GOLD

[BlackPepper]

The amount of gold doesn't really matter. Because the rate at which currencies are fixed to it [the price] is completely arbitrary. I doubt a gold standard would halt a grinding deflation in asset prices, but it would halt monetary chaos and economic implosion. What's important is the rate at which currencies are fixed to each-other. International trade can then be stabilized on stable currencies and exchange rates.

 

The price of gold could be capped/ fixed where the market takes it. I think government would step in before the 'manic phase'. Also, I don't see why governments wouldn't keep some form of fractional reserve even with a standard. If it all came to this, banks most probably will have become more regulated. Mind you, debt might have become a dirty word for a generation, which would see asset prices grind down. If the baby boomers finally panicked and started selling, there would be the property crash.

I am somewhat confused here, I was under the belief that the amount of gold regulated the amount of currency available. Was this not the reason we moved away from the gold standard and moved to the asset based model we have now? But yes I could be wrong though.

[romans holiday]

I am somewhat confused here, I was under the belief that the amount of gold regulated the amount of currency available. Was this not the reason we moved away from the gold standard and moved to the asset based model we have now? But yes I could be wrong though.

Government [international conference] would first have to decide on the level for the reserve currency when setting up the standard [other currencies could then be pegged to that]. This would be the most difficult part, with lots of moving parts here; eg. what sort of credit instruments remain, what is the amount of money in existence, will there be fractional reserve etc. There would be some kind of division of existng money into the number of ounces in existence.

 

Once the level was set, currency would be tied to it, regulated to the amount in whatever proportion. This would provide a potential for equilibrium in asset prices and trade.

 

Of course, everything would first have to turn to custard.

[chazza]

Looks like a a resonable entry point in gold in GBP, on 255 day SMA. First Sipp investment.

 

Think we could see a retest of break out line, low 1000 area.

 

Think its a similar picture in silver which is why im not getting involved there just yet...

[bitbigt]

AT THE REQUEST of 2-3 of our regular posts, whose opinion I have requested...

 

I am moving this thread BACK TO THE MAIN BOARD, and pinning it.

 

I think this is wise and accommodating. Thank you

[drbubb]

Gold Drops as Economic Optimism Boosts Dollar

 

By Amanda Cooper

 

Gold fell for the first time in four days on Tuesday, hampered by the strength in the dollar, which profited from the growing view in the market that the U.S. economy is on a firmer footing. The dollar benefited from wariness in the market stemming from talks between Italy's government and unions on the reforms needed to turn around the euro zone's third-largest economy, which kept the euro under pressure and dented equities.

 

/ Full Article:

http://www.goldeditor.com/gold-drops-as-economic-optimism-boosts-dollar/?utm_source=Gold+Editor+-+Macro+Article+March+20%2C+2012&utm_campaign=Endeavour+Mining+Earns+an+A%2B+For+2011+Results&utm_medium=email

 

+ this:

 

In 2011, India imported 900 tonnes of gold. China is rapidly closing the gap, and is likely to overtake India in the next few years. The impact on the global gold market is bullish

[halight]

A beginner's guide to investing in gold

 

http://www.moneyweek.com/investments/precious-metals-and-gems/a-beginners-guide-to-investing-in-gold

[halight]

Treasury says no plans to add to gold holdings

 

LONDON (Reuters) - The Treasury said on Wednesday there were no plans to add to gold reserves, after Chancellor George Osborne said in a presentation of the budget that he would take the opportunity to rebuild the country's reserves.

 

Read more... http://uk.news.yahoo.com/treasury-says-no-plans-add-gold-holdings-141420463.html

[halight]

Turkey, India and Vietnam govts. wary of gold

The governments of all three countries are facing weakening currencies and trade deficits and all three feel gold should bear much of the blame

 

http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=147852&sn=Detail&pid=102055

[halight]

BarCap bets on gold as prices hit 2-month lows

The bank is presently betting heavily on gold which it expects to rally around 15% to a lofty $1,850 an ounce by the second quarter due to inflation worries.

 

 

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=147864&sn=Detail&pid=102055

[drbubb]

BarCap bets on gold as prices hit 2-month lows

The bank is presently betting heavily on gold which it expects to rally around 15% to a lofty $1,850 an ounce by the second quarter due to inflation worries.

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=147864&sn=Detail&pid=102055

I agree.

 

I haven't had time to post here in the last several days, since I was occupied with a Mining conference.

Nevertheless, I did find time (in the wee hours of the morning) to buy some Gold. A quite a lot too*!

