Manual labourer

No, I can't. I wish Prechter would pop up to punch his own corner. I am not his spokesperson and I hope he is wrong and you are right on gold for one

 

I just feel like this is a situation where nobody can know what is going to pan out and a modicum of caution wouldn't come amiss.

 

Don't you think we are due a spot of stock market deleveraging like 2008? There are so many calling for it now across the spectrum of commentators that I think it is only a matter of time. If yes and as this is the gold thread, don't you see gold being taken down a peg or two at least?

 

On another front, hope your move turns out a success and went smoothly for you.

 

Here's a bit of Deflation scare for you just in from Richard Russell

 

''The power of negative compounding will be brutal. The cost of carrying the world's debt (including the US national debt) will be devastating. It will be highly deflationary and it will crush everything in its path. There will be a frenzy for dollars -- dollars will be needed to carry or pay off debt. There will be initial pressure on gold. There will be pressure on stocks. "Safe" high quality high-yielding bonds will compete with all other investment sectors.''

What would happen if the US/UK just defaulted, said it wasn't going to pay?

Prechter would argue that very few companies will stay alive, and those few that are still paying dividends

will be paying much less

 

I have been building my gold holdings recently, so you could say that I am betting against his gold view (as you bet against his view on stocks)

If it is going to be as bad as that, and I don't think it will be, then surely even though gold is great, the only real place you would want to be invested in would be UNMORTGAGED productive farm land and self suffiency?

Remember we had a good day yesterday we only needed to borrow 167bn, not 178bn and Brownomics thought that was great news! It is a weird world at this moment the logic of that baffles me!

If I could afford a debt free farm at the moment, I think I would buy it now,rather than place all my money in gold.

How do others see the gold farmland price relationship going?

Which is better a big stash of gold or a productive debt free farm?

Regards

ML.

I bought my core holding in gold nearly 2 years ago with NZ dollars. The price then was around $1100, it is now near $1600 [and spiked to $2000 briefly to which I think it will soon return]. There would be no point of waiting for lower gold prices if you were sitting in NZ dollars [or Aussie dollars] imo.

 

If one didn't own gold, then the current price is as good a place as any to start I guess. If one had a decent holding, and wanted to hedge for lower prices, then US dollars [perhaps also Yen] would be the currencies to wait in. I'll be averaging in some dollar funds over the course of this year... while keeping some back in reserve should we see a temporary sell-off which could co-incide with a sell-off in all markets.

 

Whether you buy here or not depends more on your own personal circumstances [how much, percentage-wise, do you actually own] than on some technical or objective view on the price of gold imo.

Cheers RH. You seem to be in a very good position to me! Fingers crossed for a summer sell off/buying opportunity for us both !

ML.

You could say gold is in a bull market. You could also say gold is a strengthening currency. I wouldn't short gold because it is so unpredictable. And I wouldn't be concerned if it dipped to 3 digits again as would just consider it a consolidation before going on to new heights.

 

When you consider gold a measure of value [a currency] rather than a reservoir of value [a commodity] then dips in prices are no more than fluctuations that are seen in all currencies. Maybe what we should do is price the dollar in terms of gold and watch the dollar fluctuate. As gold becomes increasingly monetized, I imagine that is what we will do, and the price of gold will increasingly be seen as the price of the dollar. This conceptual revolution should culminate in a new gold standard due to currencies becoming increasingly unstable. The fix will be pegging currencies to gold at the appropriate levels.

I see what you are saying but don't agree, we have to deal with the here and now, gold is a tangible store of wealth, and has been for thousands of years, it is one of very few things I see as cheap at the moment, houses, shares bonds all look dear ?

Being late to the party I would love it to drop lower in price then I could further join in ! I suspect though it wont and in 12months time now may be seen as a good buying oppourtunity?

Who knows?

Do you mind me asking what is your average in price for your holdings ?

Regards

ML

I guess you could short lower than 1050,target 850/900 go long above 1250 breakout target 1650?

It seems like the market is making it's mind up, but you would have to say we are in a gold bull market and the trend is up ?

ML

Utter bollocks. No facts??

 

Barrick mined gold for a cash price of well under 500 us an ounze in 2007 or was it 2008?

 

Jim rogers says that gold is difficult because the price often is far away from the fundamentals

 

But hey! facts are irrelevant

 

All you want is to believe.

What if deflation leads to Hyper -inflation the production costs could go to $5000.00 an ounce, would paper or cartridges keep up?

Regards

ML.

50% Gold. 15% Silver, 15% INR, 20%GBP.

 

Wife is all in Sterling, inspite of repeated advice to get it out into something else. How can I make her convert gbp?

leave her post-it notes on the fridge every MORNING with your assets gbp balance and her static gbp balance, hopefully she will think you are a trading god in a few months time!

Regards

ML.

80% gold, 20% silver.

Thankyou for your reply.

So of your liquid assets you are totally committed to PM.?

If so what % of your gross yearly income is in PM?

I think that is an important factor to guage commitment?

Regards

ML

Chris -CT

"About 70% Gold, 30% Silver. Missed the palladium boat! This amounts to >1.5 years' gross salary for me

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+

This is a really helpfull post for people who are a little late for the start of the party, and encourages me to join in.

Cheers Chris,

Would anybody else like to add the current position.

Mine of liquid assets is :- 10% gold 2% silver 88% sterling.

My liquid savings are 3.5 times my income stream.

