Jump to content
House Price Crash Forum
Sign in to follow this  
BillyShears

Gold Below Us$600

Recommended Posts

Looking at gold prices, they seem remarkably reluctant to dip below $600. Any reason for this? Are the prices likely to start going down again?

Taking a wild guess that there are enough people who think that US$600 gold is a good investment, solely as a "virtual investment", I'm going to say that I buy £10K of gold today.

Once commissions and other costs are paid, how many ounces of gold would I get for that if I bought today? What would be the ongoing costs of having it held for me?

I'm aware that there are different forms of gold that you can buy (coins etc.) What is the "vanilla" form of gold to buy?

Billy Shears

Share this post


Link to post
Share on other sites

A place like bullionvault charges 0.8% on the purchase and sale, although these commissions drop away to 0.1% once you have bought and sold over $60K worth.

On your 10K it would cost about £160 in commission on the purchase and sale. There are storage fees for each day you have the gold, but these are pretty nominal.

Good luck with your virtual 10K! Incidentally, that would buy you a tad over 0.9KG, safe and sound in a vault in London, Zurich or NY. I chose Zurich; it seems a bit further from the NuLab/NeoCon sphere of 'influence'

Edited by tahoma

Share this post


Link to post
Share on other sites
Guest Alright Jack

ill buy back in at $500 - $550. After all what is gold.

I at least want some value for money if im taking a risk.

i reckon anything over $650 is a risk

I think you may be waiting a long time sir!

Share this post


Link to post
Share on other sites

I think you may be waiting a long time sir!

dw

Dont know about that , confidence has been lost and where down to $611 - weekly drops since peak :blink:

Share this post


Link to post
Share on other sites

Well, I've just checked the prices (too many meetings at work to do things before), and I reckon with the commission, that I'll say that I bought 30 "virtual" ounces of gold @333.30 an ounce. With a 0.8% charge, that's £10079.

Of course, if I had bought when I said I would this morning, it would have cost me a bit more. Dunno if this is cheating, but had I really bought gold, it would have probably taken as long anyhow.

Billy Shears

Share this post


Link to post
Share on other sites

everything is dropping - come on guys - its just a fricken metal!! :ph34r: ! And everyone is raising rates to tackle inflation (except for the UK - ill bite my tongue and say no more but god only knows why were not but ill only mention fixed fixed fixed CPI)

Platinum - down

Gold - down ($614) - ($500 - $550 is still a high risk but ill start to buy back in!)

palladium - down

rhodium - down

Silver - up (has made only a small rise £11.19)

Share this post


Link to post
Share on other sites

everything is dropping - come on guys - its just a fricken metal!! :ph34r: !

Gold is money. Soon you will know this. Personally I wouldn't risk the wait till 550 - central banks will be buying before it reaches this level

Share this post


Link to post
Share on other sites

everything is dropping - come on guys - its just a fricken metal!

I agree, It's just metal. It just so happens that it is a pretty, rare metal that has maintained it's real value for the last three millennia.

It has no mystic qualities. But it is a far better store of wealth over time than paper with some emotively-designed ink smears on it.

Edited by tahoma

Share this post


Link to post
Share on other sites

Gold is money. Soon you will know this. Personally I wouldn't risk the wait till 550 - central banks will be buying before it reaches this level

Including the UK??

the only reason banks can buy is because they make money out of think air..

I think there will be riots before we can return to a gold based system of monetary value....

So go on then tell me the bottom....

or are you able to buy 3000 tonnes personally and afect the gold price?

everyone who is anyone knows - buy in a buyers market and sell in a sellers market because you rarely win bucking the trends..best you can hope for is hitting the middle and making some cash as you will never be able to call bottom or top..

AND FOR GOLD TODAY IS A DAY TO SELL

I reckon next week it will dip below $600 and stay there

Share this post


Link to post
Share on other sites

the trend is your friend dude and the trend is down. like I said I been bearish on gold for a while now. and will stay bearish while the trend is down and liquiquidity is trending down too.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness

Now at $606 as I write.

Previously I had thought it seemed to be sticking at around $620.

Share this post


Link to post
Share on other sites
Guest Alright Jack

the trend is your friend dude and the trend is down. like I said I been bearish on gold for a while now. and will stay bearish while the trend is down and liquiquidity is trending down too.

But the liquidity isn't down. Money supply is still increasing globally at double digit rate.

We have fudged official inflation figures, we've got Brown talking about wage and price controls, rising commodity prices (bar last few weeks)... surely anyone who was around in the seventies must be hearing some alarm bells?

Share this post


Link to post
Share on other sites

This following thread by MEtallic suggests that the Russian and Chinese CB are buying rather a lot of Gold at the moment, because of the fall in the value of the Dollar.

http://www.housepricecrash.co.uk/forum/ind...showtopic=31190

In the artical it was suggested that the value of Gold would fall to about $600 but the buying spree would hold it about that level. Who knows, if it break strongly below $600 then I may well sell and buy back in later.

