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Meanwhile, Here's What The "Super-Rich" Are Rushing To Buy
If you said shares of BABA, you'd be wrong. According to the Telegraph, the exodus out of paper wealth and into hard assets is reaching a fever pitch as the "super-rich are looking to protect their wealth through buying record numbers of "Italian job" style gold bars, according to bullion experts."
The numbers cited by the paper are impressive: the number of 12.5kg gold bars being bought by wealthy customers has increased 243% so far this year, when compared to the same period last year, said Rob Halliday-Stein founder of BullionByPost. "These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film 'The Italian Job'," added David Cousins, bullion executive from London based ATS Bullion.
The sales of 1kg gold bars, worth about £25,000 each, have doubled during the three months ended August, when compared to the same period last year, Telegraph reports according to ATS Bullion sales figures.
As a reminder, these are not some dinky, 1 oz coins that are being bought hand over fist: the bars which are made from pure gold and are worth more than £300,000 each at today's prices of $1,223 (£760) an ounce.
That said, sales of the more popular, and far cheaper gold coins such as the quarter ounce sovereign and one ounce Krugerrand have also doubled this year, according to figures from BullionByPost.
Mr Halliday-Stein said that while most customers arrange for secure storage of the larger bars in secret vaults operated by Brinks, some customers have taken physical delivery of the 12.5kg bars.
Would they be... Chinese customers?
But, how is it possible that as the "super rich" are supposedly rushing to buy gold that gold prices are at 2014 lows?
Simple: as the chart below shows, there is no better way to continue masking the demand for physical gold than to keep selling paper gold, in this case via its most liquid manifestation, the GLD ETF. It is this ETF that just saw the notional value of gold "holdings" backing the paper manifestation of its "goldness", drop to just 776 tons, the lowest since 2008 and nearly half the maximum "holdings" of 1,353 tons reached in December 2012.
In fact, as if to punctuate what we said early yesterday about the liquidation of precious metals in order to fund BABA purchases, here is the percentage change in GLD holdings on a daily basis: yesterday's 1% drop in which some 8 paper tons of gold were firesold was a 1% drop in GLD holdings, and the second biggest daily drop in all of 2014...
... a drop which also pushed the price of paper gold to its lowest for 2014. And, a drop, which all those who are buying physical gold instead of paper, are thankful for.
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How many marriages ended over $17 silver? Stack on.
i'm not divorcing my silver until it cheats on me
They look like they have a heart of tungstun to me.
I have yet to see a valid explanation of how bankers liquidating shares for physical--the only guys allowed to trade in shares for gold--is somehow considered bearish. If gold sucks so bad, why to the bankers want it?
http://hedgeaccording.ly/2010/11/theoretical-spy-chart-foreshadowing.html
Just sold 50 ounces of gold, replaced it with 3300 ounces of silver FTW!
I hope you kept a little gold. Silver is bound to rise higher, but they may rise at different times. I figure its gooe to have both. :)
Thank the lord for knife catchers. They are brave soles.
Soles? The bottom of a shoe or the fish?
Think he's referring to moccasins
I think he meant as-soles.
Very good.
Damn the cat's out of the bag
now every body is going
to be buying them ...
gonna have to get
a larger seal skin poke..
how can it be that milk, hamburger, food, real estate, art, collectibles and other essential and hard assets are soaring in price and yet gold and silver fall - I dont buy it; PMs - the anti dollar, anti ponzi, anti corrupt government asset
PMs are alarm bells being silenced while the house burns.
If Barnett Newman's crap can be worth 10s of millions, then I know my pure elements are grossly undervalued.
Yet gasoline prices have fallen considerably while food and service prices continue to soar. Wages stagnate as official narrative is one of non existent inflation. Even though we all know better.
I don't suppose elections are coming soon and current low price of gasoline, comparatively speaking, will obscure for the moment that earlier this year gasoline was at historic high levels. Hmmm...
It's not that hard to tell when the laws of supply and demand are being F'd with.
MN gas $1.86 when o"douche elected 3.27 now, comparatively speaking does not cut it..
We have an election and the quarter end coming up. That always drops the gas price and bonuses are paid on the painted tape.
>> gas $1.86 when o"douche elected
And the Dow was 8,279. Yeah, Obama is a shit stain, but can we forgo the bull shit?
