Gold Monitoring Thread £ GBP only

[Thelonerangershorse]

4 minutes ago, PapaLazarou said:

Currently there is a senator (Moody iIrc) trying to pass a law to completely remove this tax on Constitutinal PM. His argument is along the lines that it is illogical, immoral and unconstitutuonal to tax the people for owning US money.

Which is basically the reason UK legel tender coins are CGT exempt.

[Bratnia]

5 minutes ago, PapaLazarou said:

US CGT on gold and silver coins currently stands at 28%.

Currently there is a senator (Moody iIrc) trying to pass a law to completely remove this tax on Constitutinal PM. His argument is along the lines that it is illogical, immoral and unconstitutuonal to tax the people for owning US money.

If American Eagles were made CGT exempt a factor I suspect is that as per a Brit holding 100/whatever Britannia's swapping with a Canadian holding 100 Maples, no actual movement of gold (you own theirs, they own yours) and later swapped back again - and you can both book tax harvest losses in that financial year.

[PapaLazarou]

One rarely mentioned issue as regards CGT free British currency is that once a coin has been demonetized, then it is no longer regarded as legal tender.

 

Hence sovs (£1) are okay but guineas (£1 1/) are subject to CGT.

 

With the ever present threat of a CBDC looming large, the possibility for the effective demonetization of all monetary sterling to be enforced by whatever totalitarianism to which the UK is currently plummeting should not be overlooked.

Edited May 11 by PapaLazarou

[Bratnia]

2 hours ago, PapaLazarou said:

One rarely mentioned issue as regards CGT free British currency is that once a coin has been demonetized, then it is no longer regarded as legal tender.

 

Hence sovs (£1) are okay but guineas (£1 1/) are subject to CGT.

 

With the ever present threat of a CBDC looming large, the possibility for the effective demonetization of all monetary sterling to be enforced by whatever totalitarianism to which the UK is currently plummeting should not be overlooked.

A open/shared/distributed ledger system will never be accepted by security experts. Bank computer systems physically secured that contain copies of the ledger will predominate. Most already pay by card/electronic and they'll just make ATM's that more difficult until ... too-few/nobody is using Pound notes so they'll be withdrawn.

What they'll try to enforce is having to continue paying in Pounds albeit via electronic banking, rather that the likes of me transferring to you 1.3 FT All Share index stock shares or a 1/10th ounce of gold as a payment for ... whatever directly within the same brokerage account. Where any brokerage outside of FATCA that offers such service is ... banned. If however weight of use/adoption becomes large/critical then the state will have no option other than to permit/ignore it, in which case a trickle turning into a torrent would see the Pound collapse, no central bank controls/taxation etc. ... all vapourise.

Pound notes and even cash deposit accounts are rubbish as 'currency' lose to inflation after taxes/costs. Stocks/gold is a better currency in that the inclination is to see increasing purchase power over time. The only use for Pounds is at the time of making a transaction as a common currency unit. Otherwise spend using a credit card, and a week or so before that bill is due to be paid only then sell some of stocks or gold (or maybe a little of both) - whatever is up at the time, in order to pay off that bill.

[Bratnia]

2 hours ago, PapaLazarou said:

One rarely mentioned issue as regards CGT free British currency is that once a coin has been demonetized, then it is no longer regarded as legal tender.

 

Hence sovs (£1) are okay but guineas (£1 1/) are subject to CGT.

 

With the ever present threat of a CBDC looming large, the possibility for the effective demonetization of all monetary sterling to be enforced by whatever totalitarianism to which the UK is currently plummeting should not be overlooked.

IIRC the closest the Britannia one ounce gold coin with legal tender £100 value has seen the price of gold decline to was around £167. i.e. the most you could lose was -40% as below that the gold coin would have been worth more as a coin spent in shops. For centuries the Pound remained at around £4.24 and where a Sovereign coin had legal tender value of £1 and had 0.235 ounce of gold contained within it. Spend it as currency, if the price of gold rose its gold value was worth more than the currency value so commodity value pressures tended to see the price decline back down again. If the price of gold declined the coin was worth more spent as a coin which tended to pull the price of gold back up again. Broadly 0% inflation, and where those with surplus cash (gold) would deposit/lend that in return for interest, that was like a real rate of return (and interest rates were quite generous). The Pound remained 1/4.24 ounce of gold from something like 1717 up to the end of WW2 (1945).

Under the US fiat system there's been predominately inflation, and where that is taxed, so that those lending might not even get their money back (in real terms). Progressively the US is also making things worse. They used to be able to buy annuities for instance that were inflation linked, but no more. The old have to take on greater risks, all to fund ever increasing state largesse ... and where the US leads the UK follows. We used to strive to try and leave things better for the next generation, under US directive however the tendency now seems more towards leaving things worse for our kids.

