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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
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Dont forget keeping gold in numismatics is a fairly safe bet too. Not very likely a President is going to grab up a 100 year old St Gaudens Double Eagle and melt it down.
Right, there is not much physical gold in the world, yet arond the world there are shops offering to sell over the counter whatever physical gold you want to buy. So the relatively low global inventory, and ready availability, downplays notion that the price for this rare metal is "manipulated".
How many 4000sqft houses have 66ft ceilings??
Well, it IS 1100 dollars an ounce. One might infer that anything that costs nearly 20,000 dollars a pound is a rare commodity. Or not- depending on what kind of dope you are.
I have repeatedly responded to your posts with conclusive evidence from GATA and ZH that the price is manipulated yet you choose to ignore that evidence. This makes you either incredibly stupid or a paid shill.
Your posts are childish and repetitive. I've been around this forum far longer than you have, so drop the shill nonsense. Based on my experience in the PHYSICAL markets around the world, I have a different perspective on "manipulation" so deal with it. You can manipulate a rare commodity with ready availability around the world, in the short term, I'll give you that. Stop trollling, kid.
I'd love to hear your perspective on manipulation- or your opinion on who would sell 2.7 billion dollars worth of gold contracts on a Sunday night. Do tell.
those damn chinks, that's who...
Manipulation of gold is made possible if there is no demand for the physical commodity.
At a ratio of nearly 100:1, paper:physical you are correct. Relatively speaking there is no physical demand. The huge majority of "investors" (ie central banks) prefer paper.
Now you know that I am a kid huh? Your powers of deduction are incredible. So please share with us clearly what your perspective is on manipulation since it seems to be different than what central banks themselves admit to.
Here is proof the price of gold will go to ZERO in less than 6 years
http://www.demeadville.com/250715_The_Gold_Update.html
As the global economy implodes, the money supply goes to zero - making fiat money infinitely valueable - casusing the price of gold to to to zero.
If you are investing in "gold" and not preparing for Mad Max you are a fool.
Starting from 2011? Enough said.
And if you think money supply is going to go to 0, and we're looking at Mad Max without a full on global nuclear war, you're a fool.
Amnazingly enough, there hasn't been a time when fiat currency failures caused gold to become worthless...
Holy Shit you are retarded. First, that article is horribly written. Second, the article forecasts gold to $2000/oz. Does anyone know how to block posts so I don't see shit from Dumbcow anymore?
Did you actually even read the information in your link?
He was describing the manipulated trend projection, with the full acknowledgment that it would never happen.
Quote at the end of the article:
"Therefore: maybe, just maybe, Gold's about to start HUMMIN'. 'Twill so do at some point, for it shan't really go to Zero. Instead, how about up to a Two with three Zeros? "Humm Baby!"
Cheers!"
Come on... If people actually have to read and understand their propaganda it's no fun. It's much more fun to simply throw inaccurate, stupid, or irrelevant statements out there.
Nah, the proof is my gold manufacturing plant. I won't reveal my secret sauce but the ingredients are seemingly in infinite abundance.
Ah yes, the goldbugs' fantasy narrative. Don't you guys know we have a secret base on the Moon with 3-500K tons already mined & refined?
If they actually landed on the moon, then why have they not gone back? Why only a dozen pictures ever released? Why were the astronauts caught filming outside a window that would make the appearance of being near the moon before landing? Just questions that have been asked and replied with ad hominem attacks. Do I believe they landed on the moon? I can say I do not really know for sure.
Please do tell us more Salah, oh wise one.....weaver of stories whose intracacies rival even the great king Solomon.(and very rarely posts)
Tell us about the time we went to the moon and brought all the gold back, ah yes! I long for the good old days of the past.
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/07/25/gold-is-doomed/
So did you actually read the article, or did someone just pay you to post the link?
Matt O'Brien - Wonkblog, The Atlantic
The man has almost as much credibility as a pimple on your ass.
Bezos' Washington Post writes what the CIA tells them to write. Or doesn't write what they tell them not to write.
Then buy DGLD and short it. You can be rich.
Kuro neko is a member for a day and that's his best commentary yet. /s
kuro neko is Japanese for black cat. You definitely don't want to cross that cat's path. kuro neko is also the symbol for one of the largest delivery services in Japan.
What's your game, black cat?
