This page has been archived and commenting is disabled.
Gold “Extremely Rare” - All World’s Gold Fits In Average Four-Bedroom House
Gold “Extremely Rare” - All World’s Gold Fits In Average Four-Bedroom House
- Gold is extremely rare and all gold ever mined would fit in giant bar the size of a four bedroom house
- Gold is a tangible asset which always retains value - unlike paper assets
- Growing Chinese, Indian and Asian middle class provide “fundamental pillar of support” to gold
- Jewellery is not a suitable vehicle for gold investment due to high mark-ups and VAT
- “Something romantic about gold” and a “premium product” said Bobby Kerr
- Risk of further weakness in short term but buying opportunity presenting itself
- History and academic research shows gold a “hedging instrument” and safe haven asset
Research Director and founder of GoldCore, Mark O’Byrne, was interviewed by Bobby Kerr on Newstalk’s “Down to Business” on Saturday morning. A range of aspects pertaining to gold and the gold market were discussed including the rarity of physical gold; the enormous demand for gold from China and India and gold’s proven safe haven qualities.
All the gold in the world in a giant gold cube (0.9999 pure)
When explaining the true scarcity of physical gold, Mark was asked whether all the gold ever mined would fit into a 4-bedroom house. Mark agreed, stating that if all above ground gold in existence were refined to 99.9% purity it would fit in a cube with 21-meter sides. This would be comparable to the centre court of Wimbledon or two olympic size swimming pools. It is therefore an extremely rare metal.
Gold is a tangible asset which, regardless of how poorly it may perform in the short term due to the ebb and flow of markets - always retains a value in the long term. When stocks and shares enter into crisis periods there is always the risk that their value can be completely erased as happened with Bear Stearns, Lehman Brothers and as almost happened to some Irish banks.
History and empirical data demonstrate that gold is a time-tested form of financial insurance said Mark O’Byrne. He cites Trinity College Dublin’s Brian Lucey and the work of Dr. Constantin Gurdgiev whose academic research shows that gold is a “hedging instrument” and a “safe haven asset”.
He refers to the old Wall Street adage that one should have 10% of one’s assets in gold and hope that it never works. The implication being that if the gold price is rising it is usually in an environment where stocks and shares, bonds, property and one’s business are suffering.
He emphasises that placing all of one’s wealth in gold is risky but an allocation is essential financial insurance.
When asked by Bobby whether the recent declines in prices were related to the crashing stock market in China, Mark pointed out that there have been a couple of months of weak demand from China but that on a quarterly or yearly basis demand remains robust. Chinese demand for this year is expected to amount to 1,000 metric tonnes.
Four-bedroom house
The Shanghai Gold Exchange sees an average of 50 tonnes of gold bought each week but last week saw demand spike to over 60 tonnes. He points out that the middle classes of China and India do not trust banks or national currencies due to historical crises such as the Chinese hyperinflation of 1949.They therefore view gold as a currency and savings mechanism and prefer to save in that format.
In 1949, Chairman Mao banned ownership of physical gold in China and the market was not liberalised until 2003. Therefore, Chinese demand is coming from a population of 1.3 billion people who had no access to gold only twelve years ago. This offers a “fundamental pillar of support” to the gold price.
Mark explains that jewellery is not way to invest in gold. Investment grade coins and bars are 99.99% pure whereas jewellery in Ireland - mainly 9 carat - is 37.5% pure. The mark-ups on bullion coins and bars range from roughly 2% to 4% whereas the mark-up on jewellery can be as high as 300%. There is no VAT payable on bullion coins and bars whereas there is on jewellery.
Mark believes that some downward risk to the gold price remains due to the momentum of the recent severe correction in price. He points out that GoldCore had suggested on Bloomberg three years ago that a 50% correction in price was not unlikely at that time as is normal in long term bull markets.
However, in the long term gold should perform well due to the fact that the problems that led to the global debt crisis have not been addressed - too much debt globally. Indeed, debt levels have continued to surge which risks compounding the global financial crisis and risks a new and global debt crisis worse than the last one.
The Newstalk interview can be listened to here
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,098.60, EUR 992.42 and GBP 708.39 per ounce.
Friday’s AM LBMA Gold Price was USD 1,083.75, EUR 990.042 and GBP 699.89 per ounce.
Gold in USD - 1 Week
Gold and silver fell over 3% and 1% respectively last week - to $1,098.70/oz and $14.69/oz.
Today, gold in Singapore ticked lower initially prior to seeing gains in late Asian and early Swiss gold bullion trading.
