KDave

Received a 1987 bullion grade proof double sovereign from Atkinsons. Just needs a capsule. 

The currency previously traded 2% either side of a fixed value. The fixed value was always decided by the central bank (Peoples bank of China). Now China is going to base the fixed value on the previous days closing value, effective allowing the market decide the currencies value. This is how some of the other major currencies work. This change makes Chinas currency look like it is more market controlled, but in reality the bank can influence its value at the close of play and effectively still control the price. The devaluation we saw today was the banks attempt to reflect market forces as they hand over the reigns. If they had not devalued it and just let it float, the value could have risen which would cost China in exports. They do not want that, they just want the illusion that currency is not centrally controlled so that they can join the IMF's reserve currency basket of SDR's. The devaluation will encourage the currency to move in 'right' direction for some time as many people are now expecting further devaluation going forward (not likely in my opinion). This was not about boosting trade and making the currency weaker for exports. They only wanted to prevent damage to exports by stopping the currency rising with market forces on float.
 
Going forwards, the real test will be if market forces manage to beat central bank interference at the close of play. If this happens and the currency strengthens too much, then I imagine China will be pushed to interfere with further devaluation. The devaluation today makes this scenario unlikely for the short term in my opinion and the currency will now naturally fall on its own as people expect and price in the further devaluation that will never come. 
 
Now that I have said all of this, you can guarantee China will devalue their currency again tomorrow! 
 
At least gold and silver should strengthen if that does happen 

Gold and silver have made some gains today , presumably on the back of the Chinese Currency devaluation. Copper fell quite sharply after yesterdays gain presumably because of the same announcement.  
 
Some are predicting further devaluation to follow - if this is about trade, a devaluation makes Chinese exports more competitive. The Singapore, S. Korea and Taiwan currencies are all competitors of China so will likely follow suit. The next logical step is further devaluation in a long predicted currency war. I do not think this is what is happening. 
 
I think this is not about trade but about the Chinese currency being included as a reserve currency part of the IMF's special drawing rights (SDR's). If this is the goal then there will likely not be further devaluation. Instead this is about introducing volatility in an attempt to make the exchange rate more market based, so as to meet the criteria set out by the IMF for SDR reserve currencies. The IMF are conducting a review of the reserve currencies used in SDR's and the Chinese wish for their currency to be included.
 
In conclusion, despite the rally, all of the metals are likely to continue falling going forward IMO! 

Received a 1987 bullion grade proof double sovereign from Atkinsons. Just needs a capsule. 

Received a 1987 bullion grade proof double sovereign from Atkinsons. Just needs a capsule. 

My giant Fiji coins arrived from Madstacks,
then UPS brought me my tube of Spiders from STG.
Treasure in hand!!
 

OK, for someone who wasn't going to buy anymore physical silver, I've just picked up at a small antique centre a 1927 Wreath crown. Not going to say yet what I paid for it, but I had to use my best acting skills to keep myself from grinning too much as I knocked him down a few more quid. Could do with a little help from our resident experts though on the grade of the coin.

Received this today ....my first order from HGM and my first half sovereign

Yet another escapee from the zoo. Can I round up the remaining animals? LOL 1/2oz Lunar 1 Pig Proof

The ratio is clearly all over the place and doesn't seem to have any predictive value. The most striking feature of the charts is how well the prices of gold and silver are correlated. This tends to support the idea that silver is 'poor man's gold' and that it enjoys a monetary premium.

Received RM 1 oz gold year of the goat from Bairds. Came sealed in a card. I will need to capsule it before it can join the others. Gold spot price was £696 an ounce when I pulled the trigger on this one.
 
I hope its around £650 an ounce for my next purchase 

2 Rand from Atkinsons.

Received RM 1 oz gold year of the goat from Bairds. Came sealed in a card. I will need to capsule it before it can join the others. Gold spot price was £696 an ounce when I pulled the trigger on this one.
 
I hope its around £650 an ounce for my next purchase 

Received RM 1 oz gold year of the goat from Bairds. Came sealed in a card. I will need to capsule it before it can join the others. Gold spot price was £696 an ounce when I pulled the trigger on this one.
 
I hope its around £650 an ounce for my next purchase 

Received RM 1 oz gold year of the goat from Bairds. Came sealed in a card. I will need to capsule it before it can join the others. Gold spot price was £696 an ounce when I pulled the trigger on this one.
 
I hope its around £650 an ounce for my next purchase 

Bought a 1 oz gold year of the sheep, (royal mint type) from Baird's. It was a toss up between that and the 50 Peso coin which has become next months target purchase instead. Almost £100 cheaper than the year of the horse I bought this time last year.

Bought a 1 oz gold year of the sheep, (royal mint type) from Baird's. It was a toss up between that and the 50 Peso coin which has become next months target purchase instead. Almost £100 cheaper than the year of the horse I bought this time last year.

No one wins in the casino except the house.
 
The only way to win is not to play until it's unwound.
 
Being in anything at any point now is pretty risky unless you know which way the house is gonna play.
 
Even cash in the bank isn't safe, just look at Cyprus, Greece, and last I was reading Austria is looking to alter it's deposit protection scheme. Even under crazy EU rules the UK is now lowering it's deposit protection so it's in line with the EU zone level in Euro equivalent value.
 
However you view it, PM right now are a fantastic buy for the medium and long term.

Silver fell below that magic £10 an ounce this morning. Very tempting to jump in on the STG bullion for a punt!

Silver fell below that magic £10 an ounce this morning. Very tempting to jump in on the STG bullion for a punt!

Picked up my bullion by post 20% off ebay sovereign from the post office. A 1964 Elizabeth - a few knocks and a bit of dirt that needs sorting out but not too bad. 
 
I also picked up my first shield sovereign that I managed with a £15 off ebay voucher for £231. A bit of a hefty premium for a sov but I have been wanting one and the voucher was all the excuse I needed! 1869 date so quite a common one I think, die number 40. 
 
Ill get some pictures up at some point probably tomorrow.

Picked up my bullion by post 20% off ebay sovereign from the post office. A 1964 Elizabeth - a few knocks and a bit of dirt that needs sorting out but not too bad. 
 
I also picked up my first shield sovereign that I managed with a £15 off ebay voucher for £231. A bit of a hefty premium for a sov but I have been wanting one and the voucher was all the excuse I needed! 1869 date so quite a common one I think, die number 40. 
 
Ill get some pictures up at some point probably tomorrow.