bullionvault-gold

I don’t remember if I already blogged about this, but anyway – recently I was looking into peer-to-peer lending. My friend moved to the States and now enjoys numerous options for this. Unfortunately in Canada it’s no longer possible, not the same way as in the US anyway. Here you can do a private loan (via the bank, with lawyers and all that jazz), or simply donate the money on sites like Kiva.

Neither of those ideas appealed to me, so I looked for other peer-to-peer financial services, and accidentally came across Bullion Vault (again). It’s not related to lending, but an interesting concept nonetheless. It’s a peer-to-peer bullion exchange network. They bill themselves as “Ultra secure silver and gold bullion for private investors, with international storage, and always at wholesale gold and silver prices.”

I registered there 3.5 years ago because they were giving away a gram of gold with an initial deposit made within a certain period. I know, the incentive is tiny but c’mon, free gold? Then my brokerage (Questrade, aff. link, Canada only) added precious metals trading option and I lost interest in all other sources, especially since the terms were about the same – you would bid on other people’s gold, like you would on Ebay.

But, this year BullionVault added an option where you can buy your metals at the daily London gold fix prices. So what, right? I wouldn’t look twice at it, but there are 2 things that I find interesting here:

  • Purchased gold and silver is held in either Zurich, London, New York, Toronto or Singapore depending on the client’s preference (Zurich, yes? Or Toronto, for easy access?)
  • BV is backed primarily by the Rothschild family. I said “interesting”, not “awesome” 🙂 Who knows the implications, really

On another note, they have a cool little Flickr set called “Just Gold”, where I picked up this dreamy picture.

I own a couple of bars minted by Valcambi (via Scotiabank). I used to think that all gold bars were minted by Credit Suisse 🙂

Valcambi have a few interesting charts on their Charts page. Here’s one:

DOW - Gold Ratio chart

1-5 DOW/Gold ratio can be achieved in two ways: either gold will go up, or the DOW will drop.

I’m betting on gold going higher. Crazy as it sounds, I believe there’s going to be a major war in a year or three. There, I said it.

EDIT: Here’s an even longer-term chart from elsewhere. Not sure what technical scenario applies here. Does every new peak exceed the previous? or will it only work 3 times and the pattern will change? More questions than answers, sorry.

dow_gold_ratio_long_term_chart_1900-20121

(Yahoo! – 403 Forbidden — error 403It has come to our attention that this service is being used in violation of the Yahoo Terms of Service. As such: the service is being discontinued. For all future markets and equities data research ) looks like sh*te.

This is a continuation pattern – a descending triangle. Thankfully it’s not huge, the drop shouldn’t exceed $3. At that point it will have good support, and should be sufficiently oversold for some kind of bounce.

20130320-slw

Not very steep, but a falling wedge nonetheless, typically means the price will rise. And according to the stochastics, there’s room to run, too.

While I’m waiting, I’m making money on writing covered calls.

Current price: (Yahoo! – 403 Forbidden — error 403It has come to our attention that this service is being used in violation of the Yahoo Terms of Service. As such: the service is being discontinued. For all future markets and equities data research )

Covered Calls calculator