The FTSE 100 index fell yesterday to 5200 from 7400 three weeks ago. Add to that the fall in Sterling to $1.25 from $1.30, as yet with no sign of any turnaround, and the UK’s capital decline is certainly keeping up with the rest of the world. The charts make a return of the GBP/US$ to $1.20 look quite possible.
Where might we be in a few more months? $1? FTSE at 1500?
The fall in the currency should support prices of real assets like houses and land. And shares should ultimately recover, but while the panic’s on, we could see levels which were unthinkable a month ago. The trick is not to panic. The precious metals are low at the moment and some tradeable assets like silver would be good to hold while the mayhem continues. While stock markets have fallen up to 30% over the last month, gold is actually up in GBP 3%, and silver down 9%.
Mints say they can’t keep up with physical demand. Bullion traders are still delivering bars and coin as far as I know – just not same day any more, but delivered over a few days. If you haven’t got a physical metal nest egg, the prices are still very reasonable – especially silver, although you have to add VAT at 20%. The price weakness has much to do with futures traders having to close down their positions, not the underlying demand for the spot metal physical. Some traders talk about falling industrial demand, but investment demand could take up the slack.
I am in the precious metals business (making chain), and can try to assist anyone who’s interested in finding supply of silver. Use the email address of this blog or search my company’s website contact details (as in book in right hand column). I could recommend a couple of bullion suppliers – bar and coin.
We have heavy silver curb chains with unsoldered links which you can wear for safe-keeping and remove links one at a time using pliers to use for barter trade, or just hold in a long length. Or just buy hallmarked finished chains. It’s not much different to holding some coins in terms of cost, and would be tradeable as barter items. The price of silver could yet head much higher if the banks leave us in a financial mess for much longer. The Fed is starting to provide funds to banks but there is no certainty as to what they will decide to do, as the Fed is not in the control of Congress.
It could well be a good time to buy silver before the prices of metals start heading the other way. That’s my take anyway. And I could be as wrong as anyone else. Do your own research. Prices can rise quickly once they get going, although they could still have some more downside to come as the stock markets find their new levels.
Weight and purity will matter as much as style and finish, if you want to acquire assets you can barter.
This style is called Belcher or in some countries Rollo. Also a good heavy design like Curb.