notanewmember Posted July 21, 2008 Report Share Posted July 21, 2008 thought i d mention this if you havent seen it already 100KG gold coin. http://www.99999mapleleaf.com/100kg-maple.html I make it worth £1.6 Million I m surprised someone didnt run off with it. Link to comment Share on other sites More sharing options...
G0ldfinger Posted July 22, 2008 Author Report Share Posted July 22, 2008 I've added some silver today. Could not earlier because of cash flow constraints. But happy to buy below $20 anyway. Slightly over 50% in physical silver now. Link to comment Share on other sites More sharing options...
bitbigt Posted July 22, 2008 Report Share Posted July 22, 2008 I've added some silver today. Could not earlier because of cash flow constraints. But happy to buy below $20 anyway. Slightly over 50% in physical silver now. Well done, and good timing! You benefitted from last Friday's big (and overdone) pullback I wonder, are you USA based, or just a night-owl (like me) Link to comment Share on other sites More sharing options...
narrowescape Posted July 22, 2008 Report Share Posted July 22, 2008 I've added some silver today. Could not earlier because of cash flow constraints. But happy to buy below $20 anyway. Slightly over 50% in physical silver now. But...but.. Silverfinger just doesn't sound the same Link to comment Share on other sites More sharing options...
kernull Posted July 22, 2008 Report Share Posted July 22, 2008 will somebody post any thread like "watch silver" or "watch gold" soon? hope so.... Link to comment Share on other sites More sharing options...
G0ldfinger Posted July 22, 2008 Author Report Share Posted July 22, 2008 Well done, and good timing! You benefitted from last Friday's big (and overdone) pullback I wonder, are you USA based, or just a night-owl (like me) Usually UK-based, but in the US at the moment. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted July 22, 2008 Report Share Posted July 22, 2008 Coincidence ? I don't think so. The bottom trend line works out perfectly ! The top one looks pretty good too ! Even silver is playing along: Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 Nice graph Steve! As I said about a month ago [at the beginning of the swing up] I reckon we are in wave 3. I bought another 3 ounces yesterday around 955 Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 Well nearly at 1000....just a little curious.......have any of you considered at what point you will stop buying bullion. At 1000, 1200, 1500 or +?? I was thinking 1000, but I doubt I will be able to resist. [it would have been good to put a survey together for this question but am not sure how to do that] Link to comment Share on other sites More sharing options...
sossij Posted July 22, 2008 Report Share Posted July 22, 2008 Well nearly at 1000....just a little curious.......have any of you considered at what point you will stop buying bullion. At 1000, 1200, 1500 or +?? I am thinking at 1000, but I doubt I will be able to resist. [it would have been good to put a survey together for this question but am not sure how to do that] I like to think of the "cheap" gold I bought in the past as subsidisng the more expensive stuff now, so my plan is to keep buying until the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1, i.e. gold increases to a level such that any further purchases eventually exceed the historic "subsidy". At that point I will stop. If the ratio goes to more than 1 (i.e gold holding worth less than £s paid to purchase it) it will be time to start selling some off. Obviously if gold goes completely ballistic then all bets are off and I'll hold on for dear life Is this a dumb plan? Link to comment Share on other sites More sharing options...
CharlieSays Posted July 22, 2008 Report Share Posted July 22, 2008 I’ve found the website http://www.castlestonemanagement.com/fund-...n.php?fund_id=1 There is a factsheet http://www.castlestonemanagement.com/pdfs/...s-Factsheet.pdf And a presentation with some precious metal investment graphs http://www.castlestonemanagement.com/pdfs/...esentations.pdf Thanks for that, Ive got my pension with Friendless and provident and meeting/talking to the pension advisor later today/tomorrow so i will ask him about this, having said taht the idiot still sent me an spreadsheet saying i should be exposed 20% to UK property, 40% UK Equities and others, just to be a bit mad and spread risk 5% Pacific/emerging markets. Still that might just be the line he is told to peddle, i will update if he has anything interesting to say. Link to comment Share on other sites More sharing options...
