Steve Netwriter Posted May 24, 2008 Report Share Posted May 24, 2008 I noticed on Thursday Sun Newspaper, there was a advert from Austin Kaye [www.austinkaye.co.uk] near the front of the paper, on page 6, they are paying "INSTANT CASH FOR YOUR UNWANTED GOLD - SELL NOW WHILE GOLD IS AT AN ALL TIME HIGH!" Questions 1. Why would they buy your gold if the gold pricecould fall? 2. Do they melt it down and sell it on ? 3. If these adverts are getting more common place is it time to SELL, BUY or HOLD? They buy any gold jewellery - says Krugerrands, Sovereigns etc. I think the simple answer is they make money on buying cheap and selling at a higher price. It doesn't really matter what the long-term price trend is, they presumably buy and sell fairy quickly, as that's where they get their money from. Not from buying and holding onto it. That's my guess anyway. In a way it's no different to something like Gold Money or Bullion Vault, or any dealer. They make money on the buying and selling, just like an estate agent Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 24, 2008 Author Report Share Posted May 24, 2008 Did you listen to hour 1 ? I think I need to listen to that again. The bit that struck me was something like "Yes there is a bubble. There is a bubble of the US$, which is about to burst" ! Given the rest of that hour, that seems to make a lot more sense than any suggestion that gold is in a bubble. As they said, is the price going up while supply is growing ? ... Yes, I think James Turk said that. And, to add a little from Schiff, it's the USD and USD denominated bonds, of course. Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 24, 2008 Author Report Share Posted May 24, 2008 I think the simple answer is they make money on buying cheap and selling at a higher price.... And in the a general bull market, the earlier they buy and the longer they hold on to it, the better. I pity all these people who exchange their gold for ... paper! Link to comment Share on other sites More sharing options...
cazlane Posted May 24, 2008 Report Share Posted May 24, 2008 STC, good to see you all well. I see your comments are of an as high quality as usual. Tell everyone over at HPC my best wishes. GF Why thank you kind sir...it was sarcasm btw I think the simple answer is they make money on buying cheap and selling at a higher price. It doesn't really matter what the long-term price trend is, they presumably buy and sell fairy quickly, as that's where they get their money from. Not from buying and holding onto it. That's my guess anyway. In a way it's no different to something like Gold Money or Bullion Vault, or any dealer. They make money on the buying and selling, just like an estate agent That is about the size of it-most brokers/dealers will pay less than what they'll sell for ie there is a spread on buy/sell. Interesting question regarding silver a couple of pages ago-as some know i prefer it to gold not least because it is more utilitarian and ergo a better investment armageddon notwithstanding. Mitsui mining recently released information stating that they have developed catalytic converter technology using this instead of Plat group metals but as far as I can ascertain only for Diesels so far-anyone know any more about this? Edit: http://uk.reuters.com/article/rbssIndustry...T26231020080423 To add an article with some info-your thoughts appreciated on the scope/potential etc Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 24, 2008 Author Report Share Posted May 24, 2008 Why thank you kind sir...it was sarcasm btw ... To add an article with some info-your thoughts appreciated on the scope/potential etc You're welcome. Yes, this has been discussed before, and I think it applies to Diesels. It's certainly good for silver, but won't be that substantial short term, is my guess. I am very bullish on silver anyway: for every one ounce gold, I own 50 odd ounces of silver. I see it as my more speculative position. Link to comment Share on other sites More sharing options...
notanewmember Posted May 24, 2008 Report Share Posted May 24, 2008 I think the simple answer is they make money on buying cheap and selling at a higher price. It doesn't really matter what the long-term price trend is, they presumably buy and sell fairy quickly, as that's where they get their money from. Not from buying and holding onto it. That's my guess anyway. In a way it's no different to something like Gold Money or Bullion Vault, or any dealer. They make money on the buying and selling, just like an estate agent OK, I suspect dealers are making good money, so can afford to pay for a advert in the nations main tabloid and near the front. It was odd because it was a independent retailer who could front the cost. Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 24, 2008 Author Report Share Posted May 24, 2008 Financial Sense Newshour radio show works now (all links). Link to comment Share on other sites More sharing options...
narco Posted May 24, 2008 Report Share Posted May 24, 2008 Looks like a good week for PM's coming up and a bad one for the financials. Silver looks especially bullish and I'm already loaded up. BTW. Check out AMBAC and MBIA. Looking just about ready for the graveyard. http://finance.yahoo.com/echarts?s=ABK#symbol=ABK;range=1d http://finance.yahoo.com/echarts?s=MBI#symbol=MBI;range=1d Link to comment Share on other sites More sharing options...
