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Gold Smash Leads to Surge in Demand For Coins, Bars Around World; Another buying window. Property investors need not apply
Topic Started: 24 Jul 2015, 11:56 AM (13,595 Views)
Andrew Judd
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Jimbo
26 Jul 2015, 09:29 PM
I have already answered your question but I will answer it again.

If you bury 20 tins of baked beans in your back garden, you can eat for twenty days.

But what if your neighbour saw you bury the 20 tins and pinched them?

What if you decided to store your wealth in numbers on a screen?

Or store your wealth in a theoretical value based on market sentiment?

It really is that simple.

I am still not understand what point you were wanting to make.

Yes we can lose everything. And??

>>>>>>>We all believe that we have stored fiat waiting to be spent at some time in the future. But the reality is, that todays stored fiat has to be exchanged for real goods and services tomorrow.
Edited by Andrew Judd, 26 Jul 2015, 09:43 PM.
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Jimbo
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Andrew Judd
26 Jul 2015, 09:34 PM
I am still not understand what point you were wanting to make.

Yes we can lose everything. And??
My point is very simple.

If you live on baked beans, you can only guarantee your lifetimes requirement for beans by having beans physically in your possession.

Numbers on screens may buy you beans today, but they may not buy them in the morning.

It's a simple fact that most seem to overlook.

If you want to prosper in life, be armed with all of the facts.

I have just given you an extra weapon.

Thank me.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Andrew Judd
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Jimbo
26 Jul 2015, 09:47 PM
My point is very simple.

If you live on baked beans, you can only guarantee your lifetimes requirement for beans by having beans physically in your possession.

Numbers on screens may buy you beans today, but they may not buy them in the morning.

It's a simple fact that most seem to overlook.

If you want to prosper in life, be armed with all of the facts.

I have just given you an extra weapon.

Thank me.

By your own admission there is no form of saving that cannot be taken from you.

Perhaps you need to absorb that more fully.
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zaph
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Jimbo
26 Jul 2015, 09:47 PM
My point is very simple.

If you live on baked beans, you can only guarantee your lifetimes requirement for beans by having beans physically in your possession.

Numbers on screens may buy you beans today, but they may not buy them in the morning.

It's a simple fact that most seem to overlook.

If you want to prosper in life, be armed with all of the facts.

I have just given you an extra weapon.

Thank me.

I like my baked beans with some grated gold on the top. 30 seconds in the microwave and it's very tasty.
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The Whole Truth
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createdby
26 Jul 2015, 01:54 PM
Jimbo
25 Jul 2015, 06:50 PM
Remember, every debt, every unfunded liability, is a unit of fiat that will eventually be released into the market place.
As debt is created by the treasury and banks out of nothing, it can be liquidated.
Yes it can, as we see today with home prices falls across the globe. With the collapse in stock markets and the collapse of commodity prices. A lot of the money for these enterprises, debts created by banks as you rightly point out, is defaulted on when the enterprise fails or the house is repossessed. That money is written off the books, liquidated.

This is how depressions are employed to rebalance the books. Gross deflation, loan default, and the liquidation of money.

Tens of thousands of landlords lost all their assets in Australia's 1930's depression. They bought at the wrong tiime, used cheap credit in the 1920's to leverage up portfolios they couldn't hope to repay in even normal times with normal interest rates. These landlords were wipped off the books, liquidated during a period of very low interest rates.

Low interest rates don't guarantee you will be able to discharge your debts. You need a profit for that.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Trollie
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You are sounding pretty desperate old fella. You were spruiking gold at $1600 oz as a good buy and you still continue to chase it to the bottom hopeing for greater fools to buy in.
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createdby
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The Whole Truth
28 Jul 2015, 10:16 AM
Yes it can, as we see today with home prices falls across the globe. With the collapse in stock markets and the collapse of commodity prices. A lot of the money for these enterprises, debts created by banks as you rightly point out, is defaulted on when the enterprise fails or the house is repossessed. That money is written off the books, liquidated.

