Bratnia

All to help the newly (then) started Euro - that we got no thanks for. And the sale auctions totally incompetently managed, pre-informing the markets of the amounts/times. Perhaps that's Scots/Labour for you, alongside other greats such as Sturgeon (do more harm than good). Oh look, they've just reappointed yet another failure (Sweeney).

The Fed are only lent the gold, from the Treasury who own it. Non redeemable gold notes at $42.222/ounce for economic management purposes. The Fed are also the custodians, and I'd expect that the Treasury would have practices in place to reassure any of its concerns in that respect.

Each bar was assayed and sealed, the seals are periodically checked. Replacing those bars with gold plated tungsten/whatever bars would entirely undermine the entire US and global financial system, and would require the seals to be broken and the bars physically exported. Each head of treasury would be inclined to at least independently check random samples or otherwise be at risk of being the one left holding the bomb as it exploded. I most certainly would, not that I'd ever be in such a position. As such I opine that the gold is there, but accept others may disagree and if so, the next Treasury head might blow the whistle that end the world as we know it. What about the UK, the second largest holder in the world (5000 tonnes). Much of which it doesn't own, is the safe keeping custodian, do you believe those bars are fake/non-existent? Another factor is that even at the recent high gold price levels that still 'only' amounts to half a trillion dollar value which in the scale of 35 trillion debt is relatively trivial/insignificant. Yes a lot, but in the scale of things not worth the 'fraud'.

I did say "hold" not "own". If there's 123 claims to each single ounce of gold, who does own it! The one who has it in their hand has a big say.

The BRICS issue with the US is primarily how its weaponised the dollar. All (dollar based international) transactions clearance passing across, up, back down and out of the US financial system - and where it opted to block (sanction) some. The likely resolution will be for a alternative clearing 'house' that isn't politically influenced - that's also linked into the US system, so even if the US block one directly they'll still be able to transact through the other. The US of course will try and put up barriers to that however, will prefer to retain is 'weapon'. The UK could have been presented as a great such alternative, but our PM (BJ) opted to instead insult Russia and jump into the Ukraine war with little thought other than how he might act like a second Churchill. Outside of the EU, and had we opted to follow more former Swiss style neutrality and central safe-haven could have had the UK in a very good position.

Countries used to use gold for international trade settlements, British empire Pounds (Sovereign gold coins) and 400 oz average bars. London was the hub and physically moved bars between different country cages in reflection of that. Since the US dollar was transitioned to paper dollars were instead moved, electronically. The US strives to keep the dollar aligned to gold as that better stabalises international trade. It's not good if one day something earns/costs $10, and the next it earns/cost $5, or $15. But that's not a direct peg, rather a channel range, that the US manages by buying or selling gold to realign it to the dollar. The US treasury hold 8000 tonnes of gold, and lends that to the Fed at a $42.222/oz rate, so at $2111 market price of gold the Fed has a 50x leverage factor, which in turn it might use to buy or sell leveraged gold such as Options/Futures (there's 123 times more paper gold than physical gold). So the Fed in effect at a $2111/oz price have over a 6000x leverage rate on each ounce of gold and have access to up to 8000 tonnes of gold for that. And if the dollar weakens/price of gold increases, so does that leverage factor (fail safe).

Recent US debt of near $35 trillion will at a typical average real rate of 6%/year increase, in ten years time will be 1.06^10 = 1.79 times larger in real terms, stand at more than $62 trillion. As in another ten years on from that it might stand at $112 trillion. Equally however it possibly stood at a 1 / 1.79 = 0.56 smaller level ten years earlier. Either way and tax revenues/spending etc. will be multiples times larger (smaller in backward looking direction). In 1960 US debt was $286 billion, so has grown 122 fold in 63 years, at a 7.9% annualised nominal rate. Inflation over the same period around 2.7% annualised. The US system puts a cap on debt expansion, so the government have to periodically go to congress to ask for the debt ceiling to be increased - as a backstop to prevent any one government over-doing it. That wont fail (excepting some exceptional circumstances) even though it seems like debt is at highs and only growing at rates that some mistakenly belief will result in failure.

US debt clock https://www.usdebtclock.org/ and you can see how the debt is increasing (top left) and how much is coming back in the way of taxes (top middle/right) and other data such as where its being spent by the treasury/government. It's all a balance, you could divide each figure by 100 (or multiple each figure by 100) and ... its still overall the same balance. What matters is if spending is too large/fast, or not fast enough ...etc. Gold in contrast is a non fiat commodity currency, worth its weight. A one ounce gold coin might have bought a Roman soldier a nice suit just as it might buy a modern day man a nice suit.

