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Gold Drops Below Cash Cost, Approaches Marginal Production Costs
As we showed back in April, the marginal cost of production of gold (90% percentile) in 2013 was estimated at between $1250 and $1300 including capex. Which means that as of a few days ago, gold is now trading well below not only the cash cost, but is rapidly approaching the marginal cash cost of $1125... Of course, should the central banks of the world succeed in driving the price of gold to or below its costs of production (repressing yet another asset class into stocks) then we fear the repercussions will backfire from a combination of bankruptcies, unemployment, and as we have already seen in Africa - severe social unrest (especially notable as China piles FDI into that region).
Which means that of the following mines (as we showed here) which make up the gold cost curve, one by one, starting on the right and going left, production is going to go dark, even without the recent demand by South African gold miner labor unions to have their wages doubled. Until eventually virtually no gold will be produced.
It is at that point where one must apply the New Normal supply and demand curve, when one can predict a $0 per ounce price for gold, as physical demand continues unabated, while actual physical, not paper, production has now started going offline.
Joking aside, not even Bernanke, Yellen, or all the paper Gold ETFs in the world will be able to do much to suppress gold prices from reaching their fair value when gold production hits a standstill, and when demands, especially by China, is still in the hundreds of tons each year.
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Now, at the risk of being unpopular, this reporter places the blame for all of this squarely on YOU, the viewers.
LOL
Oh Zero Hedge, you and your "reality". Like that has anything to do with markets today.
Now tommorow maybe you've got something.
"supply and demand"?
I'm not familiar with that phrase. It seems like I heard it a long time ago. I think it had something to do with economics a long time ago.
Little bounce here...
Live Spot Gold Chart: http://www.pmbull.com/gold-price/
Looks weak, like it can't follow through. Which is why it probably will.
Chart looks dead to me, so expect a sudden surge higher.
Mines should remain open, as its more costly to close and reopen when higher gold prices return, then continue to sell at a temporary loss.
well, we're gettin on 6 months now at costprice levels. How much fuel you think these mines got in the tank? 'specially when their trustees and shareholders look at the nominal returns being had elsewhere
These are not the droids you're looking for.
"supply and demand"?
I'm not familiar with that phrase. It seems like I heard it a long time ago. I think it had something to do with economics a long time ago.
I don't understand the price of Gold. I don't think anybody does.
Now, do I get a job with the Federal Reserve?
people buy gold when they do not want to spend their money but simply want to park their savings.
It makes gold prices very hard to predict because noone really knows what the needs of everyone else are
Also the price of gold is driven far more by paper futures contracts than real physical retail demand. It sure does seem on sale, though.
in the light of the world wide fiat explosion, pms are cheap at any price, which is nice.
All PMs are not created equal. I wouldn't be surprised to see gold fall further as Bitcoin catches on and silver has more utility than gold.
http://takimag.com/article/bitcoin_goes_pro_christoph_hargreaves_allen
Exerpt from the above article:
" BTC’s rapid growth, combined with a paucity of virtual currency regulation in China, has led to the commission of fraud only a week after the announcement that BTC China had conducted a record number of transactions globally:
GBL, a Chinese bitcoin trading platform that claimed to be based in Hong Kong, recently shut down – an event that might not be worthy of note had ¥25m ($4.1m) worth of users’ money not disappeared with it.
Speculation and fraud. Sounds like the real world to me."
Many happy returns mates
I have been buying gold and selling the DJIA for a few days now.
Purely on account of this technical pivot in the long term data.
Buy - http://i40.tinypic.com/2e5v1p1.png
Sell - http://i40.tinypic.com/2n9dylc.jpg
The fact that these key levels are being tested simultaneously and on crumbling volume is very significant.
Now is the time to make the trade that everyone has been talking about for the past 5 years.
Plus the Alaskan boys are shut down from a lack of light.
We can't give Germany it's gold back because it's too cheap at the present time......maybe try back in a couple weeks.
