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1197 down 30. Now that's a fairly good smackdown if ever I saw one. Smackdown or just general de-leveraging?

 

Fortunately sold nearly half my e-gold this a.m. before the smack. Did buy some more physical last night and it hurts to have to make good on my CiD order. Mustn't shirk it though.

 

So, are you swapping e-gold for physical? I haven't done this in a while, but I think it is prudent now.

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Yes, sort of TrueNorth. I'm very fortunate to be in a great financial position. I STR'd in 2002 - way too early - but have put the cash to good effect and am better off than if I'd been a mortgage slave the last 8 years.

 

I'm now keen to 'crystallise' my paper positions ahead of a return to the UK and the dreaded Capital Gains Tax. Sovereigns and Britannias are a way of doing this (perfectly legally) in the UK. I've therefore been keen to sell paper gold when it is showing a profit and 'reset' my Capital Gains to zero ahead of my return to the UK.

 

Also, I can clearly envisage circumstances where 'paper gold' is doubted and physical will be in demand - with the paper price collapsing but the price of the hard-stuff increasing. This again pushes me to Sovs/Britannias.

 

If it doesn't sound contradictory, I think the current period of volatility means that the risks of a major sell-off in gold (due to deleveraging) and the risks of a moonshot in gold (due to a crisis in confidence and flight to safety) are increasing in tandem. (volatility is one reason I'm now out of CFDs for the time being - kept getting margined out).

 

Thus I've been selling paper gold on 'peaks' in case the gold price dips sharply, but investing some of the profits in physical gold as a hedge against the moonshot taking place.

 

Interestingly, the physical market seems to be holding up OK. The Sovs I bought yesterday are already much cheaper today (bother, though I should pay for them at y'day's price as I don't want to be known as a 'bad customer'. When coins are in short supply (there weren't many oz coins the other day on CID), the price goes up and dealers seem to be able to buy new supplies from people cashing in. The divergence between physical and paper gold prices seems to be remaining constant (as it should be when there is no crisis). So I don't think we are near moonshot yet and could still see a (further) pullback to near 1,100.

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Thank you. I appreciate you setting out your position. When you refer to divesting "e-gold", are you talking about shares, or gold savings a la GoldMoney or Bullion Vault?

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Thank you. I appreciate you setting out your position. When you refer to divesting "e-gold", are you talking about shares, or gold savings a la GoldMoney or Bullion Vault?

 

 

Hi,

 

I divested my remaining BV gold into Dollars last week and am now looking $1000 oz up on that. (I wanted more dollar exposure).

 

I've been trading GBS (Gold Bullion Securities) in my Selftrade account.

 

I've got SLW and RGLD (silver and gold mining company shares) in my Selftrade too - but I'm holding onto these as margins are greater and so more difficult to trade.

 

More details in my trading diary in the investment section.

 

Wanderer

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Hello. I've been working on a national debt clock for my website... and decided to also count the national

debt in gold. Ounces were counting up to fast, so here it is in Kg.

 

http://www.creditcrunch.co.uk/

 

We are still under the weight of all the gold ever dug up, so... we should be fine eh? :unsure:

 

Or does the clock confirm gold is going to rocket.

 

;)

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Hello. I've been working on a national debt clock for my website... and decided to also count the national

debt in gold. Ounces were counting up to fast, so here it is in Kg.

 

http://www.creditcrunch.co.uk/

 

We are still under the weight of all the gold ever dug up, so... we should be fine eh? :unsure:

 

Or does the clock confirm gold is going to rocket.

 

;)

Very nice! On that note, time for an update:

 

http://gold.approximity.com/since1970/Exte...Gold_Price.html

External_Debt_Equilibrium_Gold_Price.png

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The short of gold guys shouldn't risk a big mouth, otherwise they'll get some on their chins.

 

image-89513-panoV9-qsgm.jpg

 

[bTW, these are the Bogdanoff/Bogdanov brothers who caused a scandal in theoretical physics (cosmology, to be precise) a few years ago.]

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The short of gold guys shouldn't risk a big mouth, otherwise they'll get some on their chins.

 

image-89513-panoV9-qsgm.jpg

 

[bTW, these are the Bogdanoff/Bogdanov brothers who caused a scandal in theoretical physics (cosmology, to be precise) a few years ago.]

 

you sure that's cosmology and not cosmetology?

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Hi,

 

I divested my remaining BV gold into Dollars last week and am now looking $1000 oz up on that. (I wanted more dollar exposure).

 

I've been trading GBS (Gold Bullion Securities) in my Selftrade account.

 

I've got SLW and RGLD (silver and gold mining company shares) in my Selftrade too - but I'm holding onto these as margins are greater and so more difficult to trade.

 

More details in my trading diary in the investment section.

 

Wanderer

 

Thank you for explaining.

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Waiting to buy gold? I've said all along the currency to wait in is the US dollar. Reason being, when investors retreat from risk and liquidate, it will be the central funding currencies such as dollar and Yen which benefit most..... and at the expense of other currencies.

 

Peripheral/ commodity currencies such as the Aussie dollar will weaken. So even as the price of gold becomes cheaper in dollars, it becomes more expensive in, for example, the Aussie.

 

 

ausgold-1.gif

 

 

golddolr.gif

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It was possibly the best currency to wait in, but does one want to wait at all?

It's a fair question. Perhaps it comes down to how much you already own. I basically have 50% of my worth in gold [buy and hold], and the other 50% as a hedge in dollars.

 

Deleveraging obviously remains a risk. So it then makes sense to have a decent position in the currency which would most benefit, namely dollar [perhaps Yen].

 

The aim of course would be to jump from dollar to gold when/ if we get the "big one". Or alternatively, buy silver, then double your dollars once silver recovers.

 

If it does or doesn't happen, you are still doing well to hold the two strongest currencies. Holding gold, while perhaps trading dollar for silver on silver weakness.

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Can anyone explain what this means and the likely outcome?

 

Gold is being brutally smacked down. Selling is being met by an equal amount of buying. Still, they keep on adding to the shorts. That's the sign of a trapped short.

 

When is the options expiry date this month?

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