Wt Phys Gold � Discussion Threads

[dawntrader] 27/11/2008 15:41

Thanks for that.
Yes so you have gbp/usd fluctuations to consider as well I remember the usd weakness pushed gold in USD to very high prices, and now with GBP weakness against the USD .. we have high GBP prices .. but lower USD ....

Just not familiar with this instrument, but always handy to know how it works in case you need to put your money into something other than equities/deposits.

Thanks again.

[guy martin] 24/11/2008 11:45

dawntrader
I'm based in UK and trade the PHGP one. This is quoted in pence per tenth of an ounce. I forget the precise figure but etf securities charge about 0.4% for handling etc.
Hence if price of gold in dollars is $815 per ounce, divide by 10 then multiply by say 99.6%, divide by the exchange rate of pound/dollar to get the phgp price. If mid rate is 1.49 apply about 1.51 as the exchange rate. So 815 /10 x 99.5/100 divided by 1.51 gives an answer of 53.75p. If the pound falls against the dollar you will find that the price quoted by phgp will increase. No stamp duty either.

Hope this helps, remember this one changes price with exchange rate as well as gold price. dyor.

[dawntrader] 20/11/2008 16:02

Bit confused by the way they are quoted.
one is usd .. but is that 74.75 i.e. dollars and cents
and one in gbp i.e. 4990 I take it that is in pence....

also whats the differnce between these and the spot price which for spot gold which is quoted in 747.00 dollars ?

Hope you can help .. not really dealt into these instruments before .. but think this would be a useful piece of knowledge when inflation etc.. restarts..

thank you for your time.

[abundance99] 10/11/2008 10:56

I believe that PHAU and PHGP are the same product - just that one is displayed in dollars and the other in sterling.

Obviously, when you buy PHAU it involves a currency conversion but it is basically the same for PHGP - the world price is in dollars and recently it has been going down in dollars but up in pounds. When it is in your broker account its value will go up and down in pounds regardless!

I have been invested here before but am a little wary, having been scared by AIG and the commmodity ETFs, about counter-party risk (either the ETF supplier or the broker). Still believe in gold longer-term but looking at coins rather than a financial product now.

[yam114] 31/10/2008 21:02

Thanks fortyfive

should I buy PHGP or PHAU?

[fortyfive] 09/10/2008 13:35

YAM114

PHGP(£) is like PHAU($) - & backed by real gold metal in a vault. Costs c. 0.4% a year charges. That makes it better than,say, BULL or GBS which isn't real gold backed. With all the paper money being printed & thrown around by governments its only a matter of time before huge inflation arrives and the Gold price really shoots up. My guess is mid 2010 , just after the UK election(which is obviously why Brown and his gang are panicking and throwing 30% of our taxpayers GDP at the banks).cheers.

[yam114] 02/10/2008 19:09

Anyone know how safe these are?
I don't want to buy coins and wonder if these could be an alternative.

[sagem] 27/1/2008 10:07

NOW GOLD HAS REACHED $900 PER OUNCE ITS A RACE TO NORTH TO ALASKA PANNING FOR GOLD

Sat January 26, 2008
Gold prices peak, interest in gold mining increases
Related Information

Marty Telgenhoff, right, unplugs a suction dredge Thursday as Vince Lombardo works under a rock as they look for gold in Crow Creek in Girdwood, Alaska.



SO ITS NORTH TO ALASKA


GIRDWOOD, Alaska - The snow is still knee-high along the banks of Crow Creek, where men are crouching up to their chests in near-freezing water, and the air is several degrees colder.


But for Mike Telgenhoff and his companions, this is a fine day to look for gold.

"We do real good in the wintertime because the crick's so low," said Telgenhoff, dressed in a sopping leather hat and drysuit. "I've made a lot of money at it, but I've spent a lot, too. You don't get rich doing this."

But with gold prices reaching an all-time high of $900 an ounce and the economy slumping, Alaska expects to see more and more people trekking to the edge of the continent in search of gold.

Telgenhoff and two other miners normally have this narrow valley southeast of Anchorage all to themselves after the winter freeze. But once the spring thaw arrives, they anticipate additional prospectors.