Steve Netwriter Posted May 24, 2008 Report Share Posted May 24, 2008 I think the James Turk bit is an amazing summary of the situation. Audio from Financial Sense 24 May 2008: 1st hour: James Turk at 1:03 http://www.netcastdaily.com/broadcast/fsn2008-0524-1.mp3 At 1:12:50 onwards. "Seeing lots of physical buying. Demand continues. People really want to own physical metals. The real bubble..... is the US$. Everyone uses it and accepts it...without looking at the fundamentals. That's when you know you're in a bubble. This is the bubble that's popping now. A 35 year experiment of fiat money not backed by anything. What's happening around the the world is a direct result of the US. The US$ is still the world's reserve currency. M3 is growing by 17%/year. It's not a shortage of commodities, but a surplus of money. The first thing you see is people moving into real things. This rush to commodities is now a global one because the US$ is the world reserve currency. " Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 25, 2008 Author Report Share Posted May 25, 2008 ... BTW. Check out AMBAC and MBIA. Looking just about ready for the graveyard. ... Seriously, I think they are in it already for quite a while. Claiming anything else would be a joke. I wonder how long the Masters of the Universe will be able to keep up this illusion. Link to comment Share on other sites More sharing options...
ConvertedGoldBug Posted May 25, 2008 Report Share Posted May 25, 2008 "Seeing lots of physical buying. Demand continues. People really want to own physical metals. The real bubble..... is the US$. Everyone uses it and accepts it...without looking at the fundamentals. That's when you know you're in a bubble. This is the bubble that's popping now. A 35 year experiment of fiat money not backed by anything. What's happening around the the world is a direct result of the US. The US$ is still the world's reserve currency. M3 is growing by 17%/year. It's not a shortage of commodities, but a surplus of money. The first thing you see is people moving into real things. This rush to commodities is now a global one because the US$ is the world reserve currency. " This is interesting, but I've got a different angle on this, and can also understand the arguments about whether commodities are currently in an overbought bubble. It's the statement "this rush to commodities", which sums it up nicely... surely commodity prices should always be fundamentally based on supply and demand. They're not like shares in businesses, where businesses make money, increase profits, and thereby see the share price go up as a result. It's simply supply and demand, so when we see comments like "the rush to commodities", surely that is explicitly stating that prices are skyrocketing due to speculative money, rather than as a result of normal trading based on how much is available, and who needs it. For example, I've got investments in Energy and Food ETF's, therefore I presume I'm contributing to price rises, and as a result causing this to have a knock-on effect on these items that I buy as a consumer. So this is also happening with the hedge funds and institutions investing in this area. Link to comment Share on other sites More sharing options...
G0ldfinger Posted May 25, 2008 Author Report Share Posted May 25, 2008 Found on GIM: This article ... sounds bullish for silver at the moment and into the future according the writer of this....who ever that is. Originally Posted by 100orbust View Post The Mother of All Chart Patterns... It's coming folks. It's big, its powerful and will not be denied. I've been charting for over 20 years and have mapped out hundreds of viable chart patterns. There are really only a few worth trading or taking a position on. During a strong-sustained bull market, there will often be several chart patterns of different degrees unfolding. These chart patterns, though each unique and independent sometimes transpire (make-up) a much larger pattern. In Silver's case, the sum of the parts continue to manifest into one of the most raging bull patterns I've witnessed during this time period. I don't say this lightly, for there have been a number of extraordinary moves which have exploded from various chart patterns over the past two decades. If I am correct in my interpretation then there is very little time left before this pattern is complete. If the pattern continues to unfold as expected, we will have very little in the way of corrections remaining. This last correction from $21 to $16 completed a major turning point within the pattern and served the purpose of shaking out a number of long speculators. From here on out, it is pretty much all upside. We'll still experience some pull-backs and corrections but they will only occur to alleviate an overbought condition on the technicals, after that, it won't matter what the technicals say. The cyclical lows have come early and we'll soon have all 3 up-trends (short, intermediate and long) in phase with each other. There will not be any counter currents pulling against these trends. There are still a few turning points which have to hit but the time-line is shrinking considerably due to the convergence of the boundaries. This is just a rough estimate, but if you wish to buy Silver under $25, you may have only until August of this year. Then it will be too late. When I say too late, you may never see Silver in the teens again in your life-time. Since I am using historical charts based on monthly data, I have to account for some margin of error. ... Today's climate is much different, there is no comparison between the fundamentals in 1980 as today. The ETF's already hold as much physical silver as the Hunt's and we have only 1/5th of the above ground supply as back in 1980. The economy, the financial-banking institutions and currency were not on the brink of collapse. Inflation was rampant as we are seeing the early stages now, but unlike 1980, there is no opportunity to hike rates without sending the economy into a deep depression. ... Time is running out and unfortunately, time is against us. The Silver Bull is maturing and though in the making of 6 years, it is not of coincidence the pattern completes at the time when risk of global economic collapse is a real possibility. If you do not already own physical silver, you do not have to bet the farm...make average size purchases and don't be afraid to buy on strength as Silver moves higher. If I'm wrong, you've bought a shiny metal with intrinsic value, if I'm right you have made possibly the best investment of your life. http://goldismoney.info/forums/showpost.ph...mp;postcount=12 Link to comment Share on other sites More sharing options...
