular affinity with it as it is traditional wedding apparel.

....that's what I based my purchase of gold on at the beginning of the year...and that the exchange then was $1.90+ so would gain from currency conversion........and guess what.I was right!

....the mainstream media won't be focusing on gold properly for a while yet,there will be a few drips so the smarter money gets on board and then as property starts to slide,expect gold to grab more and more headlines.

this will have two effects.

1)greed will draw punters in and dealers will ramp up accordingly.

2)fear of the property market will drive the rest into a classic"out of the frying pan......etc scenario"....this will happen roughly at the bottom of property.....and gold,being an appreciating asset will attract "chasers" who lost their money on property but see gold as being the easy way to recoup their losses......gold will ramp-up mega fashion when these guys come in and so goes the next bubble!!!!

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There's plenty more about gold on the investment in general forum. It might also help you decide whether you've missed the boat or not.

Just for fun, have a look at that BBC graph again and imagine what it would look like if it was inflation adjusted.

yeah I have to admit that I was about to take the plunge, but as soon as I saw the Beeb ramping it I had very serious second thoughts. :unsure:

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In two years time they'll have programmes with people like Handy Andy sitting there showing you how to polish your nuggets (if you'll forgive the appalling mental imagery.)

There was me thinking his forte was the "tasteful" use of MDF in all it's glory.

Don't polish the stuff anyway, that will remove, albeit microscopically, some of that precious metal.

Buff if you want.

:)

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There's plenty more about gold on the investment in general forum. It might also help you decide whether you've missed the boat or not.

Just for fun, have a look at that BBC graph again and imagine what it would look like if it was inflation adjusted.

Thanks, I will. Just hope I don't turn into Private Fraser from Dad's Army, counting his gold coins by moonlight... "We're all dooooooomed!"... :(

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  • 301 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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