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GLD ETF Adds 6 Tons Of Gold Today, Still 22 Tons Away From All Time High
In one day, GLD added 60% of the gold that Bangladesh bought from the IMF a week ago and made major headlines. Of course, we do hope that the ETF actually did buy
the 6 tons of gold, instead of just some logic gates being triggered by
a few electrons here and there, causing a screen to output a data set
that was previously goalseeked, while no actual gold ever exchanged hands. But that of course would be improper. Either way, GLD's
NAV in tons is now back to 1298.7. Yet, even with gold spot actually
rising to a new all time ever high, the fund is still about 22 tons
short of its peak holdings of 1320.4 recorded on June 30, when spot was
$1,244, or about 1.7% lower. This means that in a perfect world, GLD
will soon need to buy up quite a bit of the gold it sold recently (and
then some), and thanks to the magic that are "convex" events, the
resulting feedback loop will only lead to an even greater jump in the
price of gold, especially if, as rumors are suggesting, there is a
shortage of the actual physical for delivery.
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Take Delivery Bitchez!
Can't. No gold for COMEX to deliver. Cash settlement only so far. This is gonna be better than the Super Bowl...
The metals are breaking today ... Vengeance ... and the best part is that Gold shares are making 52 week and all time highs.
Silver still has some work to get through $20.50-21.00 and the indexes need to move higher but the action is very positive.
Listening to CNBC ... 3 guests ... are dissing Gold and explaining how they "just don't get it".
3-4 hours on the internet "digging" for the truth would be enough for them to maybe start to "get it". They should start here www.GATA.org .
After listening to these "pros" no wonder sentiment still sucks and the masses have yet to come piling in, but they will!
A "bubble"... right... just wait... Webster will need to alter the definition!
The Dollar plunged yesterday and is repeating the performance today. Technicals have turned bearish joining the fundamentals.
This is "the big one" that will wake up the public and kick off the 3rd and most powerful, most speculative and most profitable wave in Gold's 10+ year bull market.
Today's action deals a mortal blow to the "double and triple topster's" and THE SHORTS!
Being short Gold or Silver has enormous potential losses.
Interesting are the shares themselves.
The shorts have not covered and the juniors and explorers remains sold short on a naked basis.
There will be a future Hell to pay in the juniors because the float is so small and current volume cannot accommodate buy ins.
Have you forgotten what the first 4 1/2 months of 2006 were like for the juniors?
"10-20 baggers" over this short window of time, WITHOUT massive naked shorts.
The juniors and exploration plays will become a mania greater than any other in history.
This thesis will be tested and proven correct!
ViVa LeMetropoleCafe.com
David
"Listening to CNBC ... 3 guests ... are dissing Gold and explaining how they "just don't get it".
IMHO,
The reason is, they have NO clue what the REAL condition of their economy, and country is in.
Plus they make so much money, for doing nada, they think they have no worries.
That is,until it's devalued, one of several ways.
CNBC yawned because they were totally off guard and are trying to find some bulls, some Wall Street Whores, to explain what's going on. They eventually found some Morons who have no idea what's the real deal.
Jon Nader, Nitwit of Kitco, is saying the fundamentals are lousy ... only wild speculators driving up the price. This is the same Moron who called for gold to be around $800 at the end of this year.
Jeff Christian is the gold world’s worst friend. He blasts GATA every chance he gets. Christian claims to be the world’s most experienced and knowledgeable gold/silver expert.
ROFLMAO!!!
He got up nearly a year ago at The Silver Summit, with gold under $1,000 at the time, and said gold was going to average $941 an ounce over the next decade.
Jeff C. doesn’t want Jon N. to feel too lonely.
Philip Klapwijk, GFMS Chairman, claims to be the gold world’s supply/demand expert received this coverage today in Reuters:
"In April, Klapwijk told Reuters there was a good chance for gold to hit $1,300 this year with investor-led price gains ... he said the metal was near the final stage of its 10-year bull market run as record investment buying could not be sustainable…"
By the time gold reaches $3,000 to $5,000 per ounce, Klapper’s $22,000 charge for a major report business ought to be in its final stages.
That's like Greenspan saying he did not see a bubble forming.
The squeamish rat-fuckers on CNBC very much 'get it' but dare not speak the truth, as they are simply verbose, handlicking lackeys pump-humping the pantleg of the power elite.
Bill Murphy... www.lemetropolecafe.com will be appearing next week on Business News TV...BNN... (a wonderful Canadian channel available online).
