ziknik

Where d'you see Cable when silver is @ £13.50/oz?

Around 1.25 - 1.35

...or how high?

 

Your guess is as good as mine...

 

It's just not for me atm, so in the words of Theo Paphitis: I'm outta!

My guess at this point is £7.50 low and £13.50 high for the year.

13% downside, 57% upside

...

However, looking at it from an intermediate term perspective, the downside to me at least, easily outweighs the potential upside at this stage.

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How low could it go?

Hmmmm... not really impressed. I mean, isn't it just reflecting dollar weakness here... and we all know the dollar will rebound soon.

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http://www.telegraph.co.uk/finance/persona...-investors.html

Gold falls in value by 10pc for UK investors

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British investors investing in gold for safety will have seen their investment fall by 12pc over the past six months because of the weak dollar.

 

Gold is viewed as a classic safe-haven investment but it is valued in dollars and is used as a hedge against dollar movements – the price of gold tends to rise when the dollar falls.

 

For example, the London gold price fix on Friday afternoon was $939. Six months previously it stood at $920, so the price has risen by 2.2pc. But six months ago the pound was worth $1.44, much lower than Friday's value of $1.67. This dramatic fall in the dollar is more than enough to wipe out the gain in the gold price for British investors.

 

In fact, if you had bought an ounce of gold six months ago, the $920 needed would have cost £639. If you now sold that gold, the $939 it would fetch would convert into just £562. This is a loss of £77 or nearly 12pc – even though gold has appreciated by 2.2pc over the period.

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I thought this (below) was an interesting statistic.

http://www.guardian.co.uk/business/2009/au...-fall-recession

The report said that the total value of residential houses and flats tumbled by nearly £400bn, or 9%, to £3.9tn. Housing still remains by far the most valuable single asset class, accounting for 56% of the country's net worth. Commercial buildings shed £100bn of value to be worth a total of around £600bn.

William Hill set to lead field offshore

 

In a blow for the Treasury, the move is likely to prompt rivals Ladbrokes and Coral to follow suit, as they attempt to prevent William Hill gaining a competitive advantage from lower tax bills on offer for businesses based in the territory.

 

Bookmaker William Hill will reveal this week that its online sportsbook business will be moved to Gibraltar, but its telephone operations will remain in the UK.

…

 

Maybe that's why it's red.

:lol:

How do you go about declaring that you made a capital gain but that its exempt due to it being sovs or brits? Does the exemption apply to silver brits?

You don’t mention any exempt items when you fill in a Self Assessment.

Gold Sovereigns & Britannia are exempt because of TCGA92/S21 (1)(B )

http://www.hmrc.gov.uk/manuals/CG4manual/CG78308.htm

Sovereigns minted in 1837 and later years and Britannia gold coins are currency but, like all sterling currency,

are exempt because of TCGA92/S21 (1)(B )

.

TCGA92/S21 (1)(B ) says all Sterling Currency is exempt from CGT. The Silver Britannia (£2) is Sterling currency – like the Gold Britannia (£100)

http://www.hmrc.gov.uk/manuals/CG1manual/CG12602.htm

Currency in sterling is not an asset for capital gains purposes

. It is the unit by reference to which capital gains are measured.

EDIT:

This is the CGT question from a Self Assesment. It does not ask you about non-chargeable (exempt) items

Did you dispose of any chargeable assets (including, for

example, stocks, shares, units in a unit trust, land and

property, goodwill in a business), or have any chargeable

gains, or do you wish to claim an allowable loss or make

any other claim or election? If yes, read pages TRG 3 and

TRG 4 of the guide to decide if you have to fill in the

Capital Gains Summary page.

Do you need the Capital Gains Summary page?

if there is only 5 euros difference between buying a 1oz maple & a 1oz britannia, then what's the issue with just buying brittania's then ? surely a small premium to pay for no tax problems ? edited - in fact they are the same price. I am obviously missing something ?

 

following on from the cgt stuff the other day.

 

is it something to do with the 'prettyness & rubby scale' ?

 

ps - some of GOM's words may be new to your southern vocabularies, but do not worry.

You are not missing anything.

Buy the Britannia if you want a one ounce coin.

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A question for anyone: are half sovereigns as easy to sell as full sovereigns or are they more/less popular?

I think they are less popular. I have bought some from ebay for less than half the price

Edited

It's precisely this kind of news that causes much frustration.

