Tradefair & Financials
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The Swiss Franc with a ceiling on it diminishes in value as a safe heaven……….should gold as the "other" traditional safe heaven alternative be going down?
All major Central Banks are now involved in a money printing orgy (yes, the ECB too, they are doing it through the back door), with Japan now going full retard………should gold be going down?
Annual US deficits at $1.5tn, and as far as the eye can see, with the FED now buying every treasury issue……should gold be going down?
European banks are still over leveraged and undercapitalized and on the brink…………should gold be going down?
Inventories at COMEX and LMBA drawn down sharply (nearly 20pc) in Q1 2013 (i.e., increased demand for physical)…….should gold be going down?
Barrick suspends work at Pascua removing 250,000 ounces from coming to the market ………should gold be going down?
Rio Tinto is forced to stop production at Bingham Canyon due to a massive landslide removing five million ounces of silver, a stunning 16pc of global production, and 500,000 ounces of gold coming to the market…….should silver and gold be going down?
Cyprus (deposit confiscation), Korea (nuclear threat), Senkaku Islands (China/Japan dispute)and Iran (war) all very much in play and all with the potential to cause havoc in the paper markets………should gold be going down?
If you want to liquidate a position in paper gold and achieve the best possible returns……..would you dump 100 tons of gold futures contracts all at once on the market, followed by another 300 tons (15pc of global annual production) within the next couple of hours, forcing technical support levels to be breached and causing a price waterfall?
"Joint intervention in gold sales to prevent a steep rise in the price of gold (in the 1970s), however, was not undertaken. That was a mistake"
Paul Volcker Memoirs : "The Making of a Financial Legend"
Bernanke was not going to make the same mistake.
All major Central Banks are now involved in a money printing orgy (yes, the ECB too, they are doing it through the back door), with Japan now going full retard………should gold be going down?
Annual US deficits at $1.5tn, and as far as the eye can see, with the FED now buying every treasury issue……should gold be going down?
European banks are still over leveraged and undercapitalized and on the brink…………should gold be going down?
Inventories at COMEX and LMBA drawn down sharply (nearly 20pc) in Q1 2013 (i.e., increased demand for physical)…….should gold be going down?
Barrick suspends work at Pascua removing 250,000 ounces from coming to the market ………should gold be going down?
Rio Tinto is forced to stop production at Bingham Canyon due to a massive landslide removing five million ounces of silver, a stunning 16pc of global production, and 500,000 ounces of gold coming to the market…….should silver and gold be going down?
Cyprus (deposit confiscation), Korea (nuclear threat), Senkaku Islands (China/Japan dispute)and Iran (war) all very much in play and all with the potential to cause havoc in the paper markets………should gold be going down?
If you want to liquidate a position in paper gold and achieve the best possible returns……..would you dump 100 tons of gold futures contracts all at once on the market, followed by another 300 tons (15pc of global annual production) within the next couple of hours, forcing technical support levels to be breached and causing a price waterfall?
"Joint intervention in gold sales to prevent a steep rise in the price of gold (in the 1970s), however, was not undertaken. That was a mistake"
Paul Volcker Memoirs : "The Making of a Financial Legend"
Bernanke was not going to make the same mistake.
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What percentage of your wealth do you hold in physical gold, sir?
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Who wants to know, and why?
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I want to know purely out of interest, nothing more.
I hold about ten percent, but am considering increasing it to twenty. You advise keeping one's gold in a bank's safety deposit box I presume? |
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I have an eighteen carat pool ball, weighing 1640 grams, which was worth in the region of £40,000 a few weeks ago.
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The 10pc rule applied in "normal times" as far as I'm concerned, but not during these unprecedented times. Shoot for 25pc, you'll remember me some day. And no, don't keep it in a bank safety deposit box, they'll deny you access when this sh1thouse collapses, or they'll confiscate it from you now that property rights seem to have been thrown out the window. Hide it somewhere where you can have access to it 24/7 in case of emergency.
On a bright note, I think we'll see another leg down which will be the last opportunity to get on the train. So, if you are thinking of upping your holdings, that would be the time to do it. My holdings are in three countries, and are in between 25-50pc of my liquid wealth. I'll stop at that. I have to get on a call with someone is Singapore in a few minutes, so I won't be posting more tonight. Drop in another time if you want to continue the discussion. |
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Okay, thank you.
I understand your concern in these uncertain times regards safety deposit boxes. I no longer entirely trust the banks either. Unfortunately, however, when one is talking about a substantial amount of gold the alternatives are even more worrying to my mind. Where on Earth is safer? |
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If you think gold is going to fall further Melanaus would it not be better to sell your gold now and buy it back when its cheaper.
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@ Pokermonster
Where is safer? Anywhere but in the vaults of those thieves who want to take it away from me. @ paddletoe It took considerable time and effort to accumulate and safely store what I have now over the years, I haven't exactly started doing this yesterday, and it wasn't an easy undertaking. Posters on here can attest that I was recommending gold on this forum way back when it was selling in the $400 handle. There are premiums to consider in both buying and selling (which have just gone up by the way) but the biggest concern is.....finding the quantities I'm looking for. So, no, I'm not selling now to buy later. I'm not trying to make money through trading gold, I'm not even investing in gold, I'm merely trying to transfer a part of my wealth when today's monetary system collapses. Money printing orgies without limits and without end dates and suspending the laws of economics can only buy you so much time until things get worse. Considerably worse. One more time with feeling.....GOLD IS AN END GAME PLAY. There is an endless list of instruments/ways to gamble on the markets, with margin at that, gold shouldn't be one of them. The paper gold market on occasion goes into something called "backwardation" (in fact it was observed again very recently). You should research it, it will help you better understand where I'm coming from. |
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Thanks Melenaus for your reply.
On a wider topic everything you say about paper money makes sense. But what is your interpretation of the end game. What will things look like when the end game comes. I mean economically and socially. |
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The russian millionaires in cyprus took the bank levy without a wimper because having 90% of something is better than having 100% of nothing. Will others not think the same way. Rich people may be greedy but they are not stupid.
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The Russian millionaires took everything in stride and without a whimper because mostly because.......they got their money out !!! That's why the 7bn euro shortfall. It's the public in all the countries where bail-ins are in the process of becoming policy that haven't uttered a whimper.
Deposit haircuts are coming to a country near you soon enough. Everything is in place for bail-ins to take place when the next crisis in banking reveals itself. Cyprus was "unique" only because it was first. We're in the next phase of wealth transfer now that I've been posting about for a long time on here. My interpretation of the end game would be long enough to cover a small book so I'll leave that for another time. The only thing I would say now is that it will be way worse than most people imagine. |