This morning in European trading, silver for immediate delivery was 0.3 percent lower at $14.78 an ounce. The metal slumped to $14.3842 on Friday, the lowest price since 2009.
Spot platinum fell 0.7% percent to $985 an ounce, while palladium fell 1.1% percent to $622 an ounce.
Must-read bullion guide: Gold and Silver Storage Must Haves
Breaking News and Research Here
»
- GoldCore's blog
- 32805 reads
- Printer-friendly version
- Send to friend
- advertisements -
All the gold investors that made money could fit in a smaller house.
I don't necessarily agree, but I up arrowed, for the chuckle.
Anybody else feel like they need a drink?
I'm just a little bored you know.
And what happened to the price of gold today, nothing right.
Yep, gold is not exciting most days.
IMO, the opportunity right now is in silver.
GOLD IS NOT RARE! I have a toilet full of gold every morning.
Gold is not rare! Now "Purple", thats rare.
and......if you subtract from that amount the amount that no longer exists within Fort Knox, it would fit in a bathtub.
All the worlds gold plated tungsten bars laid end to end would circle the sun
"Gold 'Extremely Rare' - All World’s Gold Fits In Average Four-Bedroom House"
Inaccurate.
All the gold in the surface crust that was discovered and dug out by humans fits in an average four-bedroom house".
Gold is FAR FAR FAR more abundant in the mantle and core. One good super volcano eruption from deep in the mantle - or a gold-rich asteroid impact - could easily multiply the amount of gold in the upper crust many fold -
and also exterminate humans in the process - the ultimate irony.
BTW you can find LOTs of metals, including gold, around black smokers in the deep ocean where plates are separating - happy deep diving.
juice are less than ZERO POINT 1 percent of the population of south africa, which of course suffered several wars because of its gold and diamonds...
if inclined, do a little googling as to south africa's wealthiest people.
It is nothing short of amazing.
That is a novel appraoch to looking at it; I give you a thumbs up.
Buying Up All the World's Gold?
http://www.thestreetgoldevent.com/why-us-enemies-buying-all-the-gold/
---------------------------------
Nothing more to say!
http://www.forbes.com/sites/greatspeculations/2015/02/19/china-buys-more...
https://www.google.com/search?q=who+is+buying+gold&ie=utf-8&oe=utf-8
They are not ruled by the fiat-issuing cabal, that's why.
Dear Mr. GoldCore:
You are a bloviating pontificating idiot who knows nothing about precious metals valuation.
I specifically remember you thinking that gold had bottomed on its last hapless bounce.
Apparently you are continuously erroneously calling the bottom in gold for some reason that looks like personal gain.
Again, just like the equity hounds who never know a time to not be in equities you are a gold bug who never understands that making money off of people by selling them into a bear market or any DECLINING market for that matter is a great evil.
For at least the THIRD time:
THIS IS NOT THE TIME TO BUY GOLD. GOLD HAS NOT BOTTOMED.
GOLD = $925
SILVER = $13
Price is not relevant. It varies by country because of currency markets. i f you lived in an Emergent Market economy, whose debt is tied to the USD, then you would have wanted ALL your saving in the metals. Here is why.
http://www.ft.com/fastft/366271/venezuela-bolivar
According to their prices, there must be 75 times more silver than gold, then.
wait..
Let's not go there, it's a matter of national insecurity.
Lies
All the ethics of the bankster cartel from the BIS on down would fit into a thimble.
I would say that all the moral values people exercise regularly verses the fixed moral standard given by the Lord would fit into a black hole. The proof is the correlation of the abandonment of those values in light of the increase in moral decay; even from the secular-relative measure. The thimble looks pretty good by comparison; and it is.
If the price of paper gold deviates from physical there will be blood.
Imagine rotation out of paper and into physical. That has folks worried.
Based on my observation of physical bullion markets around the world, there is very little demand for physical gold. As reiterated by my trip to the LCS Saturday and disccovered plenty of 2015 gold maples on display. And price has REALLY dropped as you know. Even down more today. If the paper market disappeared I am not sure gold would rise, I believe it would fall.
All I can say is you haven't looked to much; demand around the world is nearing record levels and particularly of the Major governments and central bankers elite clients.
Dup
I focus on retail demand. Central bank demand iinterests me as well so any figures you can share are appreciated. I think a report came out recently indicating that China bought less than expected. I think a true gold bull does not dwell on "manipulation" which seems like nonsense, for paper markets help create a market. Retail physical interest must be strong to sustain rising prices in my opinion.