We thank you for your understanding and patience.
Price is irrelevant. It demand that must be controlled. 7 years just spreads out demand over a long enough timeline that Fed buying to meet delivery won't spike demand or meet a market that cannot deliver.
Don't you see a settlement issue with Bitcoin? you are playing very stupid ponzi game in my opinion backed by nothing. The soooner you get your cash out the better.
http://www.offgridminds.com/misinformation-blog/2013/12/2/bitcoin-timefr...
I would.
All part of the plan fro the banks to take over or own the mines or miners.
TPTB have been burning tones of newly created cash to push down gold pricing. That in itself forces the miners to hedge by shorting the price of gold. Thus, if the output is worth less after is mined, they make up the difference in paper gains and they are at equilibrium with expectations.
This suppression method that draws the participation of miners creates the downward spiral. However, there are limits to such extremes and once these limits are reached, Bernanke will be right that he does not know how the gold price works. He also cannot see bubbles.
We are FED-up with you slimy bastards.
That gold crap is worthless.....have some freshly printed paper.....it's still warm and has pretty colors.
Hey Plad, when do you become such a dumbfuck on gold anyway?
After you bought BTC?
Screw JP Morgan. Buy silver, buy all you can afford because it is deeply discounted due to criminal banksters.
Cash-for-gold still doing brisk business. Pawn shops picking up slack from miners. Intrinsic value holding steady at $300.
I would rather have a one ounce eagle with a face value of $50 and an intrinsic value of $300 than a $100 paper fiat Ben Franklin with an intrinsic value of $0.
So say we all.
How right you've been for the last year!
.
"Supply and demand" means gold should be at $12,250/ounce.
But that would be with the rule-of-law and without utterly corrupt central banks.
I don't get it. I've been reading ZH and other sites for years trying to understand it all, but I can't. None of it makes sense.
Good news = sell. Bad news = buy.
Cure debt with more debt.
Pump ga-zillions of cash into the economy and the gold price goes down.
The signs of the economy recovering are lower wages, higher unemployment and more 'benefits' to an ever growing society in relative poverty; with even higher 'benefits' to the richest people on the planet.
I guess we are in the 'Twilight Zone'.
Kent Brockman?
Kent Brockman: "Excuse me, did you see the six o'clock news?"
Comic Book Guy: "No, I get my news from the internet, like a normal person under seventy. Farewell, dinosaur."
Hey I get it, but, what more does MrSprottJr the reporter want from me. I just bought some silver today. If it ever becomes worth 1000 ounces of gold, I'll do the physidcal swap faster than an HFT algo.
BTFD!!!
I will. Me thinks this latest smashdown is targeted directly at those gold contact holders standing for delivery. The claxions are aauuuging louder than hell over at the Comex because they don´t have the gold to deliver, so they want cash settelments....NOW. Phone calls were made, strings pulled, favors called upon, anti-gold rants on CNBS are commencing. The bullion banks don´t give a flying fuck about the miners. It´s all about putting out the inferno before the Comex blows up and defaults, because if it does, gold goes to the moon.
inasmuch as china clearly sees this particular ruse, this tactic serves only to light their own fuse
Might be the case, but desperate times call for desperate measures.
Time to crack open everyone's brains and feast on the goo inside !!!
they can have mine at $50,000 per oz
Pun intended!
In Weimar, you would have been begging for bread within 24 hours if you did that.
they can have mine for 100 acres per ounce ...
Well, they insist on letting their competitor, who's production cost is 0, set the price in the industry, what the fuck do they expect? Let them go dark, stupid fuckers.
i might add; cost of "fwd" production hedged in the "wrong markets".
debts a bitch bitcheez.
deserve what they get.
Agreed. The only tactical mistake nearly as bad would be squandering that advantage by letting GLD price drop so low that "real" economic forces must drive it back up.