This is how depressions are employed to rebalance the books. Gross deflation, loan default, and the liquidation of money.

Tens of thousands of landlords lost all their assets in Australia's 1930's depression. They bought at the wrong tiime, used cheap credit in the 1920's to leverage up portfolios they couldn't hope to repay in even normal times with normal interest rates. These landlords were wipped off the books, liquidated during a period of very low interest rates.

Low interest rates don't guarantee you will be able to discharge your debts. You need a profit for that.
I think the point that Jimbo was making was that money still has to go "somewhere".

Let's say the bank decides to lend me 1 billion. I get the 1 billion in cash and decide to build a house made of saffron bricks. I buy all the saffron in the world, compact them into bricks, and build a giant saffron mansion. I then burn down the house.

The bank now lost 1 billion. I lost the house. But the 1 billion in cash went to saffron farmers.

Even when someone goes bankrupt, the cash went "somewhere".
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The Whole Truth
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createdby
28 Jul 2015, 11:27 AM


The bank now lost 1 billion. I lost the house. But the 1 billion in cash went to saffron farmers.

Even when someone goes bankrupt, the cash went "somewhere".
It would seem that way, but think of it in terms of how much the saffron farmer owes the bank for debt on havestors, seed, land purchases. A lot of the the 1 billion you gave the farmer went straight back to the bank or to the farmer's staff or to suppliers who probably have debts to a bank too. The banks are all connected in this way and the money just goes round and round to repay debt. (and everytime it changes hands it's taxed. If it changes hands 10 or more times it's taxed into oblivion)

Very few people keep liquid the money they receive you know. Say someone sells a business for 5 Million. They won't sit on that cash, it will be invested, say in the stock market where the stock issuer will use it to pay down debt, or expand perhaps, buying goods and services off still other companies who have debt obligatiobns. Most companies are up to their eyeballs in debt you know, many couldn't make payroll without revolving debt. There is a lot of chatter about liquidity but look at all the cash sitting in government and corporate bonds. Is it really there? Of course not! The government spends all that money and so do corporations. It's "gone" and it's only faith that said governments and corporations can make a profit way off in the future that people have put the cash there in the first place.

People all over the world have bought about 18 Trillion dollars worth of US Federal Government Bonds with cash, and the US gov can barely afford to make the interest repayments on all that, they have no hope of ever actually repaying it The cash was spent on cluster bombs, bureaucrats lunches, cheese doodles bought by wefare recipients. It's gone :lol
Trollie
28 Jul 2015, 10:39 AM
You are sounding pretty desperate old fella. You were spruiking gold at $1600 oz as a good buy and you still continue to chase it to the bottom hopeing for greater fools to buy in.
Thanks for that deep insight into the debate timmy. What would we do without you :z:
Edited by The Whole Truth, 29 Jul 2015, 12:17 AM.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Blondie girl
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:z:
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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The Whole Truth
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Supply And Demand In The Gold And Silver Futures Markets

This article establishes that the price of gold and silver in the futures markets in which cash is the predominant means of settlement, is inconsistent with the conditions of supply and demand in the actual physical or current market where physical bullion is bought and sold, as opposed to transactions in uncovered paper claims to bullion in the futures markets.

The supply of bullion in the futures markets is increased by printing uncovered contracts representing claims to gold. This artificial, indeed fraudulent, increase in the supply of paper bullion contracts drives down the price in the futures market despite high demand for bullion in the physical market and constrained supply. We will demonstrate with economic analysis and empirical evidence that the bear market in bullion is an artificial creation.

The law of supply and demand is the basis of economics. Yet the price of gold and silver in the Comex futures market, where paper contracts representing 100 troy ounces of gold or 5,000 ounces of silver are traded, is inconsistent with the actual supply and demand conditions in the physical market for bullion. For four years the price of bullion has been falling in the futures market despite rising demand for possession of the physical metal and supply constraints...

http://www.paulcraigroberts.org/2015/07/27/supply-demand-gold-silver-futures-markets-paul-craig-roberts-dave-kranzler/
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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