Membership in gold prospecting clubs is climbing nationwide, along with sales of pans, dredges, metal detectors and other small-scale mining equipment. A trade show recently hosted by the Gold Prospectors Association of America in Orange County, Calif., typified the trend.

"I saw more people walking out with more metal detectors and sluice boxes than I can remember in a long time," said Ken Rucker, general manager of the 45,000-member association. "That $900 is really getting to people."

The group has received hundreds ofcalls and e-mails from interested gold seekers. New memberships are increasing, and the number of membership renewals at the close of 2007 was twice as high as the year before, said Brandon Johnson, the director of operations. As a result, the association is preparing to hire more staff.

Investors typically turn to gold during times of political and economic instability. The falling dollar, threat of a recession, political troubles in the Middle East and rising oil costs have raised the metal's appeal as a safe investment.

The heightened interest is nowhere near that of the famous 19th century gold rushes in California, Alaska and Canada's Yukon Territory. Those grizzled prospectors have long since been replaced by recreational gold hounds - mostly seasonal workers and retirees.

Roughly 150 families in Alaska live off gold they have collected, according to state officials. But longtime prospectors say small-scale mining is generally unpredictable, tough on the body and yields little to no profit.

"If you love ditch-digging, you'll just love gold mining," said Steve Herschbach, owner of Alaska Mining and Diving, a mining-supply shop in Anchorage. "It's just hard labor. I knew a guy up in Nome who did really, really well, but he was like a human backhoe. The guy could just shovel all day long."

Mining clubs are popular with hobbyists who want to avoid the paperwork and fees required to stake claims to gold. The groups have forged various agreements over the years that allow members to mine on government or private land.

"It's great to just go out and maybe find a little bit and just enjoy being out in nature," said Rick Segebrecht, a plumber in Oregon, Wis., who started prospecting there five years ago.

"And there's always that chance every time we go out, you could find the big one."

The Gold Prospectors Association, the largest gold-prospecting group in the country, lets members operate dredges and sluice boxes, which are channels designed to catch gold. Or they can spend a day sifting through dirt with a pan, on hundreds of thousands of acres across the U.S. and Canada.

Another club called the New 49ers in the former gold mining settlement of Happy Camp, Calif., has access to 70 miles of federal mining claims along the Klamath River.

"That's almost the only way to get into mining anymore because there are so many bureaucratic steps," said New 49ers President Dave McCracken. "We take care of all the legal and political stuff that surrounds this activity."

State officials said their data indicates a recent uptick in gold mining.

Your Thoughts
More Stories By By Jeannette J. Lee
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Way up north, (North To Alaska.)
Way up north, (North To Alaska.)
North to Alaska,
They're goin' North, the rush is on.
North to Alaska,
They're goin' North, the rush is on.

Big Sam left Seattle in the year of '92,
With George Pratt, his partner, and brother, Billy, too.
They crossed the Yukon River and found the bonanza gold.
Below that old white mountain just a little south-east of Nome.

Sam crossed the majestic mountains to the valleys far below.
He talked to his team of huskies as he mushed on through the snow.
With the northern lights a-running wild in the land of the midnight sun,
Yes, Sam McCord was a mighty man in the year of nineteen-one.

Where the river is winding,
Big nuggets they're finding.
North to Alaska,
They're goin' North, the rush is on.

Way up north, (North To Alaska.)
Way up north, (North To Alaska.)
North to Alaska,
They're goin' North, the rush is on.
North to Alaska,
They're goin' North, the rush is on.

George turned to Sam with his gold in his hand,
Said: "Sam you're a-lookin'at a lonely, lonely man.
"I'd trade all the gold that's buried in this land,
"For one small band of gold to place on sweet little Ginnie's hand.

"'Cos a man needs a woman to love him all the time.
"Remember, Sam, a true love is so hard to find.
"I'd build for my Ginnie, a honeymoon home.
"Below that old white mountain just a little south-east of Nome."

Where the river is winding,
Big nuggets they're finding.
North to Alaska,
They're goin' North, the rush is on.
North to Alaska,
They're goin' North, the rush is on.

Way up north, (North To Alaska.)
Way up north, (North To Alaska.)
Way up north, (North To Alaska.)

[sagem] 16/1/2008 06:10

Is anybody rating this as a buy to get get the Gold potential