Gold Versus other Currencies

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GoldInvestments
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Gold Versus other Currencies

Postby GoldInvestments » 09 August 2016

A dedicated gold investor requires to consider exposing yourself to gold prices in other currencies. There are many ways to boost a sustained return on gold, and exposure to a dropping currency is one. I had an 80/20 $Aussie to $US gold exposure and actually made money with such allocation. A drop in my chosen counter $US currency ($Aussie) rode me to all time highs in the $Aussie gold price. Everyone is able to plot or examine the charts of the gold price in other currencies. Brazil, Canada, Euro etc.

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I started to invert my chosen relationship in the AUD/USD at just over .70 $Aussie. I was still exiting the $Aussie bias at .67 and was complete by .69 AUD/USD. I am now 85/15 $US biased. The same was done in silver. The AUD/USD is now .76. As my conviction on a deteriorating $US is still a high probability, I will flip again at .90 AUD/USD. Everyone is able to see this data and I won't be spoon feeding here.

If the $US starts to continue its role as the cleanest dirty shirt in the basket of the 20 year old then I would reevaluate of course. But, we need the run up to the U.S. election on November 2 to be absent any market chaos. Therefore a weaker $US is most likely to enable this, and even a continued price growth in the U.S. large caps. Such currency methodology is the risk exposure case in international stock investment also. And bonds etc.

This is just one alternate asset allocation method which I have favoured. There are others which I had profited with. I could write another piece on single instrument tiers. Also the well established bullion, large cap, and small cap producer mix which many advocate but not favoured by myself. Hey there is nothing wrong with a straight out bullion hold for now. You also need to consider tax implications on this endeavour also. Tax on any endeavour that would be. In future gold investors can be punished with exceptionally high tax rates too. So large cap mining exposure would counter this possibility.

Stay tuned for more insights on the precious metal world in coming weeks.

by Steve Andelkovic
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Gold and Energy Investments
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TonyJ
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Re: Gold Versus other Currencies

Postby TonyJ » 09 August 2016

GoldInvestments wrote:A dedicated gold investor requires to consider exposing yourself to gold prices in other currencies. There are many ways to boost a sustained return on gold, and exposure to a dropping currency is one. I had an 80/20 $Aussie to $US gold exposure and actually made money with such allocation. A drop in my chosen counter $US currency ($Aussie) rode me to all time highs in the $Aussie gold price. Everyone is able to plot or examine the charts of the gold price in other currencies. Brazil, Canada, Euro etc.

I started to invert my chosen relationship in the AUD/USD at just over .70 $Aussie. I was still exiting the $Aussie bias at .67 and was complete by .69 AUD/USD. I am now 85/15 $US biased. The same was done in silver. The AUD/USD is now .76. As my conviction on a deteriorating $US is still a high probability, I will flip again at .90 AUD/USD. Everyone is able to see this data and I won't be spoon feeding here.

If the $US starts to continue its role as the cleanest dirty shirt in the basket of the 20 year old then I would reevaluate of course. But, we need the run up to the U.S. election on November 2 to be absent any market chaos. Therefore a weaker $US is most likely to enable this, and even a continued price growth in the U.S. large caps. Such currency methodology is the risk exposure case in international stock investment also. And bonds etc.

This is just one alternate asset allocation method which I have favoured. There are others which I had profited with. I could write another piece on single instrument tiers. Also the well established bullion, large cap, and small cap producer mix which many advocate but not favoured by myself. Hey there is nothing wrong with a straight out bullion hold for now. You also need to consider tax implications on this endeavour also. Tax on any endeavour that would be. In future gold investors can be punished with exceptionally high tax rates too. So large cap mining exposure would counter this possibility.

Stay tuned for more insights on the precious metal world in coming weeks.

by Steve Andelkovic
Funds Manager
Gold and Energy Investments


Gold is not the only way to protect yourself from the wealth transfer. Real estate, stocks and many other assets can be purchased (and the $US sold) to protect yourself. Physical gold is currency and it has no liability attached to it like the $US; however, it is a rock and produces nothing. Stocks are investments in productive people so they protect you against inflation and give you productive value. Gold only maintains your real wealth, but it will not increase your real wealth. Stocks over the long haul will increase your real wealth because people are working productively to earn excess returns (dividends, earnings growth, etc). The gold bugs have been calling for disaster for years. It may or may not happen. Just diversify your assets and you will be ok.

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Re: Gold Versus other Currencies

Postby GoldInvestments » 11 August 2016

Correct in all you say

But. Article is meant for those that may want to trade their positions. Try handing over a kilo bar as a housing deposit say. Diversifying is diworsifying with low efficacy central bank policy. Trading is the only real money maker in town. Buy and hold Is also a loss of wealth risk.

Even junk bonds are snapped up for return. Also gold may not gain too much traction in no inflation environment. Only the dance of currencies can accelerate gold profits.
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Re: Gold Versus other Currencies

Postby Tom Silver » 13 August 2016

GoldInvestments wrote:Correct in all you say

But. Article is meant for those that may want to trade their positions. Try handing over a kilo bar as a housing deposit say. Diversifying is diworsifying with low efficacy central bank policy. Trading is the only real money maker in town. Buy and hold Is also a loss of wealth risk.

Even junk bonds are snapped up for return. Also gold may not gain too much traction in no inflation environment. Only the dance of currencies can accelerate gold profits.


Of course it changes because its based on supply and demand. It will never lose all of its value though and it will always go up in value over a long period of time because it is a hard material that is not unlimited (printed). Currencies ALWAYS plummets in value because in the end it just a printed/keyed in "value".

