BarraBod

What do you think about buying gold?

@Jon-PokerVIP I'm currently reading the book "Own The World" which I bought because of this thread.

The guy says gold and silver are the best things to be (assuming your investments are well spread out in dozens of markets).

Without going overly technical and butchering his idea he says:

1. Population is increasing and more money is being printed (supply is high and getting bigger)

2. Gold and silver is hard to find (the supply is low and the demand for it will increase, see above).

He states that they are some of the best commodities to buy as a long-term investment.

This is a super simple breakdown, take it with a huge pinch of salt lol.

I would rather buy shares in a gold mining company, than in gold its self. There is a weird relationship between gold and the US dollar, which is, if one goes down in value, the other usually goes up (not always tho). I read the reason but can't remember it quite enough to say. Here is a small sample graph:

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But as Harvie said, it all about supply and demand. Like the oil crisis at the moment. There is far to much oil being produced and a forever declining demand for it. The big producers are trying to put a cap on each countries output to lower supply, and once China sorts out its economy the demand will rise.

How is the book going for you Harvie?

The book is going great. The book doesn't talk too much about how to buy shares or read graphs, it's more of an overview of why you should invest your money instead of keeping it in a current account getting 0% interest.

It's a great read and now I'm slowing getting ready to invest. For me the next step is to find a stocks and shares ISA that lets me buy in assets of all kinds. From reading this thread I don't think you've got one do you mate?

On a side note,did you notice that Apple shares tanked heavily today:

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Yeh apple reported iphone sales are down 10million year on year and its the first time since 2003!!!

Hi Bassy,

I also trade forex, My fav pairs is GBP/USD, GBP/JPY GBP/NZD and gold. it easy to start with a little money but takes time to practice the difference between stock and forex is in forex news play important roles than stock should check it before you make a trade.

Sounds like a decent book. The stuff about charts can be found on plenty of YouTube videos. But I only look at the obvious signs. I'll try and get more in to that once on my laptop.

I have a stock and shares ISA account with HL. I try and put everything in to an ISA for obvious reasons. I have no idea if HL have any restrictions on buying any shares but so far so good.

I also have an account with IG for shorting companies, but I don't do that often...yet! IG is good for trading forex, indices and commodities like oil and gold, But as I mentioned before, I prefer to put my money in to the companies who find oil and gold, as they rise (and fall) more on good or bad news than the commodity it's self.

All this talk of gold and I decided to buy in to a gold mining company I had on my watch list that I hadn't really looked in to until now.

Keras Resources (KRS)
SP: 1.18p
Mcap: £14m

Keras are a junior gold mining company listed on AIM who are currently mining gold in Australia and Iron in Africa. In the start of April they sent their first load of ore to a refinery to extract the gold, to which they estimated to be 1100oz of gold in the 2 loads 9only estimates). Their target is 20,000 - 30,000oz of gold annually. This would be amazing for a company with an mcap of £14m. There are of course downsides, like loan payments, rental of machinery and a 22% royalty they have to pay to the land owners.

The mine they are working in is a big gold area in Australia which gives me the confidence in them succeeding!

This is just a brief insight in to what they do.

This was all done by the fundamentals found in their RNS, and no technical analyzing with charts etc. Don't forget to do your own research in any company and this is not a tip....never take tips

Sources:
Keras website
KRS news on vox markets

Inter-desting. Just finished reading my book and he says if you want to get into spread betting I should read the book you posted in the OP.

I guess that's the next book on my Amazon wishlist.

BarraBod:

@Bassy I'm focusing on fundamentals, with the odd look at the charts. I took an online course on T.A but I got bored after lesson 4. I maybe should have stuck it out as I had learnt a lot in those 4 lessons. Charts don't interest me much, but they do have good tell tale signs but If I see one of the signs, its still not enough to make me sell, as I'm not confident enough in my chart reading. Plus, if the fundamentals look good, then I'm in it for the long haul!

Commodities are the only thing I've been buying in to at the moment. I live in the UK but get paid in Euros, so I have to either stash away the money until the euro gets better, or cash it in right away, that is probably the closest I'll get to Forex...I'm not sure that counts tho

Do you trade often? Do you do quick trades or have you got some long term holdings?

Holding no positions atm because uni has been 'spensive this year. When i get some more income then i'll look at some solid investing strategies.

