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sossij

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Posts posted by sossij

  10. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    Hey, thanks for the analysis Bobsta :)

     

    That would be a great situation to be in... but that's not what Sossij said:

    "the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1"

    That description means "my holdings are worth what I paid for them". Which for any non-yielding investment isn't a great situation to be in!

     

    I suppose what I was driving at was this would be the limit at which I would definitely stop buying, as per the OP's original question :) To continue buying after this point would be to lose money*. At any point up until the ratio goes to 1, I would be in the money as it were. I agree at the point the ratio goes to 1 then the value of the gold equals what I paid for it (obviously :D )

     

    I'd recommend looking to keep the ratio falling. Although that's difficult because any dips in the POG will result in your ratio going UP, and that, to me, is a good time to buy.

     

    Personally I may pick a target (say $1200) and aim to keep buying until the average cost of my holdings reaches $1200 (so in theory I could keep buying at $1400 and higher - assuming I bought enough down in the $800s and $900s). However, I think we all agree that you need to continually re-evaluate your position.

     

    Good advice, thank you :) I should add that once the gold price resumes its upward march, I would then resume buying. The only time to stop (perhaps "pause" would be a better way to think of it) would be at the "ratio of 1" point

     

     

    * but would still mean accumulating more Au (I agree with Wren below, value in the temporaray value of £s is perhaps not the best idea).

  11. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    In a word, yes! :)

     

    Firstly, if gold keeps going up your ratio will never reach 1.

     

    Heh heh, well I wouldn't be complaining! :D

     

    Secondly, if your ratio does reach 1 your total holdings are only worth what you paid for them. So what was the point in buying all that gold, and why would you want to now sell it?

     

    Well I suppose, in terms of a hedge against currency devaluation I won't have lost anything :) I suppose I'm thinking of holding gold as insurance... but only while gold is being "well behaved", i.e. rising moderately... if it goes through the roof then I will change my plan accordingly :D

     

    I think you need to reconsider your strategy. ;)

     

    Ok, will have a think :)

     

  12. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    Well nearly at 1000....just a little curious.......have any of you considered at what point you will stop buying bullion. At 1000, 1200, 1500 or +??

     

    I am thinking at 1000, but I doubt I will be able to resist.:rolleyes:

     

    [it would have been good to put a survey together for this question but am not sure how to do that]

     

    I like to think of the "cheap" gold I bought in the past as subsidisng the more expensive stuff now, so my plan is to keep buying until the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1, i.e. gold increases to a level such that any further purchases eventually exceed the historic "subsidy". At that point I will stop. If the ratio goes to more than 1 (i.e gold holding worth less than £s paid to purchase it) it will be time to start selling some off. Obviously if gold goes completely ballistic then all bets are off and I'll hold on for dear life :D

     

    Is this a dumb plan?

  13. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    THE BIG BATTLE has now begun - smart oil speculators with loads of cash wanting to buy gold up, vs PPT trying increasingly desperately to hold it down. The PPT will become swamped, possibly in a week or so, but definitely in a month or so when the autumn strength returns and inflation has clicked up even further.

     

    It's all terribly exciting isn't it? :D

     

    (Just added some more to this weeks haul)

  14. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    Because the fix is the price at which large quantities of physical gold are traded in London.

     

    After the fix it's mostly a paper game on the COMEX.

     

    As an example:

     

    http://support.goldmoney.com/article.php?id=098

    Are there any limits to how much metal I can purchase, sell or exchange?

     

    No, there is no minimum or maximum amount for metal purchases, sales or exchanges.

     

    There is, however, a limit as to how much metal you can buy or sell at a 'locked rate', which is the prevailing rate of exchange between a currency and the metal you are purchasing at the time you place your order. Presently those limits are 2,000 goldgrams and 1,500 silver ounces per business day, for metal purchases and sales. For metal exchanges (e.g., converting goldgrams directly into silver ounces) the limit is 1,000 goldgrams and 1,000 silver ounces per business day.

     

    Larger orders above these limits can of course be placed, but we cannot confirm the purchase or selling rate when you place your order. Instead, the exchange rate is based upon the first London 'Fixing Price' after the order is placed.

     

     

    Ah, thank you :)

  15. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    London PM fix

     

    USD 986.00

    GBP 490.718

    EUR 616.250

     

    The hit came right after the fix.

     

    Very obvious on the minute charts, smacks of Exchange Stabilization Fund desperation.

     

    They hit oil & gold and propped up WaMu, Lehman and the USD, all at once.

     

    Why after the fix, ceej?

  16. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    I couldn't agree more - 10, 20, 50 even $100 either way will not make much difference in the long run if this bull run has the legs we think it does. I have not tried to trade any of it although I have to admit watching the drop from $1030 back to $850 was less than heartening - but I did manage to load up on a bit more at that price!

     

    I know Jim says we'll go mad if we watch the tape all day - but it is fascinating isn't it? Looks like the PPT are struggling a bit atm!

     

    I wouldn't have the guts to trade... I just keep accumulating, week in week out. It's boring(ish!) but it seems to work :)

  23. GOLD

    in Gold, FX, Stocks / Diaries & Blogs

    Posted

    is anyone buying at 930-940 or does anyone expect it to come back down again to the low 900s?

     

    I buy regularly, so I will be :) I always buy the same amount in £s, week in week out (I get paid weekly). I like to think of expensive gold as being subsidised by the cheaper stuff I bought in the past. So far the amount of £s I could exchange my gold for exceeds the amount of £s I have spent on it. At the point at which this went to zero or negative I think I might then pause for a bit. Until then I'll keep buying. Is this a dumb strategy?

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