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This is a frustrating period for pretty much everyone.

A number of people want to sell their homes but are unable to do so because they are in negative equity.

People want to downsize and collect as much cash as possible for their retirement but are unable to do so because there aren’t enough buyers to settle the property chains.

Most peoples’ pension has taken a beating.

Inflation is the only way out of this mess. Let’s hope it doesn’t turn hyper on us.

Back on topic

http://uk.reuters.com/article/idUKLNE56T00...dName=fundsNews

LONDON (Reuters) - Gold prices are ignoring dwindling inflows into bullion-backed exchange-traded funds, with prices supported as investors switch their interest to the U.S. futures market and outright purchases of physical metal.

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Consequently, while interest in gold-backed ETFs has tailed off after unprecedented buying in the first quarter, other forms of investment, such as positioning on the New York Comex futures exchange, have increased and underpinned a firm price.

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"The slack created by slower ETF demand hasn't gone away completely, it's just been replaced by more speculative interest," said Barclays Capital analyst Suki Cooper.

 

"The position on Comex has picked up quite sharply."

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Noncommercial net long positions in New York gold futures jumped 9 percent in the week to July 21, a report from the Commodity Futures Trading Commission showed last week, and were at 173,302 lots against 166,294 four weeks earlier.

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"Maybe investors feel they can get a bigger bang for their buck by going straight through to the over-the-counter or futures markets," said Calyon analyst Robin Bhar.

…

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You are a great poster Ziknik - thoughtful, receptive, adaptable and intelligent.

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Thank you

Why do you defend so obviously someone who offers piecemeal acclamations - no different to David Koresh - no reasoning - no insight - no analysis - no room for error.

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I’m not defending him.

I remember you two have clashed before.

It’s gone too far when you are making comments about poor parenting and child beating IMO. As far as I am aware, cgano’s parents aren’t members here and haven’t done anything to deserve such speculation

Arrogance. Arrogance that wouldnt be tolerated or respected beyond the walls of a forum that demands to hear such prophets and prophecies.

 

 

The man has been off from day 1 of GFC. He had a good case - but he misunderestimated the pulse of life and money - and the people and events that drive it.

 

Better parents might have made him a better common-sense judge on the course of events. I can only imagine he was beaten as a child.

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That’s a really low shot.

Put cgnao on your ignore list if you don’t like him.

You are lowering the tone of the forum

EDIT Following post below: I’m starting to think it was YOU who was beaten as a child - Probably by cgnao*

I won’t engage you any further on this point because I really believe you are lowering the tone.

* who was also a child at the time

http://news.bbc.co.uk/1/hi/business/8175479.stm

Homes 'may rise in value in 2009'

 

The UK's largest building society believes there is a "reasonable chance" that house prices could end the year higher than they started 2009.

 

Such an outcome was "unthinkable" a few months ago, the Nationwide's chief economist said.

 

The Nationwide's latest house price survey showed prices rose by 1.3% in July compared with the previous month.

 

The average UK home costs £158,871, with the annual rate of property value falls slowing sharply to 6.2%, it said.

…

Another hand out of my money

Cash for stalled housing projects

 

Hundreds of housing developments in England that have stalled during the recession are set to share in a £925m attempt to kick-start the industry.

 

About 270 projects could benefit from the cash, the government said, with a third of the funds to go to housing associations to build affordable homes.

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But he insisted the funds were not a "handout" for developers who would NOT have to repay loans within five years..

…

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In any case, mortgage lending was mostly done by foreign lenders who have decided to leave the UK.

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Looks like I was wrong about the foreign lenders. They might be coming back

http://business.timesonline.co.uk/tol/busi...icle6727253.ece

Bank of China has begun offering mortgages to British borrowers, who are finding it difficult to get loans from leading UK lenders. The world’s third-largest bank is lending at lower rates than many of the deals available from more established UK lenders. It has previously focused on lending to the Chinese community within the UK.

 

With rates from 2.5 per cent over base, it is targeting homeowners and buy-to-let landlords who are struggling to get credit. It is marketing deals via four brokers, including Savills and Legal & General Mortgage Club.

…

ok, so i wouldn't even have to bother telling them anything?

 

i've never filled in a tax form before!

That's right.

You have to declare what you owe. AND what HMRC owe you

You don’t have to declare what you don’t owe.

has anybody actually tested the cgt-free nature of britannias/sovs?? i mean has anybody made a load of profit, told the tax office (and told them its tax free) and they have let it go through as non-taxable?

i'm just wondering if they might get arsey and try to do you for it.