MattFC Posted July 22, 2008 Report Share Posted July 22, 2008 Nice graph Steve! As I said about a month ago [at the beginning of the swing up] I reckon we are in wave 3. I bought another 3 ounces yesterday around 955 You guys... this makes painful reading.. am waiting for goldmoney funds to clear! Any of you had experience as to how long this takes from the UK? (transfer initiatiated via internet banking) p.s. I was not happy to see that RBS Int (Goldmoney GBP account) isn't one of the new APACS faster clearing (2hrs) accounts http://www.apacs.org.uk/sortcodechecker/index.html Link to comment Share on other sites More sharing options...
Bobsta Posted July 22, 2008 Report Share Posted July 22, 2008 Is this a dumb plan? In a word, yes! Firstly, if gold keeps going up your ratio will never reach 1. Secondly, if your ratio does reach 1 your total holdings are only worth what you paid for them. So what was the point in buying all that gold, and why would you want to now sell it? I think you need to reconsider your strategy. Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 I like to think of the "cheap" gold I bought in the past as subsidisng the more expensive stuff now, so my plan is to keep buying until the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1, i.e. gold increases to a level such that any further purchases eventually exceed the historic "subsidy". At that point I will stop. If the ratio goes to more than 1 (i.e gold holding worth less than £s paid to purchase it) it will be time to start selling some off. Obviously if gold goes completely ballistic then all bets are off and I'll hold on for dear life Is this a dumb plan? sounds good to me..... you seem to have thought it through and are comfortable with it. My problem is that gold even at four digits still seems to be cheap [priced in "cheap" money] to me. Now, if it was at five digits....... Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 You guys... this makes painful reading.. am waiting for goldmoney funds to clear! Any of you had experience as to how long this takes from the UK? (transfer initiatiated via internet banking) p.s. I was not happy to see that RBS Int (Goldmoney GBP account) isn't one of the new APACS faster clearing (2hrs) accounts http://www.apacs.org.uk/sortcodechecker/index.html Not sure about goldmoney.... but would hazard a guess that gold will dip again to 960. Link to comment Share on other sites More sharing options...
MattFC Posted July 22, 2008 Report Share Posted July 22, 2008 In a word, yes! Firstly, if gold keeps going up your ratio will never reach 1. Secondly, if your ratio does reach 1 your total holdings are only worth what you paid for them. So what was the point in buying all that gold, and why would you want to now sell it? I think you need to reconsider your strategy. Surely he means the following? (I hope so) Original Purchase Cost=X Current Price=Y so when Y-X/X=1 .. then in effect the ratio is 1:1, i.e. the cost of gold has risen enough to cover the purchase 100%.. 100% profit Link to comment Share on other sites More sharing options...
sossij Posted July 22, 2008 Report Share Posted July 22, 2008 In a word, yes! Firstly, if gold keeps going up your ratio will never reach 1. Heh heh, well I wouldn't be complaining! Secondly, if your ratio does reach 1 your total holdings are only worth what you paid for them. So what was the point in buying all that gold, and why would you want to now sell it? Well I suppose, in terms of a hedge against currency devaluation I won't have lost anything I suppose I'm thinking of holding gold as insurance... but only while gold is being "well behaved", i.e. rising moderately... if it goes through the roof then I will change my plan accordingly I think you need to reconsider your strategy. Ok, will have a think Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 Well I suppose, in terms of a hedge against currency devaluation I won't have lost anything I suppose I'm thinking of holding gold as insurance... but only while gold is being "well behaved", i.e. rising moderately... if it goes through the roof then I will change my plan accordingly Yes, currency debasement is the wild card in all calculations of this kind. Then you would be left asking yourself, "Do I really want to swap gold for dollars/pounds?", without needing to bother about the amount of those dollars/pounds. Which is in effect to say gold is the best currency to hold. And this is why many bought gold in the first place. What got us in, may be what keeps us in. I imagine I will only swap gold for property or a boat.... something with real value. Opps ... went off topic there as we were talking about when to stop buying not when to start selling. Link to comment Share on other sites More sharing options...