Share this post


Link to post
Share on other sites
Guest boredwaiting

This following thread by MEtallic suggests that the Russian and Chinese CB are buying rather a lot of Gold at the moment, because of the fall in the value of the Dollar.

http://www.housepricecrash.co.uk/forum/ind...showtopic=31190

In the artical it was suggested that the value of Gold would fall to about $600 but the buying spree would hold it about that level. Who knows, if it break strongly below $600 then I may well sell and buy back in later.

This is what I am thinking.... I am watching carefully - I will make a loss but then I don't want to make even more of a loss <_<

Share this post


Link to post
Share on other sites

This is what I am thinking.... I am watching carefully - I will make a loss but then I don't want to make even more of a loss <_<

Before you do anything I would check out this threat and the link at the bottom of the final post.

DrBubb provides some very good graphs and data. We could be heading back up any time some, even if it is only a temporary rally. Check it out and make your mind up is the best I can say.

Hope it helps, good luck.

FTBagain

Share this post


Link to post
Share on other sites

I agree, It's just metal. It just so happens that it is a pretty, rare metal that has maintained it's real value for the last three millennia.

One exception that comes to mind is the 1980-2004 period when is was stagnant or falling and outperformed by almost all other assets. In general it tends to fluctuate quite widely because of investment, so it's hardly as stable as all that.

It has no mystic qualities. But it is a far better store of wealth over time than paper with some emotively-designed ink smears on it.

But so is almost any asset or commodity that is not perishable - property comes to mind, though there are plenty of other possible assets that hold value. Fiat currency does steadily devalue so generally isn't the best way to store wealth (except in deflationary times). This concept that gold has "kept its real value" and is a good "store of wealth" is persuasive because it has an element of obvious truth - however it is not really saying anything at all interesting when it comes down to it.

I'll stop going on though... :rolleyes:

Share this post


Link to post
Share on other sites

This concept that gold has "kept its real value" and is a good "store of wealth" is persuasive because it has an element of obvious truth - however it is not really saying anything at all interesting when it comes down to it.

I agree, but Gold is attractive right now not because it is in itself interesting, but because just about every other investment / wealth store looks bloody awful. Bonds are valued in paper, so higher-IR-related gains could be wiped out by inflation.

Share this post


Link to post
Share on other sites

I agree, but Gold is attractive right now not because it is in itself interesting, but because just about every other investment / wealth store looks bloody awful. Bonds are valued in paper, so higher-IR-related gains could be wiped out by inflation.

Yes, I agree. Right now might well be the time when it's a pretty good bet.

And I suppose also it does have some impact that people have that mythic concept of it, it might rise in a "self-fulfilling prophecy" way - people trust gold to be valuable so it is in demand, so it becomes more valuable...

Maybe depends how bad things get or are perceived to be getting. It's fallen a bit because it went too high too fast, and because the IR hikes send the message that the Fed is trying to get to grips with inflation. If the Fed appears to be failing to do that later on, all the same motives for buying gold will be right back again.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
In the artical it was suggested that the value of Gold would fall to about $600 but the buying spree would hold it about that level.

Slight recovery today which Kitco attribute to people buying at that level again.

Share this post


Link to post
Share on other sites

Remember the previous week we had the same trend? Price had fallen all week then on Friday it increased? This week is no different .

Next week will be interesting to see if the trend continues..IMO we may see gold under $600 next week but then back to $610 Friday? Give or take a few $.

Still not a ride I would like to catch - until the water settles :ph34r:

Share this post


Link to post
Share on other sites

the trend is your friend untill the bend at the end....

asset price deflation is clearly here.

told Y'all so,

why would you buy anything at an interest rate of 5.25% when you can sell it to some shmuck, pocket the interest and buy it back later for less than you paid for it.

Share this post


Link to post
Share on other sites

Including the UK??

the only reason banks can buy is because they make money out of think air..

I think there will be riots before we can return to a gold based system of monetary value....

So go on then tell me the bottom....

or are you able to buy 3000 tonnes personally and afect the gold price?

everyone who is anyone knows - buy in a buyers market and sell in a sellers market because you rarely win bucking the trends..best you can hope for is hitting the middle and making some cash as you will never be able to call bottom or top..

AND FOR GOLD TODAY IS A DAY TO SELL

I reckon next week it will dip below $600 and stay there

A sellers market? This shows you don't know much about Gold. We are in a long term bull market for gold. This was a short term correction. End of year back up to 700. Why? well one more hike in the US will really start slowing the US economy down. Do they risk a depression by further hikes in interest rates - as the consumer screams with pain and the house prices start falling Bernanke will cease the hiking. Gold will surge again as the dollar falls. Foreign Central banks have 2 options - buy worthless US dollars or put some money in something a little more solid like gold. Ok, so maybe I am rehashing what I have read in Moneyweek and the Financial Sense website (amongst others) . Demand for Gold is also Seasonal - it always picks up in September.

I reckon next week it will dip below $600 and stay there

But what are your sources for this predicted fall? For me Gold is now an even bigger bargain. Those waiting for further falls may be sorely disappointed.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.