jimc99
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Post by jimc99 on Jul 26, 2015 7:50:32 GMT
Gold has dropped in price by some 10% since some of the earlier jewellery and managed portfolios were offered. Anyone else a bit concerned how the Cash Shop will manage if the pawned items become worth less than the amount the customer got for them. Let's face it...if MS get in trouble then so will Money Thing and us. Any thoughts out there?
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star dust
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Post by star dust on Jul 26, 2015 8:54:12 GMT
Gold has dropped in price by some 10% since some of the earlier jewellery and managed portfolios were offered. Anyone else a bit concerned how the Cash Shop will manage if the pawned items become worth less than the amount the customer got for them. Let's face it...if MS get in trouble then so will Money Thing and us. Any thoughts out there? I know virtually nothing about jewellery never having been the bling type, and possibly even less about pawn shops, or commodity prices, so my views may be very misguided, but from my perspective I'm really not concerned. Gold can often be volatile, and within reason I'm sure pawn shops are capable of, and well versed in enduring the flow. It's a short term loan business, and I would expect they've made any adjustments needed for recent loans, there may well be adjustments in 'our' MPs already. Jewellery is not the same as gold and the more expensive items may have added value that holds up despite the gold movement. The LTVs are not more than 50% - plenty of wriggle room. As the electronic MPs allude there's more to CS's pawn business than gold. Hoping the experts don't shoot me down in flames .
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Post by Deleted on Jul 26, 2015 10:40:25 GMT
The arguement that Ed gave me was that 1) The LTV is based on retail prices the partner can get and 2) the £10k (or larger) is covered by the partner whatever the value. Hence the gold price is not our problem. I had a look at some of the details when gold was £25/gram and felt that the 50% LTV retail (there are loads of notes on this site on this) was nearer 80% scrap value. So at £22.5/g at the moment, nothing to worry about. As a gold bug I see this hitting £20/g but not much lower so I think we have space if it is our problem. The critical issue is what do Chinese officials do with their corrupt gains, once you have a secret passport, shipped the wife and kids to the west, bought bits of land around the world, what else do you do? Up until this year you bought gold, but since the latest clampdown, gold buying is off the list (last time I was in Shanghai I saw a massive shop in an old pagoda selling nothing but 24c gold, think the size of four railway carriages) so this lack of demand has to hit somewhere. Indian wedding season is over, and even the Russians have stopped buying in last year's quantities. Once the Ukraine harvest is in then the price will trickle back up just from the fear factor. Hopefully Ed is bathing in the IOM heat wave but maybe on Monday he can confirm/clarify your concerns.
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coop
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Post by coop on Jul 26, 2015 12:19:04 GMT
Insurance policies are available to protect against a fall in gold price.
I am unaware if they have one or not however.
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Post by MoneyThing on Jul 26, 2015 18:38:03 GMT
The arguement that Ed gave me was that 1) The LTV is based on retail prices the partner can get and 2) the £10k (or larger) is covered by the partner whatever the value. Hence the gold price is not our problem. I had a look at some of the details when gold was £25/gram and felt that the 50% LTV retail (there are loads of notes on this site on this) was nearer 80% scrap value. So at £22.5/g at the moment, nothing to worry about. As a gold bug I see this hitting £20/g but not much lower so I think we have space if it is our problem. The critical issue is what do Chinese officials do with their corrupt gains, once you have a secret passport, shipped the wife and kids to the west, bought bits of land around the world, what else do you do? Up until this year you bought gold, but since the latest clampdown, gold buying is off the list (last time I was in Shanghai I saw a massive shop in an old pagoda selling nothing but 24c gold, think the size of four railway carriages) so this lack of demand has to hit somewhere. Indian wedding season is over, and even the Russians have stopped buying in last year's quantities. Once the Ukraine harvest is in then the price will trickle back up just from the fear factor. Hopefully Ed is bathing in the IOM heat wave but maybe on Monday he can confirm/clarify your concerns. Evening, IOM Heat wave? Typical, having just gone away to the south of France in search of some sun whilst no-one was looking... but having just seen the other thread where I may have been a little late in crediting a few interest payments, I think you may have noticed. I have read somewhere that it is not such a good idea to try and articulate a response when you have been socialising a tad too much... or maybe that was with regards to texting girlfriends/wifes/bosses... In any case, if you don't mind I will provide a response to this thread tommorow. Kind regards, Ed
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jimc99
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Post by jimc99 on Aug 2, 2015 5:10:17 GMT
Any reassuring follow up coming soon Ed??
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Post by MoneyThing on Aug 2, 2015 18:56:46 GMT
Any reassuring follow up coming soon Ed?? Yep! Just got back from hols and will be back in the office tomorrow catching up and will respond then. Kind regards, Ed.
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