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Greetings from yet another Goldfinger/G0ldfinger disciple.

 

I stumbled across HPC around three years ago (when Dr Bubb was a prolific poster over there), and was fascinated by the wider financial knowledge being shared and discussed.

 

I lurked and learned, paid off all non-mortgage debt, switched to a cheap ten year fixed rate mortgage and rearranged my savings and investments based on my newly aquired knowledge. I even tried GEI in its early days, but felt out of my depth.

 

In January 2007 I took cgnao's advice to "protect myself" and nervously ordered a single 1oz Kruger from Bairds (c£350), just to test the water. As predicted by the goldbugs, once I had handled a bullion coin and understood what constitutes real money I started buying little and often and have recently started accumulating Silver as well.

 

Thanks to the many ex-HPC goldbugs, I now feel that I have some kind of financial protection for myself and my family.

 

I intend to spend more time lurking on this forum, but it will probably be a while before I can contribute anything of any value. I'll just sit at the back of the class and try to take it all in.

 

Cheers

Dutch

 

Welcome Dutch :lol:

 

It's quite something to hold real money in your hand isn't it :blink:

 

The interesting thing is that most people will say "that's not much for all that money".

They don't wonder why they need so much money in order to buy so little :blink::blink:

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Some trivia for all you metal heads, and I don't mean the musical kind.

 

$50,000 invested in Rhodium in 2003 would see you investment standing today at a cool $1,000,000. Not too shabby is it?

 

http://www.kitco.com/charts/rhodium.html

 

Rhodium is a silver-white metallic element, is highly resistant to corrosion, and is extremely reflective. It is used as a finish for jewelry, mirrors, and search lights. It is also used in electric connections and is alloyed with platinum for aircraft turbine engines. Another use is manufacturing of nitric acid and used in hydrogenation of organic compounds. Rhodium usage is dominated by autocatalyst applications where it is used together with platinum and palladium to control exhaust emissions

 

It's a bit late telling me now :blink: :blink:

 

You don't happen to have a TARDIS do you ?

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I was just over at goldline and was impressed to notice how much or their range is Out of Stock. That is something new. Even a couple of years back when gold bubbled over 700 for the first time there was no shortage of physical metal. So it looks like we are into new territory.

 

Personally, I am hoping it misses 1000 this time and falls back into the 800s for the summer so that I can do some loading up, and goldline can fill their empty shelves.

 

It must be good times for the Baird family after decades in the twilight zone of the investment world.

 

By comparison, Chards don't even bother to keep updated prices on their web page and I assume you still have to ring up to get a quote rather than just order on line. You'd think they'd upgrade their service at a time like this.

 

Maybe they all used to work for British Leyland... :blink::blink::lol::blink:

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That isnt a trigger that I personally find of great importance.

Maybe you can explain more about why we should be watching this?

 

I'm just an average Joe on the street here, and I’ll be honest trying to imagine the amount of credit being created digitally is just to vast for me to comprehend.

 

The reason why I'm currently keeping an eye on the £20 note is purely to try and gauge sentiment of when/if the BOE starts deflating. If these "over printed" bank notes start to be destroyed then surely (even though it's not backed by gold) the worth of these notes become greater. couple this with a rise in interest rates and surely these are factors that should directly effect the price of gold, maybe not against other currencies, but at least in £GBP, the currency which my wage is paid to me.

 

I'm just trying to store my savings and protect them from inflation.

 

I'm sure there will be a point in the future when after the now commonly accepted property crash happens and a deflation occurs, at that point either cash or property will be worth more than Gold & silver. Now I’m not expecting this for a number of years, but ultimately I’d expect both gold and silver to end up in a commodity bubble just like property has. But how far in the future that is...... I’ve no idea, and nobody even seems to know even a date for when the old £20 is to be pulled out of circulation.

 

Maybe a thread should be started when all us gold holders start getting nervous - maybe call it "sign's of deflation - let's keep check" :blink:

 

I'm probably getting too far in front of myself and i should "enjoy the bull run", but so far in 2008 we've seen Silver up 33% - it's too quick for my liking.

