£ to $

[Pipers]

It is most important to us (Silver Gold buyers/sellers) the exchange rate between the £ and the $.  The BOE has said it would peg the £ at $1.50 min, the Dollar over the last few months has strengthened and now trades at slightly over $1.49, not much difference  you are thinking! well a few months ago the exchange rate was £1 $1.56 this is the effect of a weakening Pound on buying precious metals that you should be aware of :- 

£1- $1.56  Gold at $1050oz   =£673.07

£1- $1.49 Gold at $1050oz   = £703.50 

[SoulUK]

How can they peg it at 1.50?

isn't it something primarily out of their control right?

[motorbikez]

5 hours ago, SoulUK said:

How can they peg it at 1.50?

 

 

Simple answer,they can't.

[Pete]

Not sure I follow the concerns.
If gold is fixed on a day then what you pay in USD, Euro or Sterling will depend on the exchange rates of the day.

So if the pound is falling against the dollar it will cost more pounds as the pound is worth less and vice versa.
If the dollar is weak it will cost more dollars.

I just checked gold prices in USD and £ for July 31 and for Nov 12 and the ratios of $/£ compare with the exchange rates of 1.56 and 1.51 respectively.

[lubi29]

Today gold price in euro down 20 Euros per 1 oz , in USD up 11 dollars. Big difference in price .

[Bumble]

For UK buyers, you want the price of precious metals to go down and the value of the dollar in pounds to go down too. But usually precious metals and the dollar move in opposite directions. If you believe Peter Schiff and Mike Maloney, the dollar is set to crash; if you believe Harry Dent the dollar is set to rise. On the whole, I don't see any big move between the USD and other major currencies, because it would be disruptive to trade.

[Pipers]

I was pointing out that you have previous metals are priced in dollars and yes small fluctuations do make a difference.  The BOE and the Treasury can tighten or loosen monetary policy this will have a big effect on exchange rates. I think  long term we will see 1-1.4

[goldbones]

On 12/3/2015 at 23:15, Bumble said:

For UK buyers, you want the price of precious metals to go down and the value of the dollar in pounds to go down too. But usually precious metals and the dollar move in opposite directions. If you believe Peter Schiff and Mike Maloney, the dollar is set to crash; if you believe Harry Dent the dollar is set to rise. On the whole, I don't see any big move between the USD and other major currencies, because it would be disruptive to trade.

A lot of big moves have happened its just its in other areas like the Canadian and Australian currencies falling like 20% vs the dollar

where the rest of the world is going is where the US dollar and the majors are likely to follow:

http://www.kitco.com/gold_currency/index.html?currency=aud&timePeriod=5y&flag=gold&otherChart=no

[garthy]

Over time I'm becoming more of a harrying dent believer, especially as the fed look to be raising rates this month, that's going to send the dollar even higher smashing commodities even lower in dollar terms.

Question for me is, are gold and silver going down with the commodity ship or will strong demand keep them afloat?

 

[Bumble]

Harry Dent is surely right about there being a big deflationary bust, but I think he is underestimating the response of the central banks. They will do whatever it takes to create inflation, even if it means helicopter drops of money. The commentator who is looking pretty good is Jim Rogers: he's not specifically a gold bug, but he bought early in the bull market, sold before it topped, and predicted a 50% retrenchment (i.e. a drop to $950/ozt) bottoming during 2016. So far, that's looking highly plausible.

[Pipers]

On 20/12/2015 at 19:59, Bumble said:

The commentator who is looking pretty good is Jim Rogers: he's not specifically a gold bug, but he bought early in the bull market, sold before it topped, and predicted a 50% retrenchment (i.e. a drop to $950/ozt) bottoming during 2016. So far, that's looking highly plausible.

Yeah I saw a video somewhere and he said he owns USD and he will sell into Gold when he believes the time is right (Gold below $1000).  People in the USA are in a stronger position than us in the UK but they don't seem to know it.   

[Pipers]

The £ is getting weaker 

$1.43 -£1

I predicted $1.4 -£1 if it gets close I may trade back into £ as the BOE may increase interest rates. 

Everyone in the UK is worse off because of the Government of the BOE, what we are seeing is a run on the £ developing.    

 

 

[shemyaza]

This week the Bank of England devalued the £ by 1.829% to the US Dollar. Not mentioned in the news.

Last 3 weeks, BoE £ Devaluation by 4.732% to the US Dollar. Shhh don't tell anyone.

[Scuzzle]

4 hours ago, shemyaza said:

This week the Bank of England devalued the £ by 1.829% to the US Dollar. Not mentioned in the news.

Last 3 weeks, BoE £ Devaluation by 4.732% to the US Dollar. Shhh don't tell anyone.

Are we just talking exchange rate fluctuation here or hidden QE not reported.

[shemyaza]

I don't think it's hidden QE, stocks would've risen or something would be appearing somewhere maybe in commercial property or house prices. Again a mere thought, but doesn't it look like a drawing out of capital or could be viewed as the tide going out. I'll add this ask anyone have they heard about the crash in the £ against the Euro the last 8 weeks? You'll get a puzzled look. Wasn't it China they'll say. NO! The £ devalued against the €uro by 9.412%. The News talks about a small devaluation by China yet Britain devalues nigh on 10% against the Euro in 8 weeks. Shhhh don't tell anyone though, the News hasn't said a word. If you were trying to manufacture a reason for raising interest rates, raising import prices would be a useful tool. Since the financial crisis of 2008 when 1CNY = 6.5 pence the Chinese Yuan now buys 10.65p. You tell me, who devalued? (I'll put it another way In 2008 was £1=CNY 13.61, now £1=CNY 9.3865). It's interesting how the news portrays outside devaluations however hides it when we do it to a much larger extent.

