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Originally posted by Bunken Drum
IDK much about the gold market, but something smells a bit rancid here. So, I have questions for those who do know...
1) I'm sure I remember reading, on a few occasions, that there isn't actually enough bullion held in vaults to cover the certificates that investors hold. Was that wrong? If not, did it get sorted out in some way?
2) As far as I know, the only commercial applications for gold are bling & electronics. Is there any reason why the price of gold to investors cannot far outstrip the ability of the market's (ie people who want to buy bling or electronics) ability to pay for it?
3) Something that's always intrigued me is that, for large gold investors, all they have is a certificate. They dont own a specific bar of metal somewhere, just a % of a pile of bars, right? Who pays for the security on that bullion & how do they make the whole ownership vs costs profitable?
4) Looking @the bigger picture, if this is, as ANNED suggests, a jump & dump, who is most likely to be left with paper worth less than they paid for it in the end?
Originally posted by BenIndaSun
reply to post by Dance4Life
Silver in 2000-1 was about 5$ per ounce. Now about 30$. (600% increase)
Gold in 2000-1 was 300$ per ounce, now almost 1,400$ (467% increase)
Originally posted by Anttyk47
You're insane if you don't own gold.
Either this is true, and we're looking at a future Armageddon where we will have to come out of our fallout shelters with nothing but Gold to use as currency (or bottle caps! )