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Who's Buying Gold

Discussion in 'Speaker's Corner' started by fester, Feb 4, 2009.

  1. isonomicjedi

    Wise Guy

    Joined: Dec 30, 2012

    Posts: 1,153

    Location: midlands

    Credit Suisse have issued their view of Gold and see it at $1150 in 1 year and $1000 or below in 5 years.

    Also record number of short positions on gold at the moment and many large hedge funds currently shorting it.

    I'd advise getting out now if you still have any from the noises being made.

    I sold my gold ETF a while back and I'm glad now that I did.
     
  2. sports_brah

    Thug

    Joined: Jan 4, 2013

    Posts: 3,784

    I thought they already have?
     
  3. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,776

    Location: Stanley Hotel, Colorado

    I read Japanese dredging the sea bed for rare earths. I agree gold can be distributed beyond economic recovery
    http://www.reuters.com/article/2009/01/30/gold-sewage-idUST8310320090130

    Credit suisse is basing targets off stronger dollar. I dont agree with the conclusions but its a good description of why gold fell recently which is perception of recovery more then actual threat of a stronger currency, less debt or higher tax revenues

    The main argument still stands that forex is saturated with bond issues and they are mostly are low rates, the biggest exporters only hold a percent or two of gold and its still likely a bull market.

    Short term 1100 is more likely if 1352 doesnt hold, currently we are watching for a double bounce which can be bullish and a very nasty sell off if its breached. Current prices relate to 2010 QE2 enactment, we are already onto 3 &4
     
  4. muon

    Capodecina

    Joined: Nov 8, 2006

    Posts: 18,170

    Location: London

    Anyone still own gold?

    An asset with no fundamentals or rent income, manipulated at will by big investors.

    Good luck.

    [​IMG]
     
    Last edited: Jul 2, 2013
  5. covenantuk

    Wise Guy

    Joined: Apr 23, 2012

    Posts: 2,015

    Location: Edinburgh

    Still in gold and actually thinking of buying more soon.

    Current pricing is combination of over-optimism on the world economic situation and blatant manipulation. It's pushed it too far though - price is so low that mines are in danger of closing - if that happens, supply goes down and mines have a long lead time to reopen.

    Plus I kinda like have money where the government can't get it.
     
  6. isonomicjedi

    Wise Guy

    Joined: Dec 30, 2012

    Posts: 1,153

    Location: midlands

    You will see from my posts in "Trading the Stockmarket"thread that I am shorting gold and see it at $1150 shortly but then dropping to below $1100 down to $1000.
     
  7. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,776

    Location: Stanley Hotel, Colorado

    Nobody owns gold that would be the point, the whole nation used to

    We own printed paper, manipulated only with the finest of intentions
     
  8. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 31,115

    i'm thinking this recession is far from over and gold should increase due to inflation being higher than the economic growth of the country and therefore the value of the pound?

    i live in scotland so if we go independent and take on the euro that could make gold a better investment for scots than say people in england could it not as the euro is taking more of a hit during the recession than the pound is?

    or is it all a gamble and anything could happen?

    what do you reckon the spot price will be of gold in say 5 years? and then again in 10 years?
     
  9. Stretch

    Capodecina

    Joined: Feb 14, 2004

    Posts: 11,546

    Location: Cambridge

    If you think independence is likely go and put your money on at the bookies. 5/1 for a yes at the moment.
     
  10. isonomicjedi

    Wise Guy

    Joined: Dec 30, 2012

    Posts: 1,153

    Location: midlands

    The possible independence of Scotland and the myriad of complications/possibilities that would bring are way too confusing to judge an investment in gold upon.

    3 Years Gold below $1000
    5-10 Years Gold to $1850+
     
  11. muon

    Capodecina

    Joined: Nov 8, 2006

    Posts: 18,170

    Location: London

    Wow. Crazy people thinking the independence of Scotland affects the price of gold.

    If you think the Euro will take a hit, then you buy any sterling or dollar denominated assets. Doesn't have to be useless gold.

    or this :D

    Cash is never meant to be an asset which provides value. Companies, land, debt, people, those are assets. They all provide a return.
     
