Gold

[BingBong]

I have a vested interest in the gold price. Back at New Year, there was astonishment when it finished 2023 at $2,000/ounce Troy. A few weeks ago, disbelief as it exceeded $2,600. Today, it peaked at tree-fiddy short of $2,700.

Paradoxically, this is not great news. It means that the fiat currencies of the world are crumbling at an ever faster pace - and that means all currencies, in practice. I had a habit of buying a Sovereign or two from time to time; for months, I've waiting for the price to take a big dip. But, no. It just keeps going up.

It's one of the reasons for my TAD. Tobacco prices don't dip, in general. Whatever excess we buy now will cost more in a year's time, so why not?

I'm not making any recommendations here, just saying. With my eyes bulging in shock somewhat.

 

[camaguey]

With the USA debt in trillions , it is normal that people do not feel as safe with the dollar as before. Hence the increase in gold price.

 

[VDL_Piper]

It's close to a pull back I'd say. Market probably want $2800.00 and a U.S election put to bed before it settles a bit but this will depend on who the victor is. A donkey wins and the price will not rest, an elephant's win will see it retreat and that's as far into U.S. politics as I want to delve...................

 

[Servant King]

While gold keeps setting record highs (I think we're somewhere in the neighborhood of 30 just in this year alone), its younger brother silver is flying below the radar, as though ready to ride gold's coattails. It's an incredible value right now...I mean, can anyone think of anything at all that currently comes at a 40% discount to its price in 1980? I certainly can't. I think silver will ultimately outperform gold in the long run, but with perpetual currency/credit expansion basically a given, I can't see any reason to treat precious metals any differently than pipe tobacco. At least in terms of stockpiling--who the hell among us has had success cube-cutting a Franklin half-dollar?

 

[VDL_Piper]

While gold keeps setting record highs (I think we're somewhere in the neighborhood of 30 just in this year alone), its younger brother silver is flying below the radar, as though ready to ride gold's coattails. It's an incredible value right now...I mean, can anyone think of anything at all that currently comes at a 40% discount to its price in 1980? I certainly can't. I think silver will ultimately outperform gold in the long run, but with perpetual currency/credit expansion basically a given, I can't see any reason to treat precious metals any differently than pipe tobacco. At least in terms of stockpiling--who the hell among us has had success cube-cutting a Franklin half-dollar?

It will if Goldman Sachs has any say and they will have their say!

 

[BingBong]

With the USA debt in trillions , it is normal that people do not feel as safe with the dollar as before. Hence the increase in gold price.

Unfortunately, owing to the "paper" gold futures system, the price is almost completely isolated from supply and demand in the real world. This is true of all precious metals; silver and platinum are in physical shortfall and have been for a while, but the spot prices are in their own little world. One day, the chickens will come home to roost when everyone demands physical delivery...

 

[VDL_Piper]

Yes this paper trade stuff is problematic and the are doing it on everything, CBOT (Chicago Board of Trade) handles all the Ag stuff such as corn and soybeans and the paper trade is breathtaking and not a single grain is delivered anywhere.

 

[Sigmund]

The biggest driving force for the price of gold increasing is inflation. Everytime there is high inflation the cost goes up and the world has just gone through a huge infationary period. It doesnt mean paper currency is any less safe than it was 20 years ago, 10 years...3 years. Investors drive the cost of gold more than folks fearing money will become useless.

 

[woodsroad]

None of these metals even begin to compare to ammunition. I recently sold a case of surplus 7.62x54r, that I paid $50 for 15 years ago, for $450. That’s impressive, but not as impressive as the values on some rifles. Guns that I paid $15 for (in lots of ten) in the late 90’s are fetching in excess of $600.

Better yet was the pallet of phosphated dishwasher detergent that I paid .25 cents on the dollar for, back when phosphates were banned, and sold it for 4x retail on eBay.

People are drawn to shiny metals and tulip bulbs, but there is money to be made everywhere.

 

[cosmicfolklore]

The Feds just dropped the interest rates as the rate of inflation has started to have affect and flatten out. The trick for that to work is to drop the rates, just before it flattens, which always drives uncertainty in the markets, especially real estate... which then drives up gold prices.

This happened just after the recession in the 80's. Gold spiraled out of control, which then drove people to buy more and more gold. This was the wave that my dad rode in establishing a chain of jewelry store at that time.

I don't know about the currencies of the world crumbling. I've heard these prophets of the markets all of my life. Even in the 80's, there would be these doomsday people going on about the prices of gold. I use a private lender for my real estate ventures, and he is one of these that emails out doomsday prophecies about the metals market. I read them about as seriously as I would a horoscope.

Obviously when interest rates fall, gold goes up. This has been a natural correlation for hundreds of years. And, anyone keeping up with the news knows that interest rates were just lowered earlier this week.

No need to crawl in the bunkers with your survival hoard just yet.

 

[BingBong]

The Feds just dropped the interest rates as the rate of inflation has started to have affect and flatten out. The trick for that to work is to drop the rates, just before it flattens, which always drives uncertainty in the markets, especially real estate... which then drives up gold prices.

