http://www.brisbanetimes.com.au/bus...metals-at-the-end-of-fear-20121221-2bqp2.html In case you missed it, 2012 is finishing as a dud year for gold. And according to RBS Morgans economist and analyst Michael Knox, 2013 is going to be worse as we enter the "World at the End of Fear". After this week's dip, gold in Australian dollars is up just 2.17 per cent since January 1 below the inflation rate. Over 52 weeks, gold is actually down 3.13 per cent. Even in US dollars it's been poor ahead only 0.67 per cent.
It's ALL got to do with the debt ceiling I believe....Safe haven if they gotta start paying bills...or no safe haven if they get 4 more years of free money..
2 points. Point 1: Here are the stats. In USD Start of Year: $1560, Dec 25 $1662 In AUD: Start of year: $1520, Dec 25 $1593. Pascoe mentions that when adjusting for inflation, the Gold is down 3.13% in AUD and up only .67% in USD. IMO though, the Gold price is the true measure of inflation; so there is no requirement to adjust for it. Point 2: Pascoe mentions that with regards to equities: "This means that there is still more than 200 points of upside in the S&P500 in the closing days of 2012." He conveniently omits that it is not the end of the year for Gold either..............
In New Zealand dollars: January 1, 2012: $2,012.59 December 25, 2012: $2,014.19 December 25, 2011: $2,076.82 I sure would have been a lot better off in cash than gold, that's for sure.
That's true, but 2012 was a flat year for gold no matter how you look at it. It's like a flat line with +/-5% deviations.
I love trading ranges. The trick is to stay in the metals. Don't try to pick a top or bottom, own the grid. that's how you compound gold & silver even if the price goes nowhere
How practical is that as a strategy really? Just asking - I've never been interested in the Au/Ag ratio 'arbitrage', and am temperamentally unsuited anyway. The punter isn't going to get the turns exactly right, and unless you're a dealer you have to subtract buying and selling commissions. A dealer can buy and sell to himself, alternating gold or silver ownership with relative ease. The ratio punter (compounder) also has capital gains tax hassles with each sale. Unless you going via ETFs or Contracts for Difference, which implies you're out of the physical with whatever that entails.
