Why buy gold?

a reply to: DenyFlatulence

Remember how around 2011/2012 rumours started surfacing that the gold in vaults may actually be painted tungsten bars?

They trotted out the Queen of England for photo shoots for public consumption to allay everyone's fears...

www.dailymail.co.uk...

'I gather not all the bars belong to us': Queen's solid gold quip about bullion sell-off Comment said to George Osborne at Cabinet meeting the Queen attended It was in reference to Gordon Brown selling half the country's gold reserves He sold them for £2billion in 1999 when price of gold was at a 20-year low

a reply to: TheConstruKctionofLight

Empty Vaults
Germany asks for its Gold back and then allows extra time for its repatriation....haha

Germany's failed attempts to get its gold back from the US 'opens question of its sovereignty
www.rt.com...

There is neither real criticism from German politicians, nor any visible efforts to return German gold held in the US, so it seems that US controls Germany, economic analyst Michael Mross told RT. Tags Budget, USA, Resources, Finance, Germany In one of its recent reports Bloomberg claimed that Germany decided not to repatriate its gold reserves from the US, instead the Bundesbank issued an official statement that underscores it’s "trust" in its American partners. According to Bloomberg, Germany gave up after repatriating just 5 tons of gold, though earlier it was told that it would get all the German gold back by 2020.

RT:What's really behind Germany's efforts to get its gold reserves back?

Michael Mross: These German efforts to get back gold reserves are not really there. They are talking about it but it is only a simple and ridiculous theatre in my opinion. I cannot see any effort to do it. What we have is lack to re-transport or take back, 300 tons before 2020, but also this is ridiculous – last year they took back only 37 tons. At the end of the day, it is to make the public calm, but it is not really an effort to take back the gold.

RT:Shifting so much gold in the time-frame they've given themselves sounds like a logistical nightmare. How are they going to manage it?

MM: 300 tons by 2020 is really nothing, and as a matter of fact only 37 tons have been transported so far back from the US. In my opinion, the gold will stay there as propaganda like actions are underway to tell the German public that the German gold in New York is safe. But of course the contrary is true.

RT

o you buy any of the conspiracy theories that the gold is missing? MM: This is not a conspiracy theory. If it is there you can take it back. Why don’t they give it back to us? In my opinion, it seems that they like to control us, even blackmail us. If you have gold, you tell me what to do. It opens many questions when it comes to the real sovereignty of Germany. Also it comes to all the scandals which we had, for example, these NSA surveillance things in Germany

a reply to: SpeachM1litant

only to have the price of it drop another 50%.

Also, in my country the inflation rate has never passed 8%, even during the GFC. Additionally, our interest rate has always been higher, so I really cannot speak for the CPI or the banking system in Burgerland, but you are also an idiot if you cannot invest your money in order to beat the inflation rate. It really isn't that hard.

So you take the moral high ground in protecting people from their own stupidity then say

has never passed 8%,

Silly, silly...
2003 14.8%
1980 13.01
www.inflation.eu...

even during the GFC

2009 -0.34
(from same SOurce)

The inflation rate was low during the GFC so you stating "even during the GFC" shows your ignorance on basic economic matters

I smell troll wanting a low Gold price, just admit you buy gold....its alright we'll understand

the price of it drop another 50%

err what period are you talking about and are you sure you're not talking about Gold mining stocks, be more specific

a reply to: SpeachM1litant

Only survival tools will be valuable + cigarettes and alcohol

ALARM BELLS!

what about the obvious you left out, food & water...
or are you going to wait for the FED to 3D print it, like they do with "quantitative easing"

This thread is heading into uncharted silliness...

a reply to: camaro68ss

not back by anything. the average country to not have there currency back only lasted 40 years on average. we are now around 45 years without a back currency. the clock is ticking.

You keep doing what you're doing, don't let them put doubt or fear into ya...
Only a fool accepts ETF gold instead of the real thing.

a reply to: SpeachM1litant

reason why people like Warren Buffet are wealthy. Not because they are part of some Illuminati Cult, but because they have a smart long term

www.cmi-gold-silver.com...

Warren Buffett Buys 130 Million Ounces of Silver! Monetary Digest, May 1998

Even your hero buys PMs, wow, listening to you who would have figured!

a reply to: cosmicexplorer

We know the economy at some point has to take a major hit unless there is some super technology that is gonna come through and just save us. Why wouldnt you buy a little bit of gold and silver?

