The Mini Correction

Darn it!! I should have sold a couple of weeks ago after all. The price was then £1,125 per ounce and all of a sudden the big drop. I think it took 2 days to hit £1,032 and then suddenly all this talk about, 'Cash is King'.  I'm not a market analyst and don't pretend to be one but if I wanted to take advantage of reports and make some money and it involved billions of dollars. I would try and start a rumour that cash was making a comeback too. Just like a Rocky movie you always want to chant for the underdog and see him win. Unfortunately it didn't look the the markets were taking the bait. On the other hand the gold bear did and passed the baton to the bull who is picking up pace as we speak.

Word got out that the Greece bailout might not work after all, now there's a surprise. The talk of QE 3 raised it's head again and the Indian festival period is upon us. This little correction only spurred people to buy back in because of the new low price. All in all the mini correction was like a perfect storm and has started a frenzy to buy gold at this new price.

Well, I did sell, not at the top granted but on the way down. I protected what we had and just watched quietly in the corner for the turn around. I always knew that no matter what happened I wanted back in before the Indian festivals. The rally has started and on it's way up. The predictions for gold is above $2500 by March. How they come to that figure with so much happening in the world and so many things that haven't happened is beyond me? I guess that is why I'm not a trader.

My only theory behind this whole investment thing is that the banks aren't helping me and never will. If we want to protect our savings and our future then you just have to plan for it and do something about it.

It's been a while and a lot of things have changed. I bought gold around the £830 per ounce and for those of you who have been following the ebb and flow of gold will know that it wasn't a bad investment, even if I say so myself. All the pundits were correct in predicting 2000 dollars an ounce, even if it was for a short time. 

There were so many crappy things happening in the world that everything seemed to effect the markets and sent everyone running to the gold hills for safety. Not only that but China and India have increased their buying of gold.

I was waiting for the yearly correction that happens around the summer. I was hoping that there was going to be a big sell off which would mean the opportunity to buy more at the cheaper end. That correction never happened. I was looking at yearly records and for the past 10 years there has always been a summer lull. not this time. Is this a good sign, who knows? I wish I could tell you how to analyze the market to come up with an answers of why this is happening. My guess is America and Mr Bernanke spending a lot more than his country can afford and the printing of a shed load of money to pay the debts. We had 2 rounds of QE and the talk of QE3 kept everyone on tender hooks of what was going to happen. The employment and high street spending records were ever so slighty better than expected but still way off showing signs of any kind of recovery. The US credit rating being downgraded. Also the fact that China and India are more than prepared to buy as much gold as they can and who can forget about the Euro problems? All this is making the world a very unpredictable place.

Now, do I sell? Gold is £1,125 live price right now. It has already dropped from £1,161 in less than a 2 weeks.  I did do one transaction that I hope will pay off and I sold a few thousands worth at the high price and exchanged for silver. Silver had dropped pretty low and let's face it, if gold go sky high than silver will follow close enough behind to make a bit of profit. I also heard that china was looking to buy silver to push forward on their solar panel scheme. If that is true and solar panels end up being a must have item in china then that could be huge profit? Once again, just speculation. I'll let you know how it goes.

I only hope I am close to the answers and not totally off the mark. I really do wish I was that kind of a person to analyze and do spread sheets or research but quite frankly I have too many interesting things to do and that stuff just doesn't float the old boat. 

I think I'll hold the gold and see what happens.

Buy Buy Buy

Gold has dropped to a new low and this gives everyone to chance to buy more at the lower rate. It's a bit scary seeing that I bought at £850 and it went down to £747. Over the last few months I have bought at all sorts of prices so I managed to level out an average of around £820 an ounce.

I am still convinced that the price will reach all new highs by the end of the year even though the employment reports in the US weren't as bad as what they expected. It's early days yet but glad I waited for the results and the Gold price dropped temporarily, so I bought some more. It bounced back by the end of the day, which was nice.

I am tempted to spread my bets and invest in the markets but alas I will resist. Just for fun I would have invested in Oil, Tech, Wheat and Sugar. See how that works out. By my past experience they should all drop now. I'd make loads if I just bet against myself.

That's it for now.

