I have an opposite hypothesis.

I believe there is most likely an over abundance of gold and that it is currently significantly OVERvalued.

As a result, I infer that whoever is left with all of the gold in their hands when the music stops will have no where to sit. And they stand to lose massive % of their investment when the inflated commodity crashes.

So my understanding of market economics is obviously diametrically opposed to the assumptions in the mainstream. Which by the way are promoted by big business, so ask yourself, ' why are all these nice companies giving me a good deal on gold ? '

Reality is they aren't giving you a good deal. They are a corporation and are profiting off the transactions. Hell it could be highway robbery but we won't know till gold prices crash.

Everything that goes up, must come down, after all.

From my point of view investing in gold right now is silly. At these exurbant prices you stand to make little to no net gain. In fact the risk of a crash is so strong that it would be absolutely foolhardy.

However if you have gold on hand, now is the time to sell it considering these are the highest prices ever.
Buy low, Sell high

I have bought piece of paper that states that i own gold for a specific value. When i went to the bank "Handelsbanken" to ask for my gold, they looked at me very funny. They asked why i wanted the gold?

I told them that i don't have to give them a reason. I just want the gold i have paid for. Then things started to happen. They told me that they didn't have the gold at the bank. They told me that they had bought my pies of paper at a different bank.

I said no problem: call the bank and tell them you need the gold?

The person behind the desk started to look around, like he didn't know what to do. Then more questions.

The person started to talk about that it was not legal for me to take the gold with me home. I asked why not?

Than he said: Its not how it works.

Than i said: that is not a law?

He left to talk to he's supervisor, and the supervisor came over to our desk. And i was pounded with more questions.

I told the supervisor that i have bought gold. And i show him my piece of paper that states that i own gold.
Now i want to take it with me.

Without calling the other bank. The Bank supervisor at Handelsbanken told me that the other bank has bought the paper with a gold value at a different bank.

No problem i told him. Call them.

Then they started to lecture me about how this sale works.

I told them i am not interested in how it works. My trade is over and now i want my gold. Can i have it or not?


They said i couldn't have it.

It is possible there is something going on but that's how the physical market works at the sovereign level, completely opaque and it's effects felt like a black hole moving all markets below it.

Hi muzzleflash,
The price of gold is all about the ratio of dollars to gold ounces, the Federal Reserve say that it's $42 to one ounce but if pressed to actually move physical (see OP) they will go with a much higher ratio since they print the dollars.

You are probably to small to print your own dollars to ratio a gold ounce of physical metal into your own hands. Any dollars you may have will get swamped since they print the dollars.

Why is our government even buying any gold at all when it is so high priced. Ever wonder why the national debt is growing? What stupidity, I bet they are spending tons of money on gold to fill up their stolen reserves....Actually they weren't stolen, they were swindled away by the corruption that existed in our government before. Our government will cover this up because it makes them look bad, instead they just make us pay for it. The corporations that did this are gone and the execs are protected by existing laws that protect them. Bankruptsy does not protect the little guy as much as the big guy. I know people who walked away from a business rich and the corporation went bankrupt. I'm all for making corporations and patents illegal in some cases myself, they both corrupt society.

I like private businesses and I believe patents have their place but there is a lot of good technology hidden by our present system. If a corporation buys a patent and doesn't start to produce it in a few years, than the patent should be voided. I also am against the current patent system of medications, it shouldn't cost a quarter million to patent a medicine and another quarter million to have lawyers draft these patents. Seems like the legal system is bringing prices up in this country. These patents costs are just another way of collecting money in leau of taxes by the government as are fines of pharma companies. Hidden taxes are causing a lot of problems in this country and these hidden taxes bring up costs more than actually raising our income tax rate. I remember when it didn't cost anything to get a government service, now, everything we do has a pricetag. We can't see the taxation but it is still there in the price of everything we do or buy.