[Prepper_Ed]

I've heard several theories:
1) Investors were selling gold to meet margin calls on stocks which is a wacky theory.
2) Investors are dis-hoarding gold to take advantage of the recent price surge which I find much more plausible.

I plan on buying more shares of gold ETFs this week.

 

[woodyp]

3) ALL of the above!

 

[Alaskajohn]

I think a lot of conventional wisdom theories will be put to the test over the next few months. I went cash/cash equivalent heavy in January in all but my retirement investments.

 

[Mere_Man]

Paper gold (and silver) markets manipulate the price of physical gold (and silver). Paper is selling off now because it's not real and anyone who has half a brain cell functioning is going to ditch that paper crap ASAP. Paper gold (and silver) sets the price of physical gold (and silver) so it's a buying opportunity for physical at the moment....like a sale from God himself.

 

[PatrioticAmerican]

Healthcare stock saw investments. People sold stock and gold to buy into healthcare. They're about lose their investments as corona goes bust.

 

[bunkerbuster]

Those who took it in the ass from the stock drop are selling gold to meet margin calls & to put cash in hand to buy back into the stock market after it bottoms out.

Also, China is selling some gold for hard currency with which to prop up its economy caused by the WhuFlu debacle there.

NO MATTER, I EXPECT GOLD PRICES TO STAY STRONG
As gold is an historical hedge in times of fiat paper money & financial uncertainty.

 

[OldDesertrat]

JP Morgue has dropped out of the ETF Shorts game but the remaining seven of "Da Boyz" are working busily to get out from under the six or so billion dollars now at risk.

 

[bilmac]

Something I haven't heard speculated on with the stock market and this CRAZY gold market, could Soros be manipulating things???

 

[rriley]

Those who took it in the ass from the stock drop are selling gold to meet margin calls & to put cash in hand to buy back into the stock market after it bottoms out.

Right! That means that now people prefer to invest in stock not gold.

 

[Central Scrutinizer]

I cannot understand why anyone would buy paper gold. There may not be enough of the physical element to back it, or it might be an outright rigged market.

 

[fistfulladirt]

I cannot understand why anyone would buy paper gold. There may not be enough of the physical element to back it, or it might be an outright rigged market.

The only thing I can figure is it allows one to take quick profit. If anyone’s luck is like mine, box up the phyzz, ship, and while on route the price tanks overnite.

 

[rriley]

The only thing I can figure is it allows one to take quick profit. If anyone’s luck is like mine, box up the phyzz, ship, and while on route the price tanks overnite.

I cannot understand why anyone would buy paper gold. There may not be enough of the physical element to back it, or it might be an outright rigged market.

Advantages of Futures Market:
Instant Execution, Just a Click.
Margin Available
Legally Regulated/Protections
The Futures Market is responsible for price discovery, not the cash market.

Disadvantages of Cash Market:
No Margin Available
Storage and Transportation Costs
Complicated Transaction Procedure
Physical Security Issues

The contract size for gold is 100oz, silver is 5,000 oz. If you are trading less then these amounts than Futures are not for you.

Note: The derivatives market is huge; estimated at 1.2 Quadrillion.

 

[Central Scrutinizer]

(snip)



Note: The derivatives market is huge; estimated at 1.2 Quadrillion.

Well there you go, a scam,



Sent from my SM-T350 using Tapatalk

 

[Central Scrutinizer]

The only thing I can figure is it allows one to take quick profit. If anyone’s luck is like mine, box up the phyzz, ship, and while on route the price tanks overnite.

The only ones making money on gold are those scrappers who buy jewelry for pennies. But even then the process of refining is tedious and dangerous.

If you buy coins, they are overpriced, bullion is a risky investment, storing coins and bullion requires a bank safe and risky that someone will rob you. Even if that all goes right, how do you redeem it for , say a tank ful of gasoline to get out of dodge?

Sent from my SM-T350 using Tapatalk

 

[Nomad 2nd]

The only ones making money on gold are those scrappers who buy jewelry for pennies. But even then the process of refining is tedious and dangerous.

1.
If you buy coins, they are overpriced,

2.
bullion is a risky investment,


3.
storing coins and bullion requires a bank safe and risky that someone will rob you.

4/
Even if that all goes right, how do you redeem it for , say a tank ful of gasoline to get out of dodge?

Sent from my SM-T350 using Tapatalk

1. If you shop around you can find spot or below.
2.how so?
Note: I consider PM's a hedge, not an investment.
3.no it doesn't. They don't rust or degrade.

You could literally walk out in your yard with a shovel and they will be fine 200 years from now. e

4.that's one of the stupidest things I've ever read.
If you REALLY don't understand let me know and I'll help you. Meanwhile I'll assume your just trolling.

 

[fistfulladirt]

The only ones making money on gold are those scrappers who buy jewelry for pennies. But even then the process of refining is tedious and dangerous.

If you buy coins, they are overpriced, bullion is a risky investment, storing coins and bullion requires a bank safe and risky that someone will rob you. Even if that all goes right, how do you redeem it for , say a tank ful of gasoline to get out of dodge?

Sent from my SM-T350 using Tapatalk

Bank safe? Wtf. My big house seller will buy back at about 95-98% of spot and includes lots of gold, especially pesos they’re buying back at 20-25% profit if you’ve bought any in the last 2 years.

 

[OldDesertrat]

There will always be some form of commerce, yes, even after SHTF. Ask Selco for a worst-case situation.

There will always be someone who will accept PM coinage, even at a time when barter is the primary method for transactions.

fistfulladirt, is some dealer paying above-spot for Mexican gold peso coins?

 

[Justme11]

All of these massive money movements are going to look pretty foolish if they come out with a cure for the virus in a week.

 

[Central Scrutinizer]

1. If you shop around you can find spot or below.

2.how so?

Note: I consider PM's a hedge, not an investment.

3.no it doesn't. They don't rust or degrade.



You could literally walk out in your yard with a shovel and they will be fine 200 years from now. e



4.that's one of the stupidest things I've ever read.

If you REALLY don't understand let me know and I'll help you. Meanwhile I'll assume your just trolling.

Ok, someone will be out in your front yard sometime soon with a shovel. Assuming you really bury it rather than put it in a 500 kilo safe.

As far as the rest, remember when TSHTF it will be a buyers market for gold.

Sent from my SM-T350 using Tapatalk

 

[Prepper_Ed]

There will always be some form of commerce, yes, even after SHTF. Ask Selco for a worst-case situation.

There will always be someone who will accept PM coinage, even at a time when barter is the primary method for transactions.

fistfulladirt, is some dealer paying above-spot for Mexican gold peso coins?

Speaking of the infamous Mr. S, whose name we aren't supposed to mention on this forum, he had a clever idea of using fake gold wedding bands to buy stuff and bribe checkpoint guards and officials. The bands were made of a heavy base metal (probably brass) and were gold plated with the carat stamp on them.

Also, according to S, very few people would take PM coins or bars as payment. They wanted something they needed like food or bullets. He said that the large gangs would take PMs as payment but at an unfavorable exchange rate.

Having some fake jewelry in your house during normal times isn't a bad idea in case your house is robbed. Put the fakes in a nice jewelry box and the real stuff in a safe and your casual crack head burglar will probably be happy to steal the fakes.