Gold Monitoring Thread £ GBP only

[dicker]

Gold recovering a little after a few down days.  

[HerefordBullyun]

13 minutes ago, dicker said:

Gold recovering a little after a few down days.  

If you look at the gold monitoring thread USD there was an excellent TA by a guy I posted late last night from pallisades gold radio... Good watch and I really can see his logic and analysis, good one for you also @Stacktastic

[RDHC]

There is also a piece in today's Daily Telegraph in the 'Questor'  investment section that is favourable to gold as a hedge against inflation, especially as interest rates are likely to decline in the months ahead.

Edited December 16, 2022 by RDHC

[SheepStacker]

8 hours ago, dicker said:

Gold recovering a little after a few down days.  

Recovering very well 8 hours later! Could be due to the US budget deficit being larger than expected.

[SidS]

On 22/11/2022 at 18:56, AurumArgenti said:

The captain's log is particularly stubborn today.

Still he can use the bidet afterwards... 😁

 

 

Edited December 17, 2022 by SidS

[sixgun]

i can see this idea floating around on Twitter by some chartists. That gold is going to go down the toilet. 

Thoughts?

[HerefordBullyun]

2 minutes ago, sixgun said:

i can see this idea floating around on Twitter by some chartists. That gold is going to go down the toilet. 

Thoughts?

Hve as look at the video i posted in USD monitoring thread 3k 2023 good TA

[SheepStacker]

4 minutes ago, sixgun said:

Thoughts?

Usual FUD. If these charlatans could actually predict the market, they wouldn't need to incessantly tweet about it.

[sixgun]

Just now, SheepStacker said:

Usual FUD. If these charlatans could actually predict the market, they wouldn't need to incessantly tweet about it.

This is my immediate thought - if they knew where price was going over the next 20 years then why aren't they billionaires.

[ZRPMs]

4 minutes ago, sixgun said:

i can see this idea floating around on Twitter by some chartists. That gold is going to go down the toilet. 

Thoughts?

I suppose it all depends upon how good their crystal ball is. Although mine came out of a kinder egg, Its just as likely to bounce upwards after any decline. Do you see it as an opportunity to help your £ cost average or panic and sell sell sell. 💎🖐️s or going to💩. I think I'll steadily carry on.  

[Paul]

19 minutes ago, sixgun said:

 

[RiverbankSilver]

I think we are around this area at the moment. My feeling back in 2020 was that 2023 was going to be the year we see things start to accelerate, probably this time next year. My fear is that the crypto hype will start again and stop the run in metals.. after all it was invented for this purpose I’m sure🙃

[Earthmetal]

44 minutes ago, sixgun said:

i can see this idea floating around on Twitter by some chartists. That gold is going to go down the toilet. 

Thoughts?

Possibly promoted by the same organisations that push the media to slag PMs as sound investments. After all, if everyone starts doing this where are the Central Banks and governments going to get their cheap gold from?

[sixgun]

Just now, Earthmetal said:

Possibly promoted by the same organisations that push the media to slag PMs as sound investments. After all, if everyone starts doing this where are the Central Banks and governments going to get their cheap gold from?

i don't think so but you could be right. 
They are cycles people and say gold cannot go to all time highs until it has made a long term low. So they then plot a path to a low. That is the beginning and end of it. Somehow or other we must have that long term low - or else their theory is wrong.

Well i just saw a chart posted that would give them their long term low. It is the inflation adjusted price. With the true rate of inflation racing ahead, the price of gold can go up but in real terms be going down and hit that low. Gold is as cheap as chips, we are simply being conned as usual.

Edited December 17, 2022 by sixgun

[sixgun]

Look at this chart - i know it is a US equity chart but i post it here b/c more people look here.

It is a 6 monthly chart of the ratio of the SPX (SP 500) index and gold. It is on a log scale.
When the chart goes up the price of the index goes up relative to gold - when it goes down the price of gold goes up relative to equities.

As we can see there are times when equities are expensive and gold is relatively cheap. This would be a time to sell equities and buy gold. 

Looking at the chart there is a pattern in these movements - it is not random. I propose that the chart is telling us that equities are going to fall and gold will rise. The Western financial system is crumbling and the demand for gold is as high as it ever has been. The fundamentals support my projected path of the chart.