I just have a few reservations about fundamental trading as it is so easily warped and misconstrued, but no doubt it is useful. No one would be investing in Nigeria right now, for instance, even though the Oil crisis is having a huge effect worldwide as everyone knows.

I do like T.A and charts though. Similar to you i don't fully trust my chart reading ability but i use some basic indicators to make somewhat informed decisions. Would be interested to compare thoughts of your F.A against the charts!

Harvie:

@Jon-PokerVIP I'm currently reading the book "Own The World" which I bought because of this thread.

2. Gold and silver is hard to find (the supply is low and the demand for it will increase, see above).

I would imagine this is similar to some other commodities where the supply is manipulated by keeping the stones in storage, pretty similar to the deals they're trying to strike with Oil. What good would these 'precious' stones be if the world's supply was quadrupled and everything wasn't rare, haha.
Sauce: Can't remember where i read it; example numbers, don't take literally.

For sure is sound logic though. On the topic of an increase in money supply / Quantitative easing, there's also something you could say about the debt circle. The fact that interest is almost created from nothing and they'll always be debt. I would like to read up more about this, but its an interesting concept to think about on the macro-economic scale: Where exactly does interest come from? Where is it earned?

The AUD/USD looks pretty set to break out shortly in the next couple of days. Could any fundamentalists comment on if there is any suspected news coming out for the currency pair? GDP Measurements, talks, meetings, revised forecasts, etc?

I've never traded Forex so I'm not entirely sure how its all done, but I did read an article on Proactive Investors about poor US GDP making the USD drop and the price of gold go up by 4% as people buy in to it as a "safe haven" - the price of gold having a good effect on AUD as its one the biggest producers of gold.

I've only read that one article on it so I'm not sure if any news is set to come out soon. I'll have a quick look about.

Basically yes, the more attractive a country and what it has to offer is, the more valuable its currency. There's a whole heap of things that can affect it though.
I won't spam this page (unless you want it) but i'm gunna keep an eye on the movement over the next week or so

Yeah keep us posted as its something I'm interested in. Have you been trading GBP or EUR with all the Brexit carry on in the UK? It seems to be having quite an effect on both currencies.

Looks like the Australian reserve bank have announced their new interest rates at 1.75%, which is lower than the forecast of 2%.

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Interestingly this news came simultaneously with a breach of a few indicators and resulted in this massive sell off. Whether the news was 2.25% or 1.75% the market would've moved either way, and i suspect if it had hit forecast i would have moved upwards, based on the trend of increasing strength.

Showcases why looking at the schedule of announcements is important; based just on the chart i was expecting a move to happen and i was just waiting for confirmation before making a trade, but this happened early in the day - when i was revising for an exam i just took, so i come out of the exam to see this 200+pip move on from peak to low.

Would expect this move to continue for a little while but rally fairly quickly against the USD, but this is where my knowledge is basic and limited. I'm just thinking in terms of what is happening in each economy, and generally the USD is pessimistic, or bearish currently, and Aussie isn't. Do correct me if i'm wrong, just like poker lines; every opinion is important!

If anyone is looking to invest, maybe for retirement, here are some useful articles on Investopedia:

Investing-101

Stock Basics

Basics of Fundamentlas - This one is for researching a company using balance sheets, bash flow, etc...

These are just the basics but a good place to start. If fundamentals bore you, then there is always technical analyzing, which isn't my forte!

In addition to the previous post there is a website that does a course in basic technical analysis called academyft.com - They often have 95% off deals on Groupon.

Just thought i'd do a little consolidation post for myself but you guys might get something out of it too, who knows.

The AUS/USD movement hasn't run out of steam yet and looks like it may be breaking through a support area. I've got indicated a support area of 0.73200 - 0.73400. It's seemed to have used that area for some resistance in the past and could be some indication that if the bears break through that floor it'll continue trending downwards. Will wait for confirmation but so far its close to a 200pip move, and i got in after confirmation. Total move is nearly 340pips!

Meanwhile the EUR/CHF has broken through a ceiling and trading but but looks like a little market indecision at the moment.

Both GBP/USD and EUR/USD have tippie-toed through some support and resistance areas.

Oil is looking interesting though, still a lot of indecision and it did drop recently after more failed talks. There's an official meeting in the kind of near future which will be interesting to follow but one of you fundamental readers would be able to tell more off the bat about potential meetings with Oil issues.

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