Imagine how "they" felt when Gold was 300$? It is good that we have had no inflation.... Whew....
the gold price in the next few months will be telling. If it drops lower such that many mines close, it means there is no secret agreement between TPTB and china, and they are just hammering gold to delay the disorderly collapse. if they allow it to maintain or rise a little to keep the mines open, it remains suggestive of facilitating the physical flow to the east
Agreed. What they SHOULD do is form a Cartel, just like the Bullion Banks have.
nonsense paper gold will do the trick
GDX got smoked today
GDX has been in a relentless nose dive since $55 last October ( 2012 )... Bent over and pounded, one throbbing red candle after another.
The biggest red candle has been saved for the final round. No lubing, fiat monkey has you. It's on like Donkey Kong, gold bitchez.
Oh noes, no supply leads to scarcity!
I'm ruined!!! ;-)
Keep buying all the way down to zero guys. Oh, but the comex will default any minute now. Yea, you have been saying that for years. Did I mention my BTC is +10% today?
Wow. The days when you contributed reasonably intelligent posts now seem so far away.
Yes, because sounding intelligent on ZH is more important than protecting one's wealth.
No, you're a stupid fucking asshole when it comes to gold John. That much is clear.
Troll on bro...
Well when BitCoin collapses you will accomplished neither ....
No problem. After that.....we'll just reap the wind.
Im just as bullish as anyone on BTC and have made a good chunk on it, but at these prices silver is a screaming buy - and though I own more than my car can carry, I think its time to buy more.
It will be fascinating to see the attempt to get gold and silver to zero though - lets see how that turns out!
And yet gold is still below my marginal cost of purchasing. Go figure.
No big deal, JPM is helping the Fed give the Germans a lesson in Gold trading. You want your gold back? Ok, but you will have to wait while we destroy the market for it.
"first launch the satellite into geo-synchronous orbit successfully. then add the two boosters--take your moonshot. next turn all of Los Angeles into a Solar City. Don't forget the car either. This is America...we all get the car in the end. After that report to Hollywood for the screening...i think we've got the critics on this one. We'll handle the rave reviews. If it sucks there's always the sequel." Any questions? Good. Get to work people! Get to work!
what was the story again? oh, yeah...that shiny lump of crapola. YOU GUYS GET TO WORK ON THAT TOO!
By the way, in the 'new reporting normal' an inability to supply demand in a market is reported as a DECREASE IN DEMAND, not a supply shortage - I kid you not, Reuters, Bloomberg, etc. have reported 'demand is down significantly in India due to an inability to bring enough gold into the country' (because of the governments actions to attempt to reduce gold imports).
lol...kinda like not having enough toilet paper in Columbia, its simply a decrease in demand! ;-)
Not to mention a lot of people walking around with sour looks on their faces and clenched sphincters....
...something about trying to drive a needle up their butts with a sledgehammer, eh?
DaddyO
The problem with the toilet paper has been in Venezuela, not Colombia.
You are mistaken. The problem with the Toilet Paper has been here in the United States of America. We are so stupid here that we trade it everyday as Currency when the only functional value that it has is ass wiping.
Why do you think that cashiers wear gloves? Got change for a Twenty?
It just makes no sense to flush good currency down the toilet when you just can spend it afterwards. Nobody has slipped you a Stinkin Lincoln?
Twenty is change.
Twenty is change....
Without hope
What effect will this have on toilet paper along the border? Will these problems leak into other South American countries?
Will we see runs on toilet paper in neighboring countries?
Toilet paper shortages seem to be endemic to the communist system. They had this problem in the ol'USSR as nicely pictured in the movie "Moscow on the Hudson", starring Robin Williams:
https://www.youtube.com/watch?v=GR0I3DgWXX8
(The looong line are people waiting to buy toilet paper)
"Have a McNice day!"
nmewn,
Another gem!!!
I find autumn leaves work well..
