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Shouldn't it more be a question on how one values money per se? Obviously money is not an end in itself, and merely performs the function of postponing consumption. At some point one would naturally want to swap money for real goods [unless you want to pass it on to the future generation]. Wouldn't this swap of money for real goods trump purely economic considerations? God forbid we become misers. :)

I will aim to apply my capital when what i am buying with it is inanely cheap; (i.e. when there is blood on the streets cheap).

The great Richard Russell says the profit is always made in the buying and when I thnk back to all the big gains i have ever made, that was true: the profit was always made in the buying. So, I am simply trying to think what might indicate 'cheapness' in the future. I think gold as money will be properly valued when it is considered mainstream store of value, not just a commodity in a bubble. In the interim, let's watch true money get the recognition it has been denied for decades.

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I've just finished watching this and I have to say I'm shocked gold got so much air time and apart from a few silly comments it was generally pretty good. Some very relevant points came out and it feels like the media aren't as hostile towards gold anymore.

 

Gold seems to be all over the media at the moment. -"Gold Rush II: It's sell, sell, sell as prices hit record high, but this time it's because America's broke!"

 

Is this the next phase?

 

This link may be temporary, but newsnight did gold last night:

 

Newsnight

 

All in all more balanced than I'd expected, but they had to get the 'it's a bubble' line right in at the start. Oh and that crook Blanchflower still parroting Keynesian claptrap and shilling for Labour. It's going to be a treat watching him implode as things play out over the next decade, his whole belief system is about to come crashing down around his ears.

 

Following classic contrary style I'd now expect a large correction in the next month or so. All good, as I'd really welcome one last great opportunity to buy.

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If anyone's interested you can get live spot prices for Indian Gold (and Silver) here;

 

http://www.ncdex.com...quotesView.aspx

 

Prices are in grams, however you can compare to Gold Money with currency set to Indian Rupees

 

Futures prices here - http://www.mcxindia....altimedata.aspx

 

This is from Rishi, a trader in India;

 

 

I dont know how influence physical gold/ silver in India influences the market (bernanke conf tommorow will have 50 times greater impact) but let me tell you that next week 6th May is a very auspicious day for Hindus in India. Many people do their annual purchase on this specific day and usually markets are up around this time (at least gold) There is a huge buy which takes place on this day and brokers must have accumulated today, taking advantage of the fall in price.

 

Chinese futures here

 

Prices are Yuan per gram, again you can compare to Gold Money with currency set in Yuan

 

Gold trading slightly lower in Shanghai right now.

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If anyone's interested you can get live spot prices for Indian Gold (and Silver) here;

 

6 may is a start of Indian Wedding season.

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When a large US metals dealer emails you to offer to BUY product OVER SPOT !!!!

 

"APMEX Wants To Buy Your U.S. Mint Products!Dear Jack,

 

Due to the recent incredible demand for Gold and Silver bullion products, APMEX would like to offer you an exclusive opportunity to LOCK IN YOUR PRICES and sell us some of your U.S. Mint collection. This is a limited time offer and it is first come, first served until we have secured enough U.S. Mint bullion products to meet our current demand!

 

"We Want These Products:

 

We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!

 

We will pay you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity!

 

We will pay you $1,250.00 for your 2010 America The Beautiful 5 oz. Silver coin sets. "

 

To me this is one of those small but significant signals that many big financial analysts miss. The key here if you have ever sold gold or silver is you usually get right about spot price. Be it eagles or generic rounds or what ever, each class has a spot price.

 

http://www.thesurvivalpodcast.com/

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This is a comparison of Google searches in the US for both "Gold bullion" and "Silver bullion"

Screenshot2011-04-28at060854.png

 

The searches are rising towards the level where they were of October 2008.

 

And here is what happened from October 2008 onwards;

 

Screenshot2011-04-28at061026.png

 

That was a low in gold.

 

 

I'm starting to think we may look back on this point in the future as being the point where the masses caught on.

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I'm starting to think we may look back on this point in the future as being the point where the masses caught on.