Unlike the United States where GATA is banned from making any TV appearances. Their assessment of the gold market has been second to none.
USSA TV outlets pander to power and show off gold's biggest critics, all of whom have been dead wrong.
Why anyone would want to know or even care what they have to say is beyond stupid.
Turn off your Idiot Boxes!
Better yet, get TV totally out of your home (liberate your children), office (more time and less hassles) and have a better life.
I believe that GLD actually holds a lot of physical gold. Just not all the gold that they say they hold. I believe they are doing some sort of fractional reserve holding. So while GLD is better than nothing, they aren't the same as holding the real deal.
I prefer CEF.
cef is canadian. same as phys. mulroney( pronounced same as baloney ) passed a law allowing the can government to confiscate anything in the national interest. and lets all remember who runs canada, goldman saks ( mark carney ). look no further than the massive credit expansion since '07 , nothing down mortgages etc. get the physical.
what do you think about SGOL? I sold 1/2 my GLD and put it there.
yes. most miners should have a great quarter selling @ these prices.
many juniors are a steal
why dont hedge funds or banks buy some the the smallcaps
Seniors are an even bigger steal than juniors. Barrick, for instance, trading today, at the same price as it did when gold was $800/ounce. Should be at least double, if not triple.
What kind of fag junked me?
There a few people out there still sore about Barrick and their former gold hedging practices:)
Yep.
Barrick is a creature of the central banksters. Also, where was all that gold they were refining in Switzerland coming from???
Yamashita's gold, bitchez. Doesn't get more fascist "establishment" than that.
zak
you be da man. "Yamashita's gold" by Sterling Seagrave is a must read. He also wrote "The Soong Dynasty" also a must read.
The "flag as junk" tag has turned into the flag as "I disagree with this statement" tag.
Pls, No, tell me ZH is not going PC!.
Damn liberals.........LOL
CLAIM YOUR GODDAMNED JUNKS, PEOPLE!!!! THIS IS EFFING RIDICULOUS.
Either that or ZH needs to switch to a simple thumbs up/down.
ANONYMOUS JUNKERS ARE FAGS!
Now the PC wusstards can junk me too.
Drive-by junkers are pussies and cowards.
Not there is a big difference, I just liked saying it.
I always comment when junking and that's not all that often.
Quit yer whining. It's a vote of non confidence. Do you want 25 or more responses to every one of Jonny the douche's inane posts.
Shedlock agrees with you...............FWIW.
He said they have underperformed, but as things get HOT, they should tear ass.
not wanting to pour cold water on a great day but tptf need to keep pms under the radar for as long as possible. they will throw everything they can at this and that includes the pm stocks, they are a truly tiny piece of the market. less than %1 . i believe they will confiscate just as it explodes. get physical.
hey pitz - might have been as small you reminding some that not that long ago gold was at $800.
I dont understand why so many here treat interest in PMs as a bad thing
BTW silver has not yet hit that interday hi from Mar of 08 - 21.44
Is that a multiple choice question? How many kinds are there?
i believe i read some time ago that jim sinclair says its suppression at work. has called for an investigation, to deaf ears.
Not just Sinclair. The most useless government organization ever created is the Commodities Futures Trading Commission. Gata.org has made the case for decades that Gold and Silver are suppressed. The regulators know it, and do nothing. The latest Silver investigation is two years in and nothing...
The Commodity Futures Trading Commission (CFTC) is seeking input from interested parties for guidance in setting the proper level for position limits in all commodities of finite supply. Later, the Commission intends to solicit public comments on the issue. This is all a result of the new Financial Regulatory Reform law.
http://news.silverseek.com/SilverSeek/1284471998.php
Theodore Butler
They have always had the authority to enact position limits, but they sit there and pretend they don't and need more authority. Garbage. They could have prevented or at least controlled the Hunt Brother debacle in the 1970's when the brothers tried to corner the silver market. Set position limits, enforce, boom, it's over. Instead they were terrified or too interested in the elite rich to act and failed miserably.
They had public hearings in March about position limits for metals, energy and so on. They took tons of testimony and input.
And now they want more input? By the time they act, the silver market will go white-hot nuclear, and events will take their own course. 30+ years of doing nothing. They all want nice cushy private jobs with the big banks after the government gig is over, so they won't rock the boat. That sums up the CFTC. Completely useless, as I said.
Not that I disagree ... But !
Those hearings did open a can of shit and the stink was damn near unbearable when Jeff Christian let it slip out that the ratio is 100/1 of Paper to Physical.
