Thread: Gold Buying
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Old 19.09.2010, 06:27
Cashboy Cashboy is offline
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Re: Gold Buying

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i bought gold at $600 and sold at $1000. i think gold has more to run and could yet double in price (or more).

but my main concerns are:

- impact if IRs rise. cost of 'carrying' gold will increase
- how much did investment funds buy and when will they liquidate

overall, i think there's a lot more currency revulsion yet to come which will keep prices high. i don't see any immediate trigger which would cause gold to drop significantly.

silver may be a slightly cheaper bet at present.
I don't see their being a cost in keeping physical gold except ones annual Chf 32 cost for a safety deposit box in Switzerland. One could even argue that if you don't declare it on your Swiss Tax Return, you save Wealth Tax.

What would be interesting to see is the amount of ETFs issued for gold against actual physical gold.
This makes me think that there will not be an issue regarding gold bought by Investment funds as they appear to be mainly holding ETAs.

Gold ETAs is where I expect the disaster to come. It could be a bit like the "Money is Debt" scenario.

Once the Quantitive Easing starts again (inevitable in the USA), the price of gold will surely go up.
But is the price of gold going up or the dollar value going down and hence more dollars required to buy the same lump of gold if you compare the price of gold to say the Swiss franc over the last five years?
Note how 5 year increase in price in US Dollars is 177% while in Swiss Francs only 121% becuase the value of the dollar has fallen against the Swiss Franc basically.

Silver has increased at a higher rate than gold of recent.
I would still think Gold would be a better buy than Silver as less of the physical stuff and known as the metal to have in the common world.
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Last edited by Cashboy; 19.09.2010 at 09:14.
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