Hello all,

I've got a line of reasoning here. Can you pick holes in my argument Apologies if this has ever been covered before.

1) Gold is priced in dollars, ilke oil -

2) Therefore gold cannot be considered a fiat currency, however much the goldbugs want it to be

3) So, for me in the UK, buying into gold means buying into the dollar

4) So surely now is not the time to buy gold, as i feel the dollar has further to fall. Buying when the dollar begins to rise again will be a better idea.

So why are people touting gold now, for UK investors?

Hi there
It has been covered before, but still a good question IMO.

Whether you think of Gold as a commodity or a currency, IMO it still acts very much like a currency with 0% interest rate, and limited means of 'printing' more

So, I find the easiest way to think about it is like buying another currency. The 'exchange rate' between whatever currency you start with, and the price of Gold will go up and down. Gold will become more expensive if demand rises. It will fall if demand falls.

So yes, it's normally quoted in US$, but I look at it in GBP

If the US$ falls more, those with US$ may well buy more Gold to maintain the value of their money. That will push the price up.
Likewise, anyone with US$ will move out into other currencies.

That's my view anyway.
Steve

okay, thanks for the reply.

But as i see it, since gold is always sold in dollars, it is effectively coupled to the health of the dollar.

All the places I have looked at to buy gold usually convert your UK pounds to dollars, to effect the gold purchase.

I cannot find anyone who does not do this. (gold pegged to dollar)

Can anyone point me in the direction of a gold seller who will not do this?

Buy physical gold from a UK dealer. Like these guys. Sorted.

What are you on about?

Gold is priced in loads of different currencies.

There are loads of different sites/shops/dealers that will sell you gold in sterling or whatever currency you like.

Get off your ass and do your own research.

No, it's not always sold in US$.

If you want to pay in GBP without any exchanging currencies, for buying physical gold, then try:

Bullion Vault (Give this a go, as you get a free gram to play with, so you've got nothing to lose )

Gold Money

Bullion Vault seems to me to be better for dealing, but also for buying and storing.
Gold Money seems better for buying and storing.

As an example, you can also buy in Aus$ from: http://www.perthmint.com.au/
The Perth Mint option looks quite good to me, and you could register with one of the UK dealers.

And in NZ$ from:
http://www.newzealandmint.com/nzmint.mv?pa...ullion_products
http://www.wcmgold.co.nz:81/wcm/control/front/FeesCosts

Happy hunting
Steve

you can buy in Germany from http://www.ProAurum.de and pay in Euro... :-))
or choose http://www.CoinInvestDirect.com in London and you can choose between POUNDS, EUROS or DOLLARS

The statistics in Dollar for the last 5 years are interesting...