GOLD

[G0ldfinger]

... So, credit cards are a banker's dream come true. The threat of bank runs by depositors has ended.

Yes, it's that simple. These people queueing at Northern Rock were totally unaware of this. Same thing with many of my colleagues. There shifting their money around like headless chickens, instead of buying the real stuff.

[G0ldfinger]

Going back to $850 one last time?

I think major buying comes in at $875-$880. But we'll see.

[G0ldfinger]

But there are now concerns that the Fed itself may be exhausting its $800bn (£399bn) stock of assets. It has swapped almost $300bn of 10-year Treasuries for questionable mortgage debt, and provided Term Auction Credit of $130bn.

 

"The steep rise in swap spreads this week is ominous," said John Hussman, head of the Hussman Funds. "The deterioration is in stark contrast to what investors have come to hope since March."

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

 

It's all going pear-shaped. Got gold?

[alexreeve]

Liquidity problem or solvency crisis?

 

The brain explodes; "What? Total Reserves in the banks are the same lousy $42 billion that they have always laughably been for the freaking last decade or so, but now Non-Borrowed Reserves are a negative $111.8 billion? Gaaaahhhh! It makes no sense! Don't make me crap in my pants out of horror!"

 

http://news.goldseek.com/RichardDaughty/1212040920.php

[drbubb]

Going back to $850 one last time?

 

Gold/GLD see chart

 

The volume on this drop is heavier than I would like to see,

 

It could slide all the way to $850, if we do not see a reversal before the day is out.

 

Oil's getting tired, as I suggested in the layest CW radio

[GTG]

Lehman Brothers took writedowns of just $200m on its $6.5bn portfolio of sub-prime debt in the first quarter even though a quarter of the securities had "junk" ratings, typically worth a fraction of face value.

 

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

 

This is taking creative accounting to the extreme in fact it is arguably criminal! The balance sheets and accounting statements (which investors and counterparties rely upon) of these institutions must be a total sham. Short them into the ground and which the PM's go to the sky

 

 

[Chubbs]

It's been a month since I posted some charts, so I thought I'd check them and see how far I was out :-)

 

http://www.greenenergyinvestors.com/index....amp;#entry37665

 

Updated below for 1 year and quarter:

I'm still aiming for channel break-out at around $840-850 - brought forward to mid-July from original prediction of July/Aug - with a potential low of $810-$820 in the next week or two.

 

Following Steve's link in post 633 about the theory of banks looking for the next pressure valve, if oil starts heading sharply down in 2-3 weeks and Gold's below $850 then I'm going in. If oil's still holding then I'm planning to wait til early July to see if Gold goes tests the $815.

 

It struck me earlier though - with PoG it going to shoot up as anticipated, why am I hanging on for this last 3-4% profit anyway?!? Is it bargain hunting, or greed?

[UNSHURE]

This is worse than even I ever could have imagined! House prices: -2.5% in one single month! -4.4% year on year already! CRASH & BURN. Keep in mind, we are only half a year into this crash!

 

 

http://www.bloomberg.com/apps/news?pid=206...&refer=home

 

The other week, Peru Saxena and Chris Waltzek (Goldseek radio) briefly discussed UK house prices. They were of the opinion that they will fall back to 1996 levels.

 

I can see something like this happening. There is 'too much' stacked up against house prices at the moment. A decade long downtrend with some sharp falls along the way is a serious possibility.

[Gatesy]

It struck me earlier though - with PoG it going to shoot up as anticipated, why am I hanging on for this last 3-4% profit anyway?!? Is it bargain hunting, or greed?

 

"Bottom Fishing" certainly not necessary if you have a long term unleveraged view.

[headmelter]

I've been reading this and various other boards for some time now and feel I'm ready to go.

I have £15k which I would like to invest initially and would like some advice on how and where to split it. Probably in the next week.

 

 

I thought £5k in coins would be a reasonable start from coininvest.com. The rest I haven't a clue about.

 

Links and suggestions appreciated.

 

[G0ldfinger]

The other week, Peru Saxena and Chris Waltzek (Goldseek radio) briefly discussed UK house prices. They were of the opinion that they will fall back to 1996 levels.