To give yourself a mental snapshot of just how rare gold is, think about a map of the world 10 feet tall and 30 feet long. Take a sewing pin and put a pin hole in the map. That pin hole, cubed, would hold all the available gold in the world, then some. This scarcity is the argument the monetarists use against a gold based monetary system. The truth is, scarcity has no bearing on a gold based monetary system. It's only bearing would be on the HONESTY of the monetary system. This is why gold makes the Yellens and Bernankes of the world extremely nervous.
Another mental snapshot...
That cube of gold, if spread over the entire land mass surface of the earth, would be less than 400 atoms thick.
Hey, I have an average 4 bedroom house!
Fill er up! I'll sleep in the barn;)
If the clowns at Gold Core believe that the volume of the "average" 4 bedroom home is equivilent to a 21m cube 68.9ft wide, 68.9ft deep and 68.9 feet tall... then GoldCore is either robbing their customers blind and living it up to view that size as average, or they should have flunked math, since the average 4 bedroom home would fit within just one of the seven 4760 ft2 floors in that gold cube.
Dissent is not allowed.
Smile & nod, and all will be well.
Sorry, my 4 bedroom is already full.
Yet the Crimex is trading on an Infine amount of Gold by implementing the old Shell Game. The real money is not in the Gold, it's the storage fees for something that doesn't exist.
Crime-Ex that is a good one. NICE.
But COMEX gold says paper is sooooooo cheap and convenient.
Just look this morning how easy it is for paper to control the price despite world-wide market crashes. COMEX gold is so much smarter than a rock.
Everything is under control.
Yes you can buy a loaf of bread with gold.
https://www.youtube.com/watch?v=Jt15F21jpN8
You can buy a loaf of bread with bitcoin as well.
In fact unlike gold it's immune to Capital Controls , Bail-in's , Bail-out's , Re-hypothecation , Naked Short Selling , impossible to fake genuine bitcoin with 'paper bitcoin' , cannot be detected by metal detectors or soldiers , weighs absolutely nothing and you can send it from anywhere to anywhere on the planet in just a couple of seconds.
Bitcoin , BTCHezzzzzzzz.
....zzzzzzzzzZ
bitcoin is good until the machines fail. but would prefer to gold.
Or I could just bake my own bread after paying for the ingredients with worthless fiat...
But bitcoin is dependant on servers, operators and electricity and it isn't immune to internet control or breakdown or government regulation.
Bitcoin depends on the system being maintained.
Don't waste your breath, that question will be never be answered objectively by someone that lives and dies by digits on a screen.
What question is that exactly ? Ask away ....
We want gold to become more valuable? Let's just find a way to weaponize it:-)
It already has been weaponized you muppet.
Back in the 70s I came across a NSA recruiting table at a college job fair--they bragged that they measured their computers in acres. What kind of computing power do you think that is today? Do you suppose they could turn some of that to the "mining" of bitcoin?
He'll no doubt now go to tell you about the wonders of SHA 256 crypto, which was designed by the NSA as though the NSAs ACRES of computing power at today's speeds cant break that. Of course, that's assuming that somebody isn't out there breaking it by the sounds the computer makes....
http://www.extremetech.com/extreme/173108-researchers-crack-the-worlds-toughest-encryption-by-listening-to-the-tiny-sounds-made-by-your-computers-cpu
Shhhh! Please dont mock the imbeciles.
Edit: oh look....
Good luck down there wallowing in your own ignorance. I hope you manage to climb out one day.
If they wanted bitcoin they should just buy it on the open market, it would be far cheaper than using their systems which likely have much more imporatnt tasks than hasing SHA_256. Today bitcoin miners use ASIC hardware , this means boxes full of specialised chips that can only hash SHA_256 (the cryptographic hash that bitcoin utilises), these machines are thousands of times more efficient than servers. Today just 1 decent bitcoin miner is far faster than 100 racks full of the latest generation of power hungry servers. The bitcoin system now forms a global supercomputing network grid which is thousands of times more powerful than the world's top 500 supercomputers combined. It has more than ample capability to swallow up the entire global economy not just currency but entire stock markets , bond markets , commodities markets, there is zero barrier to entry , anybody can write an app or software to use this system and that includes somebody who only has access to a 10 dollar cellphone.
Bitcoin , BTChezzzz.