Can 'the masses' afford gold from 1500 dollars or near on 1000 GBP per ounce though? They might just (continue) to look at silver though. It might not be 'cheap' but it is 'affordable'.

I wonder how many in the UK could afford a few ounces of gold/month out of their paychecks? Not many, not with all the other pressures they are facing.

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I'm starting to think we may look back on this point in the future as being the point where the masses caught on.

 

If I may PD?

 

I'm starting to think we may look back on this point in the future as being the point where the non-property obsessed masses caught on.

 

Reading the 'Debate house prices' part of the UK's mighty MSE forums is a very different universe. Promoting PMs is almost criminal (threads get voted off!), but putting your money in a bank account isn't.

A strong BTL bull element doesn't help skewing every other thread, but nothing is done about such pollution.

I get the same **** from most expat Brits here, even when I don't want to talk about it! (At gatherings I increasingly seek the refreshing company of middle-aged Germans :) ).

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If I may PD?

 

I'm starting to think we may look back on this point in the future as being the point where the non-property obsessed masses caught on.

 

Reading the 'Debate house prices' part of the UK's mighty MSE forums is a very different universe. Promoting PMs is almost criminal (threads get voted off!), but putting your money in a bank account isn't.

A strong BTL bull element doesn't help skewing every other thread, but nothing is done about such pollution.

I get the same **** from most expat Brits here, even when I don't want to talk about it! (At gatherings I increasingly seek the refreshing company of middle-aged Germans :) ).

Housing is a lot more relevant to peoples' needs though. Everyone needs a house (whether to buy or rent), so house prices are important to everyone. Gold is only relevant to those with savings, which is shockingly rare amongst the people I know. Maybe the reaction on MSE simply reflects that.

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Very interesting chart.

If you want to know what machinations like this are doing to wealth in the US look at this chart adopted from one on a website called PricedInGold dotcom. It shows US wealth measured in Gold:

 

networth-1945.png.jpg

/ source: http://www.PricedInGold.com

 

With interest rates at ultra-low levels, you would have expected real wealth to be at higher levels.

 

I think this is an accurate depiction of how the Fed's reckless monetary policy has been undermining the middle class in the US. Those who are fooled for a few minutes by Bernanke's press manipulation, should consider what is happening to their real standard of living.

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Can 'the masses' afford gold from 1500 dollars or near on 1000 GBP per ounce though? They might just (continue) to look at silver though. It might not be 'cheap' but it is 'affordable'.

I wonder how many in the UK could afford a few ounces of gold/month out of their paychecks? Not many, not with all the other pressures they are facing.

Then again its mot a matter of being able to afford gold.... as if it were an item of consumtion. More a matter of swapping a depreciaitng currency for

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Then again its mot a matter of being able to afford gold.... as if it were an item of consumtion. More a matter of swapping a depreciaitng currency for

 

some money you can actually use with confidence for saving.

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Okay, I've heard all the agruments, studied the charts, examined the fundamentals, but the clincher came on my post prandial perambulation (not my picture, but the scene was the same):

 

magpie01.jpg

 

What more evidence could anyone desire?

 

:D

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Another larger than 1% move in Gold so far $1556 and larger than silvers move makes a change.

 

Golds move is double that of GDXJ so far today!!

 

Second spike of the week second time Bernanke has got up to speak!

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Housing is a lot more relevant to peoples' needs though. Everyone needs a house (whether to buy or rent), so house prices are important to everyone. Gold is only relevant to those with savings, which is shockingly rare amongst the people I know. Maybe the reaction on MSE simply reflects that.

 

Clarification: Gold=money so just as important, if not more so than renting or buying a house. People need to eat, clothe, etc.

 

But I see your point about the (un)educated ranks of MSE not grasping the gross devaluation that is occuring.

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Rise of Gold ETFs Raises Concern of Price Collapse

 

Friday, 29 Apr 2011 01:34 PM

 

The explosive growth of precious metals-linked exchange traded funds has prompted some market watchers to warn that those shiny investment vehicles could increase the speed and depth of a future crash.

