Schaublin

I read this and had some trouble following his thinking. Why pick 200 USD as a price? In the scenario that he predicts where physical will not be available at any price, presumably the paper contracts would fall to near zero as there would be no chance of delivery. At this point the published prices at Comex would be completely meaningless - indeed, how could any price be put out - when the whole thing had fallen apart?

I think the use of currency as a medium of exchange and gold as a long-term store of wealth should not be confused. Unfortunately, because of the short attention span of most people, currency is often used to store wealth. With real inflation factored in, ordinary interest bearing savings, dwindle in value but so slowly that most cannot see it - indeed, many think the money is earning them interest! The slowly boiled frog may soon however receive a nasty sudden rise in temperature which may wake him up enough to jump out of the pan!

For someone who has a position in gold, you have a curiously dismissive attitude to others who hold gold. By using the term' gold bug', you are assuming that all the 'bugs' think alike and as for inhabiting a parallel universe, is that the one that is exactly the same as this one but without you?

I think that 1300 USD is around the time that the dollar price of gold will be recognized more as a barometer of the teetering fiat system. My guess is that around 1600 USD will mark the point when the roller coaster tips over the edge. The self reinforcing loop of loss of confidence, higher gold price - leading to greater loss of confidence and so on. Those who sell at 1600 thinking that they have made a good 'profit' will no doubt be rather piqued when their profit turns to dust and they realise that they threw away the only chance they had of preserving their wealth.

How do you know it is not true? As I understand it, the BV trading bots offer less than another user would offer. I do not recall a representative of BV ever coming here to talk about their trading bots - only to reassure people that their gold would still be safe even after having taken on the Rothschilds as partners!

The quote is in italics - it is not me saying this - I am quoting from the link.

Don't you mean that BV have access to your dollars to invest as they wish and pay you zero interest

Someone there raised a good point about the 'buy in at the best price' feature - I also thought it was a cynical trick to play on newbies. I closed my position there some time ago and feel better for it especially after the new 'partners' moved in. https://www.kitcomm.com/showthread.php?t=67184&page=3 PS. I'm sure this won't affect you, but the "wizard" on their website which is designed to help noobs trade on their exchange is nothing short of a scam. I believe users have a reasonable expectation that this programme will get them the best price available, but it absolutely does not. If you use it, you are trading directly with BV (they don't tell you this) and they basically rape you. I complained to them about it, and was ignored. Another reason not to use them.

GOM, I am sure there are many who have followed your links - guests as well as members. The guests cannot, of course, say thanks but just for the record; Thanks for the good links!

Me too - I would use some of mine to buy some land.

Realistbear contra-indicator alert on HPC. http://www.housepricecrash.co.uk/forum/ind...howtopic=151192 RB I am remaining in cash waiting for a cheap house to buy then I am not going to worry about investing. I don't know whether to laugh or cry.

If you think that silver is massively under- valued, the VAT issue would not put you off. Gold IS insurance. The idea of betting that it will be stolen with an 'insurance' company (and letting people at that company know that you have it) is one of the most foolish things I have read on this site for some time.

Is that in weight or fiat values?

It's all in the terminology. When you buy Dollars with Pounds, you are also selling Pounds for Dollars When two fiat currencies are swapped, it becomes quite clear that the buy/sell teminology is purely arbitrary. If You lived in the UK and were used to measuring value in Pounds, you would tend to see the commodity as dollars and the 'real' currency as Pounds - and vice versa. When it comes to gold, when you think you are buying gold , you are in fact selling paper currency and when you think it is time to 'sell' your gold, you are in fact buying paper currency (the reason for this is that gold is timeless and the ultimate representation of money) the only reason to do this would be if you believed the purchasing power of the fiat currency in the future would be greater. Given the decline of the West, it is difficult to envisage how that could happen.

Not too sure about that. I would guess that there is still plenty of gold jewelery about and perhaps the current 1200 USD fiat price has captured a lot of it but some of that remaining gold can still be teased out of weak hands with a higher fiat price. At some point in the future, only a complete fool would swap gold for fiat - when they run out of fools, then the ads will cease. Edit: sorry, I mis-read your post - I thought you had said the ads had stopped now. Yes, agree!

Some very well-made points - especially about the UK and US being most likely to steal from its citizens. I also, hold FOFOA in high regard and have read what he has written about confiscation but had assumed he was talking about something similar to the US in 1933. Allocated bullion storage is something rather different IMO.

Regarding allocated storage, I know that many are happy with the legal aspects of this and are convinced that it is a secure way to store bullion. My thoughts are that they well be safe today and tomorrow but I wonder what would happen for example in a currency crisis. A private company sitting on many tonnes of gold is going to look an awfully tempting fruit to pick by the State. The legal technicalities are not an obstacle to the State in extremis - if necessary, the law can be changed overnight. I expect many have considered this possibility but it is worth remembering that at the precise time that gold becomes a financial lifeboat, someone bigger than you may grab your seat!

Thanks - I would not say I am wise so much as not born yesterday

I never mentioned kilos or home - just advised against entrusting it to others. Possession in a place that only you know about and can access easily - that can be accomplished in many ways. If you would rather trust someone that you have never met over and above yourself to look after your gold, good luck to you.

Excellent advice from d2thdr. Gold is used to store wealth because men cannot be trusted to keep their promises. Entrusting your gold to others is the height of foolishness - as many will find out in the future.

Gold is money. Three types of people understand this; Central banks Uber rich oligarchs Ordinary people - mainly in Asia and The Middle East - but a growing (albeit small) number of people in the West. You do not appear to understand that gold is money - I hope you can be open to persuasion, as it would be a shame if you lost wealth due to being duped by MSM and banking propaganda.

I am not sure that the motives of people to store wealth in gold and silver are necessarily linked to classic inflation or hyper inflation (although these are highly likely) - just an understanding that whatever happens in the future, (as you point out) - societal breakdown, martial law, war, pandemic, capital controls, two-for-one swap with a new currency - in fact all possible permutations will make people increasingly understand that physical gold is ultimate store of wealth.

Yes, although I backed up the truck several years ago, the idea that it is still possible to get physical gold for fiat - at a rate linked to a fantasy market of paper futures is astonishing.

I agree with this but the problem is; the purchasing power of an ounce of gold fluctuates - say within a month, it may purchase 5 percent more or less than the nominal dollar price of an item. Within this short time frame, a loaf of bread or gallon of fuel will be the same or possibly a bit higher priced in dollars - so some get locked into thinking the Sun orbits the Earth! IMO, only when prices are rising visibly, monthly, will people (some) begin to use an ounce of gold as the reference point. Even more confusingly, when very high inflation starts, the purchasing power of gold will increase faster than the decline of the fiat currency due to gold's universal store of wealth attributes being more valued. Some refreshing insights on your blog BTW.

Not quite sure how that works in the UK where we are massively net importers of energy, food and just about everything else for that matter (although I did recently buy a Henry vacuum cleaner made in England) I still think you are concentrating too much on what joe public thinks/does - it is not that important. Oligarchs, uber rich and other unmentionables own most of everything.