Schaublin

The use of gold and silver represent the reality that the promises of other men cannot be trusted.

Supply and demand figures for gold dont make sense and if people are accumulating silver for its monetary value that does not makes sense either. Silver is of course hugely valueable but it is produced mainly as a biproduct of copper production.

 

I have said all of this before and got the same stick from the same people still waiting for silver to have its day in the sun

 

Silver is just one of a myriad of commodities that humans want and get when they desire it and can afford it

 

Why silver? Why not pork or wood etc etc etc

Men throughout the ages have chosen gold and silver as a store of wealth. What do they know? The fools.

Anyone have any opinions about Swiss bullion rounds? Seem even cheaper than Krugerrands and have a nice simple Swiss look.

http://www.coininvestdirect.com/main.php?a=12&id=328

Good simple overview of silver's potential here:

http://www.marketoracle.co.uk/Article15315.html

Making the point that even a 10 fold increase in price would not deter manufacturers from using silver (in small quantities) in their products.

Please read and be warned.

 

http://beforeitsnews.com/story/0000000000000582

 

Gold Hoard Flees New York City Banks

Contributed by Concerned Citizen on Tuesday, November 24, 2009

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First Post has a good story on one of the unforeseen consequences of people moving their wealth into gold -- the vaults are overflowing.

 

So many investors have turned to gold during the recession that the HSBC bank on New York’s Fifth Avenue cannot cope with the amount of bullion being kept in its vaults, according to a report in the Wall Street Journal today. As a result, fleets of armoured security trucks have been leaving Manhattan, loaded with gold bars and coins for safe-keeping elsewhere.

 

According to the article, one customer, Goldstar Trust, which has stored its client's gold with HSBC has been forced by HSBC to move starting last July. The Trust is moving it's gold to one of the Delaware depositories.

 

Storing gold with banks is problematic for two reasons; we have a perfect example here of what happens when the bank decides not to store the gold anymore, you have to scramble to find a new storage solution which is very difficult because of the security issues of moving something this valuable between states. The Federal government had the same problem when they set up Fort Knox and moved all of the gold they had confiscated from New York to Kentucky -- it was a full on military operation.

 

The second and most important reason is that if the government decides to confiscate gold again, the first place they are going to go will be the GLD ETF, followed by depositories and bank vaults. The last time this happened, the government "bought" all the gold at $20.68 per ounce and the next day, after they had taken everyone's gold, it was worth $35.

I saw this article - and wondered what effect it would have on those who are partly aware of what is happening. My impression is that a good few readers of that article are going to think that if the 'rich' are loading up with bullion then perhaps they should get a few ounces as well!

I have no idea what the orientals are doing or thinking. What we are seeing is the Anglos lose control of the price of gold. That is, the game of shorting gold with paper money is coming to an end. Folk worldwide want delivery of their metals - and not settling for paper promises anymore. Sooner or later the fools gold play will also come to an end.

 

The shorts are accumulating losses in paper money - which is manageable in a fiat system. As soon they are required to settle positions in actual metals, then they squeal like pigs in a slaughter house.

Ok. Thank you for replying.

I recall that recently, there was an alleged incident where someone was offered a 25 percent premium not to take delivery (cannot recall the source). This led me to the following train of thought:

While it is still possible to buy physical bullion and the price of this bullion is related to the spot price, everything seems ok. I do not know the volume of the sales to the public - perhaps they are too small to matter but at some point must come a widening of the price between physical and spot - which will occur as a result of wholesalers becoming nervous about their ability to restock physical at a similar price (or at all!) in the future. I wonder if this widening of price between paper-gold and gold will trigger a vicious price-spiral which would ultimately lead to a 'bank run' on bullion.

Quiet here - is everyone tired from all the excitement?

I posted a question earlier regarding a possible coordinated buying strategy designed to hammer the shorts - has anyone an opinion?

Does anyone think that the price is being moved by cunning longs possibly from the East - or is it normal buying?

Pluto,

1. Do you think we are seeing an Oriental strategy at work here - to break the shorts?

2. If a lot of short positions have to be covered tomorrow, what effect on price when they have to buy back in? 1200?

Sorry Schlaubs. I swung my heavy artilliary at CID there and scooped a deal. You can't prat around on those special CID offers. Hope you bagged a few. Mine on theur merry way to Japan right now along with the disgustingly expensive if aesthetically beautiful English roses. 'For no bombs will tempt me from she'.

Thanks for the heads-up. I am sure some bargain hounds here managed to get some in time but were disappointed when they went back after 48 hours to load up with some more

Libertad 2009, 1oz Silver (SPECIAL) £14.03

 

http://www.coininvestdirect.com/main.php?a=11&id=308

 

You could probably have got the maples or AE's for around that price this time last week...things are moving.

That offer on the Libertads did not last long!

In other words, the POG may remain static because the 'lost trust quotient' is not being translated into rising prices but rather by buying physical.