Quite a mistake to measure the economic health of the nation based on the Dow. How can the Dow fail or fall when failing or bankrupt companies get tossed out only to be replaced with "winners". What would the Dow look like without the new lineup? For that matter the same could be said for GDP, Inflation and any other metric government uses for political purposes. Not that this is exlusive practice of Obama as that is not my point. My point is one should be more cognizant of what is or is not bullshit.
The stock market is not a measure of economic health of a nation or its citizens. It may have been at one time but those days are long gone.
>> Quite a mistake to measure the economic health of the nation based on the Dow
No shit, Sherlock. Did you miss this part?
>> can we forgo the bull shit?
Some arbitrarys number, cherry picked, is absolutely useless. Fuck the dow. Fuck Obama. Fuck the Democrats. Yeah, and double fuck the Republicans.
But take a look at the spike in fuel prices during that time. Go ahead, google historic fuel price chart. Gas was $4 a gallon a few weeks prior to the spike down. The numbers are meaningless, just like the Dow. Unless, of course, you just happen to be mired in the good old red/blue game.
No I didn't. You quite clearly state the great performance of the Dow as part and parcel to "forgoing the bull shit" in retort to the a previous post that referenced increase in gas pricess as a way to comment on Obama. I just used your words as you wrote them. I didn't assign a political ideology either so not sure why you would be so quick to assume "red/blue game".
You brought up the Dow metric as a contrarian response to another poster. Perhaps you need to re-read what was written by everyone else, including yourself as it appears you are the one a bit confused. Otherwise I commend you on your eloquence in stating your position quite clearly.
>> as a contrarian response
Not a contrarian response at all, but an example of an equally meaningless number. Gas was $4.50 two weeks before it was $1.86. Gas has never been as expensive under O as it was before O. There are plenty of reasons, viable reasons, to bash O so I tend to pass on the meaningless bull shit cherry picked non-sense. Obviously you prefer to support your position with it. Have at it.
I will end this with stating that no person has so missed the point of my point more so than you. I didn't "cherry pick" anything, and quite frankly warned about using any metric to draw any conclusions. I certainly didn't "bash O" and went out of the way to avoid ideology of either party. I can't make it any more clear than this. I will depart deciding that you are being intentionally obtuse and wish you good day.
Those are very pretty bars when polished.
Pretty on the outside..tungsten on the inside?
I must admit .. those may be easier to recover off the bottom of the lake versus multiple small coins scattered about.
Easier to put a tungsten core into as well.
it's easier to say - gold is gone, come tomorrow (c) Washington to Germans...
Leaving tomorrow to dredge the Potomac.
Every now and then a very notable and important event occurs, sometimes it slips by without even being noticed. For months the major world currencies have traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner.
Weak demand for goods and most of this money flowing into intangible investments inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currencies are about to get wild in the article below.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-...
What this economy needs is paper milk and paper hamburger.
Plastic rice, there's an alibaba for that.
We've already got plaster of paris milk and pink slime, what else do you want?
http://www.foreffectivegov.org/node/9372
https://en.wikipedia.org/wiki/Pink_slime
As I've stated several times... Keep an eye on the "CANARY IN THE GOLDMINE": The price SPREAD on Bullion.
It used to be ~ 2% a year ago, but is now ~ 10%. Tick, tock, Precious Gold Trekkers. Tick, Tock.
p.s. "Free Enterprise!" Get it?
No I don't get it ???
The official price is about $18 /oz, but when I actually buy it, I have a hard time finding it for less than $25 /oz. that's a big spread and its growing.
Officially the spread should be the difference between bid and ask, but that has become irrelevant as mining costs are higher than that, and supplies are mostly gone.
And how we can all know the price is rigged? the rules of supply and demand have turned upside-down.
Not really, it's interprative. If you buy 90% silver half dollars on ebay, and do the math to make the 100%/$. You would come up with that days price on silver. If you want to pay more than that, there are plenty of creative ways and people to "cover the spread" leaving the profit to the victor and the spoils to the loser. Number crunch on.
Very true, but your'e talking about a real open market with prices based on what real people pay for real metal. Definatly not the Comex / Fix price which has very little actual metal figured in.
