DoctorSolar Posted February 3, 2011 Report Share Posted February 3, 2011 So, GBP 817 was possibly the bottom. Could be... got more buy orders under this just in case though. The gold mining stocks seem to be leading the way out of this "correction" which is usually a good sign. Folks don't bid up the gold stocks if they think gold is going down. Link to comment Share on other sites More sharing options...
shawth Posted February 3, 2011 Report Share Posted February 3, 2011 Looks like it might have been. Quite a jump up today. Did not cash out at the peak and was almost lamenting the money I never collected even though I consider myself to be a long term physical holder. Having 'lost' 30K in the last month it is reassuring that I was likely right in not losing my nerve... I won't call the bottom until the SPX has corrected. However, I have been buying gold recently as you never know the future with certainty. There is a possibility the spx could grind sideways to burn off excessive complacency, but I think it is far more likely it will correct and bring gold down with it. As Gold is at its 200 dma, then I would only expect a max 5% drop in gold. Silver could easily correct another 10-20% from these levels. The bottom isn't necessrily in yet! Link to comment Share on other sites More sharing options...
narrowescape Posted February 3, 2011 Report Share Posted February 3, 2011 Think we need to measure wealth in ounces, not 'k'. On which measure (that i fully understand) I'm as wealthy as I was since I stopped buying some time back. Is only human though to look at 'numbers' from time to time though Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 3, 2011 Author Report Share Posted February 3, 2011 http://jsmineset.com/2011/02/03/hourly-act...trader-dan-401/ Open interest finally stopped declining according to the data released by the exchange this morning. Although the increase was minimal, it stopped going down and that is what is so significant. It sure looks as if the wholesale long side liquidation has come to an end. Based on the price action today, that appears to have now been confirmed. Keep in mind we are down to levels of overall hedge fund net long-side exposure last seen when gold was trading at $920. There is no froth whatsoever left in the gold market... Link to comment Share on other sites More sharing options...
narrowescape Posted February 3, 2011 Report Share Posted February 3, 2011 I won't call the bottom until the SPX has corrected. However, I have been buying gold recently as you never know the future with certainty. There is a possibility the spx could grind sideways to burn off excessive complacency, but I think it is far more likely it will correct and bring gold down with it. As Gold is at its 200 dma, then I would only expect a max 5% drop in gold. Silver could easily correct another 10-20% from these levels. The bottom isn't necessrily in yet! I agree. My wealth in ounces in unchanged since Jan 2009. The nominal value in turdling could well drop further from here but I would not be as well protected as I have been had I not chosen to start protecting my wealth in real money when I did, and if I had responded in a knee jerk fashion to every negative fluctuation in turdling terms. Link to comment Share on other sites More sharing options...
fitkid Posted February 3, 2011 Report Share Posted February 3, 2011 You don't think there will be mania just before the hyperinflation starts as it becomes more and more obvious what is going to happen, I do. True in the final stages of hyperinflation you won't be able to buy it, but I think the mania will start before then. I see a phase were the public (sheeple) will be aware of the destiny of 'FIAT' i see that as a mass awakening and a run for tangible assests.i wouldnt describe that as a bubble but more like a return to honest money and natural law exerting its effects. We have all been 'DUPED' by mass propoganda and the 'MONEY SCIENTISTS' this is the culmination of this cycle in our momment of history.Some have woken up relatively early to this charade and taken what they feel is appropriate action. Gold will be used to back a universal currency to get it off the ground and then will be debased and debased all over again. People are suckers and will buy this crap like they've bought every other load of nonsense that has been thrown at them. History repeating itself again and again beautifully. "THERE AINT NOTHING NEW UNDER THE SUN." Link to comment Share on other sites More sharing options...
electroweak Posted February 3, 2011 Report Share Posted February 3, 2011 On which measure (that i fully understand) I'm as wealthy as I was since I stopped buying some time back. Is only human though to look at 'numbers' from time to time though Agreed, I'm only poking a bit of fun. They just said "QE3" on Bloomberg.... Link to comment Share on other sites More sharing options...
