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drbubb

Gold: the Bull's thread

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Gold priced in £ hasn't risen all month, and is only up 12% ish over the last 12 months. Well worth watching the £ vs $ price charts on Kitco if you're not spreadbetting (or whatever) directly on the dollar price.

 

I am wondering - is the £ really deserving of all this strength? Our economy is similar to that of the US and M4 is growing at 14% YoY. So does the £ not face the same fate as the dollar? If so, when are the forex markets going to start treating it with the contempt it deserves?!

 

A little bit worrying that once again gold surges today, and any gains get wiped out by the exchange rate slide.

 

Is there any way to avoid this or will all gold investments be affected in the same way for us in the UK?

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A little bit worrying that once again gold surges today, and any gains get wiped out by the exchange rate slide.

 

Is there any way to avoid this or will all gold investments be affected in the same way for us in the UK?

 

This is annoying me as well. I had thought that if the dollar dropped then money will go into gold, more gold bought would then mean an increase in demand and hence the value would rise regardless. However it just looks like the dollar is devalueing and the price of gold is just constant, hence gold costs more dollars but just isn't any more valuable (unless you are trading in dollars).

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This is annoying me as well. I had thought that if the dollar dropped then money will go into gold, more gold bought would then mean an increase in demand and hence the value would rise regardless. However it just looks like the dollar is devalueing and the price of gold is just constant, hence gold costs more dollars but just isn't any more valuable (unless you are trading in dollars).

 

I am holding a mix of GBS and ML G&G.

 

GBS is actually down about 0.8% for the week due to the dollar slide, but ML G&G is up 4.5%, so I am seriously thinking about going 100% into ML G&G

 

To my way of thinking, just about every gold investment is going to be affected in this way for those resident outside the US (GBS, Gold ETF, physical), so why is the gold mining stock fund following the rising price and not the others?

 

Any views from the GEI big guns on this one?

 

 

<edit>

 

Webmaster/Bubb...........could we pin this thread?

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"hence gold costs more dollars but just isn't any more valuable (unless you are trading in dollars)."

 

I HAVE a different experience.

 

My portfolio of Juniors is up about 25%+ in the past two months,

and that is measured in C$, rather than the weaker US$

 

They have certainly been outperforming the drop in the US$.

This demonstrates why I prefer Junior miners & explorers to Gold investments

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why dont you spreadbet? the exchange rate doesnt come into it then

 

Its something that I plan to learn in the future but for now I really dont have the time to give spreadbetting my full attention. Its far too easy to lose lots of money imho!

 

Cheers

 

 

harvi

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