The Really Useful Gold Thread

Energyi how's your Gold Longs going?

Still can not see the point of going Long Gold in Dollars if the Exchange Rate represents 32.50% roughly of the increase in the Dollar Gold Price to a Sterling Investor.

Ie US$255 to US$475 say plus 86.25%
Exchange Rate US$1.45=£1.00 goes to US$1.92=£1.00 US$ Devaluation 32.50% or residue value 67.50%

Real Sterling Increase in Gold July 1999 or April 2001 to September 2005 67.50% of 86.25%=58.25% say

Time taken between 4.50 years and 6.25 years.

Effective Compound max below 11% pa minimum 7.50% Compound per annum roughly.

Equity or Trading Risk 7.00%
LIBOR 4.50%

Effective minimum required Risk Return 11.50% pa

Trading US$ Gold is for Sterling Investors a net nothing IMHO FULL STOP!

All IMHO, NAG, DYOR etc

Cheers

Ash:)