Gold

[Newman]

Could someone advise how gold could be sold? Is there a market for gold be traded by individuals? banks would not buy gold from clients.

[JBmurc]

Could someone advise how gold could be sold? Is there a market for gold be traded by individuals? banks would not buy gold from clients.

-- bullion dealers would buy from you pretty much worldwide every nation on earth your'd be able to sell your Bullion prices depending on the market demand....or like many just the free marketplace Trademe etc

Gold -1472 .....on it's way back north ..

perth mint business doubles
http://www.kitco.com/reports/KitcoNe...interview.html

[Skol]

snapiti

Gold's been increasing exponentially up until 2 years ago, a clue to even the dimmest that bad things are going to happen. I've been right for the past 2 years, the decline in gold hasn't even started yet.

I've got a book here called 'Gold Bubble', the author digs into the absurd increase in gold prices over the last few years and thinks that gold will finally end up around $700 - $800.

You can look forward to years of a gold bear market, after the 1980 crash it went for 20 years. In 1980 gold went to $850, today it's $1470.
In 1980 the DJIA was 1000, today it's 14700.

And talking of history lessons:


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In his book Basic Economics, Thomas Sowell argued that, in the long-term, gold's high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:
To take an extreme example [of price volatility], while a dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars. All this is in real terms, taking inflation into account. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents.

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Enjoy your 'investment'.

[skid]

snapiti

Gold's been increasing exponentially up until 2 years ago, a clue to even the dimmest that bad things are going to happen. I've been right for the past 2 years, the decline in gold hasn't even started yet.

I've got a book here called 'Gold Bubble', the author digs into the absurd increase in gold prices over the last few years and thinks that gold will finally end up around $700 - $800.

You can look forward to years of a gold bear market, after the 1980 crash it went for 20 years. In 1980 gold went to $850, today it's $1470.
In 1980 the DJIA was 1000, today it's 14700.

And talking of history lessons:


------------------------------------
In his book Basic Economics, Thomas Sowell argued that, in the long-term, gold's high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:
To take an extreme example [of price volatility], while a dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars. All this is in real terms, taking inflation into account. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents.

----------------------

Enjoy your 'investment'.

That information seems a bit dated, Skol
What about from 1998-to now
I quite often dont agree with your logic,but having said that, this post is at least based on your reading
rather than basic name calling-a refreshing change--

biggest influence on gold this week should be the US unemployment report and FMOC meeting
Lets see how the US economy is doing--Are they getting any results from inflating the credit super bubble
on a daily basis?
If these numbers are good then they may hint at easing up on the QE gas peddle--If they are bad-its full steam ahead--Gold will most likely be a barometer of this[unless something bad happens somewhere like Korea of Iran]
The US must be looking hard for another source of income--maybe another latin America country or Syria[somewhere with a bit of that good sweet oil] gotta do somthing with the CIA and military--Its their biggest export.

[Skol]

Skid,

Must be a bit frustrating watching stocks worldwide go through the roof while gold stagnates.

I see you're into the usual conspiracy theories, the CIA, the military, the Fed, Bernanke etc.

Since 1990, the DJIA has increased 5.88 times, gold 3.65 times, and the DJIA doesn't include dividends.

[stanace]

unlike you skol who choose to use any time frame that suits to justify your voice I can really only relate to a more relivant time for me which is the time I have been investing which is 5 years.
In that time the DOW is up 12 % and gold is up 68%

Or you could use 4 years, where the Dow is up 100%

[peat]

I agree that the high volatility of gold (and even more so silver) demands that the risk premium (return over and above risk-free) must be greater than stocks or bonds. And obviously price is the only return so PM's need to cover both that higher required risk premium as well as there being no yield. It is a big ask.

I like silver as a long termer though - not only is there actual demand (for actual products) which must support price at some level, say like NTA for a stock, but an appropriate sized holding increases risk component of the overall investment mix without exposure to a 100% write off as in the case of a company going belly up.

[JBmurc]

I agree that the high volatility of gold (and even more so silver) demands that the risk premium (return over and above risk-free) must be greater than stocks or bonds. And obviously price is the only return so PM's need to cover both that higher required risk premium as well as there being no yield. It is a big ask.

I like silver as a long termer though - not only is there actual demand (for actual products) which must support price at some level, say like NTA for a stock, but an appropriate sized holding increases risk component of the overall investment mix without exposure to a 100% write off as in the case of a company going belly up.

Belly up like the two only pure silver producers on the ASX are looking like doing--- CCU,AYN ......

MaX on Gold manipulation
http://www.youtube.com/watch?v=VVdHsAWDrAk

[elZorro]

JB, that video is weird, couldn't see something like that showing on TV1, he's certainly after attention. He might be on the right track though.

Looks like the shorting raid on gold was just that - the price is recovering amid lots of buying pressure.

http://www.bloomberg.com/news/2013-04-26/gold-buyers-throng-indian-stores-for-second-week-on-rally-1-.html

When do you think gold will collapse further Skol?

[Skol]

EZ,

Shorting raid, another conspiracy theory, how about some evidence, no one here has EVER provided any solid evidence of concerted manipulation, and JPM won a court case recently by a group of burned silver 'investors' alleging manipulation.

When will gold resume its downward trend? Hard to say, but can't be too far away, gold hasn't recovered, lots of suckers seem to have been buying coins, but they will probably be unsophisticated punters who think its hit bottom. Coins might be in demand but gold is certainly isn't at ETFs, there's record outflows.

ABN Amro must have been reading my posts, they predict $1300 at the end of 2013, $1000 by Dec 2104 and $800 in 2015.

http://www.businessinsider.com/banki...se-2013-4?IR=T