You wouldn’t mention britannias/sovs on your tax return in the same way you wouldn’t mention your ISAs

CG78308 - Currency: coins: legal tender

 

Sovereigns minted in 1837 and later years and Britannia gold coins are currency but, like all sterling currency, are exempt because of TCGA92/S21 (1)(B ).

http://www.hmrc.gov.uk/manuals/CG4manual/CG78308.htm

Local coin shop for small (1 Oz or less) amounts...

Transport to a domain where tax evasion is not a crime for other amounts.

EDIT to add: at 18% it's not sooooo much of an issue (used to be 40% iirc).

You might have to make several trips as I don’t think you can take more than £10k of silver out of the country.

I wrote a worked example for a CGT calc (below). I’m not sure if it is correct but it looks right as far as I can tell

OK, here is my attempt at a worked example (can anyone confirm or challenge)

* I buy £5k of silver bullion at GM

* The silver price increases by 10 times in GBP

* My silver is now priced at £50k

* I gift half to my wife. We each have £25k of Silver. There’s no CGT on this transfer. We are deemed to have paid £2.5k each

* We each sell the silver for £25k

My taxes on this transaction are as follows (Wife is identical)

* The actual gain I have made is £25k - £2.5k = £22.5k

* The chattels rule allows me to calculate the gain as £25k - £6k x 5/3 = £31.66k.

* We take the lower figure for CGT. In this case is it £22.5k (not £31.66k)

* Now, I take off my personal allowance (of £10.1k). £22.5k - £10.1k = £12.4K

* Then I pay 18% of this figure as CGT. £12.4k x 0.18 = £2.232k

http://www.greenenergyinvestors.com/index....st&p=118388

they have to know about it to tax it....

How are you going to get round it?

If you sell it at Chards for example, then Chards will have records of the sale in their books. This will allow HMRC to know who sold (if they chose to look).

I doubt you will get round this by selling at CID as they are also a British Company.

GoldMoney and BullionVault both say they will co-operate with the British authorities.

And ebay monitor sellers on behalf of HMRC.

It’s not worth getting caught in my opinion. I know people who have been investigated by HMRC and it is horrific by all accounts. You are presumed to be guilty until you prove otherwise. HMRC will never agree that you are ‘not guilty’ they will instead go quite. You won’t know if/when the investigation has finished.

I heard that any other nominal gold coins with a face value are exempt too. Commemorative proof £5 crowns are my personal favourites (slightly larger than 1 oz coins) and are more desirable / nicer to own IMO than boring bullion. They often offer good value and the following benefits:

 

- very difficult to fake

- likely to be exempt from confiscation laws

- produced in limited numbers (will always be desirable to collectors)

Yes, Any coin with a Sterling Face value is also exempt

These coins tend to be expensive though

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The added problem I have is when to change my euros to sterling & buy pm's ?? I am hoping mr parity makes an appearance very soon (or below would be fantastic, but I don't fancy F5 every 20 seconds )

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Select GBPEUR from the ‘Instruments’ list and save yourself from the F5 button

http://www.netdania.com/Products/live-stre...artStation.aspx

well yes, I understand that BUT remember I am expecting to get parity, now that's a hefty percentage to make up from pound vs euro surely ?

15% atm. surely gold priced in Euros won't be cheaper by that much......

 

edited - I will take a look though obviously & check the charts.

Wren is correct. You aren’t going to make anything by waiting for a good GBPEUR rate if you buy gold with the GBP as soon as you receive it. Hedge funds and the like will close these gaps long before you get a look in.

You are better off buying gold with your EUR. This way you save yourself from one set of exchange fees.

I wasn't aware of that warpig, thanks.

 

so you pay cgt on anything gold (& silver?) that isn't British then ?

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Yep, Sovereigns and Britannia’s are CGT exempt. Any other gold isn’t.

What's this? Coming over to the dark side?

We are all on the same side – The deflation relative to gold side

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We all know on here that interest rates are ridiculously, unrealistically low compared to any historical measure and are unlikely to remain at these levels for any substantial period of time. When the fixed rate period has ended and interest rates are back up to more realistic levels then her payments could well be around a £1000-2000 a month, which she would be unable to pay, even with parents help.

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I disagree, I believe interest rates will be held low for a long period to come.