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Lepista

Gold strategy in the current economy

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Well they have a truly shit web site and frankly that's always a bad sign unless you are going to a physical premises to purchase.........

That is not my main concern. If somebody is being underhand by spamming their business I won't trust them or trade with them, that's all.

They have a land line number, which is something I always look forl..........but a PO Box address, which I don't much care for.

..._

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just musing on gold and Russia...

a lot of people think that the sharp decline in the oil price is an attack on Russia

given that Russia is accumulating gold, is there a way that a similar attack could be made on Russia through a sharp decline in the gold price?

Bear in mind, China has $4Tr of foreign reserves and Russia has $350Bn. That's enough dough to buy all the physical gold in Fort Knox (assuming it's still there, of course!)...

http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

Gold Fine Troy Ounces:

258,641,878

Not like it'll be for sale however. That's why posession is 9/10ths...

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1240 was and is in the cards, as stated here last week. Doesn't alter trend unless breaks through sustainably.

Lots of people will be crying sell now. Didn't see many crying buy at 1150.

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Bear in mind, China has $4Tr of foreign reserves and Russia has $350Bn. That's enough dough to buy all the physical gold in Fort Knox (assuming it's still there, of course!)...

http://www.fiscal.treasury.gov/fsreports/rpt/goldRpt/current_report.htm

Gold Fine Troy Ounces:

258,641,878

Not like it'll be for sale however. That's why posession is 9/10ths...

If China tried it, the price per ounce would go to plus infinity. All central banks of the world would be loaded (if they owned a little)!

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If China tried it, the price per ounce would go to plus infinity. All central banks of the world would be loaded (if they owned a little)!

Yeah, I know.

Just saying that Russia alone (having a piddly $350Bn in reserves) could buy the lot at $1,200 per ounce --

Gold Fine Troy Ounces:

258,641,878

x

1,200

=

$310,370,253,600

They'd still have $40Bn left and the Chinese would get nada.

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Has anybody used sovereigninvestments.co.uk. Prices seem good. Seen one recommendation.

..._

EDIT

Help us out here peeps, I'm a wee bit concerned.

Over on MSE a poster called Mr. & Mrs. posted and mentioned sovinvest. Now in the gold forum Tom321 has also mentioned them.

Both started posting this month, both mention sovinvest..........am I getting worked up over nothing, or is anybody else concerned.

..._

this site reckons its only a few months old:

http://www.bizstats.co.uk/ltd/sovereign-investments-precious-metals-limited-09281180/

i wouldn't risk my money on that.

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The end result of relentless global QE would be a hyperinflationary depression, where prices rise strongly because of the endless increase in money but get people get poorer as wages fail to keep pace. When you mention hyperinflation people think of it as prices rising by thousands of percent per year, like in the Weimar Republic in Germany or Zimbabwe at its worst, but it doesn’t have to be anywhere near that bad to be hyperinflation – if prices only rise by 60% per year, most citizens would be ruined within 2 years. That could easily happen if this QE gets out of hand.

....

So even though the blizzard of unbacked money created by the ongoing global QE can be expected to drive the prices of many investments like stocks higher and higher, gold (and silver) are not going to be left out for much longer. They are already starting to come to life. Older investors will recall that gold’s gigantic bullmarket of the 1970’s was punctuated by a big 2-year correction in the middle of it that corresponds to the big 3-year correction that we have just witnessed, before it took off higher again into a massive ramp and a spectacular blowoff top, which is what we should see repeated again, only this time round, given the unprecedented excesses that now exist, it is likely to be orders of magnitude larger.

Might be of interest to those who like to read about such things.

http://clivemaund.com/article.php?art_id=3391

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Belgium Reportedly Plans to Retrieve 200 Tons of Gold From UK Storage

Belgium is planning to retrieve 200 metric tons of gold, deposited to United Kingdom storage in the 1930s, Belgian public broadcasting organization RTBF said Wednesday.

The date of the retrieval operation is kept secret for security reasons, according to RTBF. A ship with 50 soldiers and a helicopter will escort the ingots to Belgium.

http://sputniknews.com/europe/20150204/1017789475.html




Edited by Errol

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And what would the significance of backwardation be?

It's deeply meaningful nonsense of no significance.

But it does create a feeling of self importance in those who use the phrase.

Must not be confused with any sort of inteligence.

Don't ever ask them to contango for you.

..._

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It's deeply meaningful nonsense of no significance.

But it does create a feeling of self importance in those who use the phrase.

Must not be confused with any sort of inteligence.

Don't ever ask them to contango for you.

..._

I simply wanted to check if we had any Fekete disciples on here, or any other "New Austrian Economists". Because: Discussing arbitrage arguments or other simple logical arguments with them is like explaining evolution to a bunch of creationists. :D

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............Discussing arbitrage arguments or other simple logical arguments with them is like explaining evolution to a bunch of creationists. :D

'Fraid it's worse, more sense can be gleaned watching chimps with tools.

..._

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I simply wanted to check if we had any Fekete disciples on here, or any other "New Austrian Economists". Because: Discussing arbitrage arguments or other simple logical arguments with them is like explaining evolution to a bunch of creationists. :D

​I merely mention it because the fact that it exists is interesting; that no-one has actually arbitraged the difference away means there is some desire over and above a small free profit to hold the gold now, and not sell it (and buy an offsetting futures/options contract).

​Dunno if that's Fekete or Austrian - just logical inferrence.

​Oh, Digger go away with your nonsensical drivel. Contribute somehing useful or f**** off.

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... that no-one has actually arbitraged the difference away ...

No, backwardation does NOT imply arbitrage! This Fekete brain child has been debunked over and over again. Please convince yourself, the logic is very simple:

Faux Gold Arbitrage. BullionVault Gold News. September 02, 2013

http://goldnews.bullionvault.com/gold-arbitrage-backwardation-090220135

Fekete's Arbitrage Fallacy. SafeHaven. December 10, 2013

http://www.safehaven.com/article/32088/feketes-arbitrage-fallacy

The Time Value Of Gold – Ignore It At Your Own Peril. SafeHaven. December 20, 2013

http://www.safehaven.com/article/32189/the-time-value-of-gold-ignore-it-at-your-own-peril

GOFO – Real Explanations vs. Pseudo Experts. SafeHaven. December 28, 2013.

http://www.safehaven.com/article/32250/gofo-real-explanations-vs-pseudo-experts

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Simple arbitrage arguments show:

LIBOR - GOFO = GLR,

where GOFO = gold forward offered rate and GLR = gold lease rate. Backwardation means negative GOFO, so backwardation means GLR larger than LIBOR (minus minus is plus). But GLR is simply the interest rate of gold: what you pay to borrow gold. Backwardation therefore means that gold's interest rate (the gold lease rate) is higher than that of the Dollar (LIBOR). There is no arbitrage here. Otherwise you could also arbitrage between the Euro and the Dollar interest rate differential (or vice versa), which you can't.

Why is it so difficult to understand that gold is just another currency?

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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