So all the gold has now left the GLD "ETF"...and still the paper price declines. Hmmmm. This sounds an awful lot like a paper tiger...that in fact isn't a paper tiger. http://www.youtube.com/watch?v=bxjwQ9g62Mo
What? You mean you wanted the "I'm the lumberjack and I'm okay" song but for gold miners instead?
oh noes, then the world will run out of gold. ROTFLMAO
Gold mining won't stop because the selling price is below the production cost. Look at nat gas, the production cost of fracked gas is about $7 while the current market only pays $3.50. They are still drilling wells anyway. No one will abandon their sunk capital cost. Especially not when they can borrow money at near zero percent.
ZIRP is causing all sorts of bad investments. This will not end well.
You just need to generate enough in sales to service your debt payments. Profit margins are so old school.
Rules of economics do not work when money is, Ctrl-P.
This actually makes a lot of sense. I've been told that mining operations do not actually stop regardless of the current spot. Only deliveries at that prices levels are cancelled.
'Only deliveries at that prices levels are cancelled' - Have you a source for this?
My theory is that one or all of the following is true:
The miners have hedged against low metal price, therefore the spot price has no bearing on whether mining continues.
In my opinion it's likely that Goldman Sacchs control the boards of the large mining companies, maybe they'll allow the share price to go to zero and then organise a bailout for them?
I'm thinking it could be 10 years before I sell my AG, it would be sold for it's value as a commodity rather than a monetary metal unless there is a replacement for AG in electronics in the mean time.
How far will TPTB go in guaranteeing supply and surpressing demand/price? Will they ban the purchase of investment silver through taxation?
It's going to be fun watcing TPTB squirm trying to figure out how to sell low-priced forward contracts locking in prices below production cost to shuttered mining operations worldwide.
I doubt the mines are going to be really eager to lock in when the price is rising enough for them to go online. Hopefully they wise up the next go-round.
They won't need the miners for a while. Right now they have countries getting ready to barf up their reserves to buy their citizens some icrap and shut them up for a few weeks.
Striking visual there "Barf up their reserves." That gets my +1 of the day.
Don't spend it all at once, but if you're going to....I heard that Quark is going to be Bitcoin's #2. Wink wink
Execpt that a wearhouse is empty, until proven full. Hence fiat currencys that compete against each other and are both leverage with the same reserves. Which is then swapped for full faith and credit and lent out at zero rates so the capital vultures can charge 14-50% inorder to more easily separate the middle class from it's money. Works good until it dosen't.
"If you've done 6 impossible things this morning, why not round it off with breakfast at Milliways?".
I would count buying gold at less than marginal cost as an impossible act, so I guess it's time book that table. With all the demand for physical, empty vaults, debased currencies, and global apprehension at the economic shitstorm around the corner, what we are currently witnessing is completely impossible in a free market. Ergo, we are not in one. The psychotic megalomaniacs at the helm of fiat currency, particularly the reserve currency, can be seen clearly for what they are: criminals who have stolen the wealth of nations to suit their ilk.
I thought the central bankers were driving UP the price of gold by debasing all that currency. That's what I was told at ZH. Oh wait, that was last year.
No, that's not what you were told.
What you were told and didn't understand is that central bankers are debasing their currencies IN RELATION TO EACH OTHER while at the same time manipulating gold lower.
Yup! All other nations are pussies except for Germany of course.
Imagine if the Mericans were alone in printing, how much gold would have been trading today?
Ja Ja JA!
ZH isn't wrong, they're early. lol.
I figure I might as well just burn my gold in the trash barrel, oh wait... can't do it. That relic is STILL there... just taunting me.
Why don't these generally poor gold producing countries petition the US and British Governments to clean up this crooked gold paper market which is burying their industries.
Ha ha ha! Wow, good one - yes, these poor countries should appeal to the US and British governments, who have such a stellar track record of taking on industry to help out the poor, resource producing countries. Oh, just a second, I left the dog in the chicken-coop to keep an eye on the chickens and I hear some kind of a ruckus out there- he must be fighting off intruders...
