Current Gold Price

[UndercoverElephant]

http://www.atsbullion.com/Contact-Us-sp-7.html

Or Savoy - both silver and gold bars available.

Actually, I'd rather not have to travel home to Brighton from central London with a gold bar in pocket...

ETA: £1092....

Wear a security belt then. Nobody would know you were carrying gold - you would look a bit chubby but sure you can live with that!

Err...I'm 6"3' and weigh eleven stone. It would show.

[Lord Beria3]

http://www.ft.com/intl/cms/s/0/0a1f04d2 ... z1UT0wKSmh

Banks are charging more to store gold after a surge in demand for precious metals has left London, the centre of the global bullion market, short of vault space.

Almost all of the major bullion-dealing banks have raised fees since March this year, in some cases more than doubling the rates they charge for vaulting gold, according to clients of the banks and people familiar with the situation.

The development is a further sign of how demand for assets which are seen as safe is straining the financial system. Bank of New York Mellon announced last week it would start charging fees on large deposits after a sudden influx of cash.

Investors from sophisticated hedge funds to wealthy individuals are turning to gold in an attempt to protect their wealth from the turmoil in financial markets. On Tuesday, the price of bullion surged to a nominal record of $1,778.29 a troy ounce. It has risen 550 per cent in the past decade.

HSBC and JPMorgan along with security companies Brink’s and Via Mat operate commercial vaults in London. The Bank of England has a large vault that is primarily geared to providing services for central banks. Other bullion dealers such as Barclays Capital, Deutsche Bank and UBS sublet vault space.

People are used to storage being a non-issue,” said Jonathan Spall, director of precious metals sales at Barclays Capital. “But demand for physical gold means that vault space is now at a premium.”

Much of the increased demand comes from exchange-traded funds. Investors in ETFs this week boosted their collective gold holdings to about 2,300 tonnes, more than most central banks.

HSBC’s London vault holds the gold of the SPDR Gold Trust, the largest gold ETF, while JPMorgan is the custodian for the largest silver ETF, the iShares Silver Trust.

“The issue seems to be that London is very close to being out of space,” said a banker at a company that has recently raised rates.

Anather sign that the 'physical' price of gold is going up by multiples at the moment even as the future/paper price of gold rises by leaps and bounds every day on the market.

[UndercoverElephant]

http://www.equitymaster.com/dailyreckon ... its-throne

Gold has gone up because smart people know that there is only one money they can really trust. There is only one currency that won't disappear. And there is only one financial reserve that will hold up to a real crisis.

That is gold. Gold is back on its throne - as the world's One True Money. Wise governments, wise investors, and wise families are buying it to protect themselves from the jackasses who run the world's money system.

A few days ago, Ben Bernanke was asked about gold. Ron Paul asked him if he considered it money. 'No,' he said. Gold was just a commodity. Like bauxite or guano.

But now commodities are tumbling. If gold were just a commodity, it should be going down with copper and lead. Instead it is soaring.

Why is that, Ben?

Ha, ha, ha...so you see...the financial world is fun again. Yes, England is smoking from riots. Europe is on the edge of a complete financial meltdown. And America is sinking into depression. But we can still laugh at the morons who rule us. We can guffaw and snicker at the people who are supposed to know what they are doing. We can curl up in spasms of mirth at the knuckleheads who run the world's financial institutions...

I think this is true. Something fundamental has changed in the last few days/weeks, and that is that the number of people out there who actually believe that gold is back on its throne has reached the critical mass required to make it reality. They are still a minority, but they are a big enough minority (perhaps 10% of the population?) to kick-start a much broader realisation in a relatively short time.

[Ludwig]

Anather sign that the 'physical' price of gold is going up by multiples at the moment even as the future/paper price of gold rises by leaps and bounds every day on the market.

Just been watching Max Keiser on Russia Today. One of his co-presenters mentioned that South Korea has been buying up tons of "gold" over the past couple of days; when she said that the gold was in London bank vaults, Keiser virtually whooped with laughter, commented that the London gold market was totally corrupt, and urged the Koreans to take delivery of the gold immediately.

Well worth watching if it's on YouTube. Max Keiser's a bit of a cartoon character, but he knows his economic (and PO) onions and comes out with things no one in the Western MSM dares say.

[kenneal - lagger]

I think you will find post crash that gold will devalue by a huge proportion. Part of the reason that the gold price can go so high is all the cash splashing around the system that has been created by cheap debt. The amount of cash in existence bears no resemblance to anything physical so post crash when physical things like food and fuel and shelter become important again gold will be greatly devalued in cash terms. The inflation that has been missing recently will finally hit and people will find that that gold they bought when beer was £3 a pint and a loaf of bread , £1.50, will only buy a half and a small loaf.

[biffvernon]

+1

[DominicJ]

Ken
Bread may increase by a lot in relation to gold.
But Bread will increase a lot more in relation to paper money.

