Gold

[Aaron]

Just second guessing myself again but reading an article that said they think the US Central Bank will raise interest rates and reduce their bond portfolio even if data isn't so great.

I would have thought these things would be bad for the price of gold as my theory is that loose monetary policy particularly low interest rates are good for gold and if loose monetary policy gets extreme there is the slight possibility of a loss of faith in currency.

I wonder if I should sell my gold miners. All large producers I think.

[JBmurc]

Just second guessing myself again but reading an article that said they think the US Central Bank will raise interest rates and reduce their bond portfolio even if data isn't so great.

I would have thought these things would be bad for the price of gold as my theory is that loose monetary policy particularly low interest rates are good for gold and if loose monetary policy gets extreme there is the slight possibility of a loss of faith in currency.

I wonder if I should sell my gold miners. All large producers I think.

I don't think you can really trust many of the so called theories of whats going be good or bad for gold ...

.as we know Gold in "meant" to trade inverse of the USD (very wrong of late)

And as a protection against inflation ...GOLD is meant to rise with inflation like it did from the early 2000's to the peak 2011 along with many other fear factors >>

I know Martin Armstrong believes Gold should be purchased when you lose trust in your elected Govt financial direction >>

[Aaron]

Monetary tightening starting to affect the price of gold.
https://www.bloomberg.com/news/artic...s-metals-faith
My gold miners just breaking even, tempting to sell before a loss but it has been a wasted investment as dividends were very small.
The question is whether monetary tightening will cause a dip in financial markets whereby central banks loosen policy again and gold shines once more. What time frame could this take?
I read an article where it was suggested that cryPto currencies would be the new gold. I don't agree as gold is tangible and most people understand how it works. It is rare and pretty so holds it's value and while central banks hold it as a financial asset I can keep the faith(really this is similar to currencies when I think about it.). Seriously considering looking at the largest chunk of farmland I can afford. Unfortunately that might only be uneconomical blocks up in the hills.
Really hard to know what to do. Don't suggest a diversified managed fund as I am still skeptical we won't have another financial crisis in our lifetime.

[JBmurc]

'Gold is about break out on the upside strongly,' Dennis Gartman says
The runup in gold prices is far from over, commodities expert Dennis Gartman told CNBC.
He believes right now investors should have about 10 to 15 percent of their portfolios allocated to gold.
His comments came shortly after Ray Dalio said he recommends investors allocate 5 to 10 percent of their portfolios to gold because of the rising North Korea risk.

https://www.cnbc.com/2017/08/10/gol....tman-says.html



personal gold holdings - PRU,IRC,RMS

[shasta]

'Gold is about break out on the upside strongly,' Dennis Gartman says
The runup in gold prices is far from over, commodities expert Dennis Gartman told CNBC.
He believes right now investors should have about 10 to 15 percent of their portfolios allocated to gold.
His comments came shortly after Ray Dalio said he recommends investors allocate 5 to 10 percent of their portfolios to gold because of the rising North Korea risk.

https://www.cnbc.com/2017/08/10/gol....tman-says.html



personal gold holdings - PRU,IRC,RMS

Gold still hanging around US1288/oz or approx AU1630/oz so any producer with costs under AU1200/oz still making plenty.

Nice wee end of trading week bump for GOR after releasing new presentation, along with the gold price inching up this week

GOR is 23 percent of and my 2nd largest holding, also have exposure to gold via ARV, but very comfortable with this based on fundamentals

Still buying physical silver with the price around US17/oz or NZ23/oz shouldn't be such a disconnect between gold and silver prices

[Aaron]

I expect all my gold producers will all pass their purchase prices today. Wonder how long it will last.
I read the other day someone worked out that if all investors had 10 to 15% gold in their portfolio as Ray Dalio recommends, there might not be enough gold available for everyone. That could only be good for the price of gold. I can only guess that Ray made this comment after securing his 10%.

[Aaron]

I expect all my gold producers will all pass their purchase prices today. Wonder how long it will last.
I read the other day someone worked out that if all investors had 10 to 15% gold in their portfolio as Ray Dalio recommends, there might not be enough gold available for everyone. That could only be good for the price of gold. I can only guess that Ray made this comment after securing his 10%.

That didn't last long. Wondering if I should sell today while I am ahead and buy back in later.

[cyclist]

That didn't last long. Wondering if I should sell today while I am ahead and buy back in later.

Reading between the lines, you may perhaps be overexposed to this sector, relative to your comfort levels for the ups and downs?

I also gather from your posts that you are expecting a big downdraught in the markets at some stage. That may happen, but in the mean time there are individual stocks that from time to time become very well priced in isolation. I would suggest that SUM is a present example, and there are always others. Why not sell at least a portion of your goldies now and spread it around a bit. Kill two birds with one stone.

Disc: I held OGC for a while, and was very happy with how it acted as a hedge for the rest of my portfolio. So a mix of goldies and others sectors seems to work well to help with sleeping at night. (Sold OGC due to the uncertainties in the Philippines. Otherwise would still be happily holding despite the ups and downs).

(May be off base. As I say, just reading between the lines).

[Aaron]

Reading between the lines, you may perhaps be overexposed to this sector, relative to your comfort levels for the ups and downs?

I also gather from your posts that you are expecting a big downdraught in the markets at some stage. That may happen, but in the mean time there are individual stocks that from time to time become very well priced in isolation. I would suggest that SUM is a present example, and there are always others. Why not sell at least a portion of your goldies now and spread it around a bit. Kill two birds with one stone.

Disc: I held OGC for a while, and was very happy with how it acted as a hedge for the rest of my portfolio. So a mix of goldies and others sectors seems to work well to help with sleeping at night. (Sold OGC due to the uncertainties in the Philippines. Otherwise would still be happily holding despite the ups and downs).

(May be off base. As I say, just reading between the lines).

Thanks for the advice. No not overexposed just a small speculation that the end of the financial world will be good for gold. Will have a look at SUM after the crash. PE ratio looks alright but that will be on the back of upward asset revaluations. I need to look at operating cashflow and read the SUM thread.

[shasta]

Still some undervalued goldies under the radar. Sold CHN quick trade in last week at av 15.5c out av 25c into todays ann. Has been trading with a negative EV, and you know i love these type of plays.

AUC, and AZY are the other goldies i'm holding worth looking at with the potential to move in the short term

AZY has ann out today, Rio Tinto is already spending 60m to earn into there large projects, and AUC is hunting in elephant country where GOR found 6m+ oz, plenty of gold to be found out there, green fields exploration.

Also holding GOR, this is a long term hold as fully funded and in project development/construction, production 1Q 2019

Gold still trading around A1640/oz with the USD/AUD balancing the gold price movements +/-

DYOR, I've done mine