kkeegan123

Yes, unfortunately I can't do both

If I go for a long term fixed, the deposit would engulf all my savings... in an asset that's got a strong risk of depreciation (be it nominal or through inflation)... Mmmmh!

This comment makes me think you've pretty much made up your mind on what to do, you can't beat having a financial cushion.

I'm sure I've seen some 90% LTV loans fixed for 5 years. I was initially looking at 10 year fixed loans at 75% LTV, but decided that I'd rather hold onto more of my PM's than worry about where we will be a decade from now.

JL

Coeur would mull holding silver over cash, says CEO

 

 

 

Keep up the good work Eric...

Sorry, wrong link in this post. Here's the article.

Bank of Korea Increases Gold Reserves by Massive Nearly $1 Billion or 39% in November Alone

The central bank of South Korea announced that it had purchased 15 metric tonnes of gold in November to raise its reserve of bullion in an effort to diversify its portfolio of its foreign reserve investment and reduce risks caused by market volatilities.

 

According to the Bank of Korea (BOK), it made a purchase of 15 tons of gold last month to increase the nation’s gold reserves to 54.4 tons worth $2.17 billion as of the end of November.

 

It boosted the size of its gold reserves by US$850mn in November, up a massive 39% from the previous month. Its total gold reserves are now worth US$2.17bn.

So, 15 metric tonnes of gold for US$850mn.. It's a deal, it's a steal, it's sale of the f'ng century.

Coeur would mull holding silver over cash, says CEO

TORONTO (miningweekly.com) – Idaho-based Coeur d’Alene Mines would at a future point consider holding some of its reserves in silver, as an alternative to keeping all of its money in the bank, CEO Mitchell Krebs told Mining Weekly Online on Wednesday.

 

The silver and gold miner will increase production “modestly” next year over 2011’s output, it added.

 

Sprott Asset Management CEO Eric Sprott and David Baker in a letter titled 'Silver Producers:

A Call to Action', the day before, floated the idea that, instead of selling all their product for cash to put in the bank, miners should retain some of their reserves in the precious metal.

Keep up the good work Eric...

No worries, I can see you fully understand the rules of engagement...

Indeed, when it comes down to having to sell some PM's to buy a house...the gloves come off.

Thanks for the reply.

 

Medium term more than long term hopefully as my wife wants to buy a house. I understand the panics we might go over in the next few weeks and month so I just want to be sure that we are well covered.

 

Those limited editions look nice buy they do cost a FORTUNE!

 

I am buying in Sterling (I live in the UK). Do you think Half Sovereigns are worth it? I haven't got any.

I prefer full sovereigns or 1 oz coins, I guess fractionals, 1/4 and 1/2 sovereigns may be easier to sell when gold reaches say $3-4000 oz, but I don't think this is a medium term concern. Buy whatever gives you the most bang for your buck IMO.

Do you guys think it is a good idea to buy more gold even at current prices? I was thinking on adding a few more sovereigns from CoinInvest.

FWIW, if your buying in sterling for a long term hold, then I think your downside risk is minimal. The GBP has held it's value remarkably well, gold is about 10% off it's highs and sovereigns have enduring appeal.

Yesterday, I took delivery of a 2012 Proof Gold Sovereign from the Royal Mint. I normally buy bullion sovereigns, but I can't resist the one-offs, now have proof 1989, 2002, 2005 and 2012 sovereigns.

http://www.royalmint.com/Annex/Sovereign/The-2012-Gold-Sovereign.aspx?src=hm_SmallBanner_2012Sovereign?promcode=W12G&gclid=CKro8PiX4awCFQUhtAodlw31ow

Ah yeah, but you see, that's all long term She wants hard evidence NOW. House prices must be going down at a 10% pcm rate (in nominal terms, of course, none of that gold price malarkey) for her to be convinced

 

(We may see that happen in the next months, who knows how much more printy printy can be still done to keep the soufflé up)

Try this, Kapouille. When your searchng for property, draw her attention to/view houses that are slghtly above your price bracket, rather like when EA's always send details of properties that are more expensive than you stipulated.

