dietcolaaddict

I think we should make a collective decision to avoid rocket pics for the time being (at least until the GBP peak is conquered!)

For the last few months, watching the gold price has been like supporting the Scotland football team - winning the odd battle but always loosing the war!

[is this site slow today? ... always seems to act in inverse to gold]

I find that big price movements are always accompanied by kitco crashing!

Is Gold at a peak now in pound sterling? (can't find an up-to-date graph). It must be very close otherwise

Panicked investors send gold demand up 56%

http://business.timesonline.co.uk/tol/busi...icle5188684.ece

"European investors bought an all-time record 51 tonnes of gold bars and coins as European banks reported huge writedowns, and France became a net investor in gold for the first time since the early 1980s."

thanks guys, will be working on the dollar top chats this weekend, i think we got it today.

Look forward to it Ker

P.S. hurry up and make another 4 posts - you merit GEI Expert status!

Time for another all-or-nothing defence at $740

PS Welcome back "Envirolet Compost Toilet"

I point out that gold is near a peak for me, because I'm not interested in the GoldUS$ exchange rate, I'm interested in GoldNZ$ & GoldJPY.

Somehow they only ever quote the GoldUS$ rate

Agreed. Buying in the dips means buying in the currency fluctuation dips as much as the spot price dips. When there was 2.1 USD to the GDP, gold was a steal in the UK.

The last smackdown of the Bush Administration..............

the motive for today's manipulation was obvious

It's fascinating reading other people's long-term plans like that. Sounds like a plan to me

 

How about Gold Money for silver to avoid the VAT ?

Thanks Steve.

I am still unsure about keeping anything other than physical bullion, but Gold Money is probably the logical place for me to build a bit of exposure to silver over the next few months.

I am 55% in PMs, and 45% in sterling (ISAs etc.). I only buy gold - I find silver too bulky and volatile - but I am now increasingly tempted to trade in some £ for Ag, especially if lift off resumes and the 17.5% VAT can be quickly recovered in the bull run.

My masterplan has changing this year as well. I thought my gold would fund a decent house deposit but I am no longer interested in buying a property with my savings. I also worry about the effects a recession will have on my area of work. I am instead thinking of using my savings to fund an accelerated medical degree. A recession is a good time to be a student as housing costs and living expenses tend to fall and you dodge the tax rises (but of course, a recession needs to end by the time you graduate).

The gold-to-UK-medical-degree ratio is currently about 25 oz. As tuition costs are capped and rental/living costs should fall, I'm hoping it will end up about 15 oz in the next year, at which it is a very viable option.

GEI is really finding it's purpose and market niche these days - so many insights and good calls by the posters on this thread over the last few months.

(and to think I only started reading this stuff because I couldn't afford (or wouldn't pay 6xsalary) for a tiny flat in a crappy UK town).

Won't gold take a serious smack tomorrow as traders etc. liquidate any gold they have to cover losses.

It always cheers me up that little bit when gold is over $900/oz (not that the $ means anything anymore!).

Although I am technically in profit with my gold again, recent events (and you guys) have taught me how increasingly fruitless this coversion of gold to fiat money is becoming.

I am trying instead to think of my bullion as a value relating to a percentage of a house or a number of months of living costs.

Considerating the last point further, I've come to the view that gold sovereigns are probably the optimal bullion coin for the bad times ahead - they can be easily traded for workable amounts of food, labour, goods etc. 1 oz coins are too big a denomination unless trading for things in bulk, or paying big expenses like rent.

Spot gold now above 900 in NY market hours!

Guys and Gals of the GEI gold thread.......

According to HPC, we are now officially "Gold Purists" and not "Gold Bugs". Has our status risen these last few days?

AIG is the biggest insurer in the world... may go bankrupt tomorrow

The financial crisis is even evident when watching Match of the Day on saturday night TV!

West Ham Utd's sponsor (XL airlines) bust

Man Utd's sponsor (AIG) will be bust by the weekend

Liverpool's new stadium postponed due to "credit crunch"

oil down, gold up! could be a very significant trend developing here.

Agreed, we are starting to see the decoupling we have long hoped for. Gold-to-oil ratio is now over 8.5 (it was around 6.5 in June).

Looks like we are going to have to take some pain until the dollar weakens - US election is 4 November

$790 low now being re-tested!

Seems to me that gold is falling 0.5% for every 1% drop in oil. Not too long ago it was 1:1 or even higher as a ratio. So that suggests gold is 'cheap' compared to oil

I've noticed the same pattern - Gold to oil ratio now increased to 7.3 (from a minimum of 6.3 in mid-June)

Definitely below 100oz. I think we could see 50oz average at the bottom. Not only do we have a UK HPC, we have a global financial system implosion. If it comes really bad we'll go 10oz.

I wonder if this ratio may be a good tool for timing the bottom of the UK housing market.

(trade all your oz's for a country estate then GF!)

It peaked prior to both the 07 and 90 tops of the housing market. I might look into this more when I get some time.

Yes, I eyeball between 100-200. The all time low is 80.6 (Q1 1983).

The Gold : Number of UK Estate Agents ratio will certainly reach an all time high!

A great day for UK property bears.....

(denial phase amongst the sheeple must be about to end soon)

Enjoy with a celebratory glass of wine tonight:

http://uk.news.yahoo.com/rtrs/20080828/tuk...my-fa6b408.html

http://www.thisislondon.co.uk/standard/art...ears/article.do

Here's the nationwide house price: gold ratio for the UK. Now at 383.5 for the average house, from a peak of 695.4 (44.9 % drop).

Anyone care to suggest how far this ratio may fall?

I bet it was YK2 fears

Excellent chart - is it effectively a time plot of small investor (general public) distrust of the banking system against time? *

There were lots of scare stories about banking systems failing with Y2K - and a lot of companies made money out of those fears by selling "Y2K compatible" solutions at >£100 a computer.

*- given the limitations Steve has mentioned about supply/demand

.

Wow, thats a bullish response in gold and silver today.

Here’s some more of my analysis of oil vs gold for the last eight years. This post is topical, as we go from what I see as the “gold winter season” (Mar-Aug) to a “gold summer season” (Sep-Feb) during the next week.

Look how the gold-to-oil ratio varies between both seasons – both graphs normalized to the ratio on the first day of the “season” There is a clear (but gradual) mean downward trend from Mar-Aug and a clear mean upwards trend from Sept-Feb (mostly before Xmas). This pattern holds for most years, although there are exceptions.

I’m wondering if we are nearing a bottom in the gold-to-oil ratio, which would suggest better prospects for gold in the next few months.