Gold

[GWB]

Hello, Leo,

The forex contracts might be way too much work if you only need a
price twice a year.  You can use a bullion market for that, just a web
page:

http://www.lbma.org.uk/pricing-and-statistics

That's the London Bullion Market, with charts and tables at the bottom
of the page.  There are others as well; London is a good market
location for international prices.

I have neglected to send the earlier email to the entire user group,
which I rectify hopefully with this posting.  If you or others wish to
try to track gold with Forex, that info can help, and it is certainly
interesting.  But most people are much, much happier not seeing, or
even knowing about, the minute by minute volatile ups and downs of
commodities.  Twice a year is a good interval.  Buy it, hold it, don't
worry too much about it.  If some event has you nervous, you might see
what's happening with Forex, or just sell it.

Gordon

On Thu, Jan 12, 2017 at 7:12 PM, Leo Bolta <lbolta at rogers.com> wrote:
> Thanks Gordon for your insight. I plan to value the gold probably twice a
> year  Someone did suggest to set it up as a mutual fund as follows:
>
> Assets->Investments->Precious Metals->Gold.
>
> I'll also try following the Forex contracts as you suggest.
>
> -----Original Message-----
> From: 426f6c74.55707269676874 at gmail.com
> [mailto:426f6c74.55707269676874 at gmail.com] On Behalf Of GWB
> Sent: January-12-17 12:12 AM
> To: Leo Bolta
> Subject: Re: Gold
>
> Hello, Leo,
>
> This may not help, but you might find it easier to follow Forex contracts
> USD to Gold.  Forex platforms in the US no longer
> (routinely) trade these (due to the various and outrageous stupidities in
> legislation such as Dodd-Frank), but it's fairly easy to find in the various
> charts overseas:
>
> XAUUSD is Gold/US Dollar
> XAGUSD is Silver/US Dollar
>
> That's 1 oz. gold to USD, now trading at around $1183.82 USD.  Pick an
> arbitrary date and time point (Forex markets technically only close one day
> a week, which means at least one brokerage is open at one time), like one of
> the London exchanges, Friday or Saturday close.
> Pick a day, week, month interval, whatever works best for your book keeping.
>
> I would forget about using a two or three currency/commodity formula.
> That gets way too complicated.  Forex exchanges solve most of that hassle by
> using bids in real time to show what buyers and sellers are willing to put
> and ask.
>
> Unless you want to, don't get lost in following the minute by minute
> fluctuations between the price of Gold to USD (or AUD, or GBP).
> That's fascinating (and often terrifying) stuff, but you probably just want
> a closing price point to have a value pretty close to what buyers will pay.
>
>  Gordon
>
> On Wed, Jan 11, 2017 at 9:10 PM, Leo Bolta <lbolta at rogers.com> wrote:
>> Hello Gnu users,
>>
>> I've only been using GnuCash for about three weeks now but love it.  I
>> was recently pleasantly surprised to learn that a double entry
>> accounting system can be catered to handling the fluctuating values of
> investments.
>>
>> My fundamental question is regards to how to incorporate into the Gnu
>> system, the fluctuating values of an inventory of physical gold.  If
>> one had bought physical gold in a country outside of the US but the
>> initial purchase was based on the US currency, wouldn't one have to
>> take the current market price of gold in the US$, then establish the
>> price based on the value of the US$ that it was initially purchased,
>> then convert again into the current local based currency?
>>
>> In other words, in addition to the price of the fluctuating price of
>> gold, there would be two other currency variables playing a part in
>> determining it's value in the currency of the foreign country.  Is my
>> theory right or am I way off?  And if the theory is correct, can
>> GnuCash handle such an ongoing valuation?
>>
>> Regards,
>>
>> Leo
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