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Does keeping your assets in PMs damage your credit rating?

 

I'm currently taking advantage of a local rental market slump to move to a cheaper flat but the letting agents have said my credit rating has come back as poor :angry:. I've never missed a bill of any sort for years, always paid off credit cards pronto, earn (net) earning over 8x the annual rent, have a years rent in cash-ISAs (my only exposure to poisonous sterling) :blink: .

 

Is it the untraceable sums disappearing from my current account to fund PMs that are denting my credit rating?

(For the record I keep physical gold bullion and allocated silver through GM)

Your credit rating may be affected because you don't have / never had a mortgage. It may also be because of where you have moved to. I see you have left sunny MK behind and gone up the road.

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ponzi scheme alert.....

 

have you all read the small print? ;)

 

i have.

 

and to the other guy -

Description: King George V last circulating type gold sovereign, minted 1911-1925

Quality: Exemplary - similar to that shown

Weight: 8 grams

Size: 22mm diameter

Metal alloy: Gold, 22 carats pure (.9167)

Obverse (portrait) designer: Bertram Mackennal

Reverse (St.George) designer: Benedetto Pistrucci"

 

- thats what a real sovereign is!

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Regarding the London Mint Office coins...

 

You are not buying a normal Sovereign here folks;

 

"Specifications

 

Description: King George V last circulating type gold sovereign, minted 1911-1925

Quality: Exemplary - similar to that shown

Weight: 8 grams

Size: 22mm diameter

Metal alloy: Gold, 22 carats pure (.9167)

Obverse (portrait) designer: Bertram Mackennal

Reverse (St.George) designer: Benedetto Pistrucci"

 

These are metal alloy with 91.67% gold not the 99.99% or whatever you normally get

 

Normal sovereigns are 22k, pure gold is too soft and would wear out too fast to be used for a circulating coin.

 

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Regarding the London Mint Office coins...

 

You are not buying a normal Sovereign here folks;

 

"Specifications

 

Description: King George V last circulating type gold sovereign, minted 1911-1925

Quality: Exemplary - similar to that shown

Weight: 8 grams

Size: 22mm diameter

Metal alloy: Gold, 22 carats pure (.9167)

Obverse (portrait) designer: Bertram Mackennal

Reverse (St.George) designer: Benedetto Pistrucci"

 

These are metal alloy with 91.67% gold not the 99.99% or whatever you normally get

But sovereigns are 91.7% gold.

Technical Specifications

Modern Sovereigns

For all modern gold sovereigns, i.e. from 1817

Diameter: 22.05 mm.

Thickness (Depth) 1.0 to 1.4 mms.

Weight: 7.9881 grams.

Alloy: 22 carat gold = 0.917 parts per 1000.

Actual gold content = 7.3224 grams or 0.235421 troy ounces.

Date first issued in current format: 1817

http://www.goldsovereigns.co.uk/technicalspecs.html

 

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I was sceptical about the coin thing but its easy to apply on line, no payment required up front and no commitment. They relying on the suckers who dont cancel.

 

Action time? Assult on $950?

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One might expect there to be quite a few automatic buy orders set up for USD 950. If so, we'll see that kick in and cause a price jump this pm

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One might expect there to be quite a few automatic buy orders set up for USD 950. If so, we'll see that kick in and cause a price jump this pm

...or sell orders at 949? :(

 

 

...which once triggered, will not get in the way on a second attempt at 950! :)

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Posting threads on HPC which are articles about the economy but point to gold. Gerald Celente thread recommends buying gold. Gold threads by stealth hehehe

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Is anyone thinking of "profit taking" to get their CGT allowance for the year?

 

If we get a decent move up over the next 12 weeks, do you think gold will go quiet for the summer? The "sell in May and go away" thing? Or do you think it depends on the situation on the ground at the time?

 

These are the things that trouble me.......

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It's broken through $950. But why aren't the miners rallying? Oil down, gold up - they should be flying but they are all pretty much down. I wonder if they are being dragged down by the Dow or whether this is a sign of a forthcoming pullback?

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Diet Cola Addict,

 

I suspect your credit rating is poor for the same reason mine is: you don't have enough debt. As I understand it, these numpties work out your credit rating by reference to how much debt you've taken on and successfully repaid [note: in this case I don't think repaying a loan early counts as 'successful' as you've 'diddled' the lender out of anticipated profits]. What they want to see if people with lots of debt paying it off according to, but not ahead of or behind schedule.

 

I'd never had a credit card, paid off a mortgage after four years (STR'd) and had an abominable credit rating a while ago despite having a very healthy savings stash and no debt. I've never taken a loan other than my one mortage. In pre-crunch terms this meant I was unknown ergo a credit risk.

 

I'm hoping that, in the near future, people might see this differently!

 

You might find that putting your daily spending on a credit card and paying it off monthly helps your credit rating. [Although you may find being forced to do this, like me, objectionable].

 

Wanderer

 

Yep its a weird situation, the way credit scoring works filters out people who are low debt/low risk, whereas morons who borrow to buy things are considered a good credit risk. The market signals are broken, hence the financial crisis.

 

Its like if a religion were determining who is a sinner, if you have committed no sins then you do not need to confess, but because you have not confessed you are a sinner. If you go to confess on a regular basis you are considered absolved of your sins because you have asked for forgiveness.