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Found it:

 

M3 Data

 

How the Gold market defies the Law of Gravity - by Gary Dorsch, Feb 18 2008

mms://media.kitco.com/weeklyreport/dorsch20080218.wma

 

Money supply in 18 of the top 20 economies growing at double digit rates.

 

Aus: broad M3 = 23%

China: 19%

Korea 12%

England 12.5%

India 21%

US 15%

 

Thanks for digging out that info Steve, much obliged

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The reason why I'm currently keeping an eye on the £20 note is purely to try and gauge sentiment of when/if the BOE starts deflating. If these "over printed" bank notes start to be destroyed then surely (even though it's not backed by gold) the worth of these notes become greater. couple this with a rise in interest rates and surely these are factors that should directly effect the price of gold, maybe not against other currencies, but at least in £GBP, the currency which my wage is paid to me.

I think you're mistaken if you feel the BoE will simply remove money from circulation. I know if I ran a business and took my daily take of £10,000 to a bank and they said "Sorry, we're going to remove £3,000 of that because you have £3000 in old £20 notes and the BoE wants them back" I'd be pretty miffed.

 

No, when notes are changed, the banks go through a process of withdrawing the old ones from circulation (they eventually get incinerated) and replacing them with the new style. Then there's a grace period where individual holders of the old notes can exchange them at banks, followed by a cut-off after which the old note is no longer legal tender.

 

Similarly, they may choose to release less paper money into circulation... but that's generally driven by the public's decreased demand for notes. If you (as I do) spend most of your money via electronic means (credit/debit cards, BACS and CHAPS transactions, etc.) then you simply don't need as much physical paper (if that's not an oxymoron!) in circulation. But, as I understand it, that *does't* constitute deflation.

 

Think about it: If I get a mortgage for £250,000 and transfer it via CHAPS to the person I'm buying a house from, a bank has created money for me, yet no £20 notes have been needed. If banks decrease their lending and stop giving out as many loans then this money creation *slows* but it certainly doesn't reverse. If they call in a loan early it reverses (as I have to give the money back). But if they reposses my house and I default on my loan this *isn't* deflationary - I got the money, I gave it to someone, I took the house, I didn't pay the loan back (ie I spent my money on other things) and now the bank has a house. That £250,000 they loaned me is still out there in the economy.

 

Sorry for going off on a tangent with (quite a poor) deflation discussion - if anyone has anything that more clearly explains things please post a link :blink: ... However, Silent Reader, unless I've misunderstood what you were getting at, the old/new £20 note thing has no relevance IMO.

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Personally, I am hoping it misses 1000 this time and falls back into the 800s for the summer so that I can do some loading up, and goldline can fill their empty shelves.

Same here. My guesses for $1000 and $1200 over on the "guess the dates" thread probably reflect this desire. But some consolidation and sideways action seems reasonable in the spring and early summer (he says, hoping).

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I have been exploring this site and it is brilliant,for investment tips but still too complicated for a complete novice, so i am taking it upon myself to learn as much as i can and i found this place that gives a complete novice a bit of an insight to the casino, it even has a quiz after the info to see what one has picked up upon, even a dummie like me can get the terms and answers right.

http://beginnersinvest.about.com/

Hope it helps dummies like me. :blink:

 

After all when gold reaches are target we will need an exit plan

 

He-he replying to myself. :blink: :blink: :lol:

 

i give a bad link for beginners in investing plus quiz for Numptys like me here is the correct one if anyones interested.

http://beginnersinvest.about.com/od/invest...ons_Quizzes.htm

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Gold chart for 7/03/08 - Chart
Thanks. It's interesting to compare on that graph how the price approached the big round numbers 800, 900 and 1000. It hurtled through 800 without hesitation straight to 840 before a few weeks of consolidation around 800. With 900 it passed through boldly to about 903 before beginning consolidation around 900, again for a few weeks. This time on the approach to 1000 the charger lost it's nerve *before* the 1000 hurdle at around 995. It remains to be seen whether a consolidation for weeks has already begun.

 

At each major hurdle of the wall of worry the beast seems to be getting more hesitant.

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Not strictly to do with gold, but this clip with Schiff from 2006 is very amusing. Some of the statements from Arthur Laffer, a CNBC favorite, are almost unbelievable -

 

eg. the U.S. economy has never been in better shape", and "monetary policy is spectacular". I kid you not.