Pixel8r Posted May 25, 2008 Report Share Posted May 25, 2008 I think the James Turk bit is an amazing summary of the situation. Audio from Financial Sense 24 May 2008: 1st hour: James Turk at 1:03 http://www.netcastdaily.com/broadcast/fsn2008-0524-1.mp3 At 1:12:50 onwards. "Seeing lots of physical buying. Demand continues. People really want to own physical metals. The real bubble..... is the US$. Everyone uses it and accepts it...without looking at the fundamentals. That's when you know you're in a bubble. This is the bubble that's popping now. A 35 year experiment of fiat money not backed by anything. What's happening around the the world is a direct result of the US. The US$ is still the world's reserve currency. M3 is growing by 17%/year. It's not a shortage of commodities, but a surplus of money. The first thing you see is people moving into real things. This rush to commodities is now a global one because the US$ is the world reserve currency. " Have you read his book "The collapse of the dollar and how to profit from it". What he is saying now is a repeat of everything that's in the book, which was written in 2004. There is an updated 2007 paperback version out now. http://www.amazon.co.uk/Collapse-Dollar-Ho...5240&sr=8-1 Link to comment Share on other sites More sharing options...
Steve Netwriter Posted May 25, 2008 Report Share Posted May 25, 2008 Not yet ! It's in my "shopping cart" for when I get round to ordering it. And the latest edition is cheaper than the original ! Link to comment Share on other sites More sharing options...
alexreeve Posted May 25, 2008 Report Share Posted May 25, 2008 Have you read his book "The collapse of the dollar and how to profit from it". What he is saying now is a repeat of everything that's in the book, which was written in 2004. There is an updated 2007 paperback version out now. http://www.amazon.co.uk/Collapse-Dollar-Ho...5240&sr=8-1 The 1st release of the book was called "The coming collapse of the dollar (and how to profit from it)", love the way they've dropped the word "coming" from the title. Very good book imo Link to comment Share on other sites More sharing options...
safebetter Posted May 26, 2008 Report Share Posted May 26, 2008 QUOTE (Steve Netwriter @ May 24 2008, 02:18 PM) I think the simple answer is they make money on buying cheap and selling at a higher price. It doesn't really matter what the long-term price trend is, they presumably buy and sell fairy quickly, as that's where they get their money from. Not from buying and holding onto it. That's my guess anyway. In a way it's no different to something like Gold Money or Bullion Vault, or any dealer. They make money on the buying and selling, just like an estate agent OK, I suspect dealers are making good money, so can afford to pay for a advert in the nations main tabloid and near the front. It was odd because it was a independent retailer who could front the cost. On this subject my local rag has run this advert twice: This one was run just at the last >$1000 peak: Not in the 10 years that I've been reading my local paper have similar adverts been run, I think we are at the start of the mass public awareness stage. I agree that these guys always want gold from you at a lower price - but I think they are cashing in before they are pushed harder by joe public once awareness of the real price sets in. May be I will go the 28th event to see what I get offered for a Krug!! SafeBetter Link to comment Share on other sites More sharing options...
