Precious Metals
Discussion
Chaps, thought I'd start up a specific thread on precious metals, given that there is currently quite alot of interest in the subject ( understandably ), and also quite alot of hyperbole being sloshed about.
So who has a view on the relative merits/ fortunes of Gold, Silver, Palladium, and Platinum?
So who has a view on the relative merits/ fortunes of Gold, Silver, Palladium, and Platinum?
Edited by Timmy33 on Monday 3rd March 13:43
Having just bought into an ETF basket of precious metals, I'm keeping a keen eye on the price, so I'm interested. Would it be worth looking at some of the funds that are available as well? I'm not about to stock up on gold and tinned food and hole up in a bunker, but the whole situation with the Dollar, sub-prime losses and increase in gold price has made for interesting reading over the last few months.
hornet said:
Having just bought into an ETF basket of precious metals, I'm keeping a keen eye on the price, so I'm interested. Would it be worth looking at some of the funds that are available as well? I'm not about to stock up on gold and tinned food and hole up in a bunker, but the whole situation with the Dollar, sub-prime losses and increase in gold price has made for interesting reading over the last few months.
One point to make is on the supply side. For example Platinum....85% of global production comes from South Africa, where power cuts are causing havoc in the mining industry. IIRC annual Global Production of Platium is only about 1/10th of Global Gold Production in anycase. Silver is also an interesting one, because most of the silver ever mined has been used up, above ground stocks are actually quite small ( at multi decade lows ), so in some ways I'm keener on these two than I am on Gold. Because they have an intrinsic as well as an investment value.....
Btw you might be interested that Silver not gold has been the currency used by most societies throughout history. It was the currency of China at the time of the Roman empire, and when Julius Caesar invaded Britain he was after silver. Rome was always short of silver because Roman citizens in the West had an insatiable appetite for goods produced by the Chinese in the East. Stop me if this sounds at all familiar.
....Silver is also an antiseptic. Which made it a sensible thing to drink from/ eat with.
Edited by Timmy33 on Monday 3rd March 14:26
Timmy33 said:
One point to make is on the supply side. For example Platinum....85% of global production comes from South Africa, where power cuts are causing havoc in the mining industry.
Government throwing money at Eskom but there certainly doesn't look like a short term solution in South Africa - besides limiting electricity usage. There are plans to return to service a number of mothballed plants, and build some new ones, but that seems like a 5 yr goal, not a problem solved tomorrow.hornet said:
Having just bought into an ETF basket of precious metals, I'm keeping a keen eye on the price, so I'm interested. Would it be worth looking at some of the funds that are available as well? I'm not about to stock up on gold and tinned food and hole up in a bunker, but the whole situation with the Dollar, sub-prime losses and increase in gold price has made for interesting reading over the last few months.
which EFT? I have some money tied up in a Uranium investment company but wouldn't mind putting some more money into other metals...Daimeydum said:
Forgive my ignorance. But I’m looking to invest a bit of cash here and there. How would one go about it, I’ve no idea where you would start. Short of actually buying up the raw materials and stashing it under my bed.
One very good way IMO is via physical ETFs ( exchange traded funds ) these buy metal and store it, and you can buy an amount of that metal. Most brokers e.g. selftrade charge no commission on ETFs just the spread. There are many ETFS covering everything from physical gold, physical silver or a basket here have a look.
http://www.etfsecurities.com/en/securities/etfs_ph...
I like PHPP ( £ phys basket ), PHGP ( £ phys Gold ) and PHSP ( £ Phys Silver).
Because these are £ denominated and so will give exposure both to the weakening £ and strenthening metals prices......in other words I think that the $ is a bit shagged, BUT the Gordon Brown is totally screwed.
Btw......something sticks in my mind recetly, it was said by the South African Finance Minister....."the currency of a country is it's share price"
would you buy shares in a company with Gordon Brown as the CEO?
You'll also note that ETF's now allow you to go short as well as long. So you can but a Short Wheat fund for example that will rise in value as the price falls. ETFs also do these for equitiy indexes, i.e. you can buy a short DJ fund.
So if you've got your cash in an ISA you can now do alot of things with ETFs that used to only be available to spread betters, with the same tax benefits.
Edited by Timmy33 on Tuesday 4th March 11:36
johnfm said:
why would you short wheat? I hear the grains are on the rise.
I wouldn't right now, sorry it was just an example of one of their short contract funds not an instruction! Mind you......I might. FWIW I'd rather be long meat now than grains e.g Pork and Beef. Wheat has done it's spike.....I think, who knows.
All I know is that farmers has been slaughtering cattle and pigs like mad as the wheat price has made them too expensive to keep which has pushed the price down, once farmers haev stopped growing piggies and cows though......where's the meat going to come from for bacon and big'macs?
Anyway, sorry I digress, this is supposed to be about metals.
Technically, some of these precious metals are starting to look interesting
What I mean by that is, they are probably not for the uninitiated short term investor.
Gold can still and probably will go higher, but we have entered into a period of volatility where we are likely to see corrections after the uptrade.....you either have to have a reasonable idea what you are doing or be in for the long term.......in terms of the inflation adjusted price of gold there is still potentially a long way to go....just don't expect to get their in straight line
What I mean by that is, they are probably not for the uninitiated short term investor.
Gold can still and probably will go higher, but we have entered into a period of volatility where we are likely to see corrections after the uptrade.....you either have to have a reasonable idea what you are doing or be in for the long term.......in terms of the inflation adjusted price of gold there is still potentially a long way to go....just don't expect to get their in straight line
GolfGT_Girl said:
I am happy to send you some graphs about the current metal markets or try LME
I don't suppose your commodities related employer in Berkshire is hiring are they, I'm getting fedup with commuting down from Theale to London, and a tad bored of staying in a hotel when I do stop down.clubsport said:
Technically, some of these precious metals are starting to look interesting
What I mean by that is, they are probably not for the uninitiated short term investor.
Gold can still and probably will go higher, but we have entered into a period of volatility where we are likely to see corrections after the uptrade.....you either have to have a reasonable idea what you are doing or be in for the long term.......in terms of the inflation adjusted price of gold there is still potentially a long way to go....just don't expect to get their in straight line
12 points up in last 90 minutes.What I mean by that is, they are probably not for the uninitiated short term investor.
Gold can still and probably will go higher, but we have entered into a period of volatility where we are likely to see corrections after the uptrade.....you either have to have a reasonable idea what you are doing or be in for the long term.......in terms of the inflation adjusted price of gold there is still potentially a long way to go....just don't expect to get their in straight line
Timmy33 said:
GolfGT_Girl said:
I am happy to send you some graphs about the current metal markets or try LME
I don't suppose your commodities related employer in Berkshire is hiring are they, I'm getting fedup with commuting down from Theale to London, and a tad bored of staying in a hotel when I do stop down.GolfGT_Girl said:
Timmy33 said:
GolfGT_Girl said:
I am happy to send you some graphs about the current metal markets or try LME
I don't suppose your commodities related employer in Berkshire is hiring are they, I'm getting fedup with commuting down from Theale to London, and a tad bored of staying in a hotel when I do stop down.Quite seriously. I'd be interested.
Timmy33 said:
GolfGT_Girl said:
Timmy33 said:
GolfGT_Girl said:
I am happy to send you some graphs about the current metal markets or try LME
I don't suppose your commodities related employer in Berkshire is hiring are they, I'm getting fedup with commuting down from Theale to London, and a tad bored of staying in a hotel when I do stop down.Quite seriously. I'd be interested.
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