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Gold Takes A 4 Percent Hit Today

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I'm not surprised - it has had massive gains and then Sky News was promoting it last week.

This is the media at it most inept, and the general public at it's most trusting.

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a lot of people in silver 13% down in a day a lot ruined :(

dang... there I was thinking "isnt gold doing well" when it suddenly takes a tumble. Guess I should have followed my instincts and cashed in yesterday!

Is this the start of a larger correction? With silver plunging, is there going to be a sustained momevement away from commodities?

What caused this wild drop anyway?

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Rumours that a hedge fund may have gone bankrupt, coupled with recent changes to margin requirements, reportedly sparked the commodities melt down yesterday and overnight; whilst other sources are saying the sell-off was led by rumours that China was about to tighten monetary policy. Either which way, what goes up must come down, with most agreeing that the overbought markets looked increasingly ripe for a correction. Tokyo gold futures plunged by their 90 yen daily limit early this morning on heavy profit taking, but dollar based spot gold appears to be consolidating in Asia, supported above the $600 psych handle for now after it plunged from $645.75/oz to as low as $608.50/oz overnight.

Silver slid further to as low as $11.855/oz in the early Tokyo session, but is also seeing some support back up at the $12/oz handle. The Silver July Future was down 18% at one point on COMEX yesterday.

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Edited by Buylowsellhigh

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All investments are the same, buy at the bottom, sell at the top!

Under no curcumstances, buy at the top.

Edited by zag2me

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Rumours that a hedge fund may have gone bankrupt, coupled with recent changes to margin requirements, reportedly sparked the commodities melt down yesterday and overnight;

I've heard Appaloosa are in the sh*t but I don't think they are much into commodities, lots of rumours doing the rounds at the moment, mainly (IMHO) kicked off by the 8th Apr regulators 'exercise' at the ECB. Any other names on the (alleged) block?

The Times April 08, 2006

Be prepared for a crisis, EU regulators are told

By Graham Searjeant, Financial Editor

FINANCIAL regulators in all EU countries are to be asked today to prepare for the collapse of a big hedge fund or a similar sudden financial shock. EU finance ministers and central bankers, meeting in Vienna, were told that the collapse of a hedge fund could now destabilise European financial systems as well as the financial markets.

They have equally raised anxieties about the rapid growth of private equity. They fear that this could unravel if one of the key sources of funds or markets for selling on companies dries up. Officials also argue that many regulators do not understand the risks involved in the £10,000 billion market in credit derivatives, which are traded privately between banks rather than on public exchanges.

A private report drawn up by finance ministry officials of EU states says: “Hedge funds can contribute to market efficiency and sharing of risks but can also be a source of systems risks.” The report urges the central banks and regulators to monitor banks’ exposure to hedge funds, both as lenders and as counterparties to massive speculative positions in financial and commodity derivatives. Banks are also heavy lenders to private equity buyouts, which provide them with more profitable but riskier business.

The officials complain that many of the EU’s financial regulators have simply failed to take the precautionary measures that were agreed by finance ministers, including Britain’s Gordon Brown, two years ago. They want ministers to call for their national regulators to run detailed simulation exercises to find out what they would need to do if faced with a domino collapse of liquidity or asset values in their markets. The biggest hedge fund collapse so far occurred eight years ago at the US fund Long Term Capital Management but it involved heavy positions in European asset markets. It led to Alan Greenspan, then chairman of the US Federal Reserve Board, organising an international support plan for LTCM and standing ready to supply cash to the financial markets if required.

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Shouldn't the thread title be "Property prices rose by 4% yesterday, measured in "real money", gold"?? :P

Edited by Magpie

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Shouldn't the thread title be "Property prices rose by 4% yesterday, measured in "real money", gold"?? :P

Very good... The FIRST solid bullish comment i have read..... At a time when there must be a lot of sore investors in the shiny stuff......

1-1 i think :D

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Yes, but there will be some people who dived in just before it dropped yesterday.....

I was just commenting on the witty 'quick fire' comment as a general gloat for the property bull type... As it does for the moment stand theoretically correct.....

I have been kicking myself for the last few weeks as i have no gold or silver, as i am trying to get my head around where to 'buy' the stuff from in Leicester ???? But this slight knock has enlightened me of 'profit taking' (something i had not read about yet) and the ups and downs of such investments......

