FC Posted March 29 Report Share Posted March 29 Comex is showing gold prices riding very quickly. There’s speculation that a banking crisis is soon coming. I suspect banks losing huge money from office space foreclosures may be the reason. Quote Link to comment Share on other sites More sharing options...
Dr.Hess Posted March 29 Report Share Posted March 29 Commercial real estate (CRE) is really screwed for several reasons, including Work From Home, the depression we are in and the disaster of demonrat run major cities. I had some money in CRE funds, recommended by my broker, and I told him to dump all CRE some time ago, taking the hit then. I also told him to dump all Blackrock run funds. There are major rumors that the central banks are all loading up on gold, and have been for some time. I was wondering why the price never really moved for so long, despite major buying like that. The spike now may indicate that they are done buying and suppressing the actual price. Don't know. Only thing you CAN say is that an ounce of gold has always had value and will always have value, and that value is basically unchanged over the few thousands of years of our recorded history. Quote Link to comment Share on other sites More sharing options...
ken98k Posted March 29 Report Share Posted March 29 2 hours ago, Dr.Hess said: Commercial real estate (CRE) is really screwed for several reasons, including Work From Home, the depression we are in and the disaster of demonrat run major cities. I had some money in CRE funds, recommended by my broker, and I told him to dump all CRE some time ago, taking the hit then. I also told him to dump all Blackrock run funds. There are major rumors that the central banks are all loading up on gold, and have been for some time. I was wondering why the price never really moved for so long, despite major buying like that. The spike now may indicate that they are done buying and suppressing the actual price. Don't know. Only thing you CAN say is that an ounce of gold has always had value and will always have value, and that value is basically unchanged over the few thousands of years of our recorded history. Supply and demand. As long as there is a high demand for a product the price will be up. Once the market becomes saturated, the price will begin to drop. Quote Link to comment Share on other sites More sharing options...
Dr.Hess Posted March 29 Report Share Posted March 29 Sort of, Ken. But supply and demand don't really fit the price of gold in the past decade or two. There are two types of gold (and silver, for that matter): Physical and paper. Physical gold is what you hold in your hand. Paper gold is, for the most part, buying a promise of gold at some time in the future typically through a fund. Banks that hold gold "lend" it out to others at interest. They will lend out the same bar of gold multiple times. They say. So, if the price goes up, banks just create more paper gold out of nothing and put it on the market as for sale, price goes down. If you are buying physical gold, then you want the price beat down, so sell a lot of paper gold, then buy physical at or near that price. Futures contracts are not that different. One can sell a contract to sell, say, 10oz (Troy) of gold at some point in the future, like 3 months. At the 3 month point, you technically have to have 10oz to sell to the contract buyer. The buyer buys the gold at the contract price, or closes out the contract at their discretion. The exchanges are not even enforcing that (taking physical deliver) and now the buyer wants the physical deliver but the exchange says, no, here's some money. That has been happening. Silver is even worse. Here's an example of the physical price and paper price diverging. Spot is more or less the paper price of silver, at this moment $25.18/oz. BUT, if you look at what it would cost you to buy an ounce of silver you can hold in your hand, it is $29.67. https://www.apmex.com/product/44447/1-oz-silver-round-buffalo?toppicks1 And that $4.50 spread is much lower than I have seen it in the past. I've seen it go up to like 75% premium to hold in your hand over spot, maybe more. Quote Link to comment Share on other sites More sharing options...
FC Posted March 29 Author Report Share Posted March 29 That is correct. The amount of silver and gold in the vaults has been falling pretty fast. The paper markets can't keep up their game indefinitely. Two years ago I was buying gold for $400 less per ounce. https://sdbullion.com/1-oz-silver-buffalo-round-tube-of-20 Ends today. Quote Link to comment Share on other sites More sharing options...
ken98k Posted March 30 Report Share Posted March 30 When the SHTF, paper gold isn't worth the paper it's written on. When gold prices were down, a lot of miners that I know, didn't bother digging until the price started coming back up. Quote Link to comment Share on other sites More sharing options...
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