Long Position on Silver and Gold?

[BushMasterBoy]

India is the world's largest buyer of gold. India's 6th largest city is just about out of water. I figure that they are buying more gold. Military industrial complex is gearing up for a confrontation in the middle east.

https://edition.cnn.com/2019/06/19/i...hnk/index.html

[Skip]

India is the world's largest buyer of gold. India's 6th largest city is just about out of water. I figure that they are buying more gold. Military industrial complex is gearing up for a confrontation in the middle east.

https://edition.cnn.com/2019/06/19/i...hnk/index.html

I used to spend hours reading pieces on supply/demand, trying to play the market, and it turned into a massive waste of time. The reason?

https://www.zerohedge.com/news/2015-...why-it-matters


Basically, there is no way all the physical gold "pledged" and traded could ever be delivered. Yes the banks have participated in this scheme to manipulate pricing. This is why the "Glenn Beck bet" never paid off and many I previously disagreed with were right; the markets are 100% manipulated to make sure certain parties always win.

Set up this "rehypothecation" scheme in any other business, or as an avg Joe, and you'll be a felon.


Then there's GLD which I played around with for awhile because it trades like a stock and is easy to bounce in/out of...

https://www.forbes.com/sites/afontev.../#5dcab71857c2

...backed by 40.8 million ounces of physical gold

Sounds cool right? An ETF based on physical holding, small management fee that is paid from said holdings.

But wait...

Even though GLD is “physically backed,” ordinary investors can’t just go to London and redeem their bullion. Only "authorized participants" are allowed to create or redeem shares. Authorized participants are registered broker-dealers or other securities market participants which have entered into agreements with the trustee and sponsor (these include major Wall Street names like Citi, Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Merrill Lynch-Bank of America, among others), allowing them to deposit either gold or shares in exchange for the other at unallocated accounts until the operation is completed.

Isn't that strange? The only people who can take delivery at the vault are the same people involved in the rehypothecation scheme. So I wasn't buying/holding gold, I was buying/holding a certificate that said I owned gold but could only be verified by the same brokers who could never satisfy delivery of the gold they claimed they held.

Sketchy AF.

In short, I don't think we know the actual physical holdings/supply on planet earth, and I don't think gold's market price is legit. I think we can know something about demand but that's only one side of the equation.

[BushMasterBoy]

I am just saying people in India buy "physical" gold. There are a billion folks in India. They buy gold and stash it, like you and I buy ammo and stash it.

[Skip]

I am just saying people in India buy "physical" gold. There are a billion folks in India. They buy gold and stash it, like you and I buy ammo and stash it.

I believe it. They even had a law that limited the amount a person could physically own in India but couldn't enforce it. They wanted capital in the banks, manipulated and moving (Keynesian) rather than stagnant in personal holdings.

China has demand and population too.

But what does that demand mean for the market when banks can "print" gold to hold down prices? I don't know.




Prices are ~2010. How has this demand impacted a supply based market? Did the last nine years of inflation/asset bubbles not happen? Housing costs, consumer inflation, healthcare costs, higher ed costs, etc...

DOW was 10.7K at the start of 2010. So DOW moved 1.5x and gold is flat?

2+2=5

[Skip]

I don't know about $87K gold. And I don't know about most of what they are saying in this vid but they claim the June bump was a sign.

I think a massive debt default would mean significant unrest/violence and we probably won't care about the price of gold much.

Trump presiding over national bankruptcy makes sense (he is good at it! ). This would be yuge for the working class and would decimate the Left who could no longer finance vote buyer on our backs.



https://www.youtube.com/watch?v=VMCu9GWpgzg

[brutal]

I don't know about $87K gold. And I don't know about most of what they are saying in this vid but they claim the June bump was a sign.

I think a massive debt default would mean significant unrest/violence and we probably won't care about the price of gold much.

Trump presiding over national bankruptcy makes sense (he is good at it! ). This would be yuge for the working class and would decimate the Left who could no longer finance vote buyer on our backs.



https://www.youtube.com/watch?v=VMCu9GWpgzg

I don't know who the guy on the left is, but that other guy is Bob Newhart.

[Gman]

I was working for a gold mining company for about the first half of this year. India is buying gold primarily for jewelry. It's a status symbol which is a big deal in a caste social system.

Miners don't mine for volume (which would lead to lower prices). They focus on safety and efficiency. Reducing the $ cost per oz. provides the opportunity for a greater profit margin.

[Irving]

Better than Rhino horn I guess. Well, maybe.

[Sawin]

We should all probably try to buy an oz of gold or two, annually. Most can’t, but I’m inclined to think it’s a good idea to hedge against fiat.... forget buying the gold or silver ETF’s unless it’s a volatility trade you’re just going to exit.

[roberth]

Kicking the debt can down the road

https://www.oann.com/sen-braun-oppos...road-on-issue/

He pointed out that when families and businesses overspend, they make cuts to offset their expenditures.However, when the federal government overspends, they change the rules in order to spend more.

Braun essentially said the government merely kicks the can down the road and shifts the burden on to future generations.

This is the kinda thing that makes me want to stop my 401K contributions and buy silver and ammo instead. President Trump screwed up on this one, the gov't needs to cut back on spending, starting yesterday.