How can a super technology save any economy? There are myriad factors that go to make up an economy. No magic silver bullet. But by all means buy pms. All economies eventually get reset. The only thing that saved the US many times over is the fact that Oil is priced in US $...and the occasional war for looting gold & oil in the Middle East...

a reply to: cosmicexplorer

We know the economy at some point has to take a major hit unless there is some super technology that is gonna come through and just save us. Why wouldnt you buy a little bit of gold and silver?

How can a super technology save any economy? There are myriad factors that go to make up an economy. No magic silver bullet. But by all means buy pms. All economies eventually get reset. The only thing that saved the US many times over is the fact that Oil is priced in US $...and the occasional war for looting gold & oil in the Middle East...

buying Gold is for the rich among us... I tinker in a few silver coins from time-to-time... because having a stash of physical Gold hidden on your property or somewhere where you can get your hands on it in an hour, just invites the thieves and low-lifes that somehow smell out the easily obtained wealth despite a gold hoarders best stealth in keeping the gold secret


I put more value in the major or primary gold/PM miners, producers as my connection to Gold

the N. American gold/PM companies/stocks will soon be declared National Security Assets & Strategic Resources as the USA will finally need to get-on-board with the nations like China/Russia/India/Germany & a host of others who are buying & hoarding Gold
---> to back up the financial re-set world. led by the BRICS bank & the Shanghai Gold Exchange. which are on a detailed & single minded path to replacing the USA & It's FRN and the fraud intense gold futures COMEX paper markets in the N Y-London 'corrupted' finance Empire....

the USD/FRN, petro-dollar, SWIFT bank codes are all gasping their last breath






I am interested in the Deutsche Bank admission of manipulating gold futures & the $5 Billion fine... which will 100% guarantee a very stiff class action lawsuit against the Bank and their Deutsche Asset Management subsidiary which also runs a Gold & PM mutual fund among their assets...

I hope for a modest settlement in say 5 years.... perhaps $50-$500 for injuring the PM fund holders by helping rig the prices of Gold & Silver for at least the past 16 years I know of...




a word to beware.... the recent rise I gold & silver...in fact the Year-to-date rise, I believe is a Fed. manipulation designed to 'pump' up the prices then to 'short' the heck out of gold/silver so the markets sell off all the physical metals they hoarded over time... so the Fed & big market movers & banks can buy it all up on the cheap.... I think the Fed/central banks will do this tactic for 2 or 3 times to take out the weaker hands of existing Precious Metals stackers/ hoarders.... well until the gold fixing by the SGE (shanghai gold exchange) takes over the long held gold fix issued in London

originally posted by: St Udio

a word to beware.... the recent rise I gold & silver...in fact the Year-to-date rise, I believe is a Fed. manipulation designed to 'pump' up the prices then to 'short' the heck out of gold/silver so the markets sell off all the physical metals they hoarded over time... so the Fed & big market movers & banks can buy it all up on the cheap.... I think the Fed/central banks will do this tactic for 2 or 3 times to take out the weaker hands of existing Precious Metals stackers/ hoarders.... well until the gold fixing by the SGE (shanghai gold exchange) takes over the long held gold fix issued in London

That's an interesting analysis. I think the joker in the deck is here:

ICBC joins London gold price benchmarking process

With China taking part in fixing gold prices, will they try to move prices lower to accommodate their manufacturing sector, or will they try to raise prices to increase the value of their stockpiles?

In any case, I think the best indicator is the actual cost of purchasing bullion. For instance, at this moment, Kitco is listing the spot price for rhodium at $835, but they are selling ingots for $930. Gold, on the other hand is listed at $1291.70 and $1305.20.

the argument is usually "after the collapse", but that is when gold will be most useless and you would be better off with water purifiers and ammunition

after the collapse it is just a shiny malleable metal that has wicked good conductive properties, good luck bartering it for food with someone who has a gun pointed at your head

a reply to: syrinx high priest
A gallon of white lightning would be worth more than a kilo of gold.

originally posted by: VictorVonDoom

In any case, I think the best indicator is the actual cost of purchasing bullion. For instance, at this moment, Kitco is listing the spot price for rhodium at $835, but they are selling ingots for $930. Gold, on the other hand is listed at $1291.70 and $1305.20.