DoctorSolar Posted February 3, 2011 Report Share Posted February 3, 2011 The bottom isn't necessrily in yet! Indeed hence the use of the phrases "Could be" and "might have been". No one here is pronouncing anything but possibilities. That's precisely why I buy weakness and continue to buy further weakness rather than a single price point plop. Link to comment Share on other sites More sharing options...
fitkid Posted February 3, 2011 Report Share Posted February 3, 2011 TAX Do people realise that if you are based in the UK and you invest in gold sovereigns. You are not liable for capital gains tax on this investment. So if you make £100,000 on your coin investment then you keep the lot. If you choose to invest in shares or an ETF then you are liable for the tax and you only get to keep 72,000 and you have to give the rest to the treasury. For me this is a major reason not to invest in shares. You have a 28% head start over any share investment. I don't think people are aware of this tax free perk. That is a huge reason for anyone in the uk to buy physical sovs. But i would'nt be suprised to see the tax exemption removed and even applied retrospectively. They will be trying to squeeze tax out of every orifice likely to yield any as we move forward you can see it happening already in various sectors dont become soft easy picking's for these criminals. TAKE POSSESION AND SECURE IT YOURSELF.!!! Link to comment Share on other sites More sharing options...
shawth Posted February 3, 2011 Report Share Posted February 3, 2011 Indeed hence the use of the phrases "Could be" and "might have been". No one here is pronouncing anything but possibilities. That's precisely why I buy weakness and continue to buy further weakness rather than a single price point plop. Fair enough. I was just making the point that on balance of probabilities, with the spx levitating, we could easily see further weakness which is slightly more bearish stance than the more bullish assesment that the bottom might have already been in. But I am probably splitting hairs as it seems we are all in violent agreement! Link to comment Share on other sites More sharing options...
DoctorSolar Posted February 3, 2011 Report Share Posted February 3, 2011 But I am probably splitting hairs as it seems we are all in violent agreement! indeed Link to comment Share on other sites More sharing options...
narrowescape Posted February 3, 2011 Report Share Posted February 3, 2011 Agreed, I'm only poking a bit of fun. They just said "QE3" on Bloomberg.... Just 3 announced so far? I'm sure they must have dates set all the way out to QE7, even if they're not broadcasting them yet. After all, the first two worked so well, it would be positively negligent not to push more of them out to create more 'wealth' for everyone Link to comment Share on other sites More sharing options...
narrowescape Posted February 3, 2011 Report Share Posted February 3, 2011 That is a huge reason for anyone in the uk to buy physical sovs. But i would'nt be suprised to see the tax exemption removed and even applied retrospectively. They will be trying to squeeze tax out of every orifice likely to yield any as we move forward you can see it happening already in various sectors dont become soft easy picking's for these criminals. TAKE POSSESION AND SECURE IT YOURSELF.!!! Do you know of any retrospectve tax laws? The current law is that any gold that is UK currency at the time of sale or purchase (i.e sovs or brits) is exempt from CGT at the point of sale. Would have to be very retrospective to catch people who already have those coins in their possession. Do you see that change happening realistically ? Link to comment Share on other sites More sharing options...
azazel Posted February 3, 2011 Report Share Posted February 3, 2011 TAX Do people realise that if you are based in the UK and you invest in gold sovereigns. You are not liable for capital gains tax on this investment. So if you make £100,000 on your coin investment then you keep the lot. If you choose to invest in shares or an ETF then you are liable for the tax and you only get to keep 72,000 and you have to give the rest to the treasury. For me this is a major reason not to invest in shares. You have a 28% head start over any share investment. I don't think people are aware of this tax free perk. You do not even have to declare anything about sovereigns. So you still get the cgt allowance on top of that. Link to comment Share on other sites More sharing options...
Perishabull Posted February 4, 2011 Report Share Posted February 4, 2011 Any of you folks follow expected returns blog? The writer is pretty shrewd IMO. It's a gold centric blog with comment on the macro picture, here's the latest. Civil Unrest= Gold Bottom? Gold is finally showing some signs of life with a huge spike earlier in the day. The dollar is also rising, which leads me to believe this is a flight to safety as the situation in Egypt deteriorates. All signs are pointing towards a major clash on Friday. If gold pops again on major unrest, it may be time to hop on board. Quickly spreading social unrest, especially in the Middle East where gold is favored, will be very gold positive. Note however that both gold and the dollar were oversold on a short-term basis, so a wait-and-see approach before getting overly aggressive is still valid. It is still unclear whether this is an oversold bounce or something more substantial. Nonetheless, I’ll add on every test of $1345-$1350 and $1320. The next major level of resistance is the 50-day moving average, which sits at about $1375... Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 4, 2011 Author Report Share Posted February 4, 2011 http://jsmineset.com/2011/02/03/in-the-news-today-771/ The majors must buy qualified juniors. They have never been successful explorers. Reserves the majors hold have hit a plateau or are on the decline Have a look at this deal which is a blueprint for many to come. Compare this blueprint to your holdings. Newmont to buy Canada’s Fronteer Gold for C$2.3 bl Thu Feb 3, 2011 3:01pm EST By Steve James and Pav Jordan NEW YORK/TORONTO, Feb 3 (Reuters) – Newmont Mining Corp (NEM.N) has agreed to buy Fronteer Gold Inc (FRG.TO) for C$2.3 billion ($2.3 billion), extending its presence in the western United States as bullion prices hover near record highs. Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 4, 2011 Author Report Share Posted February 4, 2011 Bought some more. Averaging in with the SIPP. Link to comment Share on other sites More sharing options...