BTW - I recognize and hope other do as well that you seem to just "want to know" and asking questions is the right way to go about it. We all have bias or bent toward many things that form our thinking on various things. With new information we change our minds on some things and solidify our thought on others and even reverse course completely...those that are not are not growing. Stay green and grow; else ripe and then rot. Have a great day!!
Thanks I listen to every Jim Willie podcast I can find, and that's one I haven't heard.
I think it's possible (well, I know it's possible) to be optimistic on gold and at the same time not be taken in with all the manipulation bs. I was really good friends with a dealer, and he would tell me every time the price dropped even $5 "Options Epiration They Are Whacking It" blah blah blah. The price could never go down unless it was "manipulation".
For my work I travel a lot and have time on my hands. I've searched gold shops high and low in this country and many corners of the globe, and retail demand for gold is sinking. People today, younger people, don't want it. Sorry don't kill the messenger. I tell you what I see with my own eyes.
If central banks and paper traders deal with gold, fine let them. I like gold as insurance. I like to keep it in a bank safe deposit box. I like to buy it over the counter then take it home and study it under a Nikon microscope I have at home. I think Kingworldnews is a bunch of shit. I think ZH gold manipulation stooges are missing a big part of the picture. That's all.
China doesn't reveal their holdings; only enough to suit their purposes. They are one of the largest producers and export none and buy as much as they can nd have been for quite a while now, t e recent announcement is almost laughable. http://www.silverdoctors.com/analyzing-pboc-official-gold-reserves-incre...
Most of China's (like 99%) gold transaction by the People's Bank of China are done privately. http://www.bloomberg.com/news/articles/2015-07-19/china-s-no-longer-secr...
BTW - the reason China will NOT, at this time reveal their actual holding is simple; if they did, then they would be showing their hand and gold would soar. You do not want it to soar when you continue to buy. I suggest that China, via, JPM, HSBC, CITI and others have been responsible for shorting the paper market for two reasons. 1) to keep the physical down and 2) to destroy the miners and eventually buy those assets. Everyone is aware their is a great wealth transfer from West to East and one needs to just follow the Yellow Metal hoards.
-------------------
The US having 8 tones is a joke unless you count gold coated tungsten as real gold. Ask yourself why Ft Knox will not be "inspected" and the Germans are having a heck of a time getting theirs back and then they just asked for a "view" and were told no, but do to pressure they were allowed to go view, but under many restriction...such as do not touch and no pictures etc., which begs the question as to why?
------------------
I apologize for the length. Enjoy this from Dr. Jim Willie; I am bias because I am a Hat Trick letter subscriber, but he admits when he is wrong and is often right and I filter things from a biblical worldview and find what he says to fit in the path written in the Scripture.
https://www.youtube.com/watch?v=b96bYCgaGR8
Every time the gold price drops and physical demand goes up, you have just finished your round the world trip and you know everything. Your personal observations are irrelevant.
You may not recall the incessant ZH stories of frantic buyers scrambling to get physical at shops in China. Been there--these crowded shops do NOT exist. Bangkok, tons of gold on the streets for sale. Sydney, no shortage and no customers (give Mark at Strand Coins a call now and ask him about demand). London, try selling gold nobody wants to buy what you have unless you sell it for 96% of spot. I can go on and on. And the grand finale last week price dropped under $1100 and guess what -- no shortage of gold. The only time gold was short over the last 5 years was the run up from about $1300 - $1700. On those days, it was hard to get physical. Did you do your part and buy 1/2 oz buillion last week on the price drop (like I did)?
"Gold is a tangible asset which always retains value - unlike paper assets"
Gold dropped from 850 to 250 or so, over 20 years. It retained some value.
And prior to that, gold shot up from around 50 to 850 so...
It gained some value.
Priceless. The way to look at metals is simple. Two ounces of silver filled a gas tank in a car 10 years ago, 5 years ago, today and 5 years from now; so the cost is not relevant to the currency. Ask a Venezuelan if they would prefer to have had their savings, since 2008 till today, in their currency (their debt is tied to dollar), or in gold or silver? They would not have lost anything if it was in metals, then they would be real glad. here is why.
http://www.ft.com/fastft/366271/venezuela-bolivar
BTW -this is true and happening with all the Emerging Market economies tied to the toxic USD, but that is how the Bankers control a nation and steal their real assets over time and the Western Banking Cartel wit Murder Inc as the strong-man are masters at this...just ask the Greeks.