the bullion dealers will continually have a market to sell bullion at a premium...
...it will not only be because they will be dealing outside of a Shanghai gold fix price (as the London offices will only repeat the future SGE monopoly on gold/silver price fixing... but the various bullion banks, bullion sellers all over the world will need to set their 'Premium' above the Fix Price to take into account the 'devaluations' of many of the Worlds currencies not backed by metal-assets

I read in one article that when the Gold-backed-Yuan is sprung that China will need to 'Lease' 10,000 tons of gold to the USA, for the USA to even maintain a 30% devalued dollar in relation to the new gold backed Reserve Currency of the East

so expect a 30% premium on $2 ,000. gold after the reset & SGE as the London replacement price fixer of gold prices

goldprice.org...

Current Gold Price: 8155 yuan = 1252 usd

i see that price ratio changing very soon,
Gold may be repriced overnight at 8155 Yuan but at 1440 $ meaning the USD just got riskier

in another few months, say Summertime, SGE may be fixing Gold at around 8500 Yuan and above 1776 $...

which may indeed be the last time the SGE (Shanghai Gold Exchange) even considers pricing Gold in USDs at all---because the global trust in the value of the USD has evaporated.

In the future, USDs will need to be converted to Swiss Francs or even a devalued Euro or the Yuan itself to purchase physical Gold on the SGE.

the SGE will avoid the risky USD altogether by requiring Money-Changers to assume-the-USD-Risk through the process of charging premiums being paid by USD holders...
the daily quotes for gold will be too high and too volitile for the SGE to risk holding USDs/$, (or even to announce)
seeing as how the world glut of USA Treasuries are themselves devalued and demoted in world markets

the President #44 legacy continues to deteoriate daily, huh




a future Trump administration will be dealing with trying to renegotiate the USD standing & value of the National debt

along with trying to keep the continuing unwanted Dollar as a factor in this new world financial order

SGE already refuses to take USD associated paper, such as Derivatives as payment for physical Gold on the SGE, the greenback is next to be divorced from world commerce exchange (at anything less than an Extreme Premium)

Today, 24 May saw the DOW rise +220 points... mostly because of the counter-intuitive thinking that the Federal Reserve is 99% sure to raise the interest rates on money lent to banks...Also, the increased payouts on all future bonds & Treasuries issued by the USA Treasury...

...if the USA is going to be pay more money to get investors to buy their bonds/treasuries/paper debt... just how will that cause the rise in the Value of the USD?... why will the demand rise for USA paper? ~ because rising interest rates will ultimately increase the amount of money we pay out to the paper debt holders all over the planet...

~ the additional 25 basis points that mortgage borrowers will have to repay their mortgage at will not make a tiny dent in the balance sheet between incoming capital and interest payment outgo *there's around 100Billion per month of paper with increased interest payments due compared to maybe 200 billion all year in new mortgages/at an increased rate/ issued per year... so the math says 1.2 trillion in outgo on USA bonds versus 200billion inflow from higher interest rates = a $1 Trillion loss (that is the reasoning I call it Counter-Intuitive thinking/logic/reasoning)
by all reasoning a raising of interest rates by the Fed Reserve should make the USD weaker/ less attractive, due to the implication that greater RISK is being factored in


But I won't argue too much.... because this kind of faulty reasoning is also causing the spot price of gold downward by ~$21.00 just today ---- so I called up to buy a minimum contribution of gold fund stocks today... just as I did last May 18th when gold also fell ~$20.

Any increase of interest rates to the economy does not Spur on debt and does not make the dollar stronger..
.
Then with China & Russia along with a dozen other nations all in the trend of de=Dollarization of all markets in the world... I bless the fools that see the value of Gold- in any currency- getting squeezed lower....

by ALL rights,
Gold should be increasing in value as interest rates rise, when interest rates rise the economy trade is slowed,


but I will stop this post before it gets too long winded and keep buying gold shares incrementally as SALE prices come around (pretty regularly as of late)

a reply to: St Udio

I really like your analysis, but I can't help but wonder why you go with gold stocks vs. bullion.

I suppose it makes sense if you're looking at it primarily as an investment device. For instance, I have stock in a couple of local banks. I know the stocks will fluctuate according to the economy, but I don't expect to cash in until the local banks are bought up by larger banks (soon). But when it comes to gold, I prefer bullion in the safe. I guess my outlook on gold is as much emotional as practical.