This happened just after the recession in the 80's. Gold spiraled out of control, which then drove people to buy more and more gold. This was the wave that my dad rode in establishing a chain of jewelry store at that time.

I don't know about the currencies of the world crumbling. I've heard these prophets of the markets all of my life. Even in the 80's, there would be these doomsday people going on about the prices of gold. I use a private lender for my real estate ventures, and he is one of these that emails out doomsday prophecies about the metals market. I read them about as seriously as I would a horoscope.

Obviously when interest rates fall, gold goes up. This has been a natural correlation for hundreds of years. And, anyone keeping up with the news knows that interest rates were just lowered earlier this week.

No need to crawl in the bunkers with your survival hoard just yet.

When interest rates went up after years of almost zero, gold went up too, breaking the rule this time. Governments have to inflate currencies to devalue their debts; retaining wealth is the issue for us. Precious metals are one way.

 

[cosmicfolklore]

When interest rates went up after years of almost zero, gold went up too, breaking the rule this time. Governments have to inflate currencies to devalue their debts; retaining wealth is the issue for us. Precious metals are one way.

Precious metals have always been a smart way to diversify your wealth, along with real estate. Gold is not tied to currencies per se. There are reactions that the markets will have in correlations, but no direct ones. As of late 1990's or early 2000, no country in the world uses gold as a standard. So, this is really the first time there is no direct ties between gold and inflation any more. Just the drive to invest.

 

[cosmicfolklore]

However, when silver goes up irrationally, it is smart to slow down investments in bonds (or cash out). This means that banks are transferring a lot of funds at once, because banks use silver to trade amongst themselves. This is a dirty little metals market secret. Ahh, actually, I'm not even sure it's secret anymore.

 

[Sigmund]

Stability is a myth. Everything is always in flux. People want to go back to things like the gold standard but having such did not prevent massive economic disasters. The end of the world is always coming according to someone.

Gold has to change prices. If it didnt most people would not invest in it. Its just another vehicle to contain wealth.

If such an end of the world comes gold isnt likely to be much use. Canned goods will be pretty handy.

 

[woodsroad]

Canned goods will be pretty handy.

And firearms/ammo.
During covid and when we last changed presidents, decent 9mm ammo went from .16 cents a round to a buck, so you can imagine what a real crisis would do.

After Sandy Hook, a similar spike occured, with 20rd G3 magazines going for $40. The same magazines were selling for $1 (in lots of 100) only 5 years prior.

Ammo is the precious metal of the future.

 

[cosmicfolklore]

Canned goods will be pretty handy.

Silver would be better for trade, if we are talking apocalyptic situation. Gold would only be good for massive wealth exchanges, like real estate and whatnot. Silver can work for everyday goods.

Ammo seems to be in flux because of fearmongering in certain circles.

However, we were talking about getting rid of cash in lieu of digital currencies in a thread a month or so ago. But, the hurricanes reminded us that when electricity and internet are made inaccessible, cash is all anyone can use. Cash is still king.

And, lets not forget that we stopped relying on ground based towers for massive internet and GPS systems a few decades ago, because everyone was all, "modern technology uses higher tech satellites now." Then we allowed Russia to deploy orbit based weapons that could take out all satellites, and they beefed up their ground networks. Internet and technology is way more vulnerable these days, and cannot be 'banked" on to be the standard. Doing sop is stupid.

 

[BingBong]

Silver would be better for trade, if we are talking apocalyptic situation. Gold would only be good for massive wealth exchanges, like real estate and whatnot. Silver can work for everyday goods.

Ammo seems to be in flux because of fearmongering in certain circles.

However, we were talking about getting rid of cash in lieu of digital currencies in a thread a month or so ago. But, the hurricanes reminded us that when electricity and internet are made inaccessible, cash is all anyone can use. Cash is still king.

And, lets not forget that we stopped relying on ground based towers for massive internet and GPS systems a few decades ago, because everyone was all, "modern technology uses higher tech satellites now." Then we allowed Russia to deploy orbit based weapons that could take out all satellites, and they beefed up their ground networks. Internet and technology is way more vulnerable these days, and cannot be 'banked" on to be the standard. Doing sop is stupid.

One goodly-sized solar flare, the whole lot's cooked. Then rich soil, seeds, breeding stock would be the wealth.

I have lots of canned goods. Well, tobacco.

 

[sablebrush52]

All very interesting. If the currencies of the world crumble and there is a depression, you can kiss your gold values farewell. That's what happened in 1929 when the US economy collapsed. Price of gem grade diamonds went from about $2000 to $50 a carat. Like Bitcoin, gold as a measure of value is entirely illogical, you can't eat it or fuck it, so severe changes in economic conditions can affect its utility and therefore its value. Prognostications are always entertaining, and often wrong

 

[cosmicfolklore]

That's what happened in 1929 when the US economy collapsed.

No longer is any currency in the world tied to gold or silver. The reason gold became worthless, was that our money became worthless, because of a stupid gold standard. We've taken precautions to make sure that never happens again. For those that didn't notice, the world's currencies became intertwined 20 years ago. Any information about currency before 1999 is pretty much moot now.

 

[Servant King]

you can't eat it or fuck it

Is that a challenge I hear?