 

Edited December 18, 2022 by sixgun

[RDHC]

On 17/12/2022 at 14:56, sixgun said:

i can see this idea floating around on Twitter by some chartists. That gold is going to go down the toilet. 

Thoughts?

I don't think that I will lose too much sleep over this chart. You can find a pattern in anything (e.g. tea leaves or chickens' entrails) and try to extrapolate the future from it.  I am much more interested in what strikes me as a sober and balanced assessment of what drives the price of gold to be found at forbes.com for 09/09/2022, titled 'what investors miss about the price of gold and where we stand today'. I am not allowed, apparently, to copy and paste the piece, but I expect it can be quite easily found by others. The main argument in it is that there is no simple explanation of what drives the price, there is usually more than one determinant involved, and the price can move in a contrary fashion. Forbes is probably not everyone's favourite, but it does not obviously have an interest one way or the other in the price of gold, and it makes no grand predictions, though it certainly is not a doomsday article. You may find it slightly reassuring.

[sixgun]

10 minutes ago, RDHC said:

I don't think that I will lose too much sleep over this chart. You can find a pattern in anything (e.g. tea leaves or chickens' entrails) and try to extrapolate the future from it.  I am much more interested in what strikes me as a sober and balanced assessment of what drives the price of gold to be found at forbes.com for 09/09/2022, titled 'what investors miss about the price of gold and where we stand today'. I am not allowed, apparently, to copy and paste the piece, but I expect it can be quite easily found by others. The main argument in it is that there is no simple explanation of what drives the price, there is usually more than one determinant involved, and the price can move in a contrary fashion. Forbes is probably not everyone's favourite, but it does not obviously have an interest one way or the other in the price of gold, and it makes no grand predictions, though it certainly is not a doomsday article. You may find it slightly reassuring.

Well this is the link https://www.forbes.com/sites/qai/2022/09/09/what-investors-miss-about-the-price-of-gold-and-where-we-stand-today/?
Not sure why you couldn't take a fair use snippet.

Bottom Line

Gold is an excellent option for investors looking to hedge potential losses in the stock market. Since the price of gold tends to rise during economic uncertainty, it can help protect your wealth. Just consider the broader economic landscape, not just one or two economic indicators.

From there, make sure you use gold as a store of value and not as an asset to drive returns. It is there to help you take some risk off the table, just like some investors invest in bonds to mitigate the risk of investing in the stock market.

Gold is money. The main point of gold is that it is money. Your fiat currency is devaluing. We know that by looking at how much more currency is needed to buy stuff. It is not that what we buy has increased in value, it is that the currency is returning to its intrinsic value - zero.
So you have gold to protect long term purchasing power - b/c it is real money. Real money is a store of value which currency is not. 
You can de-risk your investments on a long term basis by switching into gold.
Gold can be an investment when it is made into a coin. Nice coins can be an investment. You pay a premium - this is risk capital you invest to get the coin. There is a risk the coin isn't seen as worthy of a premium over the basic gold. You hope it will be appreciated by others who will pay you more in the future.

Gold is money - it stays the same - it is just the value of everything else varies in terms of gold. There is a lot of fluctuation over time but over time this all evens out and you see gold has remained constant and held onto its value. Yes there will be better times to buy gold when the value of fiat against gold is judged to be higher. We try to catch those times. We try to get the bargains. 

So you can invest in gold as a coin - or you can invest in gold as a KAU in the Kinesis Monetary System where you earn a yield paid in gold, which is a share of the transaction fees generated by the system - a profit sharing system. This is a currency system. Then there is Monetary Metals where they use your gold, it is used to generate a yield. https://monetary-metals.com/investing/gold-fixed-income/
Gold is moving on and what has only been accessible by the big market players is becoming available to us. There is some risk - it isn't the same as having it in a vault in the basement but there's a risk someone will discover your safe and get your gold. Nothing is without risk.

[Paul]

Is there any reason for the spike up in price today ? other than im due to make a gold purchase soon 

[ant1882]

25 minutes ago, Paul said:

Is there any reason for the spike up in price today ? other than im due to make a gold purchase soon 

Probably this:

https://archive.ph/sy0Ys

 

 

Edited December 20, 2022 by ant1882

[Paul]

14 minutes ago, ant1882 said:

Probably this:

https://archive.ph/sy0Ys

 

 

will have a listen - thanks 

[LemmyMcGregor]

26 minutes ago, ant1882 said:

Probably this:

https://archive.ph/sy0Ys

 

 

He raises a good point about brokers, which is something that I was pondering about recentrly and I wanted to ask about, as it worries me.