$20.56 at APMEX
http://www.apmex.com/category/25457/1-oz-apmex-silver-bars
After this week's action, I'm absolutely convinced, that since 1988, I've been awfully right or horribly wrong. And the wrong side is simply underestimating how incredibly stupid humans can be. "Printed paper is wealth. Yes, master."
The really sad things is, soon toilet paper will be worth more than the USD. And my stash has no printing.
I'm seriously all in in PM's right now but when will there ever be a delivery problem?
I mean... If the rich start buying 12,5 kg bars a once, going in for millions, there should develop a real shortage real time soon or otherwise... It means there's just so much gold mined in history that there simply can't be a shortage.
I'm probably buying a monsterbox of silver by newyear yet again because of the lower prices but this year is the first year where I'm starting to say to myself that maybe I have more than enough right now.
The shortage already exists. These gold bars have been sold again and again. Only the smart bitchez who take physical delivery have actual possession. Note that very few of the megarich are taking actual possession...they are trusting to Brinks gold vaults, etc. to keep their gold. How the fuck do they know it is actually there?
A wearhouse is empty, until proven full.
If it's obvious to CaptainObvious, then what is everyone else's excuse?
Ignorance is bliss, until it isn't, is it ?
If you are "seriously all in in PM's right now..." then it would seem as if the inner voice that is saying "maybe I have more than enough right now." is screaming much more than "maybe" and you haven't been listening closely enough.
Not that its any of my business nor did you ask. I'm only making an unbiased, objective observation based on your own words.
Shortages are showing. The Comex basically defaulted in Dec, 2013, although no-one dared call it a default as that would trigger a CDS derivatives crash. China is having a hard time sourcing silver for industry and so opened the Shanghai market eleven days early. Harvey Organ expects they will bid up Silver and gold within a few months and expose the Comex that way. This does make sense to me, but lets remember the market is sooo rigged, the timing of the collapse is tough to call.
I expect they'll sell it down (dump paper on the Comex) and get the western holders to liquidate and 'cut their losses' or 'take advantage of the arbitrage' between Shanghai and London.
I'm not one to disagree with you normally but if it's needed for industrial production, you have to have the real thing at some point...
I hope you're right. but right now there are no shortages. So far. I can give you ten sources that will fill 1000oz no problem.
That's some 12+ million dollars - pocket change for the 0.1% that have no PM jet.
"These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film 'The Italian Job' "
My take - they're not buying 12 kg gold bars, they are buying 12kg gold bar IOUs. These bars do not exist in the vaults, their part of the fractional paper PM ponzi. But as you point out, China and the East may well expose the shortages... Shanghai inventories are down 90% over the last year and now below 100 T ag. Few more weeks/months at that pace and they are out of metal. Then what ?
And of course you have a strong back when it's time to hit the road.
yep, thats why i buy gold instead
You don't have more than enough right now. Okay. that's the answer; no, you don't have more than enough. Events unfold over years not weekends.
Gold is down because the rich like to buy the under valued.
I think you're on to something. They can't have retail buy at the bottom, that's just a no-go.
if you buy in bulk it's more like 2% not 10%. look at jmbullion #5 of 10 oz Credit Suisse. spread is 2%.
Yes, of course; or 1-1.2%. or nothing. or you can buy it at two to one margin; allocated and vaulted; with a 3% margin loan. Never mind the "shortages" that's just internet bullshit. take care of business and business will take care of you. Of course coins and trinkets have premiums; they always have and they always will; fabrication and warehousing costs. You; Belgian Wafle, Mr. Potatoe Head, take a little vacation to Austria have some face to face sit downs with small private family owned banks in moderate size towns; they still understand privacy and they're not thieves.
What assholes, such a barbaric relic.
LOL
I hope they are checking to make sure they don't have creamy tungsten inside.
Something to keep in mind. In my firm belief unless you store that gold or silver on your property you will not end up with it.
...and unless you also store lead, you won't be able to hold on to whatever you do end up with. Anyone ever read Mathew Bracken's books? He exposed the harsh realities years ago...
Some people believe in Jesus. What if you hve to leave your property; and your financial instituion in a more stable country still functions ?