    Last edited: Jul 4, 2013
  12. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,776

    Location: Stanley Hotel, Colorado

    Those are investments. The problem is for people who just want to save without involved risk, even cash fails that measure and when its dramatically unstable they'll use something like gold.
    I guess there is alternatives but everything varies more then a block of metal hence its ironic use is from being so inert
    if you are in Scotland it does appear the price is changing, everywhere else it stays the same. That would be a reason to hold gold to gain that global outlook on a price, independence from the independence :p Its why people buy dollars now, goto to Africa or south america they want dollars to gain from global trade. If dollar fails from bias to Washington politics this dynamic will revert to gold reliance


    debt is the inverse of an asset, it relies on the underlying worth. So MBS or housing debt relies on the house or land like you said. The debt is cash spent, thats no worth to me. Treasuries rely on dollar worth traded, the asset is tax revenue and trade control. Its a big country but can they seize 16tn of goods to pay the debt and retain confidence
     
    Last edited: Jul 5, 2013
  13. muon

    Capodecina

    Joined: Nov 8, 2006

    Posts: 18,170

    Location: London

    So gold isn't an investment? Heard it here first.

    Cash is what everything else is measured against. You buy gold in the hope the cash value rises, for no other reason than that someone in the future will buy it from you at a higher price.

    The price of gold is changing exactly in the same way for Scots as it is for Americans. The exchange rate may be changing but it has little to do with gold.

    Debt is an asset for someone and a liability for someone else. Equity is part ownership of the debt issuing authority.

    You really do come up with crap.
     
    Last edited: Jul 5, 2013
  14. covenantuk

    Wise Guy

    Joined: Apr 23, 2012

    Posts: 2,015

    Location: Edinburgh

    Incorrect.

    If you trade gold, then maybe, but I buy gold as a store of value. I have it delivered to me physically and keep it myself.
     
  15. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 31,115

    so if i buy my wife a 18 carat white gold ring, neither of us own gold?

    if i go to a gold shop and buy a gold coin or a tablet of gold, i wouldn't own gold?

    yes money is basically an IOU from the bank, on the basis of sterling which is silver not gold is it not, so the printed paper basically says you own x amount of silver.
     
  16. Tefal

    Capo Crimine

    Joined: Jun 30, 2007

    Posts: 66,559

    Location: Wales

    no, Sterling is not backed by any precious metal at all sonny
     
  17. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,776

    Location: Stanley Hotel, Colorado

    I think there is a tiny sliver of metal in notes but we only have a bit of gold in reserve, no silver is in any normal coin now
    We have the oldest currency in the world but 1 pound was 1 tower pound of pure silver or 240 pennies, then it was made 22ct and then a gold standard and now almost nothing.
    We had some inflation as that would make a coin worth £142 not £1 as it is now

    Assuming now almost everyone has less then 1% worth held that way where as before sovereign coins are 22ct gold and were held by anyone with savings.
    Right or wrong, its clearly become unpopular


    That could be said of anything, the only reason to buy is when the price could rise but most things have a use besides a price tag.
    I'd argue even gold has a use to it which is to be more durable then cash, most of us spend all our cash within a few days of pay day.
    So fine dont hold gold it would be pointless but what about China holding trillions of USA debt for a decade, those 'paupers' are in trouble

    [​IMG]
     
  18. silversurfer

    Capodecina

    Joined: Jul 13, 2004

    Posts: 18,776

    Location: Stanley Hotel, Colorado

  19. Jokester

    Don

    Joined: Aug 7, 2003

    Posts: 38,877

    Location: Aberdeenshire

    Problem I see with Bitcoins is there's nothing stopping anyone creating a Bitcoin2, 3, 4 etc.
     
  20. El Pew

    Wise Guy

    Joined: Sep 1, 2009

    Posts: 1,053

    And the fact that the exchanges are run by raging idiots who don't understand even the basics of IT security. How many times have MTGox and the others been hacked in the last few years? The idea is interesting but the execution has been carried out by crazy libertarian types with the end result that the whole thing has become a massive joke.