 

When I was a child I attended a catholic school, it was OK but there came a point where we had to go to confession, being only young and reasonably well behaved I had nothing to confess to, but I felt obliged to confess to something after being put in one of those confession boxes. I made some minor offenses up (stole a biscuit, swore, etc..) and then also confessed to lying, which I wouldn't have had to do if I had not been made to go to confession.

 

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what's that then? :D

That would be the "central govenment threat" tax. Seriously, might come in handy when negotiating if you get caught.

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Yep its a weird situation, the way credit scoring works filters out people who are low debt/low risk, whereas morons who borrow to buy things are considered a good credit risk. The market signals are broken, hence the financial crisis.

 

Its like if a religion were determining who is a sinner, if you have committed no sins then you do not need to confess, but because you have not confessed you are a sinner. If you go to confess on a regular basis you are considered absolved of your sins because you have asked for forgiveness.

 

When I was a child I attended a catholic school, it was OK but there came a point where we had to go to confession, being only young and reasonably well behaved I had nothing to confess to, but I felt obliged to confess to something after being put in one of those confession boxes. I made some minor offenses up (stole a biscuit, swore, etc..) and then also confessed to lying, which I wouldn't have had to do if I had not been made to go to confession.

Thanks for the insight everyone!

 

This idea that 'debt is normal' is going to bring down the country. I'm off to become a better UK citizen by signing up to a 125% self-cert mortgage on a newbuild, and splashing out on a 4x4 chavmobile (on visa of course!):blink: .

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Is gold transitioning to become money?

http://cij.inspiriting.com/?p=624

 

Please read in full, but a few points:

 

Property is definitely a loser because it is highly geared asset class. Since business and personal solvencies will be threatened en masse in a debt deflation, highly geared assets will be falling rapidly in prices. Rising price inflation of inelastic non-discretionary goods will worsen the solvency situation of many.

 

But one thing is certain: uncertainty and unpredictability will rule the day. As a result, physical gold (and silver) is the only asset class that can give you a sense of security. In such a day, the nominal price of gold is irrelevant.

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I find this projection from Jordan Roy-Byrne for the next 2 years quite plausible:

roy-byrne021209c.gif

 

So, he projects an early March peak, a pull back to about $860, then summer doldrums followed by an autumn take-off. He's targeting $2087 in 2 years' time.

 

Article:

http://www.gold-eagle.com/editorials_08/roy-byrne021209.html

 

That's a really interesting article, thanks :D

 

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who's going to win the battle

 

http://www.drschoon.com/articles/DavosDebtAndDenial.pdf

 

There is perhaps no better description of the central banks strategy than the following

excerpt from Peter Warburton’s April 2001 essay, The Debasement Of World Currency--

It Is Inflation But Not As We Know It:

Central banks are engaged in a desperate battle on two fronts

What we see at present is a battle between the central banks and the collapse of the

financial system fought on two fronts. On one front, the central banks preside over the

creation of additional liquidity for the financial system in order to hold back the tide of

debt defaults that would otherwise occur. On the other, they incite investment banks and

other willing parties to bet against a rise in the prices of gold, oil, base metals, soft

commodities or anything else that might be deemed an indicator of inherent value. Their

objective is to deprive the independent observer of any reliable benchmark against which

to measure the eroding value, not only of the US dollar, but of all fiat currencies.

Equally, their actions seek to deny the investor the opportunity to hedge against the

fragility of the financial system by switching into a freely traded market for non-financial

assets.

[Note: Warburton’s explanation of central bank strategy is important, to wit: “Their

objective is to deprive the independent observer of any reliable benchmark against which

to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally,

their actions seek to deny the investor the opportunity to hedge against the fragility of the

financial system by switching into a freely traded market for non-financial assets.”]

It is important to recognize that the central banks have found the battle on the second

front much easier to fight than the first. Last November, I estimated the size of the gross

stock of global debt instruments at $90 trillion for mid-2000. How much capital would it

take to control the combined gold, oil and commodity markets? Probably, no more than

$200 billion, using derivatives. Moreover, it is not necessary for the central banks to fight

the battle themselves, although central bank gold sales and gold leasing have certainly

contributed to the cause. Most of the world’s large investment banks have over-traded

their capital so flagrantly that if the central banks were to lose the fight on the first front,

then their stock would be worthless. Because their fate is intertwined with that of the

central banks, investment banks are willing participants in the battle against rising gold,

oil and commodity prices.

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I really enjoyed reading that article, it was well written. If I could paraphrase one word from that article, it would be "arrogance". I hope those that believe they are so far above the rest of us fall the hardest.

 

What happens next has happened before. Barter begins the

movement of goods and services until a trustworthy medium of exchange arises to take

the place of the bankers’ debased paper.

Currency collapse is a reoccurring story. Because we denied its reality does not mean it

would not happen. Denial is very powerful but, in the end, it changes nothing except the

ability to effectively respond.

Our wish that gold achieve its rightful price level in today’s accelerating crisis is

tempered by our realization that when that day is reached, the human carnage and

suffering will be without precedence. It is best, then, to buy gold and silver whenever

possible and to wait patiently for things to unfold as they will. And they shall.

 

 

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