Don't sell your Gold

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Bazzwaldo said:
Heres my theory, maybe Im wrong, in fact I hope I am
Gold (and silver) is one of the most manipulated commodities, known not only as a commodity, but as money (store of value).
Currency (medium of exchange) like the British Pound and the US dollar was backed by gold, giving it value. This was devised by sir Isaac Newton in 1717 naming it the Classical Gold Standard. The US gold backed dollar was made a Global Reserve currency thanks to the Bretton Woods agreement in 1946 and cemented it being the Petro dollar thanks to the Saudi deal for oil in 1974.
The US currencys final connection with gold ended in 1970 thanks to Nixon so how does this affect gold now?
To answer that I have to mention a group of bankers and politicians including JP Morgan, who secretly formed what is now the Federal Reserve System on Jackyll Island and with the help of some shady politicians, managed to pass it into existence in 1913 (too long a story to tease out here but a must to know on how deep the rabbit hole goes) however
Fed Reserve Treasury Bonds (paper certificate) are drawn up and sold by the Fed in order to generate electronic US Dollars at interest, some of which is used to pay interest on debt. This increases the money supply and generates inflation when filtering through the US and global economies.
Simply put, more dollars have less purchasing power (inflation) leading to the devaluation of the currency. Gold should be valued higher (when measured in USD) by virtue of this fact alone
Why do we need to know this?
Spot gold price is the proverbial canary in the miners cage, if/when enough people realize fractional reserve banking is nothing more than pyramid selling they'll cash out for hard assets of true value like gold.
A subtle version of this is called hedging which the market likes and encourages, but if the market saw rapid jumps in gold price, this could be very destabilising to global economies as it may indicate that enough people have caught on that US currency (global reserve currency backed by nothing) isnt worth the paper its written on and want to fly to the safety of a rare tangible asset like
It is thought that the illegal activity of naked short selling has been carried out by Commodities Banks for decades aimed at suppressing the true value of gold. Gold ETFs on some commodity exchanges are no longer settled for delivered physical gold, just electronic currency, so its literally just paper shuffling.
Gold is real money (store of value), dollars however, is just a currency (medium of exchange), people dont realize this fundamental difference, suppressing the gold price keeps your average joe from asking bigger questions, one day the game will be up (like it very nearly did in 2008) but the big one will come at a devastating cost and the best asset for those times will be a gun
The names and dates are correct but please feel free to correct any part of my theory as you see fit.
As I said at the beginning, I may be wrong and I hope I am but for the reasons mentioned above I think certain commodity markets (including Oil) and the entire (Fractional Reserve) Banking system is corrupted to a point where the last thing to influence golds price is natural market supply and demand or its true rarity
:)
Click to expand...

:Y: thanks for your honest input this is the best explanation of gold valuation I've come across.
 
Outback said:
Bazzwaldo ' I appreciated your thoughts :Y:

What's your opinion of those who hold fiat money in banks these days & think it safe ?

:lol:
jack
Click to expand...

Hi Outback,
This is a difficult question to answer and again my opinion only
I suspect you know that fiat is worthless (literally a medium of exchange) and it is wholly reliant on the vast majority of peoples false belief that its a store of value.
Its this mass ignorance that underwrites the value of fiat currencies so I would assume maintaining this level of ignorance is the governments highest priority.
You could see how reluctant for example our government was to have a royal commission into the banking system, they are absolutely dependant on believers of fiat but are more than aware of the ramifications if/when the masses realise theyve been had
This is literally a time game, it could end this year or in 100 years.it will end badly though.
The race to electronic fiat transactions is an attempt to save their arses, drying up physical cash transactions e.g the recent ban cash transactions over $10,000 is just one example.this is another rabbit hole which takes too long to explain
One thing to remember though is the Australian Government issued a guarantee on bank deposits up to $1,000,000 in early 2012, dropping it to $250,000 at beginning of 2013I think its still in place????.....If it is, you only need to place your confidence in one government partys 5 year old promise to honour it
I used to take out lumps of cash from the bank to keep it outside the banking system because the first thing that dries up in a bank run is physical cash supply (look at what happened in Greece)
There they closed the banks and limited ones withdrawals to 20 euro per day effectively locking you out from your own deposits, then they did a bail-in, taking a percentage of wealthy depositors money!!!
Ive done this since 2012 but nothing major has happened in our country so far. Is it due to mass ignorance and good luck????
One thing I realised with the Greece bank run though was a ready acceptance of fiat in that scenario, gold was the better asset but fiat definitely was still regarded as an asset even though its worthless
You may be interested to know that when you think of 100% of Australias entire money supply, only 17% of it is in physical form i.e dollars and cents or hard currency, the rest is just electronic numbers, papers, IOUs etc
Since then Ive thought more about hedging my bets rather than trying to predict or time the market (plus keep I still keep a small stash under the mattress)
Ive spread my money across all the usuals including gold shares, bullion, cash and most important of all.land
Some indicators that I look at are things like yield on the 10 year US treasury note, spread between spot price of gold and premium charged by bullion outlets, consumer confidence indicators etc.these are the canaries in the coal mine for me
One last though, if you were to ask why one thing has value and another doesnt remember this, assets require least one of two very important features, it is very rare and sought after or it has an input cost associated with its manufacture
Eg a car is not rare but it has an input cost like its raw materials, labour and energy costs required in its manufacture
A pearl is one of natures natural rarities, due to a Pearls tiny supply against a demand, sets its value.Gold has both these qualities, fiat has none :)
 