[Oldun]

GBP USD at a 31 year trend line going back to 1985....if it doesn't bounce here convincingly.......

[Pipers]

Just a few months ago we could of bought an ounce of Gold today at todays price

$1090 or £725.94  1.5-1

now to we are buying 

$1090 or £763 1.43-1

and if you had timed it well you could of bought at $1.55-£1 giving you a buy price of £703 

I have come to realise the Governor of the BOE Carney and his forward statements are a Joke, for years now he has said one thing and done another how he gets away with it I don't know.  The BBC are in on the act (because thats what it is) never reporting the obvious or asking awkard or challenging questions, reporting everything is hunkydory even though we have been in emergency measures since 2008. 

I am sure in normal times and with a decent chancellor we would of seen a restriction on sterling and an increase in interest rates by now, why hold the British £ when you could hold USD and get the same return?  The fact is the UK Governments all 3 parties have wasted billions when they could of spent the money on industry and the real world instead. They gave the money the the City who have wasted it.

I still think    1-1.4 and at that I will trade some back in to £s  The herd are going to USD investors are holding cash.   

 

 

[Paul]

No holidays to Vegas this year with that current exchange rate 

[Pipers]

Merry holiday in Europe and I think not this year either.  The BBC will report it as a Boast to the British Tourist industry as if they give a f-ck!

 

 

[Pipers]

The Governor of the BOE again talks a load of piffle, he talks about inflation this is a joke anyone who is older than 20 and takes any interest in politics knows he is talking rubbish on inflation targets. Then he goes on to talk about interest rates with quote like '  The journey to monetary policy normalisation is still young' and  '(It) doesn't have a set timetable, only an expected direction of travel.' this means nothing he may as well of said 'the river is very long and meandering'.

Carney has now given up on forward Guidance I would suggest this is because he has been rubbish at making calls.  I reckon a 10 year old would of made better calls by flipping a coin well they couldn't of done worse. 

      http://uk.investing.com/news/economy-news/bank-of-england's-carney-says-has-no-set-timetable-for-rate-rise-85268

[goldbones]

Wouldnt be surprised to see parity with the dollar if it continues to rise and they decide to raise rates further, it'll certainly get close to 1.20-1,

Assuming of course the dollar doesn't just suddenly tank along with the market.

[Bumble]

Although I have no desire to defend the central bankers, you have to bear in mind they are in an impossible quandary. They know, on the one hand, that interest rates should be higher, because (i) pension funds and others seeking a safe yield are being forced into risky investments, (ii) capital is flowing into unproductive asset bubbles, and (iii) the central banks need room to cut rates if another recession emerges. On the other hand, they know that the levels of national, municipal, corporate and household debt are so high that almost everyone would be bankrupted by a return to normal rates. In the past, the usual solution was to hope for economic growth and just grow out of the problem. That is no longer likely. The other solutions are to raise rates anyway and default on the debt, which is too drastic for most countries, or keep rates near zero so that inflation will slowly erode away the real value of the debt. The latter is clearly the option the central banks have elected to go for, but so far it isn't working that well.

[goldbones]

6 minutes ago, Bumble said:

Although I have no desire to defend the central bankers, you have to bear in mind they are in an impossible quandary. They know, on the one hand, that interest rates should be higher, because (i) pension funds and others seeking a safe yield are being forced into risky investments, (ii) capital is flowing into unproductive asset bubbles, and (iii) the central banks need room to cut rates if another recession emerges. On the other hand, they know that the levels of national, municipal, corporate and household debt are so high that almost everyone would be bankrupted by a return to normal rates. In the past, the usual solution was to hope for economic growth and just grow out of the problem. That is no longer likely. The other solutions are to raise rates anyway and default on the debt, which is too drastic for most countries, or keep rates near zero so that inflation will slowly erode away the real value of the debt. The latter is clearly the option the central banks have elected to go for, but so far it isn't working that well.

Who would have thought QE and low interest rates would be deflationary? i'm not sure that is what they intended at all, well it was because it ramped up production vs capital, to balance it out you need more money than goods or the rate of production.

Only way to do that is to actually drop a load of money in everyone's bank account, it could come to that in one way or another.

[shemyaza]

I'm taking money out of the bank now, slowly, bit by bit, if you don't hold it you don't own it. EU nations all aligned in Bail-In rules early January 2016.

Deutsche Bank Q4 losses of €2.1bn

[Scuzzle]

15 minutes ago, shemyaza said:

I'm taking money out of the bank now, slowly, bit by bit, if you don't hold it you don't own it. EU nations all aligned in Bail-In rules early January 2016.

Deutsche Bank Q4 losses of €2.1bn

I've been doing that for a while now, you go into the bank and ask for a large sum of money and you get interrogated as to what the money is for but it's easier just to draw the max amount out of the hole in the wall every day for as long as it takes.

Deutsche Bank has to go down the tubes, if Greece had defaulted they would be there already and that's just a can kicked down the road.