safebetter Posted May 26, 2008 Report Share Posted May 26, 2008 Some interesting articles from Kitco if you haven't seen them, the last three are 2 weeks old - been busy working! http://www.kitco.com/ind/degraaf/may192008.html http://www.kitco.com/ind/Cassimatis/may132008.html - sensible analysis I thought - I was looking for views of the bottom in addition to Jim Sinclairs. http://www.kitco.com/ind/schwensen/may132008.html - plus some comments on the Juniors underperformance http://www.kitco.com/ind/katz/may132008.html Just as a final note I have to agree with posters here that Jon Nadler is so biased in his view and outlook on gold/silver. At first when folk on here were down on him I thought it was a bit unfair, but as I think GF recently said given his position as chief analyst @ Kitco one has to wonder about his motives & his credibility. SafeBetter Link to comment Share on other sites More sharing options...
safebetter Posted May 26, 2008 Report Share Posted May 26, 2008 It must be bad, even George Soros is struggling to make money http://www.telegraph.co.uk/money/main.jhtm.../ccsoros126.xml Watch the videos if you have time SafeBetter Link to comment Share on other sites More sharing options...
notanewmember Posted May 26, 2008 Report Share Posted May 26, 2008 QUOTE (Steve Netwriter @ May 24 2008, 02:18 PM) I think the simple answer is they make money on buying cheap and selling at a higher price. It doesn't really matter what the long-term price trend is, they presumably buy and sell fairy quickly, as that's where they get their money from. Not from buying and holding onto it. That's my guess anyway. In a way it's no different to something like Gold Money or Bullion Vault, or any dealer. They make money on the buying and selling, just like an estate agent On this subject my local rag has run this advert twice: This one was run just at the last >$1000 peak: Not in the 10 years that I've been reading my local paper have similar adverts been run, I think we are at the start of the mass public awareness stage. I agree that these guys always want gold from you at a lower price - but I think they are cashing in before they are pushed harder by joe public once awareness of the real price sets in. May be I will go the 28th event to see what I get offered for a Krug!! SafeBetter I was speaking to someone who remembers the last gold craze. I cant remember what year this happened, but Jewish dealers were buying gold off people by weight with their portable scales, in a gathering place on the streets of London. I can't remember the name of this street. Old grannies gave up their gold pieces for cash, BUT the dealers got even a better deal because they bought antique gold, which hadn't seen daylight for many years, it was worth far more than its weight in gold. Link to comment Share on other sites More sharing options...
ologhai Posted May 26, 2008 Report Share Posted May 26, 2008 I don't think I remember New York trading to result in so little movement before... What happened to the regular huge swings? Link to comment Share on other sites More sharing options...
narrowescape Posted May 26, 2008 Report Share Posted May 26, 2008 I don't think I remember New York trading to result in so little movement before... What happened to the regular huge swings? Today? http://en.wikipedia.org/wiki/Memorial_Day Link to comment Share on other sites More sharing options...
azazel Posted May 26, 2008 Report Share Posted May 26, 2008 hi guys!! Anyone know why thebulliondesk.com is quoting 929 spot and bullionvault charts are showing 926? Link to comment Share on other sites More sharing options...
marmite Posted May 26, 2008 Report Share Posted May 26, 2008 This is an interesting article http://news.bbc.co.uk/1/hi/business/7371795.stm Pawn shops thrive as credit tightens "If I buy gold, then I can use it as back-up if I need some money quickly," she says, putting the ring straight on her finger. Link to comment Share on other sites More sharing options...
enrieb Posted May 27, 2008 Report Share Posted May 27, 2008 Faster banking transfers underway 23:20 GMT, Monday, 26 May 2008 00:20 UK http://news.bbc.co.uk/1/hi/business/7417303.stm A banking scheme for one-day cash transfers over the telephone or on the internet has started. The scheme will speed up the process which previously saw money transferred between banks disappearing into a black hole for up to four days. Banks made an estimated £30m a year in interest from the delay last year. The £300m Faster Payments Service, developed by 13 banks, starts on 27 May although only a fraction of payments will be quicker from day one. Does this amount to an increase in the velocity of money? Link to comment Share on other sites More sharing options...
Steve Netwriter Posted May 27, 2008 Report Share Posted May 27, 2008 This is an interesting article http://news.bbc.co.uk/1/hi/business/7371795.stm Pawn shops thrive as credit tightens "If I buy gold, then I can use it as back-up if I need some money quickly," she says, putting the ring straight on her finger. Rates of interest vary little across the industry, with most pawnbrokers charging 8% a month - £8 on a £100 loan. "It's less than going into an unauthorised overdraft in the short-term," Mr Milligan says. In the longer term, however, borrowing money from a pawnbroker is expensive. The annual rate of interest is more than 100%. :blink: Yes, very interesting, cheers Link to comment Share on other sites More sharing options...
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