Top information !
My thoughts , Yes Fiat currencies are just belief , no real asset backing .

Bail in laws came into affect on the 14/2/18 . Most would would not have a clue ? now to what that means .
If you have money in a Australian Bank after that date it can be taken to stop the bank going under .

The so called $250.000 Govt guarantee on your deposits has never been ratified . :(

Hold onto your gold .

Jack
 
Hi Jack
I agree entirely
Can't remember who said it but it goes along the lines of 'anyone who is willing to sacrifice their freedom to obtain safety deserves neither'
It would appear that the Australian government wants us to cede to them our trust in their intentions, well there is a cost
One could argue the reason why government allowed Reserve Banks to sever the backing of an asset of value like gold with fiat like the US dollar was to print more so as to honor the promises made which got them elected in the first place. Banks profit from the interest charged and governments from the inflation created
This has happened before and it ends in tears, what we don't learn from history compels us to repeat it...greed and ignorance it seems, underpins all of it
In an ideal world the restitution of gold backed currencies places real money in the hands of its people, this hasn't happened now for nearly 50 years in countries like Australia etc and unless there is a real separation of the banking/political agenda, its never likely to happen again
Personally, I think silver is the dark horse in terms store of value, it can be used as coinage and like gold, its rare, durable and divisible so hold onto your silver too! :)
 
I think the same Bazzwaldo ' silver is cheap -under $22 AU an ounce thanks to JP Morgan ! who have been buying up huge amounts of the physical metal at a scale never know before , makes the Hunt Brothers stack look small & at the same time look who's manipulating the price movements through the Comex futures .

http://www.commoditytrademantra.com...ng-silver-and-gold-gets-over-in-a-few-months/

So it's a good time to get some silver ;)
 
Thought about starting my own topic but I might just ask here, I'd be fascinated by the answers based on the contributions above.

Came into a nice windfall of which I have no real idea what to do with. More specifically I have my own ideas of what I could do with it but not what I should do with it.

Question. If you had a lazy 5 grand where would you put it right now?

Premise. I'd like to see some nice return by end of FY 18/19.

No idea too adsurd, heck I'll even take the bullion option if the supporting evidence suggests it.

And go.
 
Outback said:
I think the same Bazzwaldo ' silver is cheap -under $22 AU an ounce thanks to JP Morgan ! who have been buying up huge amounts of the physical metal at a scale never know before , makes the Hunt Brothers stack look small & at the same time look who's manipulating the price movements through the Comex futures .

http://www.commoditytrademantra.com...ng-silver-and-gold-gets-over-in-a-few-months/

So it's a good time to get some silver ;)
Click to expand...

Silver is widespread and production is controlled to a large degree by lead and zinc production, which is large. Silver is a by-product of that mining, which would seem to me to put a cap on how high the price can go (silver price goes high, lead and zinc mining becomes more profitable, production increases and price goes back down - I once worked on a lead mine where the contained silver used to pay the entire cost of mining at times of high silver prices, so lead and zinc were profit). Spain used to have a silver standard before the gold standard, and I think it was for reasons like this that it was abandoned - the USA seems to continue to have a love affair with silver for historical reasons, but it is difficult to see the logic. It behaves much like a normal commodity, and unlike gold most is consumed industrially (not stored or used in jewellery and coins). Most is consumed in electronics.