She wlll quickly become disillusioned with property you can currently afford and you can then plant the seed along the lines of "Look what we could buy if we wait for prices to fall further/save a larger deposit etc"

If all else fails, send her over to HPC....if she still wants to buy after a few hours over there, you may as well throw in the towel.

Edit; Sorry, Warpig already suggested 'settng your sights too high'.

(We may see that happen in the next months, who knows how much more printy printy can be still done to keep the soufflé up)

Quite a lot more by the looks of things....

Here Comes The Global, US-Funded Liquidity Bail Out

As expected, the Fed has just bailed out the world once again:

 

FED, ECB, BOJ, BOE, SNB, BANK OF CANADA LOWER SWAP RATES - BBG

ECB, FED other major central bank to lower the pricing of existing USD liquidity swaps by 50BPS

 

And as we have been writing every single day, the worldwide dollar crunch is now confirmed:

 

At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar

 

And finally, a promise to bailout Bank of America when it hits $4.00 again:

 

U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets. However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.

 

This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.

Congratulations.

Thanks, d2thdr.

BTW, can you share your thought process for moving from silver into gold with the GSR being where it is?

I took delivery of a 2012 Proof Gold Sovereign from the Royal Mint this morning. I normally buy bullion sovereigns, but I can't resist the one-offs, now have proof 1989, 2002, 2005 and 2012 sovereigns. Didn't get any brownie points with Mrs JL though, she made a quip long the lines of "Aren't we supposed to be saving for a deposit?"

http://www.royalmint.com/Annex/Sovereign/The-2012-Gold-Sovereign.aspx?src=hm_SmallBanner_2012Sovereign?promcode=W12G&gclid=CJX-q5ix3qwCFQEMfAodmFeEhw

Can't you wait 6 months to see which way the wind blows?

I'm trying Warpig, but the force is strong in Mrs JL. Even my powers of persuasion may not be enough. Fortunately, Mrs JL is extremely picky in regards to her nest, so I'm thinking 6 months minimum.

You sound like me...

 

If you believe in gold, then you have to believe in silver, because of historical ratios. Silver will be hundreds of dollars an ounce, but silver demands patience. I'm riding the silver bull until the end, as I think it will be spectacular!

 

Remember, when the last bull turns bear...

I wouldn't exactly say I'm bearish, I just can't see my way forwards.

I'm tired of these games, the red pill sucks and real life events are starting to trump monetary considerations, meaning Mrs JL has blessed me with a bouncing baby boy and her nesting instincts are strong.

Some metal will have to be converted to fiat for a deposit soon and I'm looking for an interim top.

I think a big plus for silver moving forwards, is that it may not be subject to quite the same heavy-handed, draconian legislation as gold.

JT thinks we might shoot up to $70/t.oz given the half mast formation. Let's hope he's right.

 

Lets hope his right. Personally, I won't be holding my breath.

The manipulation in the silver market is absolutely blatant and disgusting, I'm hoping Sprott will give the Morgue a bloody nose, but I doubt it. The CME (den of thieves) have finally defined a SWAP (I thought they would drag that out for longer), so Frank-Dodds position limits should come into effect soon, but I understand from Turd that there are exemptions for the large position holders.

The rulebook has been thrown out of the window, how can TA be applied to charts that are painted by Blythe and her monkeys?

If they take their eye off the ball/allow silver to get anywhere near $50, the shorting pressure will be immense and the buying pressure will have to be staggering to punch through the resistance. If we can get through $50, short covering could drive it up to $75 though.

I just don't know, Warpig. I'd be tempted to bail out at 50, for a 4 x bagger and into gold for the long haul.

Yeah, I'm pissed, I shouldn't be because I brought all my silver in 2007, but it's the principle of the thing. Will silver ever be allowed to be 'let go' who knows?

Perhaps that is why MF Global blew up.

To stop Sprott taking delivery of his physical.

Better check he can lay his hands on the stuff before pushing any cash his way.

Did JP Morgan Just Convert 614,000 Ounces of MF Global Clients' Silver into JPM Licensed Vaults?

http://silverdoctors.com/

The plot thickens...