 

The clip - watch the whole thing. It gets better and better.

What a laff! That guy Laffer was pretty desperate and waffling unconvincingly.

 

The consequences of monetary policy will certainly provide many spectacles.

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Systematic margin calls claim JPM. Another red alarm going off yesterday - commodities are now the only safe haven.

 

NEW YORK (Reuters) - Wall Street banks are facing a "systemic margin call" that may deplete banks of $325 billion of capital due to deteriorating subprime U.S. mortgages, JPMorgan Chase & Co (JPM.N), said in a report late on Friday.

 

http://news.yahoo.com/s/nm/20080308/bs_nm/...losses_jpm_dc_1

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Not strictly to do with gold, but this clip with Schiff from 2006 is very amusing. Some of the statements from Arthur Laffer, a CNBC favorite, are almost unbelievable -

 

eg. the U.S. economy has never been in better shape", and "monetary policy is spectacular". I kid you not.

 

 

The clip - watch the whole thing. It gets better and better.

Is that the same Laffer that said this about oil? I think so.

 

http://www.greenenergyinvestors.com/index....20&start=20

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I just had a reply from the "webmaster" at HPC, I will paste it below.

 

 

Azazel wrote:

>Please can you sort the dispute out in the "famous" Gold thread and return

>it to where it has always been, in the main forum.

>

>

>

>Thanks

 

 

 

From: Webmaster [mailto:forum@housepricecrash.co.uk]

Sent: 08 March 2008 13:57

To: A.. B.. C..

Subject: Re: [HPC-00231357-oM8F6] Error on the forums

 

The Main forum is for discussion on house price. Gold is not a house. It was moved to

its logical location which was the Metals forum under investment.

 

 

 

 

Dear webmaster,

 

You say the main forum is for discussion on house prices. You then say gold is not a house. House prices are not houses either are they? House prices are MONEY which is what gold is. This whole boom bust cycle in house prices is arguably caused by the abandoning of the Gold standard. So it is central to the discussion on house prices.

 

Azazel

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Dear webmaster,

 

You say the main forum is for discussion on house prices. You then say gold is not a house. House prices are not houses either are they? House prices are MONEY which is what gold is. This whole boom bust cycle in house prices is arguably caused by the abandoning of the Gold standard. So it is central to the discussion on house prices.

 

Azazel

:angry::lol::lol: Nice one.

 

(P.S. I noticed what looked like somebody's real name in the post. Did you mean to delete it?)

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Please take the time to review this TV clip of Peter Schiff on Fox Business news. About half way through Peter warns them on the demise of the dollar and everyone starts to laugh like a pack of hyenas. The bearers of truth are being ridiculed in the media.

 

http://www.europac.net/Schiff-FBN-3-04-08_lg.asp

 

It's depressing me, the more I see the more scared I get.

 

They just talk about quick fixes that seem to get more and more idiotic.

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I wired more funds to GoldMoney today, and I will buy silver stored in Zurich once it has arrived. I hope gold and silver don't move higher until I can buy. :angry:

 

I'm still waiting to become 'CAP Verified' with GoldMoney. Do you recall how long this took? I think I sent my documents off last Monday-ish.

 

On a (hopefully) positive note, I actually bought my first gold yesterday... :lol:

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On a (hopefully) positive note, I actually bought my first gold yesterday... :angry:

 

Congratulations! You now have a form of money approved over 3000 years by civilisations all over the world. Whatever you do, do NOT sit glued to a Gold chart - it will turn your hair white. Buy and hold. :lol:

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Thanks. It's interesting to compare on that graph how the price approached the big round numbers 800, 900 and 1000. It hurtled through 800 without hesitation straight to 840 before a few weeks of consolidation around 800. With 900 it passed through boldly to about 903 before beginning consolidation around 900, again for a few weeks. This time on the approach to 1000 the charger lost it's nerve *before* the 1000 hurdle at around 995. It remains to be seen whether a consolidation for weeks has already begun.

 

At each major hurdle of the wall of worry the beast seems to be getting more hesitant.

 

I can see nothing unusual yet in the London Fixing chart. So far this looks as any other approach of a round number.

 

Gold_USD_LOG_GUESS.png

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