They can delete Bill Murphy during the webcast... But they can not shut him up.
Ted Butler has done yeomans work over many, many years in the silver market ... much more than anyone else. It is important to support and listen to people like him.
As you say, it may be just pissing into the wind, but WTF.
Bloggers like to blog... so blog away directly to the bastards.
You are a coin dealer and don't know the real story.
The Hunts were taking delivery. (now where the fuck have i heard that before). The insiders were all massively short and comex raised the margin requirements to protect the naked shorts busting the Hunts.
The hunts put 50 million into prairie creek mine in the southwest NWT(canada) in the late 70's. The mine and mill sat dormant till the late 90's when someone picked it up for a song. The natives in the area created an effective barrier to opening the mine because of the bullshit permit system. When you look at the foriegn funded activists working with the local native groups its easy to become reel cynical.
You are a coin dealer and don't know the real story.
Now that's funny. Kind of like saying an accountant never heard of the Enron scandal.
I deal in silver, that's my business. Every coin dealer knows about the Hunt Brothers.
i believe that %70 of global publicly traded miners are listed in canada. gotta be a reason.
Canada actually has a functional engineering profession, and a regulatory framework for disclosure that is backed by professionals (ie: a P.Eng. or P.Geo has to sign off on NI 43-101 report, under severe professional penalties and potentially imprisonment).
Wonder if more countries aren't buying gold because they are worried about collapsing their own dollar backed currency.
not if Old Glory beats 'em to it!
yeah, the gld just added 6 tons of vaporware. good for them. b ..b ..b but, where is and who's go the real shiny shit? That's what I want to know.
Shiny shit? Sounds like a polished turd, the lowest level of alchemy.
Lowest level? More like an engineering marvel. Last night's dinner plus this morning's newspaper.
Badda-boom, there it was! Instantaneous gold appearance.
Who says ya can't create gold from thin air!
What a fucking charade!
ZH is "on the ball" with the gold breakout today. well done.
And eveyone said "AMEN!".
Great Job TD, ZH!.
Load 16 tons and what do you get, another day older and deeper in debt.
Nobody bought gold, these are just paper/acct entries. GLD is doomed to fail and everybody inc. Big hitters such as Eton Park knows it, you must be an outright FOOL to own this paper scam. Physical bitchez
so "buy the miners" then?
Buying MINERS is high risk bidness.
Also, I have flirted with the ETF deal for rolling dollars.But decided, what do I get when I make FRN's?..........something I know is going in the shitter?,uh, nope.Plus I feel like a traitor to the cause.
IF the real deal is close(as in Slvr) , take physical, also for every ounce taken into our hands, the faster this bitch is out of their control.
Amen for financial warfare.
I will add another amen brother, just for that I think I will hit the coin shop tommorrow and pick up a few ounces just for the rush...
I carry a $1 silver eagle in my pocket. Looks good with a little patina and wear on it.
Folks who hold it are visibly awed. It still causes a sparkle in the monkey brain.
RR
I lost my pocket piece getting out of a cab at PDAC one year. whenever i was looking for change the cashiers (mostly women) would say "whats that". I told many strangers to buy physical early in the rush.
Is that a silver piece in your pocket or are you just glad to see me?
you should see them holding a Krugerrand.
Got an Isle of Man Noble I wear around my neck, so I TRUMP YOU, bitchez!!!!!!!111
For a leveraged play without the guilt:
Trade DGP(2xAu) and AGQ (2xAg). Everytime you cash out, keep 1/2 profits in $ until you have enough to buy that shiny bullion bar you've had your eyes on. When the tax bill comes due, just sell the ETF to pay it.
1) Using their leverage to acquire physical.
2) No one but you and your local dealer know you've got it.
3) Using leveraged fiat to pay taxes.
Downside: if you've got substantial cash in this machine, you may not get it out when COMEX and/or LBMA and/or JPM default. (edit: if default occurs, your atoms are an effective hedge)
depends which miner.. buy AEM, if you're speculating buy HEL.V
whoever junk'd me., get a fucking life
True. GLD has an expense ratio of 0.4%, and there ain't no frikkin way they're moving 6 tons on that. I doubt they actually possess any at all. An expense ratio like that means they're just pushing buttons on a keyboard.
It is my assumption that the big, smart money (Soros, et al.) are supplying paper gold when they buy baskets of GLD shares, but obtain physical if/when they redeem them.
