Absolutely, a little volatility doesn't scare me. Your suggestion to average into such investments is well heeded.
Absolutely, a little volatility doesn't scare me. Your suggestion to average into such investments is well heeded.
Well it looks like Iran is willing to commit to a temporary cessation of its uranium enrichment programme.
Right now the two big movers for gold IMO, are the CPI figure to be released on Friday and what the central banks do before Sept. 26th. On average about 33 tonnes of gold are sold each month. If the 15 EGA central banks decide to meet their quota (the maximum amount of gold they can sell) it will amount to about 160 tonnes. This would severely depress the price of gold.
Technical question for anyone who can help me. Im looking at buying a gold etf, and for currency reasons want to stick within Europe. Lyxor's etf is listed on the Euronext in Paris, and the London exchange.
Im using an online purchasing service. However, I notice its listed as a warrant in Paris, and as a stock in London.
Should this concern me? Id prefer to buy in Paris but Im afraid, as a relative novice to this game, this description of it as a warrant is worrying me.
Anyone able to enlighten me? Can I buy and sell this warrant as I would with a normal stock?
Im using an online purchasing service. However, I notice its listed as a warrant in Paris, and as a stock in London.
Should this concern me? Id prefer to buy in Paris but Im afraid, as a relative novice to this game, this description of it as a warrant is worrying me.
Anyone able to enlighten me? Can I buy and sell this warrant as I would with a normal stock?
bearishbull
Registered User
- Messages
- 207
Have you checked out www.gold.ie ? .im not sure of your technical question but that site may help,or someone here will let you know soon.
Wasn't aware of this issue but I will try to find out for you.
As an aside, gold tanked pretty hard. I guess to many people assumed "this was it" and when the majority of people are optimistic, the market tends to punish them. I'm holding on but I wouldn't be surprised to see it dip to $550 or $560 from here.
Well if you are looking to buy an gold ETF what currency it is denominated in should not be of concern. You are buying gold not a currency. If you are buying gold you have to believe that the gold price in euros will be higher in the future than it is today. If you buy gold in euros, or if you buy gold in dollars does not make any difference. The gold you buy in euros will still be worth the same as the gold you buy in dollars.
W
walk2dewater
Guest
Keep the faith in the "stag"-(Western consumer recession)--"flation" (higher gold, higher rates) story. Peter Schiff interview below.
[broken link removed]
His recommended best strategy:
Stocks: Non-US$ denominated energy, resource, prec metals...
Cash/Debt: non-US$ cash, and gold (I would add short-term C$, CHF bonds)
Property: Non-US particularly Asian commercial property (NB: Americans call 'Asia' what we call 'SE Asia' or to use an older term The Orient, including China).
Gold and gold shares are ridicuously volatile, cf. last 2 weeks and Feb -May 2006, but the v high returns of last 2 yrs will continue.
[broken link removed]
His recommended best strategy:
Stocks: Non-US$ denominated energy, resource, prec metals...
Cash/Debt: non-US$ cash, and gold (I would add short-term C$, CHF bonds)
Property: Non-US particularly Asian commercial property (NB: Americans call 'Asia' what we call 'SE Asia' or to use an older term The Orient, including China).
Gold and gold shares are ridicuously volatile, cf. last 2 weeks and Feb -May 2006, but the v high returns of last 2 yrs will continue.
W
walk2dewater
Guest
Anything is possible. I don't have all of my eggs in the gold basket so I can tolerate short-term losses. Cos in my view thats what a move to <$500oz would be. Short-term. You take the risk you reap the return. I believe that this time next year and the years to come, whether you bought at $740, $640, $540 or whatever will be long forgotten. Gold will be higher in ALL fiat currencies.
fatmanknows
Registered User
- Messages
- 53
Believe now a good entry level. The Hu Hah regards Popes speech amongst the Mad Muslim world will probably increase world fear and hence gold. Personnally, I normally play Newmount (NEM) as my main play in and out of Gold - using CFD's. The UK based CMC offer a no dealing service enabling entry and exit at no cost save the finance cost on your acount balance. I also find their trading platform preyty good. (ps I ain't plugging this crowd btw - it's just what I use)
W
walk2dewater
Guest
And another one, good argument with the Laffer curve guy [Im shamelessly re-posting these links from another website, which I won;t mention here 
]...
