Monday, 13 February 2012

Gold on 13 feb 2012

I started this at 11.45am with no particular aim. One thing I'd like to know is whether the gold price will fall a long way if something goes wrong in the eurozone - although that's what everyone is probably wondering.

This morning the price of gold was $1,729 (£1,094) after falling to $1,721  (£1,091) per ounce in early trading (which I saw late last night before I went to bed just as the price starting rising as news of the Greek parliament passing its austerity measures came through - at least that's what I think was going on.)

If I had wanted to buy this morning I would have got 10 PHAU shares for £1,084.85 after fees *(£1,072.9 before fees)

In comparison, on 29 January 2012 10 PHAU shares for $1,086.79 after adding £11.95 trading costs

On 12 December 2011 I bought 10 shares for £104.58 each - £1,057.74 in total (after fees).

On 4 November 2012 I bought 10 shares for £108.01 each - £1,092.10 in total (after fees).

On September 22 I bought 8 sharesfor £111.98 each - £907.78 in total (after fees).

On 13 January I was thinking about buying10 gold shares for £1,062.52 in total (after fees) which wouldn't have been much worse than my best buy rate on 12 December:

This morning my account at Hargreaves  Lansdown shows just  BlackRock Gold and General because that's all I have at the moment and its down a little.

The dollar index against GLD from this Bloomberg chart:

 And here's PHGP (sterling physical gold ETF) vs PHAU (dollar version)

Some of the stories I should look at today: BullionVault covers Peter Grandich - who is Peter Grandich

I scanned this from Wall Street Window which said trading margins in gold had been lowered last week which made it cheaper to speculate on futures markets. 

The piece quotes Bart Melek, head of commodity strategy at TD Securities, who said, "In a situation where the financial system may be at risk, people may need a lot of cash to buffer themselves against a potential shock such as a Greek default. They may swap out gold along with other assets for cash.” This is the thing that I am hoping will provide me with another good buying moment. But I am aware that this depends on how bad things get.

Jim Rogers says that gold will not go above $2,000 this year - but that's all he's said - no elaboration apparently.

Michael Hewson of CMC Markets gives his view on Greek deal today and the ongoing risks to its success. 

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