FriedrichVonHayek

Will start to swap my Silver to Gold when the Gold/Silver ratio hits 60,45,30 and 15.

Will start to swap my Silver to Gold when the Gold/Silver ratio hits 60,45,30 and 15.

To pay for a period of government over spending, that one being a war, this one to pay for giving everyone a few months at home drinking endless amounts of booze and clapping on the doorstep. Bet they don't put that in the history books. 
I think most debasement is to do with the aftermath of wars and seem to remember reading somewhere that sterling was introduced because soldiers refused to fight for a coin that had fe*k all silver in it.

I have noticed that 1 Kg Silver bars have been trading at a decent discount compared with buying from a Bullion dealer.
I must admit I find this highly unusual considering the nice uptick in the Silver price, usually Silver is more expensive on ebay than buying from a dealer.
Not sure what to make of this.

I only use it for buying Scrap Silver, I just find it unusual that you can buy 1 Kg bars cheaper than a dealer as ebay is usually more expensive.
Maybe more people have wised up and buy on here.

Looking back over the past 12 months, it appears that the GB£ price of silver has increased by 15.7% at a time that reported inflation is about 11%.  So, on the face of it, silver would seem to have done well during 2022.

WTF are they?
😎

I originally followed my father's career.
He died having no idea why I was doing what I was doing instead of following his example: 1/3rd of salary into investing, 1/3rd paying back the family, 1/3rd for living expenses. He thought I was a spenderella fool.
He graduated in 1950, I did in 1985.
Well I recently did the sums in purchasing power using gold ounces. I converted into dollars (exchange rates at the time) and gold spot at the time. It was illuminating.
As a young officer he was getting every month the equivalent of about two ounces of gold
I was getting about one
Young grads nowadays get half an ounce.
That puts erroding purchasing power into perspective, it is not our imagination - we are being ripped off

Interesting observation! I shall do the same calculation 👍
Welcome back, stick around for a bit eh? 😊

I've seen this coming for quite a while. Not that I'm any sort of oracle, but I've been in the lettings business for 23 years. I was given some advise when I was younger regarding the housing situation from a friends father, a builder/ landlord. He gave us a master class one day when we were sat at the river fishing. He told us that as soon as we could we should get our own house. he said " start with a modest house. Nothing fancy, A fixer up. Save hard and work hard. The earlier you can the better. Don't forget enjoyment but put the effort in early. The mortgage will eventually be paid, but the rent man never goes away. He was a fountain of good advise. Over the years he got me in to BTL as a prop for my pension and it developed from there. Lots of hard work, Long hours, many sacrifices, some good luck and I've managed to get to a relatively comfortable position. My brother who took a slightly different path. still lives with our father. He's in a position now where he'll never buy his own property. It's become beyond the reach of so many. As for my children I'm really worried about their future. Apparently "we will all own nothing and be happy about it" eternally on the tread mill.
I think most on this forum realise the problems and its why we try to do something about it. As I've mentioned, I've had a bit of good luck. Right place at the right time. I know my children will have a house each of their own as I'll give them each a 2 bed mid terrace. Nothing fancy and only the basic starter home. I only hope they appreciate It and use it as a leg up and not just as an entitled hand out. I've tried to pass on the advice I had, But I'm also aware that things today bear no resemblance to how they were when I started.
I watched a YouTube vid about trying to preserve what you have, I can't remember the name of the vid or who was in it really, so I can't credit them, but in it they talked about how in general, before the war The husband went to work. His wages paid for him, his wife and their 4 or 5 children. WWII hits. Then after the war the husband and increasing the wife goes to work. So that's a change from 1 earner to 2 earners to maintain the same family. move on to the next generation and the husband and wife are working then the family goes from 4 to 5 children to the 2 to 3 children. Next generation and there's the introduction of unsecured debt. Loans then credit cards. Move on again, Now we have both adults working, levels of unsecured debt, reduced number of children had later on in life, Instead of early 20's more in to their 30's. All the time The families spending power is reduced and the dynamics change towards having less and not getting it until later. To where we are today. Everything seams to be at crisis point. nobody can hardly afford anything, least of all a home. And now the WEF are trying to promote and ram it in to us that "We will own nothing and be happy about it"
Sorry for the gloom. but its is quite disconcerting, Fortunately, some of us are still switched on.

A sovereign is about a "stored" weeks wage there are fluctuations however over a longer period of time It's hard to lose,  even if you come across the time where gold dips and it's cheap....back the tuck up.     50 sov's 2 tubes = a okay ish/basic  take home salary for 1 year?    It's likely the 50 sovereigns will be equal to a years basic take home salary in 20-30 years.......Unless we are all sat at home on UBI. 
Best thing to do with gold is buy it and then almost forget about it........  I do see a good few people buying gold who can not afford to hold it, I.E they buy a few oz and then the MOT comes or some other unexpected expense and then they are selling at a loss.  
 
 

I think you have to look at gold as a long term (15+) year store of wealth.

Looking at the charts:
25 years ago gold was around £175 an oz. Using the Bank of England inflation calculator £175 in 1998 is now worth £311 today however an oz of gold is £1476 at the moment
15 years ago gold was around £400 an oz. Using the Bank of England inflation calculator £400 in 2007 is now worth £620 today however an oz of gold is £1476 at the moment
10 years ago gold was around £1019 an oz. Using the Bank of England inflation calculator £1019 in 2007 is now worth £1344 today however an oz of gold is £1476 at the moment
5 years ago gold was around £940 an oz. Using the Bank of England inflation calculator £940 in 2007 is now worth £1152 today however an oz of gold is £1476 at the moment

In all of the above gold has performed well. I appreciate that this is a little brute force and not as elegant as I would like but I think it illustrates the point well enough.

Like everything gold does have some periods where the price does drop but these seem to be temporary and that the price recovers. One way is to buy little and often although there are higher premiums on the smaller bars this can help iron out market fluctuations. Also, it is advisable to not have all your monies stored in precious metals. I am a big advocate for keeping at least 3 ideally 6 to 9 or even 12 months’ worth of your expenditure stored as cash. This cash would be stored under your mattress or in a high interest savings account. This way if the market was to crash you are not having to sell for PM's potentially at the bottom of the market (with others) and can ride it out for a little longer. What I mean by expenditure is the minimum amount you need to pay your mortgage/rent, utility bills, loan repayment (if any), food, things like that the absolute essentials!

With regards to stocks in my opinion it is essentially gambling I am a person who does enjoy a wager on the turn of a card or that delicious roulette wheel. That being said in my opinion ETFs are the way to go as a way to spread risk across the whole market and not just the fortunes of a single or small handful of companies.

This is just my opinion and your priorities may be different


 

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

From starting work in 1989 I have on average earned the equivalent of just over 1 Gold Sovereign a week after tax.
So in 33 years of work I would say its a decent store of value.

i call it a draw and will leave it there. 

Disconnect between COMEX spot price and physical in both Gold and Silver. In the Soviet Union prices were controlled by experts who knew better than the market. Whenever prices are controlled or fixed shortages result. Bullion behaving like soviet sausages, good price but try buying.

Ask Venezuela, how they are getting on repatriating their gold from the UK.
Ask people when they tried withdrawing money from Northern Rock during the financial crisis of 2008.
I trust banks like I trust the government. Zero percent.