GOLD

[Bobsta]

Correct. BullionVault do gold only (so far), Goldmoney does silver and gold. I found the setup for BV more straightfoward than GM. Also, the transaction costs with GM are higher too at ~5% but it is convenient if you want silver.

I know we've kinda moved on from this and this is the gold thread... BUT... I recently enquired with BV as to whether they have any plans to provide services for silver. Response below:

Many thanks for your email. I'm afraid we don't know of anyone offering

a similar service to BullionVault's gold market for silver investment. We

don't currently plan to offer silver ourselves -- nor any other

industrial metal -- for three reasons:

 

*1). Storage Costs*

Silver is worth much less than gold by weight, currently around 1/50th

as much, and is less dense too. Professional bullion storage fees are

based to an extent on the space used up in the vault.

 

Silver storage is therefore much more expensive per unit of value -

typically seven to ten times the cost of storing gold.

 

*2). Tax*

In the UK silver attracts VAT at 17.5%.

 

Silver is primarily an industrial metal, rather than an investment or

even decorative metal. Even if you include purchases of commemorative

silver coins & medals, barely 11% of physical silver demand in 2006 was

for investment purposes, according to the /Silver Survey 2007/. The

lion's share went to industry (47%) and photography (16%).

 

*3). Market size and fit*

For private investors the cash-value of gold investment outweighed

silver investment more than 10 times over in 2006 (the latest full year

for data).

 

Total industrial demand for gold, meantime, accounted for just 13.5% of

total physical demand in 2006 according to the GFMS consultancy. That

compares with 63% of total silver demand.

 

We believe BullionVault is better suited to a monetary material than a

principally industrial material, and we believe it needs a minimum

threshold of activity to be worth implementing on BullionVault. Our

judgment is that it is below that level at the moment.

[ChrisP]

I am expecting a pullback shortly. Gold is so volatile at the moment and seems bound to repeat its erratic moves. Conventionally thinking, you would expect gold to settle down and stabilize after a period of volatility, therein building strength for new heights. Yet given the awful news in the stock markets, the continuation of soaring oil and political developments, I am not so sure whether it will settle.

 

I have decided to use all my dry powder this week. Sure, gold may dip, most probably will, and I will lose out on a few bucks, but the peace of mind of not having to worry about it is well worth a few bucks. For me, as a long term bull, the most important thing is to get in. Hoping to do the deal tomorrow or Friday. Also hoping gold dips very soon.

Likewise, after careful thought i think i'll be in again under 930. Just in case...

 

Probably shortly after NY opens.

[electroweak]

Question:

given gold's volatility of late, if i am considering selling some on BV and making a physical purchase in the real world, is it possible to cover the exposure for the time it takes to sell from BV and get the cash in hand with a spread bet or something?

 

Also, considering IG and other spreadbetters like to stop people out with random large price fluctuations not represented in the market, would they be a safe way for me to hedge the exposure between BV sale and physical purchase?

[wren]

Thanks for posting that BV email.

*1). Storage Costs*

Silver is worth much less than gold by weight, currently around 1/50th

as much, and is less dense too. Professional bullion storage fees are

based to an extent on the space used up in the vault.

 

Silver storage is therefore much more expensive per unit of value -

typically seven to ten times the cost of storing gold.

If true, it explains why GoldMoney is more expensive, but still pretty good value.

[Justin Thyme]

I'm not expecting gold to simply breeze through $950. Gold's correlation to the dollar is almost move for move at the moment and with the market already pricing the expected ECB rate hike into the greenback's price action, I'd expect the classic "sell the fact" activity to cause gold to chop around for a day or so. If, however, Italy, Spain and Ireland's bleating have softened Trichet's heart (unlikely, I know) and he leaves rates on hold, then I'd hazard a guess that all bets are off . . . but my GOD, I hope he hikes - it'd really cement his reputation as a cold, hard central banker !

[Justin Thyme]

I'm not expecting gold to simply breeze through $950. Gold's correlation to the dollar is almost move for move at the moment and with the market already pricing the expected ECB rate hike into the greenback's price action, I'd expect the classic "sell the fact" activity to cause gold to chop around for a day or so. If, however, Italy, Spain and Ireland's bleating have softened Trichet's heart (unlikely, I know) and he leaves rates on hold, then I'd hazard a guess that all bets are off . . . but my GOD, I hope he hikes - it'd really cement his reputation as a cold, hard central banker !

[wednesday2]

I've been wondering about this myself - thanks for asking. I wonder how many customers are using Gold Money just for silver, as I'm considering.

 

I know we've kinda moved on from this and this is the gold thread... BUT... I recently enquired with BV as to whether they have any plans to provide services for silver. Response below:

 

[electroweak]

I've been wondering about this myself - thanks for asking. I wonder how many customers are using Gold Money just for silver, as I'm considering.

