Jump to content

Recommended Posts

Or again, buy some US dollars and then use the volatility between it and gold. Only with a smaller percentage of your position of course. Also easily done on goldmoney.

 

Also doing that would involve larger fees when you buy back in.

 

 

Link to comment
Share on other sites

  • Replies 30.9k
  • Created
  • Last Reply

Top Posters In This Topic

  • G0ldfinger

    2616

  • romans holiday

    2235

  • drbubb

    1478

  • Steve Netwriter

    1449

Also doing that would involve larger fees when you buy back in.

Have I got this right? You can sell gold for dollars at the spot price without a fee. You can then re-buy gold for a commission of 2.5% above spot.

 

Is that correct?

 

[i would be using the second range above US $10,000]

 

So on a move of say 10- 12 % in POG it would be quite profitable [if accumulating ounces of course].

Link to comment
Share on other sites

Have I got this right? You can sell gold for dollars at the spot price without a fee. You can then re-buy gold for a commission of 2.5% above spot.

 

Is that correct?

 

[i would be using the second range above US $10,000]

 

So on a move of say 10- 12 % in POG it would be quite profitable [if accumulating ounces of course].

 

Correct.

 

Bit risky IMO - any profits you make in gold could easily be wiped out whilst the $ falls and gold moves even higher...

 

Link to comment
Share on other sites

Correct.

 

Bit risky IMO - any profits you make in gold could easily be wiped out whilst the $ falls and gold moves even higher...

 

Thanks.

 

Am aware of the risks, was more just making sure of the mechanics.

 

 

As for the wider factors involved, I think:

 

1] Reflation will not take effect/ monetary inflation will be neutralized for quite some time. Economies, asset prices and certain currencies will continue to deflate [inflation in consumer goods now only reflects currency depreciation].

 

2] Remaining volatile, POG in the US dollar will track sideways within a wide range for some time. Effectively, they will battle it out for safe haven status.

 

3] Gold will ultimately win this battle as the US dollar finally depreciates. We will only then, in the US, see massive inflation in all prices; asset classes as well as consumer goods [in other countries we would have already seen inflation in consumer goods reflecting the depreciation of currencies, what we are seeing now imo]

 

 

The above strategy is based on my theory of hyper-deflation.

Of course, I could be utterly wrong especially in the timing [rogue waves/ black swans etc] which is why I will only pursue this strategy with a smaller percentage of my holding. :)

Link to comment
Share on other sites

Whats the opinions on mining shares? The best time to buy was october/november but arethey still good buys? Which one do you like?

I will spend the next few months getting some dry powder together. There could be a rally in all stocks, with also another decent crash in them at a later date.

 

imo that would be a good time to get in then. I will go for the biggest names and senior producers like Yamana, Silver Wheaten, etc. Perhaps later on get into some juniors.

Link to comment
Share on other sites

Have I got this right? You can sell gold for dollars at the spot price without a fee. You can then re-buy gold for a commission of 2.5% above spot.

 

Is that correct?

 

[i would be using the second range above US $10,000]

 

So on a move of say 10- 12 % in POG it would be quite profitable [if accumulating ounces of course].

 

Yes that is true, you sell at spot with no commission applied.

 

If you swapped silver to gold the fee would be 0.78%. The gold to silver would be 1.75%, on the lowest commission rate.

 

 

 

Link to comment
Share on other sites

Whats the opinions on mining shares? The best time to buy was october/november but arethey still good buys? Which one do you like?

 

October was the time for some of the majors & mid tier ones, but some of the juniors still have to move. Here's a few that I have been buying over the last month.

 

pphp-1.gifp-2php.gifp-1php.gif

 

 

 

Link to comment
Share on other sites

Why not just swap metals using the Gold to Silver ratio as a guide. Then you get to play the market and stay in metal, rather than paper. The commissions on exchanging metal are a lot less than swapping paper to metal.

 

Good idea if you're happy to play this ratio - but I'm wary of silver! Already got 4:3 ratio of G to S... don't want to be caught holding too much silver. F'd up last July by missing my stops on a big temp' silver play (no frikin internet for a week!) and decided to not trade any more silver bullion since then...

 

Was thinking about $/gold trade - doubt if I'll do it over next few months.

Link to comment
Share on other sites

Up up and up. I'm obviously still gently kicking myself that I offloaded a my ETF gold at 610 £ or thereabouts. However, I'm enjoying the ride on up with my remaining stash in BV and have made good money out of the OIH and other oil stocks I bought when we sold the Gold ETF.

 

I'm not doubting the longer term trajectory of gold is upwards, but when do people think this immediate market will pause for breath?

 

I've some more powder arrived and am looking keenly at the oil and mining stocks as well as gold. We've seen a nice little run recently on oil and gold mining stocks, but experience has told me not to pile in when things are going up fast and one is panicking one will miss the boat.... witness my classy timing on silver ETFs last year (only now returned to the black) and Silver Wheaton (only back in the black thanks to some aggressive buying when they had dropped by 70%.... However, if we've still got a few more weeks to go.

Link to comment
Share on other sites

Gold seems to want to find new highs in GBP again today, £661 and rising.

 

Sorry I couldn't help myself with this one...

 

3227048320_268ab4bb43.jpg

 

I had no idea what the dandelion leaves meant, so you forced a google upon me. :rolleyes:

 

"There is an engaging legend about the origin of the dandelion. Centuries ago, a miser found a pot of gold. He decided to bury it where no one else would find it. He took the gold home, placed it in a sack and went to bed. During the night a mouse gnawed a hole in the sack. The next morning the miser took the sack into the woods to bury it. He was unaware of the hole in the sack and the gold dropped out, coin by coin. When the miser realized this he retraced his steps, intending to pick up the gold coins. However, he found that the coins had been turned into beautiful yellow flowers and were rooted to the ground. The wood sprites had overheard his plan to bury the gold and to punish him for his selfishness they had turned the gold into dandelions for everyone to enjoy and share."

 

Is this why ?

Link to comment
Share on other sites

I had no idea what the dandelion leaves meant, so you forced a google upon me. :rolleyes:

 

"There is an engaging legend about the origin of the dandelion. Centuries ago, a miser found a pot of gold. He decided to bury it where no one else would find it. He took the gold home, placed it in a sack and went to bed. During the night a mouse gnawed a hole in the sack. The next morning the miser took the sack into the woods to bury it. He was unaware of the hole in the sack and the gold dropped out, coin by coin. When the miser realized this he retraced his steps, intending to pick up the gold coins. However, he found that the coins had been turned into beautiful yellow flowers and were rooted to the ground. The wood sprites had overheard his plan to bury the gold and to punish him for his selfishness they had turned the gold into dandelions for everyone to enjoy and share."

 

Is this why ?

 

Its rocket lettuce mate........

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...