Gold Monitoring Thread £ GBP only

[Stacktastic]

I recon the bounce has started now (who knows).
This is my target on my GDXJ holding. 

Could easily go beyond ATH in the next few months IMO.
Best performing asset outside of the USD & we know how thats going to enddont we. 😛  

Edited May 19, 2022 by Stacktastic

[LawrenceChard]

On 18/05/2022 at 21:17, LawrenceChard said:

On 4th May 2022, when the US Fed raised its interest rate to 1.0%, my thoughts were:

While it was not a big rise, it showed a shift in thinking.

When US rates go up, the dollar usually strengthens and gold weakens.

This is because it becomes more attractive to hold dollars, and gold pays no dividends.

Also the pound, and many other currencies weaken against the dollar.

Combine the two movements, and it could be neutral for gold measured in pounds sterling.

But, of course, it was then likely that the UK would increase interest rates to match at 1.0%, as it did the next day, 5th May 2022.

This should strengthen the pound, and weaken gold.

I posted an internal Teams note to that effect, although I did not expect to see big swings.

Gold had been between £1485 and £1495, and shortly after the rate rises, it was trading around £1515, peaking at around £1540, so it looks like I got it wrong, and I still don't understand why, except...

The rate rises were stated to be to help protect against inflation, which most of us expected to be over 10%, especially in view of huge increases in energy costs, and disruptions to food production such as Ukrainian grain, not to mention transport diffculties. Also wars tend to be inflationary.

Inflation means the value of fiat currencies drops wen measured against hard assets like...

... Gold!

My Teams note did also mention that gold should win in the longer term, so what has actually happened?

I already said it went up straight after I said it would go down, then it started to go down over the following weeks after I said it should start going up. Currently around £1465, although we bought some at below £1460 yesterday.

So far, I have been wrong twice out of two times, so this is perhaps a good reason not to listen to my views, however there is a simple principle which has stood me in good stead for decades, which is buy on the dips, and sell on the spikes. Even this can work out wrong, because you have to choose your timing, or random factors can interfere, changing your "luck".

We actually buy and sell gold most days, but we can usually choose to buy more or less than we need, and vice versa. 

Where does this leave my gold price advice and thoughts?

Over the next few months or years, we will suffer inflation, and this should increase the value of precious metals relative to most currencies, and weaken most currencies relative to precious metals.

As a result, our current view is to keep our gold holdings topped up.

Similar thoughts apply to silver and platinum of course.

😎

 

Just seen a WGC GoldHub e-mail and report, but as it mainly relates to USD performance, I posted it here:

 

😎

[gji25]

On 19/04/2022 at 22:19, Martin1983 said:

Once the war is over I think we will see a crash, not sure at all what that will be but good will come down and after a little while it will shoot back up with the economy of the world being in tatters, that will be the dip to buy 

it will have nothing to do with when  the conflict between russia and the ukraine is over.. it will all depend on russia continuing to peg the ruble to the gold standard or visa versa 

 

Edited May 23, 2022 by gji25
missing link

[HerefordBullyun]

2 minutes ago, gji25 said:

it will have nothing to do with when  the conflict between russia and the ukraine is over.. it will all depend on russia continuing to peg the ruble to the gold standard or visa versa 

it wont be Russia - its china pegging it to yuan, They have far more gold than Russia, when china gets rid of the dollar, they wont yet as they are owed too much in US debt, but slowly but surely they will ditch it. They need to exchange more dollars for yuan first.....

The chinese are by far one of the cleverest races in the world.

[MancunianStacker]

[CollectForFun]

5 hours ago, MancunianStacker said:

How did he calculate $2660 gold price from RUB/USD rate of 60?

[EdwardTeach]

Every household will get at least £400 off bills from the windfall tax on energy firms.

So who else is going to buy a gold sovereign with their money? 😁

[Lyrinn]

50 minutes ago, EdwardTeach said:

Every household will get at least £400 off bills from the windfall tax on energy firms.

So who else is going to buy a gold sovereign with their money? 😁

Well, that's the price of gold jumping up, especially as everyone on TSF will buy themselves some PMs...!

[MancunianStacker]

51 minutes ago, EdwardTeach said:

Every household will get at least £400 off bills from the windfall tax on energy firms.

So who else is going to buy a gold sovereign with their money? 😁

Yeah with my own tax money 🤦‍♂️ 

[Paul]

35 minutes ago, Lyrinn said:

Well, that's the price of gold jumping up, 

.........to da'moon !!!! 

[ady]

1 hour ago, EdwardTeach said:

£400 off bills from the windfall tax on energy firms.

From what I have already paid - a pittance. The government breaks your leg, gives you a crutch and think it is doing you a favour!

[EdwardTeach]

19 minutes ago, ady said:

From what I have already paid - a pittance. The government breaks your leg, gives you a crutch and think it is doing you a favour!

Governments solution to help with rising prices is usually printing more money and handing it out to everyone. 😂

Edited May 26, 2022 by EdwardTeach

[chrisdobb]

2 hours ago, EdwardTeach said:

Every household will get at least £400 off bills from the windfall tax on energy firms.

So who else is going to buy a gold sovereign with their money? 😁

Free Sovereigns all round

[Petra]

1 hour ago, chrisdobb said:

Free Sovereigns all round

 

1 hour ago, chrisdobb said:

Free Sovereigns all round

 

[Petra]

Ha ha! Wishful thinking. You’re getting a credit note on your bill😂

[chrisdobb]

On 26/05/2022 at 18:46, Petra said:

Ha ha! Wishful thinking. You’re getting a credit note on your bill😂

Or will all our grandchildren have to pay it off?

They will need those sovereigns then!

[FlorinCollector]

£1,454. Time to buy an ounce?

[FlorinCollector]

@James32 As the great Wonger of the forum once said. We going down. 

[James32]

Just now, FlorinCollector said:

@James32 As the great Wonger of the forum once said. We going down. 

There's no explainable way I could of lost this bet...yet here we are 😅

[Stacktastic]

37 minutes ago, FlorinCollector said:

We going down. 

Goody good.
Hopefully gold can have a really nice drop to £320 a sov again, not bought for ages.  

I have to say I did not see silver going almost under £17 this morning. 
If it breaks $20 then that will be interesting. 

Edited June 1, 2022 by Stacktastic

[FlorinCollector]

Just now, Stacktastic said:

Goody good - I have to say I did not see silver going almost to the £16's this morning. 
Hopefully gold can have a really nice drop to £320 a sov again, not bought for ages.  

That would be nice  

[James32]

4 hours ago, FlorinCollector said:

@James32 As the great Wonger of the forum once said. We going down. 

Now heading for the moon?

[lst65]

2 minutes ago, James32 said:

Now heading for the moon?

I think you should donate that 1/2 oz proof gold eagle to me…?! 😉

[James32]

4 minutes ago, lst65 said:

I think you should donate that 1/2 oz proof gold eagle to me…?! 😉

You have eyes in every city🤣

[MancunianStacker]

5 hours ago, FlorinCollector said:

@James32 As the great Wonger of the forum once said. We going down. 

Going down hard!! Oof 😅