Me. I use GM for Ag, and BV for Au.

Eggs, baskets, etc.

[azazel]

I know we've kinda moved on from this and this is the gold thread... BUT... I recently enquired with BV as to whether they have any plans to provide services for silver. Response below:

 

I spoke with Paul Tustain some time ago about silver and he said that he has been in huge warehouses packed full of silver and he doesn't see any shortage of the stuff.

[Pluto]

I spoke with Paul Tustain some time ago about silver and he said that he has been in huge warehouses packed full of silver and he doesn't see any shortage of the stuff.

 

I was in a petrol station chocked full of petrol this morning and a supermarket full of food later this afternoon. Fill ya boots with silver as well as gold.

[safebetter]

The DJIA is losing it.

 

 

Nice chart GF - DJ & $ are doomed

 

SafeBetter

[safebetter]

The Dow-Crash, The Dollar, Gold and WAR!

 

Interesting read, edging a bit towards NWO (New World Order) territory. Obviously no timescale, perhaps not even in our lifetime i.e. 50-100 years away?

 

Would kind of fit given talk of the Amero - still sometime off though IMHO

 

Gold news has gone extremely bullish again, two and three fold increases been punted about from various sources.

 

Interesting quote from Jim Sinclair, this train at stopping at the $1000 station!!!

 

"Dear Friends,

 

There are two subjects of extreme importance today.

 

I sent you an email months ago saying, “This Is It.”

 

1. I am now telling you, “It Is Now.”

 

Gold is preparing for an assault not on $1000, but for a brief penetration of $1200.

Violent chopping will occur, then off it goes to $1650.

 

This violent chop we have been living in here and now will resolve itself very soon and the take will be seen by history as having occurred in this last formation HERE AND NOW.

 

2. Where your juniors are concerned please give equal attention to the fundamentals before you make any decision. When beaten down, as they have been, think about gold at $1200 and $1650 coming sooner than anyone expected."

 

Wow!

 

SafeBetter

 

 

 

[wren]

I've been wondering about this myself - thanks for asking. I wonder how many customers are using Gold Money just for silver, as I'm considering.

Offering both is a major attraction of GoldMoney for me (I have accounts with both GM and BV).

 

One thing that just occurred to me concerns the relative percentage commissions. With GoldMoney the percentage on purchase is a lot higher but on selling it is zero. I'd have to check the percentages but it occurred to me that if for instance you buy, pay the commision (better than premiums on coins, anyway) and later when you sell the price has rocketed up, with GM the commision on selling is zero, unlike at BV where it is the standard (0.8%, or less if you're a big trader.)

 

I'll dig out the numbers to see how they compare.

 

[G0ldfinger]

I spoke with Paul Tustain some time ago about silver and he said that he has been in huge warehouses packed full of silver and he doesn't see any shortage of the stuff.

The question is whether there is 50-times more of this stuff than gold, as the price would suggest.

 

I doubt it.

[frizzers]

I believe it is possible to own allocated with silver with Bairds and not pay VAT, because you don' take delivery.

[cgnao]

I believe it is possible to own allocated with silver with Bairds and not pay VAT, because you don' take delivery.

 

In the UK that is only possible with unallocated silver.

 

Owning unallocated silver is an oxymoron. All you own is a piece of paper stating that the dealer owes you silver.

 

[G0ldfinger]

Silver has had enough and left the chart.

 

[frizzers]

ROFLMAO

[notanewmember]

what happens when silver moves $10-20 at a time? Will kitco have to have a scaled out graph??!!

[azazel]

I was in a petrol station chocked full of petrol this morning and a supermarket full of food later this afternoon. Fill ya boots with silver as well as gold.

 

I agree with you and have loaded up, filled the boots and boats. But that is what Paul Tustain thinks of silver so I cant see them doing silver. Maybe Platinum? But they busy enough with gold.

 

Paul Tustain seems a very nice guy if you ever get to talk with him. He answers the phones on the help number sometimes.

 

Im suprised gold hasn't shot up more on the sentiment of todays news.

[romans holiday]

Here is the link to Peter Schiff on CNBC squawkbox.

 

http://www.europac.net/Schiff-CNBC-7-1-08_lg.asp

[Justin Thyme]

Oops ! Apologies for multiple posts yesterday. Computer flipped out . . .

 

 

[marmite]

Here is the link to Peter Schiff on CNBC squawkbox.

 

http://www.europac.net/Schiff-CNBC-7-1-08_lg.asp

 

Thanks romans holiday

 

[electroweak]

Silver has had enough and left the chart.

 

I call these 'legend' days; for obvious reasons, plus the name kinda has a ring to it!!

[ologhai]

I call these 'legend' days; for obvious reasons, plus the name kinda has a ring to it!!

 

Leg-end days? Well, one things for sure: something's afoot.

 

Rearrange this well know phrase or saying: coat I'll my get.