If i could i would go and buy some today........ But from where im not so sure.... :blink:

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Very good... The FIRST solid bullish comment i have read..... At a time when there must be a lot of sore investors in the shiny stuff......

1-1 i think :D

Thanks - I'm not really a bull though, and honestly I think gold might go back up again. I just get riled by the gold is "real money" fanatacism occasionally, so just teasing.

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I think a lot of would be FTBers get riled by the "house prices only go up" fanatacism in the media and general public too. Just teasing. <_<

No, I get riled by that too - I'm not a property bull, honest. I do own a flat* so a huge crash might not be great for me personally, but I can't see how prices could or should go up from here in the forseeable future either.

Maybe gold is just taking a "breather" before the "spring bounce" - I think that was how "This is Money" described the house price falls in Feb...

*or to be more precise, the bank owns my flat...

Edited by Magpie

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Yes, but there will be some people who dived in just before it dropped yesterday.....

I was just commenting on the witty 'quick fire' comment as a general gloat for the property bull type... As it does for the moment stand theoretically correct.....

I have been kicking myself for the last few weeks as i have no gold or silver, as i am trying to get my head around where to 'buy' the stuff from in Leicester ???? But this slight knock has enlightened me of 'profit taking' (something i had not read about yet) and the ups and downs of such investments......

If i could i would go and buy some today........ But from where im not so sure.... :blink:

I'm in leicester and have had the same problem. In the end I bought online from bairds and weightoncoin and had it delivered special delivery.

One thing I meant to try was the list of recommended jewellers in leicester listed on bairds: go to www.goldline.co.uk click on investment bars, and at the bottom of the list of bars is a link to a list of recommended jewellers with 4 in leicester...3 of which are on the belgrave road. HTH

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Thank you.......

I called Godley investment gold (leicester) and they told me Baird would possibly be my best option for starters...

It is all a bit over my head at the minute, but im getting there...... :unsure:

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lots of rumours doing the rounds at the moment,

Like you say, there are no shortage of rumours, and I'd only be guessing myself, so I won't. However started them off though will be sitting pretty this afternoon :P

I'm mostly into Copper Futures anyway which has well outperformed Gold in the last 3 years. Gold is up 100% since April '03, and Copper is up 325% since the same time. Copper futures fell only 13 cents yesterday, only to end the day with a gain. Speculative and commercial traders jumped right back in and Copper has been trading as high as $3.0460 on the overnight, at new all-time highs. The May Future is sitting at $3.0300 just now but I'm hearing that buyers are thin on the ground. Probably don't want to risk coming back in on Monday to more of the same. Not so for the Gold bulls though, who are putting in a good effort. I think Gold will go much higher eventually.

The Silver chart is a howler !

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Thank you.......

I called Godley investment gold (leicester) and they told me Baird would possibly be my best option for starters...

It is all a bit over my head at the minute, but im getting there...... :unsure:

Yeah, they said the same to me....which was quite surprising as from their website they look quite geared for selling bullion.

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Shouldn't the thread title be "Property prices rose by 4% yesterday, measured in "real money", gold"??

Surely it should be "property prices drop 15% in the last month, measured in "real money", gold"?

I think I'm right that we've gone up nearly $100 since this time in March? To me that seems about as bubbly as a 15% annual rise in house prices, so a decent correction is well past due if the rise is going to be sustainable.

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Surely it should be "property prices drop 15% in the last month, measured in "real money", gold"?

I think I'm right that we've gone up nearly $100 since this time in March? To me that seems about as bubbly as a 15% annual rise in house prices, so a decent correction is well past due if the rise is going to be sustainable.

Touche... Only a joke anyway. I was referring to DrBubb's recent thread which said something similar the other way round.

Personally I think it might go back up again anyway, but I don't really know enough about it. I saw something about how it often dips this time of year (Indian wedding market???) but the long term trend still seems on the up at this stage.

Edited by Magpie

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Surely it should be "property prices drop 15% in the last month, measured in "real money", gold"?

I think I'm right that we've gone up nearly $100 since this time in March? To me that seems about as bubbly as a 15% annual rise in house prices, so a decent correction is well past due if the rise is going to be sustainable.

small correction to $580 ish does seem warranted,and then up,up and away!!!

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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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