Anyway, keep up the posts. I love to read them.

a reply to: VictorVonDoom

thank you for the positive words....



I had this attached article in mind as the reason for my bumping the thread...
www.sprottmoney.com...

a really well laid out reasoning, which on the surface seems to dis my earlier post about buying the dips
Mr Nielson substantiates the last 5 months 'rally' of precious metals & miners equities is itself a managed sector increase of prices & not a grass-roots rally where the populace rose-colored-glasses are removed


sure, I concede that gold/silver bullion are still hostage to the whims of the Beastly Federal Reserve central bank of the USA...that the Quad-Trillion in Derivatives are only settled in USDs so the USD strength is sure to prevail over any unwinding process of 'settling' the derivatives (default &/or credit swaps) that Swamp the global money/exchange markets for the next 10 years minimum.
I also acknowledge that the Fed policy of a cash-less society & economy will also delay the real price of gold & PMs for a generation...


but the is also the unforeseen Black Swan event that will derail all the Feds plans and market orchestrations to keep the USD a supreme default reserve currency...the exclusive money of ALL terror States throughout the civilized world


I suggest that a power grid collapse of the north America landmass will be that Black Swan event, our foes are many, including even a false flag exercise by friendly forces in our own homeland no less

be it a grid collapse or a Coup by the military or a joint action by a group of fed up opposition nations (BRICS ?) the present course of fraud and stealing by a corrupt financial system, led by DC/NYC/LONDON cannot endure




for myself, to keep stacks of billion/coins/bars would be problematic... no Targets on my back thank-you...no security issues either

my selecting a custodial fund to manage my ROTH IRA deals 99% in gold shares and a tiny % held in SPDR paper,
the miners equities are thought to reap greater value increases than the spot price arrangements of the physical bullion itself

I recall that during the USA depression, a few gold miners were spitting off dividend increases in quarterly payouts while the rest of the economy was smothered in a deflationary quicksand...
I would rather hold $1000 in miners than $10,000 in DOW/S&P in the broader market... PMs will become Strategic Resources and coveted by the gov't like they do in China where the Gov't directs & owns all the PM /gold production and then allows a portion to distribution to the public

sorry the server that's posting is all figitty...dbl post

had one more recent reason to buy gold

George soros just rebalanced his $8 billion portfolio holdings... as of April he now has 2 big holdings in Gold and sold off other equities to get gold...


snippets from referenced sources:

...Soros Fund Management invests globally and the long positions in the US market reported in the 13F filings represent ~15% of the overall portfolio.
The 13F portfolio decreased ~25% this quarter from $6.05B to $4.53B.


Barrick Gold (NYSE:ABX) & SPDR Gold Trust ETF (NYSEARCA:GLD) Calls: These two are large positions established this quarter. The ABX stake is the largest individual stock position in the 13F at 5.82% of the portfolio. It was purchased at prices between $7.38 and $15.18 and the stock is now at $17.63...

source: seekingalpha.com...

www.bing.com... RFSH



~follow the money~

www.kitco.com...

‘As of Friday, interest-rate futures were pricing in a 30% probability of an increase at the June 14-15 meeting, up from 5% several days earlier, according to thegoldforecast.com. [...]
Traders are desperately seeking some clarity in regards to the Fed's next move, trying to determine gold's direction, he told Kitco News.'

My Input as a gold bug:

gold will test the $1208 as the LOW (up-to-&-including the June 15th interest-rate announcement date)
... according an analyst on one of the linked site videos

as a 'buyer' & not a trader,
our following 3 friday's (may 27, jun 3 & 10th Fridays before the Yea-or-Nay on Fed Rate Hike deadline on the 15th will be times to buy IF there are gold price dips near the $1208 projected lows)...

i will sit on my hands if gold stays at near the present $1220... IF gold stays @ $1220 & there is NO rate increase i will call in another $50 minimum purchase that same Day (before any Gold rally starts and adds to my dollar-cost-averaging method of buying dips)

i won't say much more on my methods as the above synopsis tells enough of how i buy-or-sit or set up for my next move...

~I believe I am a nickel-dimer, who will one-day have a stash ~

best 2 ya'll...............