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Re: Gold Versus other Currencies

Postby Thornside » 15 August 2016

GoldInvestments wrote:Correct in all you say

But. Article is meant for those that may want to trade their positions. Try handing over a kilo bar as a housing deposit say. Diversifying is diworsifying with low efficacy central bank policy. Trading is the only real money maker in town. Buy and hold Is also a loss of wealth risk.

Even junk bonds are snapped up for return. Also gold may not gain too much traction in no inflation environment. Only the dance of currencies can accelerate gold profits.


If the USA goes bankrupt, you really think that the inflation of Gold will still be there? Gold is also only worth what people think its worth. There is no intrinsic value of Gold. While you might be able to actually use it in some form of industrial process if any, Gold is also worth what an economy will pay for it. A collapsed economy will not pay anywhere near what they pay now for Gold. Infact speaking now about Silver, Silver is very heavy and if we go to madmax, good luck lugging your bars of silver around. The value of paper money is based on confidence, confidence that there are enough hard assets to back it. That confidence is starting to slide driving gold prices through the roof from it's recent lows. When a mega large holder decides to go short, and dump...hold on to your hat. But then again..who knows?

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Re: Gold Versus other Currencies

Postby Silver Rocket » 15 August 2016

Thornside wrote:
GoldInvestments wrote:Correct in all you say

But. Article is meant for those that may want to trade their positions. Try handing over a kilo bar as a housing deposit say. Diversifying is diworsifying with low efficacy central bank policy. Trading is the only real money maker in town. Buy and hold Is also a loss of wealth risk.

Even junk bonds are snapped up for return. Also gold may not gain too much traction in no inflation environment. Only the dance of currencies can accelerate gold profits.


If the USA goes bankrupt, you really think that the inflation of Gold will still be there? Gold is also only worth what people think its worth. There is no intrinsic value of Gold. While you might be able to actually use it in some form of industrial process if any, Gold is also worth what an economy will pay for it. A collapsed economy will not pay anywhere near what they pay now for Gold. Infact speaking now about Silver, Silver is very heavy and if we go to madmax, good luck lugging your bars of silver around. The value of paper money is based on confidence, confidence that there are enough hard assets to back it. That confidence is starting to slide driving gold prices through the roof from it's recent lows. When a mega large holder decides to go short, and dump...hold on to your hat. But then again..who knows?


Dollars are secured by all the people, all their public assets, think public land, the military, all assets, ships, aircraft carriers, all securing the dollar. Since 1964, the dollar lost 6% a year in buying power driving things up in price 6% a year. Gold is not rising in price, the dollar is falling, losing buying power to transfer wealth, life, time, from the 99% to the 1%. Protect yourself where possible, Gold/Silver are LONG term investments. America is lost just like here in Canada.

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Re: Gold Versus other Currencies

Postby GoldInvestments » 16 August 2016

Thornside wrote:
GoldInvestments wrote:Correct in all you say

But. Article is meant for those that may want to trade their positions. Try handing over a kilo bar as a housing deposit say. Diversifying is diworsifying with low efficacy central bank policy. Trading is the only real money maker in town. Buy and hold Is also a loss of wealth risk.

Even junk bonds are snapped up for return. Also gold may not gain too much traction in no inflation environment. Only the dance of currencies can accelerate gold profits.


If the USA goes bankrupt, you really think that the inflation of Gold will still be there? Gold is also only worth what people think its worth. There is no intrinsic value of Gold. While you might be able to actually use it in some form of industrial process if any, Gold is also worth what an economy will pay for it. A collapsed economy will not pay anywhere near what they pay now for Gold. Infact speaking now about Silver, Silver is very heavy and if we go to madmax, good luck lugging your bars of silver around. The value of paper money is based on confidence, confidence that there are enough hard assets to back it. That confidence is starting to slide driving gold prices through the roof from it's recent lows. When a mega large holder decides to go short, and dump...hold on to your hat. But then again..who knows?


All the mega holders know each other. Hunt Brother tried.

Mad max wise. Buy ammo and gasoline. That's the feral gold and silver.
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Re: Gold Versus other Currencies

Postby Allenby » 18 August 2016

And look what happened to the Hunt Brothers, Be careful, the Banksters own the politicians and they can make it illegal so be prepared to hide it too. I buy physical silver on the secondary market (silverware, jewelry etc). I won't say how many ounces but soon the metal dealers will be after your "junk" silver as well as gold.

Allenby

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Re: Gold Versus other Currencies

Postby TonyJ » 22 August 2016

Allenby wrote:And look what happened to the Hunt Brothers, Be careful, the Banksters own the politicians and they can make it illegal so be prepared to hide it too. I buy physical silver on the secondary market (silverware, jewelry etc). I won't say how many ounces but soon the metal dealers will be after your "junk" silver as well as gold.

Allenby


So. Hasn't the human race outgrown the need for money in the first place yet? Seems to me that gold and silver will always be too rare for everyone to own "enough" to do business. It's high time (way past time!) we evolved beyond the use of money/barter!

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Re: Gold Versus other Currencies

Postby Gold Bird » 05 February 2017

He is right about buying a farm Just as my grandfather did when he was a banker, and saw the Great Depression coming.

His family never went hungry. Many people in the nearby town also did not go hungry because of grandfather. But at some point, and almost everyone believes, paper assets will become worthless. Buffet can eat from his farm, but worthless stock certificates will not be very digestible. Gold will always be worth something, until there is no more food, and no more water.

At that time, assets of every variety will become worthless.


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