The German gold set for return at the end of the decade. The FED probably has at least 15,000 tonnes of US and foreign government gold on its books. But the vast majority is leased to the bullion banks for the jewelry market. An Inspection a few years ago showed only 400 tonnes of physical gold present.
It is simply some jeweler has borrowed the gold and is in no hurry to return it.
Checking the figures of the WGC for 1st quarter this year, demand for investment gold is increasing not contracting any longer. If the 1st quarter figures bare out annual investor demand has risen to 1,120 tonnes pa.
If some entity is shorting gold then they are playing a dangerous game. If they have promised more gold than exists, they might be asked to cough up!
If some entity is shorting gold then they are playing a dangerous game. If they have promised more gold than exists, they might be asked to cough up!
Perth Mint and U.S. Mint Cannot Meet Demand as Gold Bullion Demand Surges
July 31 2015
Perth Mint sees surge in demand and cannot keep up with demand- “Our biggest restriction is the amount of unrefined gold we’re getting in from producers”- Very high demand for Perth Mint coins, bars coming from Asia, U.S. and Europe- U.S. Mint sees highest sales of gold coins in over 2 years- U.S. Mint restrictions on silver coins due to very high demand- Gold sentiment has moved from despondency to depression (see chart)- Current negative sentiment despite strong demand is good contrarian indicator http://www.goldcore.com/us/gold-blog/perth-mint-and-u-s-mint-cannot-meet-demand-as-gold-bullion-demand-surges/
There are clearly 2 markets for gold buyers to play in, the paper and the physical. The same is true of housing. You can buy houses or you can buy RMBS (bank bonds), or Property trusts. When the paper housing pyramid got into trouble back in 2007 we saw a collapse in demand for real houses as their prices fell across the world and here in Australia.
The same effect is seen in copper, as paper futures fall in price so does demand for physical copper which tells me that market is operating rationally. But in Gold we see the opposite, a massive increase in demand for real gold as the paper price falls. I say paper price because premiums for physical gold have risen. Supply and demand.
The gold bull bullmarket is still in place. If it wasn't there would be falling demand, not skyrocketing demand.
"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
Well that's his opinion, perhaps based on the collective psyche. Some things whole nations never forget, like our anzac tradition, everyone is aware of that and with the knowledge desires to avoid war. But its just his opinion on the phenomina, and either way the germans have been big buyers, even their cetral bank has been demanding it's gold back from the US government vaults. But it seems they don't have any gold in their vaults and have told the germans it will take a few years
I was going to respond to Strindberg's post but see you already did.
Yup, many families grew up on the grandfather still yelling about how he was financially ruined by government policies... The grand children are impacted by the loss of wealth from a couple of generations ago.
Thought you said you sold all your gold two years ago? So even you think it's not worth holding right now.
At least you aren't riding it all the way to the bottom like Ted and Goldbug.
I've always said I viewed gold as money, as savings. What I was engaging in was "spending". For example one could have a large amount of savings in a conventional CD. Would you think it strange that somebody "spent it".
So liquidating my gold holdings had nothing to do with where I thought gold was going. I first liquidated some gold way back in 2007 to replace one old car with a slightly less old car. I didn't work for a few years, so from 2009 to 2013 I was "liquidating" or spending.
There are three temptations that can corrupt a person. Money, sex or power. Nobody is immune, there's always one that will get to you. In my case I doubt I could be corrupted by the suitcase with a billion dollars. I know money too well, I understand its limitations.
I guess that only leaves the beautiful Russian agent or handing me the secretaryship of the Politburo. I'm not sure which one?
I've been told that the faculty that enables us to have a world conception in my case is on the scale of that of Nietzsche. I guess that is my treasure and my curse.
Quote:
At least you aren't riding it all the way to the bottom like Ted and Goldbug.
Well I did warn the guys back then that $1700 was my price limit for gold. Beyond it was way too expensive. Even more ridiculous is chasing overpriced silver because it is so unstable. My price limit for silver is $30.
Actually I thought 2013 would be the key year. Liked the Idea of a cycle of 33.3 years. Would fit nicely with the Leonids.
However most subscribe to a cycle that averages 37 years. This means 2017 - 2018 will be when interest rates rise in a meaningful fashion.. I course we don't know if the Basel agreement will survive in tact? They might abandon the inflation target and print cash like the 70's or worse?
The Whole Truth
1 Aug 2015, 09:39 AM
Perth Mint and U.S. Mint Cannot Meet Demand as Gold Bullion Demand Surges
This sort of kills the gold ponzi theory.
That's the problem, gold is "price driven". Try to short gold and the world will say "I'll take the gold please!" The other alternatives are raising interest rates, or actually withdrawing cash in circulation.
Name you poison! But gold says nobody gets out of here alive.
There are 2 reasons to buy a house, making a living or part living, or long term habitation. If you buy an investment property you had better have a sell rule but for a home to call your own you don't need one, though you might choose to sell later in life.
The same applies to gold. If you want to make all or part of your living off it you better have a sell rule for the near future, but if you're just saving for the long term you don't because it's a proven fact that gold's value rises with inflation. It's an inflation hedge. Lack of understanding of these differences is what leads to confusion. Peoe hopi g to make a short term profit off gold should use paper, those saving for the long term physical.
Many property investors in NZ sittong on large capotal gains are selling because the government is about to introduce a capital gains tax for the first time. You need a sell rule for such.
Rastus2
1 Aug 2015, 10:00 AM
Yup, many families grew up on the grandfather still yelling about how he was financially ruined by government policies... The grand children are impacted by the loss of wealth from a couple of generations ago.
It cycles round and round too. The current boomers (I'm genX) all believed the government when they were told we'll never have a big crash and depression again. Your super is safe, house prices will only ever go up. Then it all collapses in a heap...AGAIN. And he next generation estews debt and saves money, and on and on it goes.
"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
Gold surged to USD1600 because people thought they were printing money. Only a minority of people are still clinging to that idea. I think i am on record here for saying Gold is a no brainer for USD2000 by 2020 but that looks very unlikely at the moment.
Gold surged to $1600 because people with lots of money were scared of losing it in another meltdown and wanted something tangible as a store of wealth. But that doesn't explain the runup from 2002 to 2008 now does it.
For that you can only ascribe inflation, and if we continue to get deflation gold will be happy to sit here or drift a little lower. Unless of course it goes rapidly upward as it was in 1933.
"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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