Hello all, I do not post to often on here but today I am reaching out to anyone who has valid information on as to why they believe the gold demand is so high. I do so much research on so many subjects but I just have not got around to the gold value area. Until today.

Today I took the very little amount of gold jewelry I had to a local jeweler. I am talking a few 14k thin bracelets 3 small gold rings and 2 thin gold necklaces one being 10k. I kid you not, I walked out of there with $580.00. Stunned was an understatement!! I actually couldn't speak. But being a member of this board quickly came to mind and I thought..shehhhhhhhhhhhhhhhhhshs. something is wrong here. Really wrong, I mean again it was a very little amount! So I looked up at the girl and said...do you know anything about gold coins? To say if American paper money was extinct? So she said well yes, we sell gold bars, you would have to make an appointment because we have to purchase them but you can buy them and they would be valid anywhere in the world. They would not loose value through the Federal Reserve. So I said thank you very much, took my cash and left... Now that I am remembering I didn't even get a receit because I was so stoked at the site of $580.00 in cash.... but instead of sitting here happy about the extra cash, I am even more nervous as to where my life and America is headed. I can't help but feel even more so that the crap is going to hit the fan in the near future. I thought at first she said 58.00 so I was okay well better then nothing, but then when she started counting out the 100's in stacks I was like woaho... hmmf....I just feel that rather spending this money or even saving it by way of the dollar I should invest in the gold bars. I was just wondering if anyone else has done this or something similar to it.

Well...any imput I would greatly appreciate it.

Good day!

[edit on 20-11-2009 by lombozo]

I recently bought a number of krugerrands rather than let that money sit in my IRA any longer.

I don't trust our currency at the moment so the market isn't the best bet unless you really want to get exotic. Gold you can hold is always a safe bargain.

Well, this may not be strictly relevant, but I think this is interesting anyway.

I'm kind of between jobs and am just working a "temporary" job in a mid-sized shopping centre (in the UK), at the main entrance about 10 metres after you walk in there is a stall set up offering cash for gold, there's a guy that's sat there all day with digital scales handing out money for (mostly) jewellery.

I haven't spoken to him yet, but will try to make the effort on a break when I'm back at work next week.

At the moment, knowing full well the financial problems worldwide and in the UK, I still get a horrible feeling seeing this guy - not about him - but about who he works for, their purpose etc. This isn't a grand-conspiracy rant, I just get the gut-feeling that this is a "snake oil" type scheme, where less well off people, that are desperate or just nervous are being relieved of their family heirlooms under the veil of fiscal horrors.

I honestly hope I'm right, I guess it would be far better to see a few people ripped-off than a total (?) economic collapse. I don't really know what to think, the signs seem to point that the Western world is doomed economicallly.

You would do well to google "historical gold prices graph".
You'll notice that the last time gold went nuts was in 1979.
Then the bottom fell out. Alot of people lost alot of money.
From reading your post, you seem worried about economic/ social collapse. Me too!
In an EOTWAWKI scenario, gold will mean little to me as compared to food and other "essentials".
That is where I'm putting my extra cash.
Can't eat gold, and when or if others come around trying to trade gold for food, I think I may finally stop trying to suck in my gut.

I had that same sense when I walked in this place, like when is the joke is on me..., I shouldn't sell this. Then again after I left I felt I should have held onto it longer and looked into this further. I hate that I was so quickly swayed by the dollar amount....I'll work on that lol.

Thanks all for imput, more is always welcome. Anyone reading this that is from the US ever seriously thought of getting out ... and to where? I keep wondering if this problem is stemming from the US or no matter where we lived we would be greatly effected by whatever is to come.

Our money is worth less. I am looking for a ring setting on ebay. The same settings are now twice the price they were a year ago! Our wages have not gone up like that. It is nuts. I am seeing more diamonds set in silver instead of gold than I ever have on ebay.

I think it is just going to get worse, but then I get that little pesky voice that says gold is in a bubble.

Well, the reason that gold demand is so high right now is because the world as a whole is starting to realize what fiat currencies are really worth...nothing. I hate the argument 'what can you do with gold? You can't eat it' Well, considering gold has been recognized as REAL money for over 6,000 years, it has never gone to a value of zero, and is not tied to any debt or any currency is just reality.
The dollar is going away, it's a fact, it's happened hundreds of times before to fiat currencies, this is just the first time it's happening to the U.S. Now, adding to the demand is economies, wall street, and consumers buying up all the gold on the market. Don't beleive me? Look at the IMF's gold auction this week, 200 tonnes of gold was gobbled up by India in just a few hours!
I work as a gold broker, and this is not just my job, it's my passion. I know that every coin/bar/ingot or whatever I trade for paper (dollars) is helping people protect their wealth. Look at the general concensus to do away with the dollar, the IMF is now a central bank of the world with their power to issue the SDR, the sucre is being introduced in Latin America to COMPLETELY replace the dollar in 9 countries, the Saudis have abandoned the WTI oil contract... seriously what more evidence does the public need?

If anyone is interested in getting into the precious medals market, or maybe you just want some info about the dollar and precious medals, I encourage you to educate yourself, and if you have time, stop by my firm's website.. ITMTrading.com we pride ourselves with the information we supply any willing ear with

I've used bullion direct for purchasing silver slugs.

Best way to get silver or gold without a mint markup.

Originally posted by AztecWrior805
Well, the reason that gold demand is so high right now is because the world as a whole is starting to realize what fiat currencies are really worth...nothing.

No, the world is not. The world is stupid. They go for gold because that's the hot safe haven investment of the moment. Nothing more.

Originally posted by onepissedoffsaint

""In South Africa, Rand Refinery, the world's largest gold refiner, was cleaned out of its gold stocks as an "unusually large" order for 5,000 Krugerrands (£2.25m) came from a buyer in Switzerland.

That an order of this size was able to wipe out the stock of the world's largest refinery is, to me, astonishing.

It demonstrates just how little physical metal there really is.""

India just bought 200 tonnes of gold from the IMF vaults....

that 200 tons equals 8% of the ALL the worlds mined gold !
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~`


as far as the immediate future mining of gold (next 5 years)
the existing gold mines and the 10 or so coming on line are
going to produce close to 1M ounces per year world wide.

that ammount of new production will not dilute the value of
the existing gold... so, i'm committed to keeping what i have now
and modestly increasing my gold holdings (in gold stocks) until
2012 or maybe the 1st quarter of 2013.


Youse guys can do as you wish

[edit on 6-11-2009 by St Udio]

Originally posted by onepissedoffsaint

I see it says your from Virginia how does one purchase a Krugerrand when living in the US? They are a South African coin correct? Can you order it from anywhere? Sorry I know nothing about this stuff lol.

I bought them from my father (retired Navy pilot) who bought them in the late 70's. You can buy physical gold from a large variety of sources, especially now.

Be careful and do your homework. Read more information about it. These coins are great because they are pretty much 1 oz of gold.

Can anyone tell me where the IMF got their 200 tonnes of gold?