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Brad Zigler » Comments » FXB

  • Gold's All-Time High [View article]
    Try a commercial user or producer. A jewelry manufacturer doesn't care what the value of gold was 28 years ago if he/she's trying to lay off this season's inventory risk.


    On Mar 10 05:04 PM ValueInvestor wrote:

    > So if I'm a day trader, I can say there was an all-time high or low
    > every single day because thats my holding period. Give me a break.
    > All-time means all-time, not a commercial marketing or lease cycle.
    Mar 10 17:32 pm |Rating: +1 -1 |Link to Comment
  • Gold's All-Time High [View article]
    But hedging is of vital concern to many HAI (HardAssetsInvestor.com) readers. Since many of them are offshore, dealing with inventory in sterling, the present value of metal is more critical than historical.

    The time frame illustrated in the article represented a commercial marketing or lease cycle, not a 28-year hold.

    Dealings in gold are NOT limited to dollars. Commercial transactions conducted by members of the London Bullion
    Market Association can be effected directly in sterling.

    On Mar 10 03:54 PM ValueInvestor wrote:

    > The inflation adjustment has nothing to do with hedging obviously,
    > but it is certainly relevant when talking about historical numbers
    > and returns.
    >
    > My point was simply that the headline and point about it being an
    > all-time high are incorrect.
    >
    > Also, since gold is priced in US dollars on every worldwide exchange,
    > it has to be converted at the current forex rate to get the Pound
    > equivalent. So they wouldn't purchase it through the US dollar, but
    > the conversion is still there none-the-less. If it wasn't the Arbs
    > would have a heyday trading between exchanges.
    >
    > On Mar 10 02:52 PM Brad Zigler wrote:
    Mar 10 16:16 pm |Rating: +1 -1 |Link to Comment
  • Gold's All-Time High [View article]
    One can't trade or hedge gold on inflation-adjusted numbers, only the current cash or futures price.

    Your plaint about the all-time in pound sterling is off-base as well. A British purchaser need not transact gold THROUGH the dollar.


    On Mar 10 01:19 PM ValueInvestor wrote:

    > BTW if you don't inflation adjust the data in Commodities, your comparing
    > apples to oranges. Inflation is a huge factor in commodities over
    > the long-term.
    Mar 10 14:52 pm |Rating: +1 -1 |Link to Comment
  • Gold Says: U.K. Winning the Inflation Derby [View article]
    You're right. I only surveyed the reserve currencies. There are plenty of others.


    On Jan 28 02:05 PM DiggerUK wrote:

    > You haven't mentioned the other runners in this race, Canada, India,
    > Australia and New Zealand.
    > There is a lot of room for late entrants as well.
    Jan 29 09:14 am |Rating: +2 -1 |Link to Comment
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