 

Mostly I bought Bull spreads ($165/$175 and $170/$185) for Sept.2012 and Jan.2013. I hope to make 4X my investment and more.

 

*Underlying amount is well over 1,000 oz.

[electroweak]

I agree.

 

I haven't had time to post here in the last several days, since I was occupied with a Mining conference.

Nevertheless, I did find time (in the wee hours of the morning) to buy some Gold. A quite a lot too*!

 

Mostly I bought Bull spreads ($165/$175 and $170/$185) for Sept.2012 and Jan.2013. I hope to make 4X my investment and more.

 

*Underlying amount is well over 1,000 oz.

So that's 0 Oz of real gold in your hands/ deposit box/ safe then.

Man, when the paper fire gets going it will be a sight to behold.

[drbubb]

Historical Reality is against the purists arguments... so far, at least

So that's 0 Oz of real gold in your hands/ deposit box/ safe then.

Man, when the paper fire gets going it will be a sight to behold.

LOL.

Do you think so, Chris Ct?

If I have taken my 4X profit and tucked it into good shares and physicals,

I will be laughing all the way to the bank!*

 

Three previous times I have made these 3X to 4X bets, and each time they have worked out.

Meantime, those betting on physicals have riden Gold up and down.

 

FXA versus GLD ... update w/MA's

(The interest earned on A$ would have bridged the gap to Gold's apparent advantage.)

 

And they might have done nearly as well buying A$ in 2008. And they would have done better buying any number of good shares like Apple.

 

So far, the price risk inherent in B&H has been enormously greater than any risk in using derivatives. And I have used to derivatives to effectively hedge. So I am laughing already.

 

*BTW,

I do hold shares in MNT, which is far better far me than physical Gold, and is exchangable into Physical Gold

[drbubb]

Turkey, India and Vietnam govts. wary of gold

The governments of all three countries are facing weakening currencies and trade deficits and all three feel gold should bear much of the blame

http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=147852&sn=Detail&pid=102055

No wonder.

They would have done as well, or better, investing in A$

[giantbat]

Also positioned heavily for a bounce in gold here. Nowhere near as big a position as you DrB - 1000 0z wow

Who do you trade your options with?

 

GB

[drbubb]

Also positioned heavily for a bounce in gold here. Nowhere near as big a position as you DrB - 1000 0z wow

Who do you trade your options with?

GB

I buy Bull Spreads on GLD, like this:

 

+ Sep.$165 calls

- Sep.$175 calls

=====

I can make $10 (=$100 per ounce), risking $2.5 per ounce

 

So on each 100 GLD calls (1,000 oz), I risk $25,000 to make $100,000, potentially

 

I also have Jan.2013 positions, and GDX calls, and straight GLD calls

 

So for me large, buy maybe not so huge as a GiantBat, perhaps (?)

[drbubb]

Many of the old "B&H Purists" seem to have moved on.

 

I am considering combining this Gold Discussion thread, with the Old Gold thread.

 

Please let me have any posiive and negative comments about that possibility.

 

Personally, I would like to keep this as a separate New Thread, but most of the feedback I have had so far, is in favor of combining them.

 

In the end, I will do what a majority of people (with a constructive view of GEI) want to do.

[ConvertedGoldBug]

I am considering combining this Gold Discussion thread, with the Old Gold thread.

 

Please let me have any posiive and negative comments about that possibility.

 

Combine them.

 

I can't see the point of two separate threads about the same topic.

 

Have one single thread, and just let whatever discussion occurs at the time dictate the direction of the topic.

 

Otherwise, whenever there's any particular news item to report, it'll end up being posted in both threads (like sometimes happens here anyway), which seems a bit pointless.

[drbubb]

Thanks.

2-3 more comments in favor (with none against), and I will combine them.

 

Should I combine the SILVER thread as well, into a larger Gold&Silver thread

[pjohnp]

2-3 more comments in favor (with none against), and I will combine them. Should I combine the SILVER thread as well, into a larger Gold&Silver thread

 

Combine the gold threads: I waste too much time here without having to look at two threads about the same topic. And never mind all this long/short term stuff, which has led to such ridiculous tiffs: gold is gold, and some will try and increase their profits by buying & selling at troughs & peaks ... but surely anyone sensible has a core holding (of wealth that governments can't inflate away.)

 

Keep silver separate: some of us deal only in gold (you can hide it more easily!)