 

I can see something like this happening. There is 'too much' stacked up against house prices at the moment. A decade long downtrend with some sharp falls along the way is a serious possibility.

I can imagine nominal falls of 30%-50%. In terms of inflation-adjusted prices, we will surely see 1996 levels (see also my signature ).

 

 

I've been reading this and various other boards for some time now and feel I'm ready to go.

I have £15k which I would like to invest initially and would like some advice on how and where to split it. Probably in the next week.

 

 

I thought £5k in coins would be a reasonable start from coininvest.com. The rest I haven't a clue about.

 

Links and suggestions appreciated.

Yes, why not starting with the coins. A perfect dip to start buying now.

 

I only hold physical. I have coins, and store gold and silver with BullionVault and GoldMoney. For each 1 oz gold I hold around 50oz silver. To quote James Turk, if gold is like flying a B-747, silver is more like an F-14.

 

You've seen how it dropped from $1,030 to $860 or so. That's the kind of volatility you have to get used to.

[wren]

I'm not familiar with the board structure of the FED. But is this premature resignation by Mishkin a sign that some are feeling the heat?

Fed Governor Mishkin resigns effective August 31

<snip>

Mishkin said in a letter of resignation to President George W. Bush that he will return to his teaching post at Columbia University's Graduate School of Business in New York.

 

He joined the Fed board in September 2006 for a term ending in January 2014, but his family has remained in New York during his tenure.

 

"Rick's contributions to the intellectual underpinnings of monetary policy at the Federal Reserve have been invaluable," Fed Chairman Ben Bernanke said in a statement.

 

Mishkin's departure will leave the Fed's Board of Governors with three of its seven seats vacant. Bush has nominated two people to fill vacant spots and has tapped Gov. Randall Kroszner to serve a full 14-year term, but the Senate has not confirmed the nominations in an election-year standoff.

http://www.reuters.com/article/businessNew...lBrandChannel=0

[headmelter]

I can imagine nominal falls of 30%-50%. In terms of inflation-adjusted prices, we will surely see 1996 levels (see also my signature ).

 

 

 

Yes, why not starting with the coins. A perfect dip to start buying now.

 

I only hold physical. I have coins, and store gold and silver with BullionVault and GoldMoney. For each 1 oz gold I hold around 50oz silver. To quote James Turk, if gold is like flying a B-747, silver is more like an F-14.

 

You've seen how it dropped from $1,030 to $860 or so. That's the kind of volatility you have to get used to.

 

 

I think I'm ready for gold, the silver I'm not so sure about.

 

I,ve looked at bullionvault but not goldmoney, is there any difference?

[BelfastBoy]

I think I'm ready for gold, the silver I'm not so sure about.

 

I,ve looked at bullionvault but not goldmoney, is there any difference?

Bullion Vault deal only in gold and their costs are lower. It is possible to trade on their website as the spreads are quite low - if you feel lucky. They are also easier to open an account with, in my experience.

 

Though, I also have a Goldmoney account for silver.

 

I use Chards for coins. Others also use Bairds, ATSbullion and coininvestdirect.

 

I'm fairly new to all this. But am happy to know, that a real tangible asset belongs to me. Though the drops can be a wee bit scary.

 

Good luck,

 

BB

[dietcolaaddict]

I thought £5k in coins would be a reasonable start from coininvest.com.

There's better experts around here than myself but here is a few starters, from my experiences with coins

(anyone have a different experience, please let me know, buying coins can be a lonely experience):

 

+Gold coins have a lower dealer spread than silver coins and are also VAT exempt upon purchase.

 

+Silver price is more volatile than gold - risk vs benefit according to your personal circumstances.

 

+Hiding £5k or £10k of gold bullion in your house is easy, the same amount of silver is less so.

 

+You can sell your gold coins for circa spot value, but you buy them at a coin premium: Krugerrands have the lowest coin premium but are butt ugly if aesthetics is your thing. Smaller coins (1/2, 1/10 oz etc.) have a higher coin premium.

 

+Britannias and Sovereigns are very pretty and are also UK legal tender so are exempt from Capital Gains tax, means-tested declarations of income and savings, border customs declarations (within limits), inland revenue notification by a bullion dealer below 10K etc. etc.