Gold does not behave like a commodity. For as long as I can remember mining has supplied a thousand tonnes per year less than world annual demand. However shortfall is made up by smelting jewellery and central bank selling each year, which stops it going through the roof. About 80% of annual consumption is used in jewellery, not industrial. Despite it no longer being a monetary standard officially, it is still used as a de facto standard. In the long-term it has been a good hedge against inflation for a long time, and for that reason is a store of value in dangerous financial times.

Yes, there will be world financial, yes I will die one day (death and taxes...) - picking the timing is the problem. The present is more worrying than for many decades though....
 
goldierocks said:
Outback said:
I think the same Bazzwaldo ' silver is cheap -under $22 AU an ounce thanks to JP Morgan ! who have been buying up huge amounts of the physical metal at a scale never know before , makes the Hunt Brothers stack look small & at the same time look who's manipulating the price movements through the Comex futures .

http://www.commoditytrademantra.com...ng-silver-and-gold-gets-over-in-a-few-months/

So it's a good time to get some silver ;)
Click to expand...

Silver is widespread and production is controlled to a large degree by lead and zinc production, which is large. Silver is a by-product of that mining, which would seem to me to put a cap on how high the price can go (silver price goes high, lead and zinc mining becomes more profitable, production increases and price goes back down - I once worked on a lead mine where the contained silver used to pay the entire cost of mining at times of high silver prices, so lead and zinc were profit). Spain used to have a silver standard before the gold standard, and I think it was for reasons like this that it was abandoned - the USA seems to continue to have a love affair with silver for historical reasons, but it is difficult to see the logic. It behaves much like a normal commodity, and unlike gold most is consumed industrially (not stored or used in jewellery and coins). Most is consumed in electronics.

Gold does not behave like a commodity. For as long as I can remember mining has supplied a thousand tonnes per year less than world annual demand. However shortfall is made up by smelting jewellery and central bank selling each year, which stops it going through the roof. About 80% of annual consumption is used in jewellery, not industrial. Despite it no longer being a monetary standard officially, it is still used as a de facto standard. In the long-term it has been a good hedge against inflation for a long time, and for that reason is a store of value in dangerous financial times.

Yes, there will be world financial, yes I will die one day (death and taxes...) - picking the timing is the problem. The present is more worrying than for many decades though....
Click to expand...
 
gold tells the truth and the world/people don't like the truth

in the world we live in today gold should be 5k per ounce but it is suppressed e.g. comex paper gold

but it can't be controlled forever we are less than $85.00 of it's all time high (excluding inflation) of $1895.00 in 2011

the ratio of real gold to paper gold is about 130 to 1 = complete :poop:

I am already loving 2019 and it has only been 9 hrs 45 minutes :lol:

my favourite colour for 2019 is yellow the same colour as 2018 :)

happy new year :Y:
 
Don't tell the Crypto kids about what gold is doing or where prices are headed.
No doubt they will be trying to convince you that the 500 new crypto's for 2019 release will be worth more than an overpriced Sydney Harbour waterside mansion.
 
OldGT said:
Thought about starting my own topic but I might just ask here, I'd be fascinated by the answers based on the contributions above.

Came into a nice windfall of which I have no real idea what to do with. More specifically I have my own ideas of what I could do with it but not what I should do with it.

Question. If you had a lazy 5 grand where would you put it right now?

Premise. I'd like to see some nice return by end of FY 18/19.

No idea too adsurd, heck I'll even take the bullion option if the supporting evidence suggests it.

And go.
Click to expand...

I would buy 2k gold cash 2k (under the bed) and spend 1k that is the happy medium for me enjoying life with some peace of mind :)
 
Havn't watched the vid at all.... but could well imagine a desperate mob in control of everything grabbing what they can to keep the farce alive as they dog out the back door after having made sure we could only be a third world country and not a chance of being the big player in the region by culling all our production ability, by closing down all the manufacturing sectors we had, moving the rest off shore, increasing our reliance on imports to even include staples that we used to be able to grow here beforehand, running up debt that continues beyond their time and remains as a control mechanism for whomever ends up in charge her in the aftermath..... but hey.... it's alright buddy... relax.... going number two will be really easy after its all said n done.
 

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