I've said before, if possible, you would be better with a years food purchased than a gold to purchase a years food, but for many of our sites gold buyers, that isnt possible.

[UndercoverElephant]

I think you will find post crash that gold will devalue by a huge proportion. Part of the reason that the gold price can go so high is all the cash splashing around the system that has been created by cheap debt. The amount of cash in existence bears no resemblance to anything physical so post crash when physical things like food and fuel and shelter become important again gold will be greatly devalued in cash terms. The inflation that has been missing recently will finally hit and people will find that that gold they bought when beer was £3 a pint and a loaf of bread , £1.50, will only buy a half and a small loaf.

Ken,

I have a great deal of respect for most of what you post on this board, but in this particular case you have completely and utterly failed to grasp what is happening. Up until the bolded "so", your post makes sense. Part of the reason gold is going so high is because of all that cash sloshing around the world trying to find a home (and cash as we know it is based upon debt.) After the bolded "so", nothing you've written makes any sense. At what point do you think food and shelter are not going to be important? Does printing lots of paper money mean people eat less and need fewer homes? The serious amounts of inflation that have been missing recently are missing because a lot of the printed money is being hoarded by the banks, rather than circulating. What you don't seem to understand is that if/when this "stored" inflation does actually hit then it will hit the value of the remaining paper money, not the gold. You've got it exactly backwards. At that point that gold will become worth vastly more, not vastly less. In other words, the people who have food to sell would much rather sell it for gold than for the now-recognised-as-worthless fiat money.

The US dollar is no longer the world's preferred reserve currency. That has changed in the last few weeks. Gold is now the world's preferred reserve currency, just like it was for most of the last 2000 years.

I can think of only two scenarios where gold is going to suddenly devalue in the coming years. The first is if you find yourself in the sort of situation currently unfolding in the horn of africa - gold isn't much use if you are stuck in the middle of a terrible famine and there's nobody who can sell you food even if you've got a gold bar (although they'd still be happy to steal the gold bar from you). The second is if a meteorite half a mile across, and made entirely of gold, hits the Earth.

[UndercoverElephant]

Ken
Bread may increase by a lot in relation to gold.
But Bread will increase a lot more in relation to paper money.

Exactly.

I've said before, if possible, you would be better with a years food purchased than a gold to purchase a years food, but for many of our sites gold buyers, that isnt possible.

Not unless I buy a warehouse first, no. One of the attractions of gold is that it doesn't take up much space, and it doesn't go off.

[DominicJ]

Hence the "if possible" bit

[ujoni08]

UE is spot on. Ken and Biff are respected members of the forum, and have made excellent contributions, but I think are calling this one the wrong way. I can't KNOW this in the strong sense, but I think it, based on what I have read and understood. What Ken says about food, etc. is true, but I believe that fiat money will buy even less food, and gold will shine through, as it can't be printed, and holds a timeless value. A new system of bartering may emerge, where coinage is king again, and promisory notes are no longer trusted.
Just my views,
Jon

[Lord Beria3]

http://www.zerohedge.com/news/gold-expl ... -over-1787

Gold in sterling hits over 1,100 this evening.

http://www.financialsense.com/financial ... d-we-trust

Great interview on potential future rises of gold. A very long report can be downloaded for free from the same page for those interested.

Jim Puplava welcomes to Financial Sense Newshour analyst Ronald Stoeferle of the Erste Group in Austria to discuss a return to sound money and gold price targets of $2300, $5000 and $10,000 per oz. Please click here for the "In Gold We Trust" special report from Ronald Stoeferle.

About a month ago we discussed on this thread about giving a last minute warning to people to buy physical gold when it was still available. Well, the physical mints and dealers are now running out of physical gold (as UE can confirm), prices are rising every day so you can't say you weren't warned.

[UndercoverElephant]

[UndercoverElephant]

We have long been wondering if one day the cashpoints would just stop working. Maybe that day will still come, I don't know. But another sort of cashpoint just stopped working. It is no longer possible to buy gold bullion online in the UK for immediate delivery. The bullion dealers have either stopped taking orders or are asking for 3/4 months to fulfil them, by which time the rise in the price of gold is likely to make them unwilling to hand over the metal at prices from 4 months ago.

Maybe Harrods and the Savoy still have some left, but I suspect the premiums are shooting up fast and that even they will run out of stock before long.

This also means that the official gold price has become a joke. The price discovery mechanisms used by the paper/electronic market do not take account of what is going on in the physical market - it does not take account of the relative number of people wanting to buy and sell at a given price. If it did, then the price would already be heading towards £1500 an ounce.

[Snail]

You can still get sovereigns from thegoldbullion . co.uk for £290. When i last ordered not that long ago, they were only £236! I'm going to buy a couple later and that'll do me. The price has dipped a little to £1084 but i can't see it going down any more. Have to admit, until people started regulary talking about pm's here i was skeptable. Thanks for providing the information to change my mind.