And the panel says..........

**PM-Junkie** · 29 December 2008, 20:19

Originally posted by Fred Bloggs View Post

The last 4 months my SIPP money has gone into a (mainly) Corporate Bond fund currently yielding about 12%. Last month I was sorely tempted to buy into the Blackrock Gold and General fund that invests in Gold mining shares. But I didn't, I went wit the corporate bond fund again. Sadly, it seems I've missed out on a ~20% price bounce the last month, does the panel think that the bounce in Gold shares has run far enough for now, or is it still early days and well worth piling into this next month?

2 scenarios I have in mind-

a) Inflation to come, Gold price soars.
b) Depression arrives, Gold price soars.

I'd advise caution, Some commentators are expecting a drop in demand for gold as recesionary pressures bite. I saw a report (I think from Credit Suisse) expecting the price to drop to $700-$750.

And with the pound be worth less than a pebble, and the UK being heavily reliant on imports, I personally think inflation is more of a risk in the medium term than deflation.

**PM-Junkie** · 29 December 2008, 20:34

...apologies, it was UBS not Credit Suisse. At least I got the country right

This may be of interest http://network.nationalpost.com/np/b...09-at-ubs.aspx

**Fred Bloggs** · 29 December 2008, 20:39

Originally posted by PM-Junkie View Post

...apologies, it was UBS not Credit Suisse. At least I got the country right

This may be of interest http://network.nationalpost.com/np/b...09-at-ubs.aspx

Hmmm, thanks. That's an interesting read. I once saw this as a description for Gold as a store of value- "In Roman times, 1 ounce of Gold bought a good suit (toga etc... I guess). Today, an ounce of Gold buys.......... a good suit." Food for thought.

**Toolpusher** · 30 December 2008, 00:27

Here's a contrarian viewpoint.....

http://www.kitco.com/ind/AuthenticMoney/dec292008.html

And the panel says..........