safebetter Posted February 4, 2011 Report Share Posted February 4, 2011 That is a huge reason for anyone in the uk to buy physical sovs. But i would'nt be suprised to see the tax exemption removed and even applied retrospectively. They will be trying to squeeze tax out of every orifice likely to yield any as we move forward you can see it happening already in various sectors dont become soft easy picking's for these criminals. TAKE POSSESION AND SECURE IT YOURSELF.!!! Physical can present other issues if you ever want to swap assets. An additional option is something like holding or trading a shares ISA. On the recent dip I bought back 22% more shares than I had, you can do that at least once a year. You never lose until you sell - don't lose your head or shirt...... However you can't beat physical in ones hand, but remember a gold bugs portfolio should be balanced - in all things shiny of course!!! SafeBetter Link to comment Share on other sites More sharing options...
hockeyplayer Posted February 4, 2011 Report Share Posted February 4, 2011 Physical can present other issues if you ever want to swap assets. An additional option is something like holding or trading a shares ISA. On the recent dip I bought back 22% more shares than I had, you can do that at least once a year. You never lose until you sell - don't lose your head or shirt...... However you can't beat physical in ones hand, but remember a gold bugs portfolio should be balanced - in all things shiny of course!!! SafeBetter This is my point exactly. when you go down the isa route you are getting locked in. you'll never sell. and if you do, your gonna lose 28%. Your shares have to perform 28% better than gold for you to make any headway! That a pretty big handicap. Just buy the soverigns, balance your portfolio between physical gold and physical silver thats enough balance. forget the shares and isa nonsense. they're just a big con. a big con with a huge tax handicap dragging you down. In the event of a hyperinflation it will be pretty easy to make 100,000 as inflation picks up these figures will become "small" in real terms. so any tax free allowance will become small fry and meaningless Link to comment Share on other sites More sharing options...
Pixel8r Posted February 4, 2011 Report Share Posted February 4, 2011 Double post Gold Imports by China Soar Almost Fivefold as Inflation Spurs Investment By Bloomberg News - Dec 2, 2010 9:55 AM GMT China’s gold imports jumped almost fivefold in the first 10 months from the entire amount shipped in last year as concern about rising inflation increased its appeal as a store of value, said the Shanghai Gold Exchange. Imports gained to 209 metric tons compared with 45 tons for all of 2009, Shen Xiangrong, chairman of the bourse, told a conference in Shanghai today. China, the world’s largest producer and second-biggest user, doesn’t regularly publish gold-trade figures and rarely comments on its reserves. Bullion soared 27 percent this year as the dollar dropped on concern that the trillions of dollars governments are pumping into the global economy may debase the value of currencies. China has pledged to use price controls and may raise interest rates a second time this year to slow inflation that has gained to the highest level since 2008... Link to comment Share on other sites More sharing options...
callaght Posted February 4, 2011 Report Share Posted February 4, 2011 Bought some more. Averaging in with the SIPP. Do you do this through ETF's? If so, which ones? Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 4, 2011 Author Report Share Posted February 4, 2011 Do you do this through ETF's? If so, which ones? No. You can do it with BullionVault and GoldMoney. Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 4, 2011 Author Report Share Posted February 4, 2011 Gold today still cheaper than 2.5 years ago. http://gold.approximity.com/since1970/Gold..._Price_LOG.html Link to comment Share on other sites More sharing options...
G0ldfinger Posted February 4, 2011 Author Report Share Posted February 4, 2011 Volume is boring too. http://gold.approximity.com/since1999/LBM_Gold_Turnover.html Link to comment Share on other sites More sharing options...
andrew Posted February 4, 2011 Report Share Posted February 4, 2011 This is my point exactly. when you go down the isa route you are getting locked in. you'll never sell. and if you do, your gonna lose 28%. Your shares have to perform 28% better than gold for you to make any headway! That a pretty big handicap. Just buy the soverigns, balance your portfolio between physical gold and physical silver thats enough balance. forget the shares and isa nonsense. they're just a big con. a big con with a huge tax handicap dragging you down. In the event of a hyperinflation it will be pretty easy to make 100,000 as inflation picks up these figures will become "small" in real terms. so any tax free allowance will become small fry and meaningless Huh.............. It is my understanding any capital gains made on investments held in an ISA are exempt from capital gains tax and the income from ISA investments is exempt from income tax, however the tax credits on any dividends are not reclaimable. ISA's seem a reasonable way to buy shares or ETF's. Where does the 28% loss come from ? EDIT :- Don't get me worng, buying soverigns has big advantages as well ! Link to comment Share on other sites More sharing options...
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