• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Gold

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Gold

    Gold slides 20pc into bear market

    Futures contracts for the precious metal were on Wednesday trading 21pc down from their high last summer. That signalled gold for June delivery was into the territory seen as a “bear” market - when an asset plunges 20pc or more.

    The spot price for gold was flirting with a bear market at close to $1,544 an ounce, a 19.5pc drop from its September intraday high over $1,921.The slide in the price has been driven by the escalation of the eurozone debt crisis, which is causing investors to liquidate their gold holdings.

    While the metal is often seen as a safe haven in times of economic turmoil, at times of extreme market stress, people may start selling their gold to cover losses elsewhere. This phenomenon was blamed for two sharp gold sell-offs in the second half of last year.

    Instead of gold, investors are turning to the dollar as they shun the eurozone and its shared currency. The US dollar index, which tracks the greenback’s strength against six rivals, climbed a 13th day to reach a four-month high.

    “Gold is just another risk asset,” said Michael Aronstein, the president of New York-based Marketfield Asset Management. “It made you a lot of money if you took the risk eight or 10 years ago.

    A real safe haven would be a pile of high-denomination Swiss franc or dollar notes, stored in a safety deposit box,” he told Bloomberg. (AtW's comment: no, a real safe asset would be a spaceship in orbit with nuclear weapons at the ready and prepped for light speed)

    Others forecast that gold will climb once more, predicting that a further escalation in the eurozone debt crisis will send people flocking towards the metal again. In addition, if the US Federal Reserve resumes quantitative easing - its money-printing efforts - this would likely boost demand for gold, as people seek a refuge from inflation.

    “At some stage we will have a recovery, but it will be euro-led and that for the time being seems to be a long way away, given all the problems of the eurozone,” said David Govett at commodity broker Marex Spectron

    Source: Gold slides 20pc into bear market - Telegraph

    #2
    The peak is next year, according to this: One Huge Chart That Has Everything You Need To Know About Gold - Business Insider

    Comment


      #3
      Always believe in your soul. You've got the power to know you're indestructible.

      Comment


        #4
        Originally posted by k2p2 View Post
        Always believe in your soul. You've got the power to know you're indestructible.
        Gay.

        Next?

        Comment


          #5
          It makes sense. One cannot eat gold.

          Comment


            #6
            Originally posted by BrilloPad View Post
            It makes sense. One cannot eat gold.
            Trying to find anything consistent to invest in at the moment is proving difficult. The Eurozones death by a 1000 cuts is making investment predictions extremely difficult.
            What happens in General, stays in General.
            You know what they say about assumptions!

            Comment


              #7
              Originally posted by BrilloPad View Post
              It makes sense. One cannot eat gold.
              And those poor bastards who bought at $1900 an ounce? **** 'em.

              Comment


                #8
                Originally posted by MarillionFan View Post
                Trying to find anything consistent to invest in at the moment is proving difficult. The Eurozones death by a 1000 cuts is making investment predictions extremely difficult.
                +1

                Everyone knows the Eurozone has to break up. Get on with it and get the uncertainty out of the way.

                Thankfully I have no money to invest which makes life easier.

                Comment


                  #9
                  Lots of upset people on HousePriceCrash forum who stuff all of their STR money into Gold. I think they are now blaiming Mumsnet

                  Comment


                    #10
                    Originally posted by BrilloPad View Post
                    It makes sense. One cannot eat gold.
                    Actually, you can. Some foods are decorated with edible gold leaf. However, you can't digest it. So presumably, with appropriate equipment, one could eat it, then re-harvest it.

                    Comment

                    Working...
                    X