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Realistbear

Rich Not Buying Gold By The Bar--They Are Buying By The Ton

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http://uk.finance.yahoo.com/news/super-rich-buy-gold-by-the-ton-tele-54658165d9ed.html?x=0

Super-rich buy gold by the ton
8:09, Tuesday 5 October 2010
The world's wealthiest people have responded to economic worries by buying gold by the bar by the ton.
The world's wealthiest people have responded to economic worries by buying gold by the bar - and sometimes by the ton - and by moving assets out of the financial system, bankers catering to the very rich told Reuters, the news agency.
Fears of a double-dip downturn have boosted the appetite for physical bullion as well as for mining company shares and exchange-traded funds, UBS executive Josef Stadler told the Reuters Global Private Banking Summit...../
Anthony DeChellis, managing director of Credit Suisse's Americas private banking unit, said at the Reuters summit in New York that clients are more interested in capitalizing on the rise in gold prices than using the precious metal as a safe-harbor investment.
"They're asking, 'If it's a bubble, how far can I ride that bubble,'" he said. "I cannot say we've seen a spike in gold interest, but there's an interest in the phenomenon of it."
:o

8,456 tons a day being sold? --somewhat more than the gold actually mined for quite some time perhaps?

Fear driven buying can certainly run prices up and the fear is usually based on fear of loss more than fear of missing out on gain. Today, I suggest it is double-fear. The buying frenzy is driven by greed and insecuirty that, in a major crash, they will loose it all.

Its a frenzy out there.

Edited by Realistbear

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I think we reached the 'Range Rover Sport' moment regarding gold when they unveiled that vending machine in Germany last week where you can buy some. I think it was €40 a gram, but may have been a 'demo' price. I expect it's a venture a lá 'cash for gold', i.e. big profit for the seller.

Edit: typo

Edited by deflation

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And the poor are selling theirs. There are six places advertising "we pay for cash for gold" in Wolverhampton town centre and at least three in West Bromwich.

I often wonder what fundamental event will end this 9/10 year old bull market. I think decent rates for savers will probably signal the end.

Just noticed - gold spiked up again!

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$1374

I am beginning to wonder if I should sell off my silver holdings--bought it decades ago in the form of 98.7% silver coins--mostly Morgan $ and 1964 US quarters and Kennedy Halves. Silver seems to be in a bubble too although it is useful stuff in inustry apparently.

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From what I can tell whats bielng sold is "paper gold" So ( if I'm right) Its like buying a mortgage on a house but not not knowing what house, someone else worries about that. The house is there somewhere someone is paying the mortgage........you get the gist, cds's for gold instead of mortgages and we all know what a success that was!

I think!

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http://uk.finance.ya...65d9ed.html?x=0

Super-rich buy gold by the ton
:o

8,456 tons a day being sold? --somewhat more than the gold actually mined for quite some time perhaps?

Fear driven buying can certainly run prices up and the fear is usually based on fear of loss more than fear of missing out on gain. Today, I suggest it is double-fear. The buying frenzy is driven by greed and insecuirty that, in a major crash, they will loose it all.

Its a frenzy out there.

MAKO?

Is this the physical yellow stuff or 'promisory' notes and emails - heh heh?

If so the bullion dealers will sell you any amount you could imagine and it's always in their illusory stockpiles.

Edited by erranta

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$1374

I am beginning to wonder if I should sell off my silver holdings--bought it decades ago in the form of 98.7% silver coins--mostly Morgan $ and 1964 US quarters and Kennedy Halves. Silver seems to be in a bubble too although it is useful stuff in inustry apparently.

$1374?

I see $1325 currently in US dollars? Can you see something else, or is that price in a different currency, or is it a price prediction?

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$1374

Silver seems to be in a bubble too although it is useful stuff in inustry apparently.

Silver is 85% below its all time high?

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$1374?

I see $1325 currently in US dollars? Can you see something else, or is that price in a different currency, or is it a price prediction?