Mining gold is hard, dirty work. Not meant for bankers. We are just going to mine 101001010101110101's. Much easier.
"Mining gold" USED TO BE hard, dirty work. The fact is that there just aren't that many real miners around anymore; least not in the Western world anyways. Now it's just a bunch of frat-boys pushing whatever buttons the computer program tells them to.
Oh, you mean Bitcoin? Or Litecoin? Or is it WorldCoin? Peercoin... Namecoin...
I predict COMEX will drive the price far lower. Under 1000, under 800, etc. Anything to kill the idea of GOLD as money.
Did you ever correctly predict anything before this prediction?
He's dating Jon Nadler's second cousin....and that's good enough for me.
Fine, but when? That's what I need to know.
BUT NSA should be on top of it though... no worries....
we found all the missing children using PRISM... and now we're about to reboot the mainframe to apply our Windows updates... then we will load our new GISM software to locate those bullion bars..
Clearly this take down has been in the works for years. How many years now have the miners been shorted into oblivion by those in the know? It made no sense to keep shorting the miners, now it does. I'd say this gold take down has been well known by the well connected for three or four years.
You're a conspiracy theorist nutcase... It made total sense to keep shorting the miners. Now it doesn't.
GISM is on it.
>> You're a conspiracy theorist nutcase.
Thank you....thank you very much.
http://thetruthwins.com/archives/20-conspiracy-theories-that-turned-out-to-be-true
"Clearly this take down has been in the works for years."
Can you say... 1913? One-hundred works too. :-)
"Of course, should the central banks of the world succeed in driving the price of gold to or below its costs of production (repressing yet another asset class into stocks) then we fear the repercussions will backfire"...
And oh "yes". How it certainly will!
Christine Lagarde needed new shoes:
http://www.imf.org/external/np/exr/facts/gold.htm
This is the end game for the new IMF SDR -- just a matter of time before they announce it. $1162 was the "fair market pricing" back in late 2008 for the BRICS if I remember correctly.
Fan meet shit.
Shit let me introduce you to fan.
Look at natural gas you doomer douche bags -- it's been trading below industry profitibility for years!
hey, I got sucked in on gold too -- bought NEM a few weeks ago. prolly just sell it tomorrow.
wake me up at $1,000
My company produces gas at half of today's nymex spot price.
Who is the douche?
Sell your gold, speculate and buy bitcoin.
Stack On
What do you mean sucked in. You mean you puchased gold in order to trade it back for nominally more fiat. Man we are so infused, infected, indocrinated by paper money we just can't imagine owning something that doesn't attach a dollar value.
If you bought gold for the purpose of traduing for fiat, more fool you.
Who has unlimited printing power and is accumulating the metal currently more than anybody else? If I was the single largest buyer of gold, I'd have a vested interest to drive the paper price down with all that funny money I'm flushing into the system. Is it the Fed? Don't believe they are buying. The Chinese are pumping currencies and other debt paper from unquantified origin into the system which allows them to produce below cost. They can also short paper gold up the ying yang and never get caught short handed. Long live Mao. The experiment is working!
best theory imo. paper dumps -phyz delivery at lower and lower prices. wonder what their average domestic cost is? win/win/win(eventually).
Investing in PMs really only comes down to one simple question and what you believe. That is, if you believe that the world has fixed its problems (both monetary and fiscal policy), the foundation of economic growth is squarely intact, the current economic model will begin to redistribute wealth and elevate people out of poverty, etc., etc., etc., then it is without question time to sell your investments in PM and move forward.
On the other hand, if you believe the root problems are still present and are only getting worse, the current economic global model is broken, fiscal and monetary policies are flawed, etc., etc., etc., then investing in PMs represents a prudent decision.
Remember that I said "invest" and not trade, speculate, or gamble (as I can't speak to these strategies). So take a deep breath and answer the question honestly and you will have your decision.