 

+Krugs, Brits and Sovs are 22 carat gold, and are tough and knock resistant. 24 carat coins (e.g. .9999 Canadian maple) are really soft and easy to scratch or worse carry the risk of being purchased in a scratched or damaged state by a novice. This reduces their value.

 

+New edition coins (i.e. 2008) carry a higher coin premium on purchase because of collector demand, but this counts for little on selling them back to the dealer who will only offer around spot.

 

+Dealers like you to keep your receipts of old purchases. Knowing a dealer face to face can get you a better deal (i.e. older edition coins at less premium)

 

[Compounded]

Yes, why not starting with the coins. A perfect dip to start buying now.

 

I only hold physical. I have coins, and store gold and silver with BullionVault and GoldMoney. For each 1 oz gold I hold around 50oz silver. To quote James Turk, if gold is like flying a B-747, silver is more like an F-14.

 

You've seen how it dropped from $1,030 to $860 or so. That's the kind of volatility you have to get used to.

 

I am totally conviced by the fundamentals too.

 

Bad times always in the past have been good for gold and the biggest ever credit bubble is bursting now.

 

Peak oil may be hitting now - i am not sure the price rises now are peak oil - it may be dollar flight.

 

But peak oil will come soon and when it does all hell will happen.

 

BTW the B as a prefix is used for a bomber the biggest is the B52 (B53 and B54 were types of hydrogen bombs)

 

Comercial airliners are known by manufacturers name eg Boeing 747

 

The F is for fighter the F16 is an example.

 

I too started with gold coins sovs and krugs then a collection of various coins, it got so i did not feel safe with so much at home and i started saving with gold money.

[G0ldfinger]

...

I thought £5k in coins would be a reasonable start from coininvest.com. The rest I haven't a clue about.

...

REAL money.

 

 

[dietcolaaddict]

High oil prices, high food prices, rising inflation and house price falls are all mentioned in the first 10 minutes of BBC Question time!

The UK public are awake.

 

The electorate, through necessity, are becoming more and more interested in economics. "Commodity bubble" or "Extra demand from china", and "peak oil", already introduced to the debate by the invited members of the public.

 

Now why is gold falling in price?????

 

[Compounded]

High oil prices, high food prices, rising inflation and house price falls are all mentioned in the first 10 minutes of BBC Question time!

The UK public are awake.

 

The electorate, through necessity, are becoming more and more interested in economics. "Commodity bubble" or "Extra demand from china", and "peak oil", already introduced to the debate by the invited members of the public.

 

Now why is gold falling in price?????

 

Its the last resort when you need to protect wealth.

 

Most people are nowhere near seeing a major problem IMHO when they do gold will do well.

 

I think we are early - the rises since Browns bottom were just a correction fron a truly stupid low.

[azazel]

REAL money.

 

 

 

The Britannia's are by far the best design, especially as there are various ones of different years. The maples appeal to me as they are 9999 and the Krugerrands are, well, third.

 

The silver version of that Britannia is nice with a satin silver surround.

[dietcolaaddict]

REAL money.

Miss World

Miss Canada

Miss Clacton-on-sea (reserve)

[headmelter]

The Britannia's are by far the best design, especially as there are various ones of different years. The maples appeal to me as they are 9999 and the Krugerrands are, well, third.

 

The silver version of that Britannia is nice with a satin silver surround.

 

 

The silver Brittannia doesn't seem to be available on coininvest at the minute. Any reasons why?

[azazel]

The silver Brittannia doesn't seem to be available on coininvest at the minute. Any reasons why?

 

I will ask Sonia at Coininvestdirect.com and find out why not. ATS seem to sell them for about £20 each. I bought mine on ebay for less than £15.

[qwerty]

The silver Brittannia doesn't seem to be available on coininvest at the minute. Any reasons why?

 

 

They have never had any in over 14months don't know why.

 

 

Compounded how did your SIPP transfer go.

 

Not talked about here but it is a way to buy Gold with a great discount from the Goverment.

 

What were the charges etc if you don't mind me asking.Was it a painless process?.

[headmelter]

REAL money.

 

 

 

 

Just thought I'd let you know I made post No 10,000 on the Gold thread over on hpc.