Gold and Silver

Money, investing, mutuals etc
planteria
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Gold and Silver

Post by planteria » Sun Jul 12, 2020 11:29 pm

with the qe from the Fed, BOJ, ECB and BOE, there is talk of hyperinflation, and some investors have been buying Gold and Silver.. with talk of returning to a gold standard, or a bi-metal standard of some kind.

silver is, arguably, much better value at the moment, and could see a sharp move upwards..

https://www.goldmoney.com/research/gold ... its-parent
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Re: Gold and Silver

Post by AAAlphaThunder » Mon Jul 13, 2020 12:05 am

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planteria
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Re: Gold and Silver

Post by planteria » Mon Jul 13, 2020 8:43 am

do you see us back on a gold standard AAAT?

i can see the benefits, but i see policians trying to cling on to control..

more likely that the people adopt their own approach, potentially with Gold or, more likely, Bitcoin at the core.

anyone here invested in physical Gold or Silver, or miners?
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Re: Gold and Silver

Post by AAAlphaThunder » Mon Jul 13, 2020 9:49 am

planteria wrote:
Mon Jul 13, 2020 8:43 am
do you see us back on a gold standard AAAT?

i can see the benefits, but i see policians trying to cling on to control..

more likely that the people adopt their own approach, potentially with Gold or, more likely, Bitcoin at the core.

anyone here invested in physical Gold or Silver, or miners?
In my humble opinion, the gold standard is unlikely to make a comeback. The USD is doing very well having shaken off the gold standard to become the reserve currency of the world.
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Re: Gold and Silver

Post by planteria » Mon Jul 13, 2020 12:58 pm

I agree in part.. it is the World’s reserve currency, but that doesn’t suit some major nations, and so there are some working at finding alternative ways forwards..

Russia, China, India are all building their gold reserves, and some suggest that they are doing so to a much larger extent than they are officially revealing.

I thought the Chair of BullionVault made an interesting case for individual investors to hold physical gold in an email last month..

“Dear BullionVault user,

Physical Gold - Why?

Why does BullionVault make sure you get outright physical ownership of gold? After all, it would be so much easier to offer you a gold account.

The reason is risk of default. One of the patterns which recurs throughout history is that growing financial sophistication leads to widespread expansion of credit and exposure to default, and few people successfully avoid it when it matters.

Banks, pension savings, mortgage guarantors and all the major financial institutions on which we depend are now tied up in a web of undelivered assets. A is the registered owner of a bond payable by B, the principal on which has been credit-swapped out to C.
The terms are controlled by a deed drafted by an investment bank D, which itself receives the interest, which has been aggregated with 30 others and sold notionally to E. E is foreign, and flattens the FX risk with a bank F, who sells and rolls a future on his long currency book, which is bought by another bank for an assured profit by running the position against a higher yield bond bought from a junk-status borrowing customer, which has been insured against the risk of default with G, a major insurer, who happens also to be A.

These are the styles of relationship which dominate the world in which ordinary peoples' savings are bound up, and they are profitable in the short term. This is why financial rather than commercial companies increasingly dominate the list of the top companies in America and Europe. They find it easier to make profits by providing credit and assuming eventual repayment, rather than by actually demanding settlement; a habit which could put off no end of potential customers.

All our common savings products are bound up in these webs. At BullionVault we do not know when and where these webs will break, and, with the greatest possible respect, we don't think you do either. But it is so certain that they will break, and at an unexpected place and time, that we believe every forward thinking person with a respectable private reserve would do well to opt out with at least part of their savings.

A purchase of gold is a good way to do this. But gold accounts, indexes, spread bets, and futures all fail to extricate the buyer from the web of dependencies, because they are based on undelivered gold. The only way to opt out of the web is to own physical property outright.

This is why BullionVault has concentrated on being the best way in the world to do just that.

Regards,

Paul Tustain
Founder & Chairman, BullionVault”
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Re: Gold and Silver

Post by planteria » Tue Aug 11, 2020 9:12 am

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Re: Gold and Silver

Post by pabenny » Tue Aug 11, 2020 9:58 am

planteria wrote:
Mon Jul 13, 2020 12:58 pm
I thought the Chair of BullionVault made an interesting case for individual investors to hold physical gold in an email last month..
They would say that - their business model is entirely based on people holding physical gold. Doesn't mean they're wrong. But it is a sales pitch, first and foremost.


I see Costco have just restarted selling gold. It's the classic retail investor behaviour to see a steep rise and buy near the top of the market.

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Re: Gold and Silver

Post by macliam » Tue Aug 11, 2020 11:35 am

Gold is a relatively finite product of accepted value, currencies are dependent on the political situation and perceived value. Gold has always been the go-to at times of crisis, but is not necessarily a medium-term investment due to price volatility. Gold coins I bought in the 2000's at ~£350 are currently valued at £1800. However, the value of a troy oz of pure gold in May 2011 was £916 and is now £1516, but dropped as low as £836 in October 2016..... so would have shown a significant loss 5 years after purchase.
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Re: Gold and Silver

Post by AAAlphaThunder » Tue Aug 11, 2020 4:48 pm

macliam wrote:
Tue Aug 11, 2020 11:35 am
Gold is a relatively finite product of accepted value, currencies are dependent on the political situation and perceived value. Gold has always been the go-to at times of crisis, but is not necessarily a medium-term investment due to price volatility. Gold coins I bought in the 2000's at ~£350 are currently valued at £1800. However, the value of a troy oz of pure gold in May 2011 was £916 and is now £1516, but dropped as low as £836 in October 2016..... so would have shown a significant loss 5 years after purchase.
For me, personally, my gold bullion is a long-term, emergency, just in case, end of the world investment.
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planteria
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Re: Gold and Silver

Post by planteria » Tue Aug 11, 2020 8:43 pm

pabenny wrote:
Tue Aug 11, 2020 9:58 am
planteria wrote:
Mon Jul 13, 2020 12:58 pm
I thought the Chair of BullionVault made an interesting case for individual investors to hold physical gold in an email last month..
They would say that - their business model is entirely based on people holding physical gold. Doesn't mean they're wrong. But it is a sales pitch, first and foremost.
you're right. but i wouldn't sit with paper-gold assets. the challenge is how to hold physical gold cost efficiently, and in a way that enables you to access it if things go a over t, whilst also, in theory, being outside your own authorities' jurisdiction, if you want to go that far.
pabenny wrote:
Tue Aug 11, 2020 9:58 am
I see Costco have just restarted selling gold. It's the classic retail investor behaviour to see a steep rise and buy near the top of the market.
i didn't know they sell gold. how much further it will go in the next year or two remains to be seen, but i'm working on the assumption we aren't near "the top of the market" yet.

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