romans holiday

Still... of symbolic importance. I have split feelings on POG... it goes up; confirmation... it goes down; consolidation.

Well, back in Korea after a summer holiday. End of year bonus in the bank account. All good until I checked out the exchange rate. Korean won is now trading at 1500 against the US dollar. To put that in perspective, it only took 900 odd won to buy a dollar not even a year back. A little longer at this rate and the won will have halved its value. So what to do with that bonus? Who you gonna call? Goldmoney! So loaded up on silver which I may make a habit of for the next few months. Every pay day... faster than you can check the exchange rate... I'll be calling goldmoney. Who said there no such thing as a silver bullet.

opps... the allusion eluded me. but with you 100% on buying the crash [if it comes].

Or to have cash on hand and be able to buy physical when/if the crash happens.

Sobering stuff.

Not worried about the plunge... hoping for it in fact. Looking at the upward trend [from Steve's chart] looks like POG could touch around 850. I will be buying with the other half of my trading funds around there. Then sit patiently for it go through 1000. Could take a couple of months. I reckon this may involve another leg down in the DOW... after the rally runs out of steam. As for trading, nothing wrong with it if you also have a core position in bullion, a strategy and of course taking profits in ounces. Lets face it, gold may soon be too expensive to purchase for many earning fiat.

Good site that one Steve. Are there any short/long term graphs in the kiwi to be found anywhere? Also, spoke to Jo at nzmint who said they have always charged 7% above spot. i was under the impression it was 4% above spot and had been telling acquaintances so. i am sure I bought at just 4% above spot a while back.

Is goldmoney doing strange things today??? Gold ounce only 1,170 in NZ dollars [was 1,800 the other day] Silver $17 down from $25 Has the kiwi sprouted wings overnight or has gold crashed?

Say no more.

What a dumb tltle. Doesn't he know gold is the economic equivalent of "god"; that there is a reality outside of the bubble worlds we create for ourselves. Reading now. In my view it is quite simple to explain why the US dollar and gold may now no longer be in a direct inverse relation. They are now both competing for safe haven status in a deflationary environment. From this perspective you would expect to see POG to remain volatile and move sideways within a range [perhaps a little higher than the range we have seen]. Perfect trading opportunity imo... with only a smaller percentage of your position mind and obviously with the aim of taking profits in increased ounces.

Yep, I was charged 2.49% on a recent purchase.

I think he has stated before that he is a bull on gold in the long term. Who wouldn't be. What is the problem with being short term bearish... could be a good counter-balance to the "it is going to the moon tomorrow" view. Also, how is calling someone who is bearish on gold a "government shill" any different from calling someone a "gold ramper" who is just trying to communicate a certain point of view?

Yep, a good deal... just about to put through my first transaction on goldmoney.

US POG looks very strong at the moment. It seems to have weathered a period of downward volatility [August to December] where it was being sold off due to forced liquidation on the one hand and bouncing back on the other due to demand for it as a safe haven. The last couple of months sees it in an upward trend. I have a chunk of change in US dollars and was hoping to buy in at $800 but I think I will just buy in now. Seems to me it is consolidating its safe haven status and looks likely to go through $1000 soon. I imagine if that is the case it will find a wide trading channel for a while beyond the previous one.

They do half ounces and even quarter ounces in the gold kiwi here in New Zealand. i have a sister who will buy a few... "got to squirrel away a few nuts" she says.

I may take one of my gold kiwis back to Korea... quite simple process really, just chuck it in your wallet with your other coins.

Wouldn"t it be better to swap for a stronger currency such as the US dollar? And then use a dip in that more volatile POG to buy back in?

There are degrees of certainty. Physical bullion in the hand involves no doubt whatsoever. Allocated funds such as goldmoney can involve a little doubt but that doubt is compensated by certain conveniences. No harm in having both and considering your in-hand physical bullion your ultimate core position.

did the same a month back. the POG [in US] remained favorable in the interim though the currency I was parked in for a few weeks proved fickle. Was quite telling really... I think this year will be about currencies.

Sure, good point. I just do not want to spend any more earnings on bullion, rather let some of that bullion do the work. Actually, I am hoping to buy mining and energy shares this year. Only after the markets crash once again of course.

Edited. I think it comes down to how much gold you already own. If you have a good chunk you can afford to wait for obvious buys. If not, then as you say average in. Also, if you already have a decent amount of gold, the best strategy may be to accumulate ounces by trading US dollars with a smaller percentage of your gold position. Of course, taking profits in gold ounces on the big dips in POG. Here you are using the volatility of POG, and existing ounces, to add ounces. By having a "trading" position alongside a long term buy and hold position you will be more objective towards POG .... not always wishing it to go up... or down for that matter. If you are really concerned that POG might continue to climb leaving you behind holding US dollars then treat your trading account as also a cash proxy. Worst case scenario you are left holding US dollars [which have also built up due to trading gold volatility] Of course, this approach suggests you need not bother holding serious cash elsewhere..... unless you want to own another currency besides gold and the US dollar. Also, imo this strategy will not work with weaker currencies such as the pound or kiwi dollar as those currencies will most probably continue to slide against their POG. I see the US dollar also sliding at a much later date... but for now, why not use its temporary strength. Using the above strategy, I can then spend my hard earned salary on other investments.

I think it comes down to how much of your worth you already have in gold. If most of your worth is already in gold you can "afford" to wait for obvious buys. If not, then as you say average in. Also, if you already have a decent amount of gold, the best strategy for buying is to trade US dollars with a smaller percentage of your gold position. Of course, taking profits in gold ounces on the big dips in POG. Here you are using the volatility of POG, and existing ounces, to add ounces. By having a "trading" position alongside a long term buy and hold position you will be more objective towards POG .... not always wishing it to go up... or down for that matter.

If only that had have been a four leafed/headed? clover. Going down as we speak.

I will spend the next few months getting some dry powder together. There could be a rally in all stocks, with also another decent crash in them at a later date. imo that would be a good time to get in then. I will go for the biggest names and senior producers like Yamana, Silver Wheaten, etc. Perhaps later on get into some juniors.

Thanks. Am aware of the risks, was more just making sure of the mechanics. As for the wider factors involved, I think: 1] Reflation will not take effect/ monetary inflation will be neutralized for quite some time. Economies, asset prices and certain currencies will continue to deflate [inflation in consumer goods now only reflects currency depreciation]. 2] Remaining volatile, POG in the US dollar will track sideways within a wide range for some time. Effectively, they will battle it out for safe haven status. 3] Gold will ultimately win this battle as the US dollar finally depreciates. We will only then, in the US, see massive inflation in all prices; asset classes as well as consumer goods [in other countries we would have already seen inflation in consumer goods reflecting the depreciation of currencies, what we are seeing now imo] The above strategy is based on my theory of hyper-deflation. Of course, I could be utterly wrong especially in the timing [rogue waves/ black swans etc] which is why I will only pursue this strategy with a smaller percentage of my holding.