No more stocks

It is official that I am a shares cooler for sure. My past investments have been a little weak to say the least. For example, I invested in 'Woolworths' thinking an empire with so many outlets would never cave in and someone would buy the lot and the shares would go up. Maybe it was a romantic notion of a bygone era but I remember the big Christmas advertising campaign every year and they had the biggest British stars clambering to be in it. Surely, this company could be pulled back to it's former glory? In fact, there were rumours that Peter Jones, the tall bloke from Dragon's Den, was interested in a takeover so that was my reason for investing in the first place. The price initially went up but I took my eye off the ball, as I can't sit and watch the markets for hours at a time. He pulled out and 'Woolworths' went bust. Personally, I think he had no intention of buying it but he probably bought a load of shares before announcing he was interested = Share price goes up and he sells and drops Woolworths proposal like a red hot brick. I nearly got it right but lost the lot.

Next, Northern Rock. Yes, I did by some shares in that too. Same principal but this time Richard Branson was talking about buying it. Shares soared, I should have sold, it went to the government and shares were suspended.

The day I invested in AIG( NYSE:AIG) the company director stepped down and so did the shares. Is it me or is there a pattern occurring?

Conclusion, I must stop investing in the stock market.

So, with this in mind I have carefully been watching the gold market. Guess what? It has slipped. I knew the market was volatile but it is still making me nervous. Since we invested there have been a few things happening in the World. First, massive oil spill and the subsequent ban on off shore drilling in the Gulf. The Euro Dollar rallied and gained for the first time since the Greece and Spain problems. Also, China decided to buy american bonds instead of gold. All in all, the markets have started to come back to life and people are starting to feel a little confident in it. Time will tell and I have a feeling it wont be long before a bubble somewhere will burst and the market becomes a scary place and people will run and hide somewhere safe. Where? in gold but I have been wrong before.

UK Budget influence

Been a couple of days since the last blog so a quick update.

I knew the Budget would have an influence but I was hoping it was going to be a good one. Since Tuesday gold has been slipping a little. I'm talking about pence rather than pounds so not all bad. The price when I bought was around £838 an oz and now it's £833 so not too worried. I thought the price would drop initially so I was ready to invest some more at the lower price. I was anticipating that a lot of investors were going to wait until after they knew how the budget was going to effect the markets first so the gold dealing would slow down a little. I have no idea or research to suggest that was going to happen but I am relying on common sense and a little reading about investing. I could be getting this whole thing wrong but only time will tell?

At the moment the price is around £836 buying price so creeping back up again.

Will write again tomorrow

Following closely

Since we have started our venture into gold 3 days ago we have already made more than a bank would have given us in the same time. Now, I know the markets are very volatile right now so that could change in a heart beat.

Now, this is my thinking. All the problems with the Euro right now with Greece and potentially Spain introducing big government cuts is all having effects on people's savings. It is up in the air on whether the Euro Dollar will survive at all and other european countries complaining about bailing Greece out because they've over spent and struggling to keep the retirement age above 60. Reports of people selling gold coins on the steps of banks as customers have been selling their shares and buying gold coins outside.

All this is pretty bad for any economy but I think it all has a positive effect on gold prices. People are rushing to place their money in a safe haven and gold has always provided that. With all the new printed money out their being produced for quantitative easing has devalued paper money. Can anyone really not afford to invest in something else? Only time will tell.

Owning Gold

The next move was to get validated within our chosen bullion website and to fund the account. This was simple and only took 7 working days to process and clear.

We thought it would be best just to start small and see how we went. You can never tell who to trust on the web? We did all the research on our chosen company and it all came back legit and above board. We asked anyone and everyone we knew who had any idea on the markets and all seemed slightly bemused that Gold was an option worth thinking about. Once they looked into it I think I might have stirred their ideas of investing too.

I have to thank my brother, well, for now I do but who knows in the future? He was the one who advised us in the first place. He invested over £60,000 and had doubled his money with 5 years. My Mother and Sister have also invested and they are making nearly 15% on their investment within 1 year. Not bad at all.

I think it was the timing and being so fed up with banks and their dishonesty mixed with their personal greed that has pushed us to look for alternatives to place our hard earned cash. I don't think I'm on my own here? I reckon the more people who do find an alternative way to get more for their money might make them sit up reform the banking system. I don't want to get all political but it does make me mad that the system will never be reformed and even after all the past mistakes things still haven't changed. I'm sure if a massive surge of customers took out their money and put it somewhere else that would have repercussions on the countries economy. That is the last thing we need.

Right, back on track again. We validated and funded our bullion account and bought some gold. That simple.....and it feels very good to know that we have taken control of our savings back.

Today is the first step and we'll see how things pan out (very bad pun) sorry.