http://www.europac.net/Schiff-CNBC-8-28-06_lg.asp
[Fatman, thanks for the CMC link, they look good]
]...http://www.europac.net/Schiff-CNBC-8-28-06_lg.asp
[Fatman, thanks for the CMC link, they look good]
And another one, good argument with the Laffer curve guy [Im shamelessly re-posting these links from another website, which I won;t mention here
http://www.europac.net/Schiff-CNBC-8-28-06_lg.asp
[Fatman, thanks for the CMC link, they look good]
Thanks for the links guys.
w2dw that interview was fascinating to say the least, reminds me of the strong views on the housing sentiment thread here.
Certainly if oil continues its fall then gold will follow suit. Oil price has gone through this pattern for the last few years topping in late summer and falling roughly 15% towards year-end before picking up pace again with each year's high bigger than the previous one. There is potential for this year's drop to be greater though. Its been a quiet hurricane season and the recent deepwater find in the Gulf of Mexico has buoyed market somewhat. All things being equal I expect oil prices to rise again but there is scope for further drops in which case gold will probably follow. But, I think W2DW is right with regards to the long-term view of gold.
That Laffer guy spouts a lot of crap. Pity Schiff shot himself in the foot towards the end of the interview with his remark about working women.
We could see a rally from here, it has fallen a lot very quickly and this is a very strong month for gold - Indian wedding season and all that. However, if the sentiment among speculators has changed - they now see gold as weak - they will sell heavily into any rallies that occur. Also there is some evidence that the US dollar may be strengthening. I wouldn't be surprised to see lower prices by Christmas.
I agree with the comments here though, in five years time the idea of a $10 or $20 move in gold being in any way significant will seem laughable and even people who bought at the May peak will be deemed to have purchased when gold was cheap.
I think the recent big correction in gold and commodities generally will ensure that the bull market in commodities will continue for a long time to come as many commentators have predicted. Just as serious money was entering the market the big correction has frightened a lot of people off them again and I think alot of people have been burned by the latest correction. These corrections will ensure that the bull market does not run out of steam.
You are making some big assumptions about global growth next year. As far as I can see the US seems to be headed for a recession. That will have knock effects for commodity prices.
I would average in from here and view gold as a longterm investment (at least five years). Although if it dips below $500 at any stage I'll happily buy as much as I can get my hands on.
http://news.goldseek.com/GoldSeek/1158596197.php
[FONT=Arial, Verdana, Helvetica, sans-serif]Only 1% of China’s $954 billion of foreign currency reserves are held in the yellow metal.<snip>[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]
With pressure mounting on Beijing to revalue it yuan upwards, China could quietly build a gold position in a declining market. Fan Gang, a member of China’s central bank monetary policy committee said on August 29th, "The US dollar is no longer a stable anchor in the global financial system, nor is it likely to become one, therefore it is time to look for alternatives.”[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]
A fascinating article that touches on many other areas but this little tidbit about gold prices really grabbed my attention, surely China possibly wanting to start buying has to lead to long term price growth alone?
[/FONT]
[FONT=Arial, Verdana, Helvetica, sans-serif]Only 1% of China’s $954 billion of foreign currency reserves are held in the yellow metal.<snip>[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]
With pressure mounting on Beijing to revalue it yuan upwards, China could quietly build a gold position in a declining market. Fan Gang, a member of China’s central bank monetary policy committee said on August 29th, "The US dollar is no longer a stable anchor in the global financial system, nor is it likely to become one, therefore it is time to look for alternatives.”[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]
A fascinating article that touches on many other areas but this little tidbit about gold prices really grabbed my attention, surely China possibly wanting to start buying has to lead to long term price growth alone?
[/FONT]
Yes but do they plan to actually start buying or are they just mouthing off to get the US off their back about revaluing their currency (or imposing a 23% import tariff on Chinese goods)?
China holds so many US dollar reserves that it would be tough to dump even a fraction of them on the open market without seriously weakening the dollar and greatly devaluing the remainder.