Then one day, GLD runs out of physical, and the whole thing collapses, just like the Crimex will. Physical gold soars, and Soros teaches the world just what an "ultimate bubble" is.
I'm also assuming these two "markets" are managed in tandem and will crash together, as they are both being used to prop each other up.
You got it Toyota. Soros and Paulson have a claim on the physical. They can take delivery and crash the paper market anytime they want to.
I liked your old avatar better...
So I guess they transferred one pile of fictitious Gold (6 tons no less) from one ledger to another this afternoon. I feel real confident all that Gold will be there when I place my claim on the mother load.
NOT!
Tyler wrote: "Of course, we do hope that the ETF actually did buy the 6 tons of gold,"
You can be 100% sure that the ETF did not "buy the 6 tons of gold" - the ETF NEVER buys or sells gold (unless they are doing a secondary offering). I can't believe you still don't understand this, after all this time writing about it.
GLD, like most ETF's (as I understand it), can create and redeem shares without having a formal secondary offering.
http://etftracker001.blogspot.com/2008/09/quetion-how-does-gld-etf-work....
Might be a better site explanation, but didn't want to take the time...
Broker dealers who are registered can created and redeem. So a better question would be "why last night? Did the GLD borrow become tougher?" (remember, B/Ds short GLD to their clients and hedge by buying physical gold, then they deliver the gold to the GLD trust and receive GLD shares to cover their short).
But traderjoe, my point, and I don't think this is just semantic nonsense, is that GLD never buys and sells gold. they exchange the gold they have for shares of GLD that B/Ds give them, and vice versa. They never transact in the open market.
Catherine Austin Fitts has put together a nice little article on GLD and SLV, I think Tyler ran it a couple of months ago on ZH.
http://solari.com/archive/Precious_Metals_Puzzle_Palace/
They are definitely not buying gold on the open market. In the second quarter of this year, GLD added 300 tons, and using some rough calculations with the assumption that China and Russia are keeping internally are the gold they are mining, it worked out to about 40% of world production over that time. In any other commodity, one single entity buying that disproportionately large amount over a relatively short period of time would have exploded the market, not so for gold though.
Based on that article, one can come to the conclusion that: A less than honest person could take a picture of some Krugerrands, and start selling ETFs to as many suckers as can be found to invest in the "gold bullion market." No wonder no one with a lick of sense would invest in GLD or SLV around here!
why say "six tons" then? why not 60? or "six ounces"? "Fictitions" are tough calls, too. You have to be "just right" everytime. Instead why not take the real money through capital gains and buy real gold? And of course since "we're not talking governments here" if you are a producer isn't this the ideal form of hedging? A lot simpler than "options and futures"--with a heck of a lot of capital appreciation. And then of course it redounds on my company's stock price (upward bias) which allows GoldMiner Inc. to then.....
hes being sarcastic...
GLD claims to have more tonnes of Gold than most countries on the planet. It's a fantasy.
why should governments have gold when they can issue shoot on sight orders?
Who cares if they do, you CANNOT GET IT.
oh you can get it doszap. i can "doszap" you if i need to. i got your number, buster.
How about a paired trade long physical gold, short GLD. Play the "the GLD bitchez are lying" meme.
That's a great trade, but you need to be able to cover the ramp of the paper. KISS
Actually would you want to be long physical AND long GLD? Being long GLD will help keep the physical price down allowing one to accumulate more in a given timespan.
Did physical gold go up today? How do you know? All i saw was gold futures up 25 odd dollars..... point is futures, gld or whatever other synthetics are fine to hold UNTIL the breaking point. And if you think gold goes to $3000 then holding paper gold here at $1270 is just fine, particularly if its your trading gold... in fact is much more efficient than storing large physical amounts (unless all you people are getting excited cause your half a dozen krugerrands are worth a bit more today). That said, I do own some physical, but all my trading gold is always expressed in futures. Right, 'junk' away....
Huggy bear,
Not junking, just what do you end up with Playn' da game, if it pans out as many are saying?.Paper, anyone's paper will be shite mate.
Well, if you are of the guns and tinned beans way of thinking and i am not (marshall law will be implemented way before that) then sure paper will be worthless. But, my point is i think you have plenty of time still to buy physical.
Physical is expensive to buy & expensive to carry so you really only want it when you think you are approaching the end-game. And I don't think we are near that at this stage. Personally, I have a core amount of physical and an amount of trading gold. So on moves like today I sell out some trading gold (ahead of someone trying to pour cold water on the rally), and reload on the albeit shallow dips. There were large hedge funds selling out some of their positions around the london close (4:15pm) today.