Italian Job (1)
https://www.youtube.com/watch?v=7_PX1cVuaVA
Michael Caine
"You Were Only Supposed To Blow The Bloody Doors Off!"
http://www.law.cornell.edu/uscode/text/12/412
Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of sections 348a and 353 to 359 of this title, or bankers’ acceptances purchased under the provisions of said sections 348a and 353 to 359 of this title, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under sections 348a and 353 to 359 of this title or any other asset of a Federal Reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.
...
Keep that in mind as their balance sheet kept expanding during QE while gold prices kept getting smashed down if an audit ever happens of their balance sheets.
...
http://www.law.cornell.edu/uscode/text/12/354
Every Federal reserve bank shall have power to deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Federal reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hypothecation of United States bonds or other securities which Federal reserve banks are authorized to hold.
...
Remember some of the key players in the gold fix on the Comex are also primary dealers and don't forget about the Chinese.
Speaking of the Comex.
http://www.law.cornell.edu/cfr/text/12/201.110
very salient point.
in other words, the 12 banks of the fed dont need to be clandestine and use an intermediary (cough citi cough) to buy paper gold - or to sell it.
Now - does it makes sense for a FED to add to its balance sheet and drive down the price when selling ad infinitum? Or does it suggest that out of self preservation the FED too is preparing for a reset that will lower its own ridiculous leverage
this is in the context of ron pauls now resurrected and sponsored Audit the Fed bill
Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of sections 348a and 353 to 359 of this title, or bankers’ acceptances purchased under the provisions of said sections 348a and 353 to 359 of this title, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under sections 348a and 353 to 359 of this title or any other asset of a Federal Reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.
You can't be serious. Politicians actually read this and voted in favor. ROFLMAO And the joke is on EVERYONE.
It's only read after it's passed to see what's in it.
short the paper, buy the physical.
Defiantly. There is so much paper out there that by the time the price rises anywhere near true market value, the Comex will be bankrupt anyhow.
Paper is worth about $1.49 /roll.
"On the other hand, if you're very safety conscious, you hold on to your gold bars"
-Evelyn De Rothschild, December 10, 2008. CNBC Interview
in your face you gold coins buyers, that's how you roll! lol
all that demand is pushing the price up
I will take care of a dozen or so of your 12.5kg gold bars, nobody would ever look here.
Southern gold bug, don’t call him “Tex”
Hides 12kg bars from wife’s lawyer Rex
“That my spousal support
remains a bit short
is just slightly more fun than sex”
If you want Gold/Silver to be valued properly, start giving your grandchildren silver eagles. Build them a treasure chest, stock it over time, they will learn what real value is.
Change the mindset of the public one child at a time. Grandpa was a pirate, I can prove it !
Just as an aside, I was at a RE conference in Manhattan last week. The biggest brokers in town were describing the current market as being no less than a full-blown buyer's panic (my description). Big $$ investors are coming in from every part of the planet with buckets of cash in hand and will buy ANYTHING they have to sell in a given price range.
http://www.businessweek.com/news/2014-09-16/manhattan-s-trump-soho-condo...
Well maybe they can sell these. Foreclosed on.
So, you see they actually do ring a bell at the top.
Except when its rung on news of a ship sinking.
The GLD extraction had nothing to do with BABA. The real reason is analyzed here:
http://winteractionables.com/?p=14770
thanks for the article..easy to understand plain english. What I dont get is if theyre both long phys and short paper at the same time what happens when the price goes way up? DOnt those short positions cost them significantly? Can they just fail to deliver and then keep on playing the game?
Its only fiat after all !
They have plenty available to burn, almost like they knew a reset was much closer
than many here think .
Nothing I'm seeing has altered my opinion that it starts this December and plays out
over H1 2015.Political calculus says now, even if other things are not totally ready.
As long as they stay on script the real fun starts on or after Jan 20th. 2015. Expect more of the same and more desperate measures to suck Putin into a war were they throw the first punch.
This is a LIE
You know why gold and silver is going to be hammered into oblivion ?
Because the greedy mineres are crushing everest-sized mountains every day in south america to produce BILLIONS of ouces of the stuff that the market is not moping up.
Those who claim the production cost of an oz of silver is around $17-19 are INSANE
clearly the miners can keep up this even if the price falls to $5 an ouce because they only have to switch to a lower grade of rice that they pay their pet slave south amercan workers with.