Regards

ML

I would stay clear of spreadbetters as it might only take one bad tick and you could be wiped out. Possibly better to buy options or futures than a straight 'long bet with stop-loss'.

 

 

home. deposit box. BV. GM. Diversify; safer.

 

 

seems ok to me; personally I am about 95% PMs. NKrona and CAD would be my choices for now if needing to hold 'cash'.

Thankyou for your reply, it is very much appreciated, especially your figure of investments in Pm, would you care to say the splits you hold.

I think I will stay away from leveraged, probably feed in to position 10% a week on increasing strength of gold, by cashing in my other investments early.

If you were to sit in any currency at the moment whilst feeding into gold which currency would it be? Question open to anybody.

Regards

ML.

Hi ML, I'd advise to steer clear of leverage. There is way too much uncertainty out there. When you buy gold you are buying safety... but gold can also take a hit in the short term, so is better to stay away from leverage which can be a killer.

 

50% sounds good, but it's really what you are personally comfortable with, and what your convictions are. Diversity in the strongest currencies is the way to go imo.... and gold can certainly be considered a strong currency.

 

Having some physical gold to hand is nice, having some in a vault, and then also some in an allocated account is convenient. Once again, diversify.

Thankyou, I value your opinion very highly.

I would only leverage up to the amount I am waiting to mature in a few months from other investments.

So in effect investing today via leverage whats maturing tomorrow.

Re comfort level, all I can say is the small amounts I hold in physical feel secure in comparison to printy printy sterling.

The only worry I have is the threat to print more was made this resulted in a big price reaction with GBP falling heavily !

Should no printy printy arrive then price of this reaction is now being buit in already, and should an surprise inflation busting rate increase occur, then this would cause a double reaction, if you follow my reasoning?

However gold is in a long term bull market as I see it so for the moment I SEE IT AS THE SAFEST OF PLACES TO BE?

Regards

ML.

Hi, I have way too much of my cash assets in sterling, I want to get more into gold, but have been waiting for a date for maturity and access to from a couple of policies.

I have been like a scared rabbit in the headlights I can see what is coming but too scared to move! Until now and I want to move fast.

I wouldn't feel comfortable with holding physical gold at home, more than a few coins I have bought bits but nothing substantial.

A. Would it be advisable to buy mini contracts of the mini gold ie 33.2 ounces per contract I believe, or open a spread betting account and go long with the leaveraged cash available,whilst waiting for access to the cash without penalty.

When the cash is then available,close the contacts out and convert to physical.

B. Where would you store physical gold? Would a locked box at the local bank be ok, do banks do this? Reply by PM if more comfortable!

C. What percentage of your liquid assets are in Gold Silver or other Currencies.

I have decided on going upto 55% Gold 10% Silver 10% NKRONA 20% Dollar 5% Sterling

Would this be areasonable spread in your opinion.

All answers gratefully accepted in advance. All opinions sought.

Regards

ML.

Ps. I Know this is basic stuff to some of you guys on here, so apologies in advance.

Paper gold won't do it. People want the real stuff.

http://www.bloomberg.com/apps/news?pid=206...id=abFClrv2Oqq8

I feel that you are so right on that, somebody posted a list the other day of government holdings of physical, wouldn't be a shock if the current paper currencies are destroyed by hyperinflation, to be replaced by a "New World" gold backed or percentaged backed currency.Dollar debt/bonds to be say rebased to 25000:1 to the "new" one. Just remind me who holds the most physical gold in the world, and who holds the most Dollar paper debt and least gold?

Regards

ML.

All this talk of levels and prices. Sod the levels/prices.

 

Gold is money. The ultimate form. Insurance. At the current time there is nothing else better.

What percentage of your investments are held in physical Gold?

Hope this isn't to personal a question?

Others please feel free to reveal your % Gold holding?

Regards

ML.

Guys thanks for those comments.Making a lot of sense.

 

One thing though with CFDs the minimum you can risk really is £2000 to open the trade.

 

about following the trend..yes..good thinking. I was basically not planning to pick the low but accept a downside before the upside. So buy in at 1000 and expect it to go down to 950, 900 at the extreme. Your comment made me think about that one so maybe I'll revise that plan and wait until there's a technical trend upwards.

 

About deflating assets..yes it going to happen and it is sensible to hold strong currencies/gold/solid defensive stocks and let nature take its course. So I'm only going to risk what I can tolerate. Yes i may have to bang my head against a wall a few times if I lose it all, but I won't be slashing my throat at that level.

 

Once again, many thanks.

 

Simon

Great idea and if it pays off well done.

I am buying in at a %base per month , but still reckon that it might see $780-980 RANGE before a strong move to the upside?

Who knows ? All I know is I can't think of a better place to put my savings into other than either a farm, which I CAN'T AFFORD AS YET Or Gold.

The plan is to double up untill the farm is affordable?

Holding a reasonably large balance of GBP when QE is going on dosn't make sense to me!

We are in strange times at the moment where debt is seen as good or promoted or protected by UK Government.

Even though I have been Frugal all my life, GBrown has just given me and every other tax payer a £100k overdaft! Yet I HAVN'T SEEN ANY BENEFIT YET.

I AM 80% CASH 20% GOLD Even though the gold POSITION/GBP is losing value, it feels safer than the cash, and I can't logically explain that!!!

Best of luck with your trades.

Regards

ML.