Nah, Huggy's right in a sense. Even in Weimar, the nimble kids could use the market to stay ahead of the printer. It was the dinosaurs who got steamrollered, the elderly and conservative who still saw the devalued mark in the same way. The kids treated it like the monopoly money it was and were able to multiply it almost at will. Many supported their embarrassed parents, who would have gone begging otherwise.
I do disagree with the "plenty of time" for physical accumulation though. Depending on definition, that is an unnecessarily risky gambit. I say it is prudent to accumulate now, and once a physical postion is established, then play the parabola if you like. It would be a shame to get caught naked on "no bid" day.
Yup. And if we experienced hyperinflation today, the pension funds with a mix of stocks and bonds would also get killed, while the people who have the ability to leverage, would be big winners.
right, and if you are buying physical gold most of the people on this site will make two fifths of fu*k all. You need the leverage of the futures. Surprised to see how many people on this site (not talking about you Pitz) complain about cnbc being one-eyed in their views (and complain correctly) yet cannot consider an alternative to their own...just as well you freaks aren't managing any meaningful amount of money (or my money)!
yeah, physical went up:
http://www.24hgold.com/english/buy_sell_gold_coins.aspx?co_id=0
i've been to places were the differnce in paper gold and physical gold were the difference between life and' i don't know whatever happened to them nice folks'.
All these comments are fascinating and enlightening.
I have a few questions and I'd appreciate serious answers.
I have been and am still very bullish on gold. I have neither a time frame nor a target, but let's say I think it's going to go much, much higher.
Questions
1 What is the best way to play it? if one has access to every vehicle ( cash, futures etc...)
2 A lot of people are mentioning buying physical gold,what percentage of your wealth?
3 There has been hyperinflation periods in the last century and the world is still spinning, so what are the best ways to protect one assets?
4 At the end of the day, all the physical gold in the world, even at crazy prices represents only a percentage of the world global wealth therefore will never be a replacement for fiat currencies
5 What would you actually do with your physical gold? Who would accept it as payment for any goods or services?
This is my main question actually. At the end of the day, in this modern world, there will always be a need for paper money or society won't work. Full stop.
In the end, I think gold will only be a mean to temporarily protect one's wealth, a fabulous trading opportunity to massively increase one's wealth but that is it. Eventually, one will have to revert to paper money whatever the name at the time
Is this the end of COMEX?
I expect massive divergence of real and paper gold. It's not your gold unless it's in your hands, bitches.
well, the so-called legislative fix for that BS 1099 reporting requirement in Obamahealthcare law is put on hold
http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/senate-rejects-amendment-to-strip-out-irs-reporting-requirement-in-new-health-care-law-102878604.html
my take on the article is that both sides failed to get rid of the $600 1099 requirement - ie, the requirement stays - did I read the article incorrectly?
the republican version completely deleted the provision. the dem version only slightly modified it ($600 to $5000k and must have employees in excess of 25).
regardless, the provision is ridiculous and has nothing to do with healthcare.
I'm sure someone will reintroduce a fix and, the entire obamahealthcare law is under the cloud of more than 20 state lawsuits.
Efficient market, bitchez! If the market didn't believe GLD etf bought the 6 tons, they would not price it as such...
- and the flash crash happened because the market changed their risk taste for a few minutes
- and us treasuries are the safest asset in the whole world, forever and ever...
flash crash was good news. broken trades however...and insofar as treasuries go what's wrong with another airport in a community near you? just because the market is efficient doesn't mean that it can't contain some exuberance. some say that's my middle name! Mr. Happy and Nothing but Good News!
As interesting as GLD is, SLV is the one to keep an eye on. The cracks in the dam are much larger here. I'm actually quite surprised at how under represented it is on ZH. I suspect that will change.
Not that I don't believe you, and in fact I do, but I love cold hard evidence or a least sloppy journalism, can you provide more articles or links or are you just going to tease us? Are you referring to the 18Moz or so that got "liberated" from SLV in the spring, coincidentally when the silver price was rising, and at the same time the Comex needed about 22Moz for delivery?
where's robot trader? he said "he's got somethin' sloppy for ya."
There's an explanation for GLD's lower holdings despite gold's higher price: Conversions into physical by large GLD holders. This also happened massively about a year (?) ago when one of the big-name hedgies converted most of its GLD gold into physical and had it wheeled off to its own corner of the vault.