[Chronos]

Why We Are At The Start Of A Multi-Year Gold Bull Market:

https://www.gainesvillecoins.com/blog/why-we-are-at-the-start-of-a-multi-year-gold-bull-market

[Dankanugget]

8 minutes ago, Chronos said:

Why We Are At The Start Of A Multi-Year Gold Bull Market:

https://www.gainesvillecoins.com/blog/why-we-are-at-the-start-of-a-multi-year-gold-bull-market

Do folk go all in or cast their bread upon many waters?

[Dankanugget]

Just now, Dankanugget said:

Do folk go all in or cast their bread upon many waters?

If gold goes the way I think it.. will it be bullion dealers our only point of sale in the future and will they limit the same price on returning your bullion to them?....I'm sure many have asked or thought this...I mean once it isn't coming down in price anymore will the lower end of purchasers disappear?

[bobski]

6 hours ago, HerefordBullyun said:

A. Join the queue.

B. Return to A 

C. Look at B.

D. Reported!

Honey monster grassed me up to Chris, for that comment. Let the games begin

[Chronos]

28 minutes ago, Dankanugget said:

If gold goes the way I think it.. will it be bullion dealers our only point of sale in the future 

No. I will sell everything I have to James32.

[bobski]

7 hours ago, Bratnia said:

I beat you to it (reporting to Mrs Bobski). Apparently she's too busy having a elluva time with her boy toy to care (described as looking like the Hulk if I heard correctly ... may have been a Hulk).

Honey Monster reported me to Chris for my comment. Anyone else get a warning?

[Upsidedown]

29 minutes ago, Dankanugget said:

If gold goes the way I think it.. will it be bullion dealers our only point of sale in the future 

Depends on the size of the gold, 1oz coins will be very hard to shift, sovs and fractional gold bars will still have a market IMO

[Bratnia]

17 minutes ago, Upsidedown said:

Depends on the size of the gold, 1oz coins will be very hard to shift, sovs and fractional gold bars will still have a market IMO

I'd suspect larger physical amounts less often (fewer trades) - not harder to shift, just slower/fewer buying/selling physical at any one time. Accumulate enough in paper gold (212 brokerage ETF/whatever) with periodic moves from/to physical gold.

[Bratnia]

59 minutes ago, Dankanugget said:

Do folk go all in or cast their bread upon many waters?

Average in (or out if in retirement), combined with a broad/main stock index fund. Fiat and non fiat currencies tend to zigzag in counter directions, as do stocks/commodity. Periodic rebalancing is yet another form of averaging down the average cost of gold (and stocks). Broadly achieving the average over many years is ... a good outcome.

[Bratnia]

1 hour ago, Dankanugget said:

If gold goes the way I think it.. will it be bullion dealers our only point of sale in the future and will they limit the same price on returning your bullion to them?....I'm sure many have asked or thought this...I mean once it isn't coming down in price anymore will the lower end of purchasers disappear?

1980 to 1999 and the price of gold generally just repeatedly declined which resulted in a tendency towards fewer willing to buy (and fewer having any to sell). A rising price is more inclined to attract greater interest/activity.

[HonestMoneyGoldSilver]

On relevant things check out this video below. Start at 5:20. It's super boring and conservative but 100% on the money IMHO. Pay attention to their predictions for gold and silver the rest of the year. Mirrors what I've been saying. This summer until late August/early September will be consolidation, not wild appreciation. If gold goes above $2400 it will fall back again until we get to September. The last 4 months of 2024 will be hot for gold and silver and will continue to remain hot until the end of 2025 at the earliest if not 2026. I predicted that in the middle of 2023 BTW and have consistently said the earliest I would sell would be late 2025, if at all

 

[Dankanugget]

2 minutes ago, Bratnia said:

1980 to 1999 and the price of gold generally just repeatedly declined which resulted in a tendency towards fewer willing to buy (and fewer having any to sell). A rising price is more inclined to attract greater interest/activity.

Yes mentally folk will be drawn to and want to buy it as it moves off and upwards but people's income may restrict that desire. The rich yes of course to them it hardly promotes a desire to look at ....yet.

[Petra]

Plenty of people (on here) to buy, but as previously mentioned, smaller fractional stuff will become more popular, a full sovereign being a major purchase 🤔😮

[Thelonerangershorse]

2 hours ago, bobski said:

Honey Monster reported me to Chris for my comment. Anyone else get a warning?

Not me.

[Thelonerangershorse]

So, it's Sunday morning everyone, lets have predictions for next weekend's close.

[MickB]

£1850

[Chronos]

£1906

[Paul]

£2000 let's be optimistic

[Darr3nG]

2 hours ago, Paul said:

£2000 let's be optimistic

A Quintuple Wonger?

[Petra]

£1909👀🤔