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Rated: E · Letter/Memo · Finance · #2210812
About gold as an investment

I see gold as a superior assets to cash. Part of my savings are invested in gold. I don't 'trade' gold and never go short on the metal. My rule of thumb is to hold gold if it is trading nearer the 30-day top of its range and not to hold it if the price is closer to its 30-day low. But I never short it. I believe that in the long term gold will outperform any asset class.

There are two significant 'problems' with gold: 1) Storage. 2) Risk of some future government confiscating it. The first of these is manageable, the second less so.

I will post here my thoughts/news re gold from time to time.

26 Mar 2020
These are unpredictable times. Although the price of gold has shot up dramatically I sold all my gold savings because the uncertainty of what's going on is too high for me. I am converting some of my funds from cash in the bank to cash at home because I am concerned about a collapse or partial collapse of the banking system.

18 Mar 2020
CORONAVIRUS - No one can tell the full impact this virus will have on financial systems of the world or how long the crisis will last. There has been extreme volatility so far and it is likely to continue. Long term plans and strategies may have to give way to short term necessities and it is possible that one will be forced to improvise one's strategies. Faced with uncertainties one is advised to be cautious and to improvise best one can.

I'll move my savings back into gold when the picture becomes clearer.

1 Mar 2020
February LBMA closing Gold fix per oz was LGB £1254.88. High for the month was LGB £1293.69 and Low 1186.20. The retreat from the high was due to largely to the spread of the Corona Virus and large falls in stock indexes.

20 Feb 2020
Gold is trading at GBP 1,238 which also is the 30-day high. The 365 day profit is 20.00%. Because of the Chinese corona varus there is a general expectation of a potential worldwide recession which is boosting the gold price.

23 Jan 2020
"Gold used in industrial and dental applications declined by 2% YoY in Q4 of 2019, to an estimated 88 t, as weakness in all major segments dragged consumption lower. On an annual basis, industrial demand also eased 2% to 382 t. "
Interesting although I don't know what if any impact this may have on the price of gold.

21 Jan 2020

"The Bank of Russia has just announced that it bought 159 tonnes of gold in 2019, bringing Russia's strategic gold reserves to 2271 tonnes. All eyes are now on 2020, as Russian gold reserves look set to surpass those of France (2436 tonnes) and Italy (2452 tonnes) later this year."
(source: BullionStar)
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