Maybe over at BV people are pulling their gold out in physical? Wasn't there a lot of messy talk about 1kg bars minimum etc...or was that GM? Can't remember. If you haven't got your gold then, to me, you risk losing it, period. Wherever it is. Some dickwit like Brown and co could easily change the rules regarding legality of owning gold/silver. That is always in my mind despite all the blah blah about it not being possible. With those dudes running our world ANYTHING is possible and probable. Look how the fool sold our gold at the bottom. Golden brown lalala. Same goes for CGT exempt Britts and things. I just dont believe they'll let you off so easily. If the going gets bad (and it is) then what is the point believing the current story. Hell they seem to make the rules and break the rules as they go along. Clueless and dangerous. I bet David Einhorns 390 mill worth is not in BV or GM. Ditto Mr Paulson's pile. Probably in Switzerland or HK by now.

 

As to ETF's then I have nothing to say other than the gold/silver is unlikely to be there or ever have been. When/should people want their physical it will make Northern Rock look like a teddy bears picnic. That or you'll get you gold coloured tungsten.

 

No what you need when buying quantities gold or silver is a good spade, a couple of hours and a little treasure map.

 

Regarding Jon Nadler. He writes very well and has always encouraged 10-15% in gold. As far as I can tell he just isnt paid to be gung ho on 'backing up the truck'. I have to confess to finding him quite funny-but I have to say I haven't bothered reading him for the past 6 months or so.

 

I should also confess up to thinking gold could well go down here (love my Prechter) temporarily but temper that with buying ridiculously priced sovereigns last week for 172 quid just in case RP has it all wrong, lets face it he has been wrong for about 6 years now. But that doesnt mean he will be wrong this time. Nor Mr Nadler. So who knows?

I agree with you about BV - the convenience of instant sell/buy must be weighed against the risks of state intervention. My feeling is that clued-up small investors may now be choosing more physical at the expense of BV/Goldmoney or even ETFs.

It is all about trust (or lack of it) - in the state, banks and the law. Just has trust in the financial system as a whole has been reflected in the gold price, I think the change to holding physical is the next logical step and reflects even greater distrust.

Interestingly, if someone sold gold in BV/Goldmoney and then bought physical, it would not affect the price at all but I believe that there is a hidden 'trust bonus' attached to physical which although not visible at the moment, will show itself in the future.

"This has been a speculative fund-driven futures rally," says Jon Nadler, a veteran analyst at Kitco Metals Inc. in Montreal. In other words, traders who play in the futures markets are betting on higher gold prices. But they aren’t interested in owning the actual metal.

Gotta love Jon Nadler - works for a PM dealer and makes a living trying to discourage people from buying. One of the best contrarian indicators on the planet. Do the opposite to Nadler's advice and you will not go too far wrong IMO.

What does everyone think of these new Russian coins then?

 

 

7.78 gramm 999/1000.

I like the look of them - interesting that they are 1/4 Oz and not a metric measure. A friend of mine in Russia recently bought a stash of them.

700 GBP ahoy! Where is fitkid with relevant pictures? Oh, I forgot he has been banned for a day.

If I recall, cdswamp identified Ambrose Evans as an Intel plant. The last series of article written by him would seem to back-up cdswamp's claim.

I'm hoping for a dip at least back to $1000. Surely it's got to dip?

$1000 seems a long way off in the rear-view mirror now.

Another great day for both gold and silver.

 

In these 2 very volatile markets corrections come along fairly frequently especially after fast up moves like this.

Anybody willing to stick their neck and call for a sizable correction soon?

 

I certainly see 1000 again as possible but the 18 months consolidation has stored up a great deal of energy for this upthrust. It seems so far to be behaving as Pixel8r's lines imply like to the 2 previous massive upthrusts in '04-'05 and '07-'08.

 

It wouldn't surprise me if it gets to 1250 or even 1350 with only some minor breathers.

 

More lengthy and substantial corrections/sideways behaviour may only come after the energy of this upthrust is fizzled out at fairly higher levels like 1250.

No, I would not like to stick my neck out but I feel that (using fashion-speak) 1250 is the new 1000

What's wrong with revaluing gold, then settling foreign debt in gold and enabling a "reset"?

 

Nick

Good idea apart from the fact that the debt is owed by the West to the East and rumour has it that the US does not have much gold left.

My take on it

1140 (yawn)

1200 mild interest

1500 buckle up!

2000 obvious

3000 mild to moderate interest

4000 reasonable prices approaching

Followed shortly thereafter by - "No, I will not exchange my ounce gold coin for your one million (a short time later) one billion (an even shorter time later) one trillion US dollar note - are you mad!"

Anyone think that these rapid moves indicate that we are just starting to whiff the 'end game' with the paper/ETF rackets? I think silver will break first.

Well that made me smile!

 

 

Thanks!

fitkid, I like your idea of knighting posters. Should we address them as Sir.... when we refer to them in posts?

New records are so humdrum these days, not only are there no rockets, there's not even a murmur. $1118.50/toz Yay!

Strange, for the last few weeks I have started to become less interested in spot prices - I cannot put my finger on it precisely - Perhaps the inevitability of what will occur has taken away the thrill of watching the 'price' go up.

Anyone else got that feeling?

Excellent lets hope they are able to watch it in FINLAND.

The lack of daylight in Winter in the North is known to cause madness irrational thinking in some people living there.