I see there is not alot of volume in rental accomodation near you.

 

http://www.home.co.uk/for_rent/driffield/current_rents?location=driffield

That's true, we have a good crcle of friends in the town and it would be a nice area for my son to grow up in.

If our Landlord served notice it would put us in a really awkward position, so we have decided to be proactive and buy for the longterm. Needless to say my wife is delighted.

Selling some of the PM's for a deposit hurts, but it's amazing how having a child puts things in perspective, it's like my lifespan has suddenly doubled and I now have to plan for his future and wellbeing. He will inherit the family home, so at least he won't have to be a debt slave like me. A small sacrifice really.

BTW, thanks for all your kind regards and congrats JD

While the States has a debt of gazillions of dollars - why would they put interest rates up - while investors are still prepared to lend them money for, effectively, a negative return.

 

Maybe it will be 2023 before interest rates rise. The whole western world seems to be up to its neck (well, way more than that, in fact) in debt - and, if investors decide at some point to only lend to countries that pay higher rates then they are going to lose their shirts as western economies default.

 

So, as I said, maybe this 0.5% base rate will go on for 10 years or more.

Hmmm, food for thought BAB. I'm sure it's HSBC that are offering to track base rate +2.49% for the life of the mortgage or may have been Birmngham BS.

On the other hand, the Yorkshire BS are doing a fixed rate until 2021 @ 4.39% and I must admit I'm tempted. I'm sure there are some fixed for five years @ 3.79%ish, but I'm happy to pay an extra 0.6% for the extra five years peace of mind.

These are chaotic times and I'll pay a premium to know where I stand.

Have rents really increased by 30 or 40 percent in the last four years? In the middle of the economic disaster that Britain is going through that is simply crazy. Could I ask where? I wonder how much is driven by the government landlord and bank subsidy sorry, I mean housing benefit for hard working families.

We are living in the East Riding of Yorkshire, nr Driffield. Our current rent is £450 for a 3 bed detached with driveway & integral garage. Property of this type is now at about £600+.

http://www.rightmove.co.uk/property-for-sale/property-18804549.html This is similar to our current rented property.

Great thread Ladies & Gents, very thought provoking. I need some advice and hope you can help.

OK, we have been living in our current, rented property for 4 years and our rent has not increased during that time, hence we are paying well under the going rate for the property.

If we were served notice, our rent would increase by 30 - 40% for a comparable house. If we were to buy a comparable property the repayments would be the same as our current rent (with 10% deposit). So clearly, if we were forced to move, buying would be the cheaper option at the moment.

I can't help but feel that time could be running out for us in our current home and I want to move under my own terms.

We are leaning towards buying for both personal (just became a Dad ) and financial (buy v rent) reasons. Property prices have fallen some 20% in our area and hopefully I can buy at around 12% below asking price in an attempt to avoid negative equity.

The question is, I will have to sell some PM's to raise the deposit. So, do I sell just enough PM's for the minimum deposit or sell more and go for a bigger deposit and a better deal on the mortgage?

I know there's a 101 variables and that without a crystal ball it's almost impossible to answer, but I welcome your thoughts anyway.

Kind regards,

JL

PS. My thoughts are, interest rates will remain low (timespan - no idea), house prices will remain subdued (possible further 10-15% falls over the next 5 to 10 years), gold will continue rising @ 20-30% per year, but this will be offset slightly by a strengthening pound, rents will continue to rise as buyers struggle to raise deposits to buy, lenders criteria will tighten.

Therefore, sell as little gold as possible

The Hidden Meanings in the New $100 Bill!

Bix Weir

http://www.roadtoroota.com/public/261.cfm

First of all, I must admit that I am one of those "Conspiracy Nuts" who loves to read meaning into the back of the US $1 bill like I'm trying to solve a centuries old puzzle. The "All Seeing Eye", the pyramid, "One World Government", Masonic symbols, the implications of the Latin words, even the words "In God We Trust" added in 1955...all of it...I'm a big fan of secret meaning. Just Google "US Dollar Hidden Meaning" and you will find almost EVERY INTERPRETATION you can imagine. Since I don't know which is true...I tend to believe ALL OF THEM. More fun that way. If you think this is all hogwash and there is no meaning to the back of the $1 bill..."Duh, it's just a nice picture"...then this article is not for you.