There has to be a better reason than faith based investing....
one big head fuck.
life used to be simple.
play with fire, fun - oh yea, but ...
now i don't know what to think.
well i do, but the fire isn't burning anymore, well
i do as you know that fire WILL burn ya.
fuck em all...
cash for now
not low enough yet...not many mines on the market yet... another $20 drop and we will be there
Why wouldn't this be a sensible move by the banksters to scoop up all the mines themselves, never mind waiting for production - buy/steal the resources themselves, no?
well 1181.xx will be complete retrace. below, will be brief encounter of buying when everyone scared shitless...
When gold is high, miners tend to process lower ore grades in order to make money from them while they can. And when gold drops, many will be able to switch back to higher grades with lower processing costs. There were a bunch of miners making money, even when gold was a few hundred dollars/oz not so long ago. I can't believe that processing costs have risen so much in such a short time.
Each miner probably does have a minimum cost at which it can profitably produce gold. But I'm skeptical of articles claiming to know what that cost is. An extended gold bear market will probably shake out some high cost miners, particularly new ones. But I think that even if gold were to drop a lot more there would still be some miners that would be profitable.
I think we just need to be patient and wait for the gold dust to settle. Eventually gold and gold miners will become bargains again. Actually, I'm kind of hoping that stocks and Bitcoin will soar to the moon. Gold was a real bargain during the dotcom bubble when everyone's attention was focused on internet stocks.
so they only living hand to mouth? Shouldn't they have enough operating cap to withstand some dry spells? Why would a miner even sell at low prices? Wouldn't they do better to hoard unless they were some debt driven company forced to pay massive debts.. isn't that against what someone holding gold would practice?
So no faith that gold will ever go up if one stops mining now right?
So no faith that gold will ever go up if one stops mining now right?
Well, I don't believe that gold mining is going to stop. The miners that are able to switch back to higher grades will do so. And the others will shut down. It makes no sense to mine gold when production costs are higher than spot. Why would anyone spend $1500/oz to mine gold if it can be bought for $1300/oz?
But even if all the mines did close, it might not make so much difference in the short term. The amount of gold which is above ground is large compared to the amount that is mined each year. Gold is not really consumed like wheat or oil. A lot of it is made into jewelry or coins which can last for thousands of years. And even the gold which is used for things like electronics can often be recycled. I can easily buy a gold coin from 1923. But how much wheat or gasoline from 1923 is still around?
So the above ground gold acts as a buffer. If mining drops, the difference can partly me made up by buying gold from speculators looking to cash out and invest in stocks or real estate or whatever else is that year's hot investment.
Of course, if production drops it will eventually cause the price to rise. But it might take a few years.
As I said. Just be patient. Gold will rise again.
" There were a bunch of miners making money, even when gold was a few hundred dollars/oz not so long ago. I can't believe that processing costs have risen so much in such a short time."
That was when oil was $10 a barrel and average grades were much higher. Peak gold...
I have actually read a study that gold miners tend to reach their peak well after the peak in PM prices. Obviously that thesis seems far-fetched at this point, but it will be interesting to see how miners act in this environment. I am invested pretty heavily in the sector already. This doesn't feel like the time to add to or reduce my positions, but I'm fairly sure that from a multi-year perspective they are a good buy at these levels.
All you are doing chasing the highest grades is working inefficiently - if gold rises later you will need to go and rework old sections which could have been done cheaper in the first place.
Sometimes you can just separate the ore and process the high grade and dump the lower grades for later processing, but its not really much of a saving - most of the costs are getting it out of the ground in the first place. Some places just don't have the grades you need either, so chasing high grade is possible only if you have high grade seams. A lot of open cuts just don't have much variation in grade.
The forces behind the manipulation of Gold are the nastiest most evil group of the lot, these are the people that propegate wars and death for personal power and profit, that would slit their grandmother's throat just for fun. Trading in deceit and bodies is nothing to them.