[Jake]

Historical Reality is against the purists arguments... so far, at least

 

LOL.

Do you think so, Chris Ct?

If I have taken my 4X profit and tucked it into good shares and physicals,

I will be laughing all the way to the bank!*

 

Three previous times I have made these 3X to 4X bets, and each time they have worked out.

Meantime, those betting on physicals have riden Gold up and down.

 

 

(The interest earned on A$ would have bridged the gap to Gold's apparent advantage.)

 

And they might have done nearly as well buying A$ in 2008. And they would have done better buying any number of good shares like Apple.

 

So far, the price risk inherent in B&H has been enormously greater than any risk in using derivatives. And I have used to derivatives to effectively hedge. So I am laughing already.

 

*BTW,

I do hold shares in MNT, which is far better far me than physical Gold, and is exchangable into Physical Gold

 

I think you miss a point when you reply to B&H's. 'Your' money is just winnings from the roulette table. Others is money earned by adding a little value to the world (no doubt you won't agree but nevermind). They can't afford to risk it. Yes you have oodles more to play around with. But you don't have a safe home or a family to think about. B&H's dont want Apple or Adollars FFS. To them that is just papier mache. They want to slay Mammon. You can't help but worship. Sorry.

Your whole take on/treatment of B&H's is misguided and immature. And you should know better, imho.

[drbubb]

I think you miss a point when you reply to B&H's. 'Your' money is just winnings from the roulette table. Others is money earned by adding a little value to the world (no doubt you won't agree but nevermind). They can't afford to risk it. Yes you have oodles more to play around with. But you don't have a safe home or a family to think about. B&H's dont want Apple or Adollars FFS. To them that is just papier mache. They want to slay Mammon. You can't help but worship. Sorry.

Your whole take on/treatment of B&H's is misguided and immature. And you should know better, imho.

???

My efforts in the investment world are just are real as the efforts anyone else does.

And The fact that I am an experienced and serious student of markets should make my insights more valuable, not less so.

[electroweak]

???

My efforts in the investment world are just are real as the efforts anyone else does.

And The fact that I am an experienced and serious student of markets should make my insights more valuable, not less so.

You and I do have a different take on it. I speculate, but I think I know where I am speculating and where I am not. Gold is not speculation, when held in physical form. It is savings.

Speculation is, for example, my recent investment in Brewdog, or some numismatic coins. I, like Jake, find your attitude odd. I will not be gauding you if you lose all in an MFGlobal-type incident, you know, but for some reason you feel it's ok to do it the other way round. Odd.. very odd.. wonder why?

[BlackPepper]

This story has poked it's head up again. I was reading this http://www.zerohedge.com/news/tungsten-filled-1-kilo-gold-bar-found-uk on zerohedge.

 

It makes you wonder what is really going here. Tungsten filled gold? The article is compelling although I do take a lot of what is presented on that site with a pinch of salt.

The pictures though tell another story, and how much of this practice goes on?

[drbubb]

You and I do have a different take on it. I speculate, but I think I know where I am speculating and where I am not. Gold is not speculation, when held in physical form. It is savings.

Speculation is, for example, my recent investment in Brewdog, or some numismatic coins. I, like Jake, find your attitude odd. I will not be gauding you if you lose all in an MFGlobal-type incident, you know, but for some reason you feel it's ok to do it the other way round. Odd.. very odd.. wonder why?

Some think property is more "real" than paper money or gold - it generates rent or "use" afterall.

And they chide those who put their money elsewhere. Others, like Warren Buffett, favor shares, with their dividends.

 

My thinking is not "odd", just more flexible and open-minded than yours.

 

 

There are potential "holes" in the argument for Gold. It is best not to forget that.

[electroweak]

Some think property is more "real" than paper money or gold - it generates rent or "use" afterall.

And they chide those who put their money elsewhere. Others, like Warren Buffett, favor shares, with their dividends.

 

My thinking is not "odd", just more flexible and open-minded than yours.

 

 

 

There are potential "holes" in the argument for Gold. It is best not to forget that.

This to me is exploitation - a rentier class. I am not dead-against this, after all I do own some shares, but I do feel that it is somewhat immoral to 'generate' rent by effectively forcing other people to work for you. Partly for this reason, I am happy to keep wealth in gold.

Regarding the fakes issue, it has been dealt with many times, yes it is a risk, but nothing is risk-free (even the "risk-free rate", lol!!). To me , it's about mitigation (e.g. use reputable sources, store it in several places etc.) and due-dilligence.