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The end of the financial year is approaching, if one wants to use up their capital gains tax allowance for this year, do they have to sell as much of their gold to provide them with a profit that matches the current capital gains tax threshold which I believe is 7000 GBP?

I take it you then have to wait till April to re invest that money?

 

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Just talked to my usual source who informed me that the gold bottom is in.

that would tie up nicely with Jim's cup & handle

 

0227_clip_image002.jpg

 

 

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Just talked to my usual source who informed me that the gold bottom is in.

 

If there has been a planned intervention with the goal to supress the price of gold, then they have not achieved much, have they? If they stop lease gold at present then the price will go up above the previous levels in no time.

 

The PoG has not been brought to the levels that would have sent panic and created the avalanche effect.

 

Either one does something like this and does it properly or does not do it at all. At present levels I cannot see any point in doing such short-lived intervention. I think it should go at least for another week or two to achieve the desired effect. Time will tell.

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Just talked to my usual source who informed me that the gold bottom is in.

 

If there has been a planned intervention with the goal to supress the price of gold, then they have not achieved much, have they? If they stop lease gold at present then the price will go up above the previous levels in no time.

 

The PoG has not been brought to the levels that would have sent panic and created the avalanche effect.

 

Either one does something like this and does it properly or does not do it at all. At present levels I cannot see any point in doing such short-lived intervention. I think it should go at least for another week or two to achieve the desired effect. Time will tell.

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It's a no brainer for me - you might want to put some thought into it...

 

Seasonals - where does the biggest demand for gold come from?

 

Gold is usually lower in price by the time August/September arrives so why buy in March at a peak?

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Seasonals - where does the biggest demand for gold come from?

 

Gold is usually lower in price by the time August/September arrives so why buy in March at a peak?

Could be, or not.

 

The question is, why should there be a 'normal' season during the biggest and most devastating financial crisis the planet has ever seen? :unsure:

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Seasonals - where does the biggest demand for gold come from?

 

Gold is usually lower in price by the time August/September arrives so why buy in March at a peak?

 

With that I guess you will be shorting gold to make some healthy profits?

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Seasonals - where does the biggest demand for gold come from?

 

Gold is usually lower in price by the time August/September arrives so why buy in March at a peak?

 

Depends why you're buying. If you're a long term investor then thinking about seasonality is reasonable. However, in these crazy times, many are buying exactly because the normal rules no longer seem to apply, and given that there could be a real SHTF scenario any minute, worrying about entry points seems a little superfluous. Imminence of risk influences the demand for insurance. It's a bit like the housing indices still using seasonal adjustments to the figures, up and down - totally irrelevant in the current circumstances IMO, given volume has collapsed.

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Could be, or not.

 

The question is, why should there be a 'normal' season during the biggest and most devastating financial crisis the planet has ever seen? :unsure:

 

TBH - I'm not sure either. The more I think about gold and the period we are in, the more I want to understand what happened in the 1930's but that's difficult because we were on the gold standard back then. Having seen the sell-off in stocks again and what happened to the SM in the late 30's and 40's then I'm thinking that gold probably won't undergo a severe correction like it did in the 1970's as that was a different part of the kondratieff cycle (which I'm studying again after dissmissing it).

 

Good chart here:

 

http://www.anglorandcapital.com/newsletter...1/kondcycle.gif

 

I'm starting to believe that certain stocks are going to be dud investments for the foreseable future and that PM's is the place to be with the biggest part of your portfolio. With this in mind I'm going to buy more PM mining stocks on any pullbacks as long term 'buy and hold' - I've has a foot comfortably in both camps but I'm more comfortable with the fundamentals of PM's and their relation to house prices.

 

With that I guess you will be shorting gold to make some healthy profits?

 

No, there's really no point as I think I've found a better way to make some healthy profits. Buy life insurance companies when they are oversold, which are financials but with lower risk than banks (but not without risk). Sell them when they are overbought and buy gold/silver mining stocks hopefully when they are oversold and sell them when they are overbought and life insurance companies are again oversold.

 

I've not tried it yet, but if you look at the graphs between a gold/silver miner and a life insurance company you will see they are often opposite ends of the seesaw. This means you make even more money when gold/silver goes down and can buy far more shares when you buy back in - the life insurance shares have been making some big swings and companies like Aviva have always bounced back unlike banks but of course that could always change so dyor. I certainly wouldn't do it for all the PM shares I own, but it might be good to try this for say 20% of them to try and boost the return.

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With that I guess you will be shorting gold to make some healthy profits?

 

Should also add that I think shorting gold which is in a long term bull market is a dangerous thing for anyone to do and I would never consider it.

 

I'm thinking that gold probably won't undergo a severe correction like it did in the 1970's as that was a different part of the kondratieff cycle (which I'm studying again after dissmissing it).

 

Should have also said that if we really are in a deflationary period and end up going Japanese then perhaps gold will just steadily keep increasing year after year with no serious correction like we had in the inflationary mid-70's. I definitely can't see the stockmarket bouncing back to it's previous highs in the way it did back then - it's looking really ugly for this year and next so I'm finding it hard to believe any SM rally is going to pull much money out of bonds, gold and cash sitting on the sidelines.

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... I want to understand what happened in the 1930's but that's difficult ...

My opinion is this:

 

1930 (the Great Depression) was obviously a walk in the park to what we are facing now. Hence things will be more extreme. This applies to deflationary aspects as well as to inflationary aspects. The deflationary forces today are possibly dimensions larger than in 1930, but so are the money spigots. I therefore think that we can see a sell-off in markets similar to 1929-1932, at the same time consumer prices might soon go up, and even more so could gold go up.

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