Bobsta Posted July 22, 2008 Report Share Posted July 22, 2008 Surely he means the following? (I hope so) Original Purchase Cost=X Current Price=Y so when Y-X/X=1 .. then in effect the ratio is 1:1, i.e. the cost of gold has risen enough to cover the purchase 100%.. 100% profit That would be a great situation to be in... but that's not what Sossij said: "the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1" That description means "my holdings are worth what I paid for them". Which for any non-yielding investment isn't a great situation to be in! I'd recommend looking to keep the ratio falling. Although that's difficult because any dips in the POG will result in your ratio going UP, and that, to me, is a good time to buy. Personally I may pick a target (say $1200) and aim to keep buying until the average cost of my holdings reaches $1200 (so in theory I could keep buying at $1400 and higher - assuming I bought enough down in the $800s and $900s). However, I think we all agree that you need to continually re-evaluate your position. Link to comment Share on other sites More sharing options...
sossij Posted July 22, 2008 Report Share Posted July 22, 2008 Hey, thanks for the analysis Bobsta That would be a great situation to be in... but that's not what Sossij said: "the ratio of the total amount money I've paid into gold to that of the value of my total gold holding (denominated in GBP) goes to 1" That description means "my holdings are worth what I paid for them". Which for any non-yielding investment isn't a great situation to be in! I suppose what I was driving at was this would be the limit at which I would definitely stop buying, as per the OP's original question To continue buying after this point would be to lose money*. At any point up until the ratio goes to 1, I would be in the money as it were. I agree at the point the ratio goes to 1 then the value of the gold equals what I paid for it (obviously ) I'd recommend looking to keep the ratio falling. Although that's difficult because any dips in the POG will result in your ratio going UP, and that, to me, is a good time to buy. Personally I may pick a target (say $1200) and aim to keep buying until the average cost of my holdings reaches $1200 (so in theory I could keep buying at $1400 and higher - assuming I bought enough down in the $800s and $900s). However, I think we all agree that you need to continually re-evaluate your position. Good advice, thank you I should add that once the gold price resumes its upward march, I would then resume buying. The only time to stop (perhaps "pause" would be a better way to think of it) would be at the "ratio of 1" point * but would still mean accumulating more Au (I agree with Wren below, value in the temporaray value of £s is perhaps not the best idea). Link to comment Share on other sites More sharing options...
wren Posted July 22, 2008 Report Share Posted July 22, 2008 Well nearly at 1000....just a little curious.......have any of you considered at what point you will stop buying bullion. At 1000, 1200, 1500 or +?? I was thinking 1000, but I doubt I will be able to resist. [it would have been good to put a survey together for this question but am not sure how to do that] Absolute price is not a factor as far as I'm concerned. Real interest rates are possibly the most important thing. Then the big ratios like DOW/Gold, house/gold etc. Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 Hey, thanks for the analysis Bobsta I suppose what I was driving at was this would be the limit at which I would definitely stop buying, as per the OP's original question To continue buying after this point would be to lose money. At any point up until the ratio goes to zero, I would be in the money as it were. I agree at the point the ratio goes to 1 then the value of the gold equals what I paid for it (obviously ) Good advice, thank you But if the currency continues to be debased would you not continue to buy? Which is the point I believe Wren is also making. It takes a Copernican effort, but I am starting to see the economy revolving around the currency of gold these days. Link to comment Share on other sites More sharing options...
sossij Posted July 22, 2008 Report Share Posted July 22, 2008 But if the currency continues to be debased would you not continue to buy? Which is the point I believe Wren is also making. I completely agree! Link to comment Share on other sites More sharing options...
romans holiday Posted July 22, 2008 Report Share Posted July 22, 2008 Wow... Richard Duncan talking about the "Dollar Crisis" on CNBC now. Link to comment Share on other sites More sharing options...
sossij Posted July 22, 2008 Report Share Posted July 22, 2008 Bah! At work. Link to comment Share on other sites More sharing options...
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