Its a number that comes to mind as a possible *1980-style peak.

$1327 right now--the super rich probably read the farticle and those not already in want to get in--quick before the prices gets beyond reach.

Frothy frenzy may be forming today?

*In the sense that anything is really possible.

Edited by Realistbear

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silver is due for a correction soon. We have 95% of the silver traders bullish according to the daily sentiment index. Last time this happened a correction of 11% took place. Silver has the nasty habit of sharp downturns in which you can loose dollars in one day.

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When the risk of banks and governments defaulting ceases, via the printing press or the big NO, then the price of PMs will fall. Up until that point, I can't see the price falling back too far.

With Japan going fully ZIRP with QE, the US and the UK talking of more QE, hair cuts looking likely in the EU... where is the safest place for your wealth? Sure, diversify, buy stuff you need etc... but IMO precious metals are just playing out their traditional role of as safe haven.

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From what I can tell whats bielng sold is "paper gold" So ( if I'm right) Its like buying a mortgage on a house but not not knowing what house, someone else worries about that. The house is there somewhere someone is paying the mortgage........you get the gist, cds's for gold instead of mortgages and we all know what a success that was!

I think!

Lots of Hollywood celebs lost loads of dosh in the dot.com bubble by coming in towards the end.

A good con is showing some physical gold in a bank to some people and selling it to them.... then going and selling it again and again and again. Of course, you will look after it for them in the vault but when the stuff hits the fan you have are long gone, probably with the gold, and there are numerous people trying to claim ownership of the contents of an empty security vault.

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Lots of Hollywood celebs lost loads of dosh in the dot.com bubble by coming in towards the end.

A good con is showing some physical gold in a bank to some people and selling it to them.... then going and selling it again and again and again. Of course, you will look after it for them in the vault but when the stuff hits the fan you have are long gone, probably with the gold, and there are numerous people trying to claim ownership of the contents of an empty security vault.

The main danger I see in holding "paper or online gold" is that governments can easily confiscate it.

It happened before, it can happen again.

http://www.the-privateer.com/1933-gold-confiscation.html

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The main danger I see in holding "paper or online gold" is that governments can easily confiscate it.

It happened before, it can happen again.

http://www.the-privateer.com/1933-gold-confiscation.html

This where the conmen move in.

Imagine all those rich but financially naive people out there who have been oblivious to an economic down-turn - actors, singers, doctors, footballers. Targets for conmen - rich but not that clued up but who are now, at parties, hearing stories of so and so making a killing in gold.

Cue the conmen to move.

I have a secret gold hoard for sale by some middle eastern businessman... the authorities know nothing about it... but I can sell it to you... no one will ever know and it will be nice and safe...

What I am saying is that, as in all bubbles, people are conned and I guess there are loads of easy pickings for the con artists in this gold bubble.

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This where the conmen move in.

Imagine all those rich but financially naive people out there who have been oblivious to an economic down-turn - actors, singers, doctors, footballers. Targets for conmen - rich but not that clued up but who are now, at parties, hearing stories of so and so making a killing in gold.

Cue the conmen to move.

I have a secret gold hoard for sale by some middle eastern businessman... the authorities know nothing about it... but I can sell it to you... no one will ever know and it will be nice and safe...

What I am saying is that, as in all bubbles, people are conned and I guess there are loads of easy pickings for the con artists in this gold bubble.

They fell for Dubai apartments so why not :rolleyes:.

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Exactly.

There's a lot of fear out there and people will be herded into investments that promise to keep ahead of inflation. Property, shares, gold etc.

My choice is to hold cash (EUR and GBP because those are the two currencies that I spend to live) in a few banks and NS&I, chosen for safety rather than high interest rates. Yes, the buying power of my cash is being eroded, but I could lose a lot more by buying a house (or shares) and watching it's value fall through the floor, or gold and getting it confiscated, or worse.

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