 

That sizable outflow, which he said could be in the range of 200 tonnes to 300 tonnes -- or 10 percent or more of the total holdings of gold ETFs — could cause a sharp drop in the price of gold to $900 or lower.

 

The last time that gold crashed, in 1980, it dropped by 60 percent in one year, and that was before ETFs, said Williams.

 

 

http://www.moneynews.com/FinanceNews/Rise-Gold-ETFs-Raises/2011/04/29/id/394590

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Then again its mot a matter of being able to afford gold.... as if it were an item of consumtion. More a matter of swapping a depreciaitng currency for

Sure, but do the 'masses' have masses of currency to swap? Not many people have 50K for 50 or so ounces. 50 or so ounces of silver on the other hand...

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Rise of Gold ETFs Raises Concern of Price Collapse

 

Friday, 29 Apr 2011 01:34 PM

 

The explosive growth of precious metals-linked exchange traded funds has prompted some market watchers to warn that those shiny investment vehicles could increase the speed and depth of a future crash.

 

That sizable outflow, which he said could be in the range of 200 tonnes to 300 tonnes -- or 10 percent or more of the total holdings of gold ETFs — could cause a sharp drop in the price of gold to $900 or lower.

 

The last time that gold crashed, in 1980, it dropped by 60 percent in one year, and that was before ETFs, said Williams.

 

 

http://www.moneynews.com/FinanceNews/Rise-Gold-ETFs-Raises/2011/04/29/id/394590

I suppose anything could happen to the price of (paper ETF) gold. Nadler has been so full of shit for sooooo long I wouldn't trust anything he said, though he always 'says' it so well.

 

ETF's may well have been designed in order to crash the price of gold or whatever. Who cares? Only those with ETF's happy to cash out and buy equities. Numpties. Unless you change paper for physical you ain't got nowt that can't disappear in a puff of smoke. There isn't enough metal to go around. We all know that.

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300 tonnes is nothing - i can't see how an extra 300 tonnes coming on the market would possibly make gold drop that much, it would be snapped up pretty quickly.

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Sure, but do the 'masses' have masses of currency to swap? Not many people have 50K for 50 or so ounces. 50 or so ounces of silver on the other hand...

I agree, money is getting scarce for many. Yet, central bank have masses of reserves which are being divesified into gold. This effectively puts a floor of sorts under the gold price. Have you heard of any central banks diversifying into silver? Speculators on the other hand can go into silver, bid the price up, and then just as quickly jump out again. The same kind of floor is not there.

 

Central banks monetize gold. Speculators/ investors speculate in silver as an inflation hedge. It then makes sense to invest in gold, speculate in silver. Recognizing the primacy of gold, many who have speculated well in silver are now moving some of those gains into the safer harbour of gold.

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I agree, money is getting scarce for many. Yet, central bank have masses of reserves which are being divesified into gold. This effectively puts a floor of sorts under the gold price. Have you heard of any central banks diversifying into silver? Speculators on the other hand can go into silver, bid the price up, and then just as quickly jump out again. The same kind of floor is not there.

 

Central banks monetize gold. Speculators/ investors speculate in silver as an inflation hedge. It then makes sense to invest in gold, speculate in silver. Recognizing the primacy of gold, many who have speculated well in silver are now moving some of those gains into the safer harbour of gold.

 

Fofoa has written eloquently about silver being out of a job for use as soft money when paper currencies have now have filled the position. I accept his reasoning (and my own beliefs) about this and have swapped 1/3 of my silver to gold (enabling me to acquire twice the gold ounces by virtue of silver's massive gains). I think silver has a long way to go and will ride it some more but will be incrementally swapping for gold along the way.

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Fofoa has written eloquently about silver being out of a job for use as soft money when paper currencies have now have filled the position. I accept his reasoning (and my own beliefs) about this and have swapped 1/3 of my silver to gold (enabling me to acquire twice the gold ounces by virtue of silver's massive gains). I think silver has a long way to go and will ride it some more but will be incrementally swapping for gold along the way.

That's what I am doing.

 

Sometime I am adventureous to think that silver might still not be done as money though.

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