10 years ago, a share of the S&P 500 bought you 575 gallons of gasoline (1300 @ 2.25/gal)
Today, a share of the S&P will buy you 725 gallons of gasoline (2000 @ 2.75/gal), and that's before the ~2% dividends it earns every year.
So if we take you at your word that silver has exactly held its purchasing power for the last 10 years, that means anyone who held silver for the last decade gave up 40% of their potential purchasing power.
Indeed, that is exactly the correct way to look at metals.
...and then what happened?
Too bad paper gold isn't so rare. And since that determines the price until the whole shit show comes crashing down, this doesn't really mean all that much.
I wish the experts on TEEVEE would stop calling me an insect -- a gold bug. It hurts my feelings.
Dave Ramsey is a paid shill who loves to celebrate when gold is down and the fiat markets are up. I can't wait till the markets crash hard this fall and PM's rebound
:>)
Don't let the stockroaches bug you.
4 bdrm house same as 2 olympic pools? I don't know, just fast ten key I think the US (not counting if it holds or not lol) has around 15,000 cubic feet. Could be wrong, it was a fast calculation, i'm tired and tripping on coffee.
So let's say this house has 2000 sq ft of interior space, that's 16000 cubic feet.
I call bullshit.
Go ahead, someone more with it at the moment see what you get if you feel like jackin with it.
yeah, Wikipedia gives the volume of an Olympic size pool at 88,000 cubic feet--that's a single pool.
Of course I don't know what the actual purity is. Assuming tjhey all aren't lead bars spray painted gold.
Asset Allocation
Home 23%
Boat 7%
Investment Property 59%
PM's 4%
Cash 7%
NO Debt.
Feeling pretty smug :)
Its good that you diversify. If I had anything I would probably go like:
- 20% gold
- 10% silver
- 30% arable land
- 5% art
- 35% cash diversification investment in various currencies
Be sure to keep that boat well maintained...gold is HEAVY.
You should really have 10% in PM's....pretty standard allocation.
"When explaining the true scarcity of physical gold, Mark was asked whether all the gold ever mined would fit into a 4-bedroom house. Mark agreed, stating that if all above ground gold in existence were refined to 99.9% purity it would fit in a cube with 21-meter sides."
No wonder housing is so expensive. Didn't realize 4-bedroom homes were so big.
"Jewellery is not a suitable vehicle for gold investment due to high mark-ups and VAT"...
Umm, I guess...if you're buying it at full retail. But that's true of anything you buy. Go out and buy coins, you'll pay a premium, same with bullion or any other form of gold.
But why would anyone buy gold jewelry at full retail price? You can buy vintage gold jewelry from many sources, very competitively priced, often dirt-cheap. You can purchase old gold jewelry from private sellers who just want to get rid of it, and since gold is held in such little regard you often get it for below scrap prices.
Tell this to women in India, and watch them all laugh in your face. They'll laugh at the idea that jewelry is a poor vehicle for gold ownership, and they'll laugh at the idea of stupid Western women buying thread-thin gold necklaces for 10 times their real value. And I'm sure Indian men know that the family gold is safer worn on their women's bodies than being held in a safe. Gold DOES get confiscated from private stashes once in awhile, but no one has yet dared to forcibly remove it from women's bodies.
Here in the West, if TPTB SHOULD try to confiscate, what will be safer...coins and bullion in a vault, or personal family heirlooms hanging around your wife's neck?
An idea I especially like is the 22k gold chains with detachable links.
I have for some time now considered how best to make one's gold less confiscatable and more transportable and I think that getting it into some form of jewelry or art is a very valid option.
For instance, how about purchasing bezels and simply installing gold coins into them and stringing them on a necklace, bracelet, anklet etc? Or, melting down some coins and forming the gold into a heavy piece of wearable jewelry?
One thing I have done is to purchase lots of watch cases and the workings. If one were to simply place a gold coin into a watch case and affix some hands, voila! - a watch.
Or, simply carrying a briefcase full of watch parts and gold coins, a business card showing you as a jeweler/watchmaker along with a coin show flyer to get your gold through customs?
Just a few ideas I have on the topic...
Tragically for me, while kayaking in the Bay of Fundy, my gold was lost at sea one sad day...
There was a guy who had his medal put into solution during the war, and left in lab bottles, where it just looked like one of the many liquids. After, it was 'dropped' out of solution, and recast by the medal-maker for the guy...
Pretty cool.