Just A Theory About Gold.....

All these companies that are snapping up gold around the world are actually a front for the Federal Reserve, it would go along with the theory that the Fed is empty and that they are panicking and they are trying to snap all the gold up to fill it before anyone notices, only recently Germany has demanded to see its gold

www.businessinsider.com...

Now I cannot find anywhere if they did or did not show them yet, what would it mean for America if it is actually empty? If they have not shown the gold to Germany yet, why haven't they? As I said this is just a theory, I have no proof. Would love to hear peoples thoughts on this.

Todzer

Note to mods, if this is the wrong forum please move.

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

reply to post by muzzleflash


Gold can be used as a superconductor and also its a good conductor at room temperature. Its used extensivly in the production of all modern electronic and electrical equipment. My point is that the demand for the stuff is only going to get bigger. So i would not mind being left with the majority share. Just pointing out that i cant see how one could lose money on the stuff.

Then again im no economic genius.

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.

reply to post by muzzleflash


But why would you want to give up gold ( a precious metal) for a piece of paper that could turn out to be worthless at any time now, sorry for the late reply my internet was down

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.

reply to post by spy66


So after they told you that where does it leave you? Can you not get it at all?

reply to post by muzzleflash


I agree with your position on this topic. The Diamond market comes to mind and the strangle hold by the DeBeers company.

I would suggest that by buying up all the gold stock sitting around in jewelry boxes, the inflated price of gold will remain strong and regulated by influencing parties.

Though the connection in the OP remains valid. If the US is sitting on gold bar stock that has been compromised by tungsten rod fillers, then they would most definitely need a cheap way to replenish to the appropriate values.

reply to post by MDDoxs


That's what I was getting at alright but as I said it's just a theory. Although not that crazy of a theory

reply to post by spy66


Sell it now, I'm telling you.

Soon your paper fools gold could end with very little value.

Hey at least iron pyrite. is worth something since you can actually hold it.

reply to post by andy06shake


Yes gold is important in high tech, like space flight or making computers.

But that simply doesn't account for its skyrocketing value.

Instead it is through entirely frivolous use where the real inflation occurs. Jewelry, hoarding for end times, etc etc

If we removed all of the hoarding demands, the leftover high tech demands would be miniscule in comparison.

Also the mining industry keeps production low purposely to keep a false low supply and false high value.

Originally posted by Todzer
reply to post by spy66

 

So after they told you that where does it leave you? Can you not get it at all?

No, i cant get my gold because its no how the trade is conducted. I have only bought a value of gold that i can use to trade in other commodities or money. I don't really own the gold physically, I only own the value of the amount of gold i bought at the time i purchased the gold.

When people buy gold to day. They don't really buy the gold in it self physically. They buy the value of gold at the time of purchase. You can trade your value of gold at a different value if the market of gold changes.

reply to post by spy66


So basically just a piece of paper that states you have gold somewhere to the value of what you bought, whether it is actually there or not you don't know, sounds like a scam to me, as a previous poster said about the tungsten fillers that have flooded the market, you can't really know for certain whether they actually have it or not and if they turn out to be doing some shady business and get caught that leaves you up # creek without a paddle.

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.

reply to post by Todzer


You don't want paper or credit either.

There are countless good avenues for investment though.

Commodities that are more stable and less risky.
Historic artifacts or fine art, etc etc

I was reading about the mega billion $ fine art auctions inNYC this week, and these investment metrics firms were claiming fine art had a 8% Plus compound return rate, quarterly.
That's a very good investment return, amazing even.

The article is up on Reuters since yesterday go check it out.

Originally posted by Todzer
reply to post by spy66

 

So basically just a piece of paper that states you have gold somewhere to the value of what you bought, whether it is actually there or not you don't know, sounds like a scam to me, as a previous poster said about the tungsten fillers that have flooded the market, you can't really know for certain whether they actually have it or not and if they turn out to be doing some shady business and get caught that leaves you up # creek without a paddle.

Yes. The gold value i have bought is not really worth the paper it is written on. The value of gold is market controlled. And i have no control with the market. All i can do is buy or sell what the market provides.

My piece of paper with gold value is much like a paper printed dollar. They are not really worth the paper it is printed on unless the market allows it to be a value of trade.

reply to post by rickymouse


Absolutely correct, good post.

After extensive reflection, inquisition, and research, I have come to the obvious conclusion that if we add up all of these ' hidden taxes ' , which abound, we would discover the true real tax rate to be around 90 to 98% of the average persons wealth generation.

reply to post by spy66


Except that dollars are considered legal tender for all debts public and private.

People at the store don't accept gold certificates...

Sell that junk paper security now because it isn't you who its securing!

reply to post by muzzleflash


Agree with this 100%, get rid of them before you get screwed out of the "money" that you paid, I use the word money loosely here because the notion that a piece of paper is worth anything is laughable, it is all an illusion when you think about it, if an asteroid hit tomorrow and you were one of the few left how far do you think that trading paper money for food and the likes would get you?