Current Gold Price

[UndercoverElephant]

The purpose of banning gold notes and banning the private ownership of significant amounts of gold was to preserve confidence in the US dollar. It worked, at least to a degree.

Without the bans, it seems probable that the US dollar would have collapsed and that physical gold, and privately issued "banknotes" backed (allegedly) by gold would have taken over.

This is how fiat currencies die. There's a short book (out of copyright, free to download) that explains exactly how it happened in revolutionary France: https://mises.org/library/fiat-money-inflation-france

The problem is confidence itself. Once people start doubting the future of a fiat currency, it is usually doomed. It does not matter how hard the authorities try to secure that confidence. For example, in revolutionary France a law was passed such that when any sort of transaction was about to take place, if a person asked the question "What currency will this transaction take place in?", the penalty was death by guillotine. But it still didn't work, and the reason was that the very existence of such a law erodes confidence even more. You cannot force people to have confidence in a failing fiat currency by passing laws. It's like trying to legislate against the laws of physics.

Fiat currencies always fail in the end, and the thing that always kills them off is the existence of gold and silver bullion, whether it is freely traded with the price going to the moon, or whether it is prohibited. This time really is different, but only because we have a global system of fiat currencies floating electronically against each other.


Currently at an all time high of £1555/$2040.

https://www.bbc.co.uk/news/business-53660052

Gold has topped $2,000 (£1,527) an ounce for the first time as traders look for havens amid the pandemic.

Investors have moved cash into the precious metal as Covid-19 cases rise in the US and more money is pumped into the global economy.

The record high gold price has also been driven by concerns over tensions between Washington and Beijing.

My prediction is that the price of gold is eventually going to go much higher, and at some point there will have to some sort of major restructuring of the whole system. If so, that moment will surely be a critical turning point in the process of global collapse - it will be the beginning of the end of globalisation as we know it.

[kenneal - lagger]

Silver is on its way up as well at £20/oz against a fifty year high of £29 in early 2011. The previous high before that was £127.43 in February 1980. The 50 year graph and any others can be seen here.

I'm now in profit on my gold and silver purchases although they weren't bought as an investment. I was thinking of buying some more silver earlier on in the pandemic and didn't so I will wait a bit before I buy any more that is if I do buy any more. As you have probably noticed I'm not decisive enough to make a living dealing in bullion!!

Gold is on it way down a little at £1548 over today's high of £1562.99. The days price graph can be seen here.

[kenneal - lagger]

The following is advise on gold from a silver billionaire in Southbank Investment Daily -

Thomas Kaplan has a warning for gold investors.

The billionaire founder of Apex Silver Mines sat down for an interview with Kitco last Friday, in which he said of the gold industry:

“I look at the gold industry itself, and I see something that is very, very challenged,” he said.

“What I see within this industry is something where you don’t have new discoveries, where the majors are burning through reserves faster than they can replace them. We’re seeing that with Newmont, we’re seeing that with Barrick, we’re seeing that with just about everybody.”

“The truth is, if you make a discovery today, it’s probably going to take you 20 years to take it to the point where it’s producing something.”

With gold miners struggling to produce as central bankers chip away at paper money’s value and industrial use climbs, Kaplan sees a perfect storm for gold ahead

On that basis it would seem that if you have any gold you should hang onto it for now.

[adam2]

IMHO, ANY private holding of gold should be held onto for now.
The precious metal is in my view a preperation for an uncertain future, and should therefore be held until paper money becomes untrustworthy.

Attempting to buy gold when it is cheap and re sell when it is expensive sounds attractive, but in the long run you are unlikely to beat the market.
Consider gold as a prep and not as an investment.

BTW, this reminds me of a story from pre war Germany when paper money inflated to near worthlessness. Someone had a vast supply of smaller banknotes and decided to take them to a bank to change for larger notes.
The low value notes filled a large wicker laundry hamper, this they left outside the bank whilst making enquiries, considering theft to be unlikely.
When they emerged from the bank, someone had stolen the laundry hamper, tipping the near worthless banknotes out on the road.

[UndercoverElephant]

https://www.bbc.co.uk/news/business-55882758

GameStop investor battle moves on to silver as prices surge

Oh yes.

[adam2]

What could possibly go wrong !

[kenneal - lagger]

I think that these people are being manipulated by a few others who are making a lot of money out of the naivete of many. Just as the hedge funds profit from shorting, there are many others who profit from the increasing price. It's a form of insider trading; you buy up loads of shares in a cheap company and then persuade a load of "activists" to give the hedge funds a bloody nose and buy up the shares so that you can profit when the price rockets. Same with silver!!

[UndercoverElephant]

https://www.zerohedge.com/markets/unpre ... er-weekend

Update (1345ET): The shortage of physical silver is exposing a tear in the precious metals market unlike any we have seen before.

As we detailed below, various executives from bullion dealers have explained that huge demand has left them with no supply (and no source) for physical silver.

Kaboom!

[kenneal - lagger]

Now if they wanted to do some real damage they could expose the same problem of a lack of physical resource in the gold market.

[UndercoverElephant]

Now if they wanted to do some real damage they could expose the same problem of a lack of physical resource in the gold market.

Yes. This is testing the water.

[UndercoverElephant]

Just uploaded to youtbued

https://www.youtube.com/watch?v=yg3XOqit09Y

What Does A Silver Panic Look Like? | Veteran Gold & Silver Dealer Recounts Past Buying Frenzies

[BritDownUnder]

Now if they wanted to do some real damage they could expose the same problem of a lack of physical resource in the gold market.

Next thing people will be printing on bits of paper "I promise to pay the bearer on demand" so that people can always go to the bank and get their gold, safely tucked away in the bank when they want it.

Now that would really be a silly idea. Wait - isn't that what banknotes are?

[kenneal - lagger]

.............. isn't that what banknotes are?

Were!!

[adam2]

Now if they wanted to do some real damage they could expose the same problem of a lack of physical resource in the gold market.

Next thing people will be printing on bits of paper "I promise to pay the bearer on demand" so that people can always go to the bank and get their gold, safely tucked away in the bank when they want it.

Now that would really be a silly idea. Wait - isn't that what banknotes are?

" I promise to pay the bearer on demand, at Fellbridge camp, one hundred gallons of petrol"
" Trust Greg Preston, trust his petrol notes"

[clv101]

This thread has been very quiet for almost a year... as has the gold price. Just drifting around $1800 /oz for a year. Why so stable given what's going on in the world? As inflation picks up I'd be expecting the price to rise, but doesn't seem like there's been any significant increase in demand?

Through 2019 to mid 2020 gold rose from $1250 to today's $1800, +45% in 18 months! Why did that rise happen then? Could such a rise happen again?