Discussion
I have had similar thoughts - the price has actually come off a bit but Ive decided to hold onto mine (which i hold as an ETF) as a hedge - in GBP terms performance this year is excellent - up almost 35% YTD. Part of the reason for holding is that I am not sure what I would do with the money if i sold!
First you have to accept that the price of Gold hasn't moved much for a while.
It's the Pound that has dropped causing the Sterling price to appear high. (it is of course)
Brexit shock and current uncertainty hit the pound..... even the FTSE revalued.
So a decision on Gold, buying or selling is best made with a view to the Pound and how it will react to future news, ie how negotiations are going re Europe etc.
Also, when you enter an investment, it's really a good idea to have a plan of some sort, a ball park exit price based on an event or non event.
And of course know why you bought it.
As a Sterling investor, which I'm not, I might be inclined to look at Mainland Europe as a better hedge should UK not do too well in the upcoming divorce.
One side will be perceived to have got the better deal, but with the uncertainty removed maybe even both could prosper.
Although those European elections look a bit troublesome
It's the Pound that has dropped causing the Sterling price to appear high. (it is of course)
Brexit shock and current uncertainty hit the pound..... even the FTSE revalued.
So a decision on Gold, buying or selling is best made with a view to the Pound and how it will react to future news, ie how negotiations are going re Europe etc.
Also, when you enter an investment, it's really a good idea to have a plan of some sort, a ball park exit price based on an event or non event.
And of course know why you bought it.
As a Sterling investor, which I'm not, I might be inclined to look at Mainland Europe as a better hedge should UK not do too well in the upcoming divorce.
One side will be perceived to have got the better deal, but with the uncertainty removed maybe even both could prosper.
Although those European elections look a bit troublesome
jeff m2 said:
First you have to accept that the price of Gold hasn't moved much for a while.
It's the Pound that has dropped causing the Sterling price to appear high. (it is of course)
Brexit shock and current uncertainty hit the pound..... even the FTSE revalued.
So a decision on Gold, buying or selling is best made with a view to the Pound and how it will react to future news, ie how negotiations are going re Europe etc.
Also, when you enter an investment, it's really a good idea to have a plan of some sort, a ball park exit price based on an event or non event.
And of course know why you bought it.
As a Sterling investor, which I'm not, I might be inclined to look at Mainland Europe as a better hedge should UK not do too well in the upcoming divorce.
One side will be perceived to have got the better deal, but with the uncertainty removed maybe even both could prosper.
Although those European elections look a bit troublesome
Depends how you mean by a while? It's up a lot this year, just it stalled out with a "small" drop (relative to rise) which is either a correction in a bull market or the start (continuation) of the large bear market from around $1900. There is different opinions on this depending what you put focus on in the charts or which person you read - most seem to be somewhat biased though!It's the Pound that has dropped causing the Sterling price to appear high. (it is of course)
Brexit shock and current uncertainty hit the pound..... even the FTSE revalued.
So a decision on Gold, buying or selling is best made with a view to the Pound and how it will react to future news, ie how negotiations are going re Europe etc.
Also, when you enter an investment, it's really a good idea to have a plan of some sort, a ball park exit price based on an event or non event.
And of course know why you bought it.
As a Sterling investor, which I'm not, I might be inclined to look at Mainland Europe as a better hedge should UK not do too well in the upcoming divorce.
One side will be perceived to have got the better deal, but with the uncertainty removed maybe even both could prosper.
Although those European elections look a bit troublesome
I'd say it is worth keeping some though - good to have a bit of diversity, and some of the markets are looking a bit peaky so may have a correction soon.
NRS said:
Depends how you mean by a while? It's up a lot this year, just it stalled out with a "small" drop (relative to rise) which is either a correction in a bull market or the start (continuation) of the large bear market from around $1900. There is different opinions on this depending what you put focus on in the charts or which person you read - most seem to be somewhat biased though!
I'd say it is worth keeping some though - good to have a bit of diversity, and some of the markets are looking a bit peaky so may have a correction soon.
A while.....3 years, it has been in the $1,200s all the time since its drop from $1,700 in 2012 apart from early this year Dec Jan & Feb when everything went down and subsequently recovered.I'd say it is worth keeping some though - good to have a bit of diversity, and some of the markets are looking a bit peaky so may have a correction soon.
The problem I see is that Gold does not function as it use to. Gold did not hold its value earlier this year when equities tumbled, probably because it is now all "paper gold" therefore acting more like equity than a commodity.(Not all paper, but a large portion of)
I think Gold is still a very valid choice for someone in a developing country with a controlled currency and high inflation, I'm just not sure UK is there yet
Still....diversity is the safe choice.
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