Smoking these vermin out from beneath their rocks will take a global catastrophe...and even then you will have only a few seconds to stomp on them as they run to another rock.
These are the kissenger like scum.
Hoover? He was a body remover!
So he got a Dam named after him for his services.
Those who own the most gold are not your friends.
You could say th same thing about stawks.
What's stopping the manipulators from keeping the miners afloat with the public's money? Either through taxes or simply printing money, the people's money could be used to keep the price of gold low. It would be the perfect screw-over from both directions. Not that I want to give them any ideas...
What is physical gold?.
I thought the only thing that mattered was ETF Gold or some entity called GLD
stackers run out of money?? all dry powder used up?
Would you put all of your eggs in one basket?
YES! ,,,now unsecured debt will carry the rest of the way.
https://www.youtube.com/watch?v=kkZdGCMiR_4
I believe many will be screwed on gold. It's been decoupled from inflation. It is now a commodity that you might be able to make money on trading in and out of at the appropriate times. It will never be money and it will never back money again. Governments won't allow it. It won't be a store of value if you can't transact with it. We're going electronic... it's the only way governments will be able to track and tax every transaction and get the revenue they will desperately be needing as things continue to implode (pensions, deficits, unemployment, etc.). Government doesn't want you to have gold and they will capital gain tax the heck out of it. (Selling gold in Calif right now with Fed and State taxes = 40% tax!) They won't need to confiscate it or make it illegal. They'll raise the cap gain tax to 80% and take all of your profits whenever you try to sell. Gold is not THE solution. It is one tool in your diversification tool box. The ultimate wealth is pure clean water, food and shelter. I'm building my portfolio around that. Goldbugs can junk me all they want but that won't change reality.
Reality is you still believe this shihouse won't collapse.
And if it does, you'll have nothing.
Goldbugs, as you call them, already bought their insurance.......for those who haven't lost it in a boating accident that is.
Do you want to outline how this collapse unfolds? Been watching every episode of Walking Dead and never once anyone gave a shit about someone with gold....
So how does your collapse play out that a pile of gold makes you king of the new era?
Here's a secret.. Gold is used by kings; it doesn't make kings. If you aren't a king, your gold isn't going to do anything but attract people looking to take your gold and give it to the king to appease the king
So you best already be a king in your parts of the woods
There is physical proof that gold has been money for thousands of years. There is also proof that every fiat currency ever created has failed. Electronic is fine as a trading medium, but not as a store of wealth. Besides, what happens when the grid goes offline? Electronic currency won't be of much good then either. You've seen the Walking Dead, right?
"Electronic is fine as a trading medium, but not as a store of wealth. Besides, what happens when the grid goes offline?"
You just brought up a question in my mind.
I wonder, at least a little bit, how are Bitcoiners in Venezuela doing right now while the electricity is failing?
Bitcoin is for the melinials that believe everything around them is a given. Infratructure, electricity, clean water, etc... All I know, is that if I'm stuck on an island in SE Asia, Bitcoin will be worthless to me while gold / silver will always have an intrinsic value.
When the power goes out, there goes industrial demand for gold. I guess there's always intrinsic bling demand, dazzles zombies long enough to make your escape.
If you saw what I saw during Sandy, you would retract that statement.
All semblance of civility goes right out the window when calamity is at hand. Desperate people will resort to desperate measures very quickly when their bubble is punctured.
Sounds like you've really gained some wisdom from those episodes you're watching.
Better get another teevee so you can be twice as wise.
Stack On
Dark Pools, I admire your skill in stringing together such a lengthy concatenation of strawmen, red herrings and non sequiturds.
You know pal, I've about had it around here anymore. This place fucking sucks when it comes to intelligent postings on gold and silver.
Might be time to ride off this board soon....I'm sick of the useless assholes, idiots and fucktards.
"Been watching every episode of Walking Dead and never once anyone gave a shit about someone with gold...."
LOLOLOLOLOL...what else has your TV taught you lately? Pretty embarrassing, pal...