Wt Phys Gold � Discussion Threads

[cbowles1980] 11/9/2009 13:53

Thanks guy.

Is there any way to hold paper gold without being exposed to gbp/usd fluctuations?

[guy martin] 11/9/2009 08:46

Chowles
Yes. What we need is the pound to drop to 1.50 (currently 1.67) and we'd have sterling price of about £670 oz compared to £595 oz at present.
DYOR

[cbowles1980] 09/9/2009 08:34

Are the currency fluctuations responsible for this fund seeming to not reflect the current gold price?

[machoolahan] 08/9/2009 14:11

$ v £ keeping pace

[kickstart] 08/9/2009 14:11

This ETF quite clearly does not follow gold , how can gold be up $10 today and this fund is downas I write ? I never have trusted ETF's and would not touch with a bargepole.

[bangor] 03/8/2009 13:52

For those not yet clear on this point there is no real difference between PHAU and PHGP. The £ one multiplied by the daily exchange rate will give you the $ one.

While I hold both, gold shares should also form part of the mix in my opinion.

Rather than put more into these ETFs I favour CEF.A. This is Central Fund of Canada and holds roughly half physical gold and half physical silver. To an extent it is also currency diversification and a play on the CAD$. It has an American version, but I prefer this Canadian one.

[swordv] 10/6/2009 15:20

Gold seems to breaking downwards from this range/consolidation. Cheaper Gold/GBP prices - Yay!

[dasv] 28/5/2009 10:51

phau/phgp is backed by allocated gold bars unlike many other gold etf's.

re: gbp/usd no worries smithers . chart here: - (spob: would be good in thread header if you are still here)

[smithers] 27/5/2009 17:57

dasv
Did not fully appreciate significance of gbp/usd fluctuations. Will be more careful in future. Many thanks.

[dasv] 27/5/2009 13:44

check out gbp/usd trend. there's your explanation

[bluebelle] 27/5/2009 12:31

smithers

No problem. My understanding (although I don't hold) is that PHGP is backed by physical assets rather than derivatives : no doubt someone here will confirm that or otherwise in due course.

[smithers] 27/5/2009 09:33

Bluebelle.
Most grateful for your post. Gives me more information about ETFs than I have been able to find in past two months

[smithers] 26/5/2009 21:41

TDay Your post is most interesting. I am very new to ETFs and PHGP was my first ETF buy on 17th Feb 09 @£67 At when gold price was approx $970. At todays gold price of $950 I would have thought that PHGP should be about £65 not todays price of £59.29
I am therefore now very suspicious of ETFs and obviously need to study them in more detail. Unfortunately I have found it quite difficult to find information on ETFs either online or from brokers but will persevere.

[kenone] 26/5/2009 14:26

Thanks for your post, TDay. Something wrong somewhere, or else I hav'nt understood what I bought into.

[tday] 25/5/2009 14:34

The fsct of the matter is, PHGP is not moving in line with the gold price, even allowing for currency fluctuations.

The same applies, only more so, to OLBP the Brent Oil ETF.

I shall phone Barclays Stockbrokers to find out why. If they don't know, I'll contact the FSA.

Something isn't right.

[kenone] 22/5/2009 12:02

PHAU seems to be outperforming PHGP again. Thinking of switching my holding over. Any views ?

[dasv] 11/5/2009 16:05

I'm starting to build a position again in PHGP.

[dasv] 27/1/2009 09:45

I took profits on last weeks's investment but have left my core holding in PHGP.

[dasv] 27/1/2009 09:16

Forthcoming gulf currency Khaleeji will reputedly be backed by large gold reserves.

[dasv] 23/1/2009 15:15

fortyfive - thanks - good luck or judgment I don' t know. I just instinctively bought PHGP. I also bought TBT, XUSD, IBGM and converted all my trading account sterling to euros. Just in case the pound collapsed. So far since then it has.

henryatkin -
Well when you come to sell your PHAU it will be converted back to PHGP so it makes no odds really... I just like PHGP because I can trade online without phoning through on TDwaterhouse (for foreign denominated stuff they require a phone call)..

[henryatkin] 22/1/2009 17:19

I don't think PHAU is an especially good buy at the moment but I purchased a few weeks back for the hedge of GBP. The PHGP proves its worth when compared to the PHAU chart.

For longer term fundamental reasons I am holding for the the hope that the new gulf states currency will be backed with new gold reserves.



Gulf Cooperation Council leaders yesterday concluded their 29th annual summit meeting in Muscat, Oman with a final approval for the creation of a single currency for the six-nation economic bloc, still targeted for 2010.

Saudi Arabia is the largest economy in the GCC and boasts substantial gold reserves. But whether gold will be included in the currency basket has not yet been decided.

Golden opportunity
GCC assistant secretary-general Mohammad Al Mazroui told Gulf News: 'We first have to decide on the location of the Central Bank, then the Central Bank and Monetary Council will have to decide on the gold reserves for the Central Bank'.

The creation of the GCC single currency - likely to be known as the Khaleeji which means Gulf in Arabic - is a major gold event for two reasons.

First, the breaking of their dollar pegs by the Gulf Arab nations is clearly dollar negative. Secondly, any inclusion of gold either as a part of the monetary basket, or in the reserves of the new GCC Central Bank will create additional demand for the precious metal.

2009 deadline
The project is gathering pace, and no lesser a figure than Saudi Arabia's King Abdullah has directed that GCC economic integration committees speed up their work and complete the whole exercise by September 2009.

It is only a couple of months since a group of Saudi businessmen allegedly bought $3.5 billion worth of gold, believed to be the largest ever single transaction for the precious metal. Perhaps in 2009 it will be gold rather than local currencies which become of interest to speculators about monetary reform in the GCC.

Gulf countries are keen to break away from the link with the US dollar because it ties them to inappropriate monetary policies that exaggerate the boom-to-bust cycle in their economies.

[fortyfive] 22/1/2009 15:52

Well done dasv. I sold LLOY and bought PHGP in Oct/nov last. Thank god....I also have some PHAU but the PHGP has done better in sterling terms. I am holding for the indefinate period as the paper money systems are going belly up(in my view) and gold should keep rising in this economic climate. Nothing reliable seems to pay dividends anyway - after LLOY I will need convincing.
Gold coins seem OK, and its worth having a few. However you pay more to get them and there are the obvious theft & loss problems with coins and jewellery. I am uncertain as to the ETF provider risk, but short of fraud there, the ETF is supposed to be covered 100% by bullion so what's the real risk, political confiscation of all gold is a possibility given Brown's current financial wreck?

[dasv] 20/1/2009 13:59

Bought another £9k this morning. Good hedge against falling sterling.