I found this article interesting and would like to read the opinions of others. It appears to me that Gold and Silver are in an artificial holding pattern pending an event of some magnitude.

JL

Purely interested to know why?

Others have speculated and done the maths as to where the price of gold would need to be.

Imho, if gold was to reach these values almost overnight due to a currency event, the accompanying raft of draconian legislation/taxation etc would make trading/profiteering from PM sales almost akin to a black market/illegal activity.

Examples of efforts to restrict profiteering my include, the trading of PM's must be undertaken at government approved and registered coin/bullion dealers, documented proof of ownership/title to the metal i.e proof of purchase, all transaction will be referred to HMRC for appropriate taxation (CGT), cash transaction strictly prohibited etc

Steady as she goes is best for this ship.

JL

Edited for more clarity & detail.

POSSIBLE RETURN TO GOLD Standard discussed in the Press

As a holder of physical PM's, the one thing I fear the most is a return to a gold/bi-metallic backed dollar/euro/bancor or anything else.

JL

Can anyone offer a bit of advice to a total novice.

 

I have enjoyed holding my gold but need to sell now (mainly Krugs and a couple of Pandas) can anyone advise the best way to sell, who will offer best price and what sort of commission rates I can expect.

Hi Twopper,

This recent thread may offer some advice.

http://www.greenenergyinvestors.com/index.php?showtopic=14864

JL

http://www.marketwatch.com/story/brics-make-move-to-shove-dollar-aside-2011-04-17?siteid=rss&rss=1

BRICS make move to shove dollar aside

Commentary: Beijing won’t push the renminbi too fast.

BOAO, China — China and four other leading high-growth economies have taken landmark steps toward lowering the importance of the dollar in international financial transactions — part of a seminal shift in the move towards a multicurrency reserve and trading system.

Take a trip down memory lane guys, I have fond recollections of these prices. Only 5 products available in those days, (sigh) to know then what we know now, heh.

http://replay.waybackmachine.org/20071017055457/http://coininvestdirect.com/main.php?a=10&id=160&currate=pound_rate

I am also the dunce at the back of the class.

 

But if you avoid complexity the simplest explanation for a fall in prices is that the countries that matter for the gold and silver trade like china india korea and i suspect Brazil and so forth are raising interest rates because they have inflation problems. If their inflation rises higher than western inflation and they dont deal with it then it is going to impact their competitiveness. The west meanwhile is pretty economically weak overall and likely to remain there for a while to come. You can argue our inflation will moderate if these other countries inflation moderates

 

India today raised the repo rate - not much change. Base rates held steady at 6%. China is 5.81% after two rises in two months with the last christmas day with more to come and with reserve ratios at 19%. Brazil raised by .5% a few days ago to 11.25% Korea is at 2.75% and just raised .5% a few days ago. The Brits will be raising before the end of the year? The USA before mid 2012? One year Euribor is suggesting a .25% raise as far as i can see from the way it is fairly rapidly going up. On top of all of this China is being seen to very publicly support the USA and Europe which sends a big signal the west is going to come thru this one way or another, where the reason for holding gold and silver for many is as a hedge in uncertain times.

 

Meanwhile if you have a big silver position to unwind you need people to buy and spreading stories about default is as good a story as any. What for example would be todays prices of a selection of silver dealers if you phone them up and you say you have 1000 oz to sell and you can deliver today? would you get 24USD per oz?

So, your thinking that inflation fears are being tackled and the flight to PM's as a traditional safe haven is reducing. The latest GDP figures for the UK would surely suggest a likelihood that additional QE may be required to support the economy thereby exacerbating inflationary pressure. I don't think the US really know how to stop QE, it seems to be supporting the whole system.

I have read extensively with regards to JPM and silver manipulation, do you think that the weakness in PM's is purely down to changing perspectives by the markets?