When you buy stocks through a broker, do you own them? I'm on trading212, when I was going through the terms of service it looked to me like you're dealing with a bank, they're not buying them for you, they're holding them for you, if they go bust are they mine? Because I have the feeling that if they go bust the shares would not be mine, I'd be a creditor, and I don't like that.

But again, just trying to figure it out, not sure how it is and most certainly doesn't belong in this thread, but I thought it was worth the consideration in reply to this video.

[ZRPMs]

25 minutes ago, LemmyMcGregor said:

He raises a good point about brokers, which is something that I was pondering about recentrly and I wanted to ask about, as it worries me.

When you buy stocks through a broker, do you own them? I'm on trading212, when I was going through the terms of service it looked to me like you're dealing with a bank, they're not buying them for you, they're holding them for you, if they go bust are they mine? Because I have the feeling that if they go bust the shares would not be mine, I'd be a creditor, and I don't like that.

But again, just trying to figure it out, not sure how it is and most certainly doesn't belong in this thread, but I thought it was worth the consideration in reply to this video.

Trading 212, eToro, etc, They are more akin to casino's. As I understood it, the trading site owns the stock and its allocated to you. I could be wrong, but that's how it was explained to me. Your trading in CFD's (contracts for difference). They normally have some where as a disclaimer that about 70 odd % of retail CFD accounts loose money.

I've used eToro and did ok for the short time I was on there. But didn't like the set up the more I thought about it. Works for some. Just not everyone.

[ant1882]

2 minutes ago, ZRPMs said:

Trading 212, eToro, etc, They are more akin to casino's. As I understood it, the trading site owns the stock and its allocated to you. I could be wrong, but that's how it was explained to me. Your trading in CFD's (contracts for difference). They normally have some where as a disclaimer that about 70 odd % of retail CFD accounts loose money.

I've used eToro and did ok for the short time I was on there. But didn't like the set up the more I thought about it. Works for some. Just not everyone.

From what I understand the main selling point of these platforms is a low fee (or lack of), with the downside being that shares are wholly owned by them and you are just buying & selling contracts based on them, as you say.

[Anteater]

12 minutes ago, ant1882 said:

From what I understand the main selling point of these platforms is a low fee (or lack of), with the downside being that shares are wholly owned by them and you are just buying & selling contracts based on them, as you say.

I'm not an expert but there are a few factors at play here. One is that with a "normal" platform you are the beneficial owner (?) of allocated shares whereas any platform that offers fractional shares by necessity is doing something else and may place you in a different position if, say, the platform goes bust.

A separate factor is that a lot of these newer platforms provide easy access to margin and derivatives (including options). These can be difficult to understand properly and very risky. I am reminded of a post on Reddit where someone thought they had set up (I think) options trades with limit orders to limit their downside, had their limit orders execute, and were surprised to somehow still make a large gain. It turned out that their limit orders weren't really protecting them due to differences in market opening times for different instruments and they could just as easily have lost a fortune.

Another issue is that I believe a lot of these platforms cut costs by selling on your trading data to HFTs/etc. If you're a buy-and-hold investor this likely won't affect you too much but fundamentally it isn't a free lunch.

Edited December 20, 2022 by Anteater

[ant1882]

2 minutes ago, Anteater said:

I'm not an expert but there are a few factors at play here. One is that with a "normal" platform you are the beneficial owner (?) of allocated shares whereas any platform that offers fractional shares by necessity is doing something else and may place you in a different position if, say, the platform goes bust.

A separate factor is that a lot of these newer platforms provide easy access to margin and derivatives (including options). These can be difficult to understand properly and very risky. I am reminded of a post on Reddit where someone thought they had set up (I think) options trades with limit orders to limit their downside, had their limit orders execute, and were surprised to somehow still make a large gain. It turns out that their limit orders weren't really protecting them due to differences in market opening times for different instruments and they could just as easily have lost a fortune.

Risky business indeed!

Lets see if we are back to £1500 soon, or we get a mid afternoon smack down again 😂