I agree with the commenter who said that GLD probably owns most of its gold, just not all of it. It would make sense to keep at least 10% of its holdings as ledger entries, to avoid the hassle and expense of daily rebalancing in the vault.
I also agree with the commenter who suggested that the way to avoid worries about GLD is to invest in miners.
i did not flag as junk. now stop being agumentative as that shows "the capacity for abstract thought" which as was said in the movie "O Brother where art thou?" might make people mistake you for the leader of some outfit or something.
while its fine for people to question GLD, its still a trading vehicle.
you could have bot it @ $70 when obama won the last election and its 125ish now - not bad
LOL go ahead and junk me but it wont bring back your loss from shorting or not participating.
I'm in. Fax me the pics of the gold bars. Wooot!
virtuous link cycle
http://harveyorgan.blogspot.com/
another one here...
http://www.bullionbullscanada.com/
brings smiles
They would have liked to have taken delivery of 666 tons but that just wouldn't have seemed credible.
http://www.bloomberg.com/video/62909152/
The $600 1099 has the dealers of physical on edge. Several have relayed to me that they are closing the PM 'portion' of their business if its not repealed. Without it, it's just too much paperwork for the quantity and profitability of each transaction. Get ready to trade the way of the mole soon. Make your handshakes now, and consider sending a package or two now (not tomorrow) to a a 'reliable' outside the wire.
Maddoff loves GLD.
All these comments are fascinating and enlightening.
I have a few questions and I'd appreciate serious answers.
I have been and am still very bullish on gold. I have neither a time frame nor a target, but let's say I think it's going to go much, much higher.
Questions
1 What is the best way to play it? if one has access to every vehicle ( cash, futures etc...)
2 A lot of people are mentioning buying physical gold,what percentage of your wealth?
3 There has been hyperinflation periods in the last century and the world is still spinning, so what are the best ways to protect one assets?
4 At the end of the day, all the physical gold in the world, even at crazy prices represents only a percentage of the world global wealth therefore will never be a replacement for fiat currencies
5 What would you actually do with your physical gold? Who would accept it as payment for any goods or services?
This is my main question actually. At the end of the day, in this modern world, there will always be a need for paper money or society won't work. Full stop.
In the end, I think gold will only be a mean to temporarily protect one's wealth, a fabulous trading opportunity to massively increase one's wealth but that is it. Eventually, one will have to revert to paper money whatever the name at the time
This cannot be answered in the general case, because there is no "best way", and it depends too much on dozens of variables-- nation of residence, passports, assets, liabilities, lifestyle, and so forth.
See answer #1. Also, its none of your business.
If you accept the minority concensus that hyperinflation is really a loss-of-confidence currency crisis, and not just a monster case of inflation, then you've asked yet another question that cannot be answered. You would have to know the exact combination of influences that collapse the fingers of instability that are currently (and shakily) holding up the status quo. You would also have to predict and frontrun the political positive feedback loops. Let me know when you've figured that out, alright?
That's the case now, but there's little guarantee that it will be the case later-- there's little way of knowing just how much global "wealth" is a mirage based on leverage, smoke, and mirrors. Although this isn't a question, you might want to look at FOFOA's writings on the subject, and Antel Fekete's take on the real bills doctine. Even the (vaunted or hated) gold standard used paper currencies as a compliment, not a replacement.
Insurance. Long term savings. As a reserve-- act as your own central banker. Ask yourself the same question, only replace "physical gold" with "treasury bonds"-- you can't buy a cup of coffee at 7-11 with either. Just think of gold as a barter item-- you gotta ask.
I also maintain that you are wrong on increasing your real (as opposed to nominal pick-your-currency equivelant) wealth by going long gold. You will not get wealthy without taking enormous (high leverage paper markets) risks... and if that's your goal, there are far more lucrative and deeper markets out there than gold.
Thank you for taking the time to answer. Much appreciated
Gold's not going much much higher. Fiat is taking a dump. It still takes about 3 to 4 ounces to take care of a family of 5 a month. Silver will probably make you money but gold will simply put you in the eating first line. In other words you're gold will inflate before prices do. The opposite side of fiat.
4 At the end of the day, all the physical gold in the world, even at crazy prices represents only a percentage of the world global wealth therefore will never be a replacement for fiat currencies
Can't agree with that - fiat currency is always flawed. The paper must represent Gold directly, be redeemable directly for Gold/Silver and not just a promise to redeem.
I found lots of interesting information here. I love zerohedge.
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