Oh My Poor GOLD !!!!

[*T*]

Re: Oh My Poor GOLD !!!!

Ahh, that could be it. Sure caused me a few anxious moments :eek:, and worse I couldn't buy on the biggest dip. Oh well, I expect this is not the last of the jitters, with more dip-buying opportunities ahead.

The dump could be short term futures traders wanting a flat book over the weekend.

EDIT: but probably non-farm payrolls surprise.

[raja]

Re: Oh My Poor GOLD !!!!

No doubt a good correction was needed. But what's going on at BuillionVault - the spreads are enormous? No willing sellers obviously, but I would have thought BullionVault would have created liquidity from spot purchases or reserves offered back onto their market. But it seems not. So do those of us that use BuiilionVault have a rather serious liquidity risk when things change in a hurry (both on the upside and downside)? Anyone know more about this?

A couple of years ago there were some discussions about BV on iTulip. The fact that BV was limited to trading within its own customer base was mentioned by me as a danger.

http://forum.itulip.com/forums/showthread.php?t=1209

I said:

While looking for ways to preserve wealth, I was initially attracted to BullionVault. It sounds like a no-brainer, to stash gold in a Swiss vault.
But as I thought about it more deeply, I decided to go with a gold ETF. My reason is this: I believe that the price of gold is likely to soar in the near future, but could plummet quickly when the bubble pops. I want to be able to get out as fast as possible when that happens, and I believe that the trading volume with an ETF would be vastly higher than with BuillionVault, and therefore it would be far easier to bail out when the time was right.

I'm not very experience in things financial, but it just seems to me that the higher the volume, the better the chance of getting out when the getting is good . . . in other words, there will be a larger number of "greater fools", so surely there will be a "greater fool" than me. That's the theory, anyway.

While less liquid, I do consider BV valuable for diversification and offshore protection.

By the way, I no longer favor ETFs for gold . . . I think GTU and CEF are safer for liquid paper investment.