A state creates its currency by printing it. In effect a 0% coupon undated bond (note). It's passed around, repeatedly taxed so it ends up back at the treasury and re-spent again. Fiat money is debt (credit). JP Morgan said that gold is money, everything else is credit. With gold as money the coin is worth its weight (isn't a debt (credit)). So all fiat currencies are debt. Where central banks tend to hold other countries currencies (debt) for diversity (if their own currency weakens they can settle international trade settlements in other currencies). When the US prints/spends, attempts to export inflation onto others, so others will print and buy more US debt (treasury's) to negate that otherwise loss. Lockstep of sorts, where (US) debt is typically increased at around a 6% yearly rate, so recent apparent huge debts are ... normal. Its a exponential function. Debt to GDP and deficit (importing more than exporting) are the more critical measures. Japan gets away with debt to GDP of 300%+ as much of what its treasury issues its central bank prints Yen and buys. More a case of a internal debt, as though a family had one member in £10,000 debt to another, just a internal money redistribution matter. Or for a better explanation as Gruff posted the other day, from the man that works for Biden https://content.invisioncic.com/l328053/monthly_2024_05/twittervid.com_LawrenceLepard_33b0b2.mp4.7263460e4d0d5b01816835577b8d0c26.mp4

Gold is right up there as a potential asset to side step such geopolitical risks (confiscations). A couple of properties in different countries, a yacht, gold and art (such as paintings that can be rolled up and transported in tubes). Even a slightest sniff of 'hit the rich' ... and they're gone. Foolish policies as otherwise the richest 1% pay a third of the tax take, better would be to treble that number. Truss/KK intended policy - poorly implemented, replaced with 'tax the rich/rejoin the EU' policies where Conservatives as-is are little different to Labour.

Bank accounts should only be used for small amounts, about to be received/spent, otherwise transferred into a brokerage account/other assets (stocks and gold). Pounds will lose purchase power, broadly ... guaranteed. Stocks/gold will maintain if not increase in purchase power. Consider share certificates/gold as just another form of 'currency' but where you have to FX them into Pounds for spending (or from Pounds for saving). Bank accounts are just for transitory transactions and as such doesn't matter if it CBDC based or whatever. Is just a means to use a common currency when buying, or receiving wages/benefits before being FX'd to/from stocks/gold. Use a credit card and a week or so before that bills is due to be paid, sell some of stocks and/or gold in order to transfer that into your bank account in time to pay that bill. Bank goes broke and more likely ... meh! A main factor however is that they're working towards restricting what you can buy or transfer in from. Crypto ... no, not allowed (account closed). Later it may be gold, and then buying particular products, and then limiting you to certain activities - sorry you can't buy concert tickets to xyz because your citizen score is too low (or you voted for the wrong party in the General Election - that they can tell because when you present your ID the first clerk records a number against your name that corresponds to the voting papers you are handed).

NO! ... what gold. Gifted/gave it. As might another generous individual gift it to you. Above board (audit trail that otherwise could lead to loss if/when it resurfaces). https://www.thesilverforum.com/topic/19761-gold-deals-usa-canada-see-a-deal-post-it-here/page/4/#comment-1096871

Fundamentally inflation is just another form of taxation. The "counterfeiter" who prints new notes has the benefit of spending those - but that devalues all other notes in circulation by a very small amount. Pushed to more extremes and that 'micro-taxation' becomes more significant. During the centuries of the Pound being the dominant international trade settlement currency it was backed by gold, one pound = a sovereign, a little under a quarter of a ounce, so the Pound remained at a relatively constant £4 odd a ounce gold price rate. Inflation broadly averaged 0%, those with surplus money (gold) could lend that for interest - that was like a real rate of return. WW1 however bankrupted Britain, things remained nasty up to WW2 and thereafter the US secured international agreement to adopt the dollar as the international trade settlement currency (again pledging to keep the dollar aligned to gold). BUT where instead that promise was broken and the US exports inflation (devalues the dollar) in order to pay for the likes of a massive military, moon shots ...etc. so since the 1930's there's been just predominately inflation. Others around the world are tiring of that US advantage and seeking out potential alternatives but as of yet none has had broad agreement of adoption. Whatever that might be is inclined to be at least in part that would be conceptually backed by gold, however that would mean having to secure physical delivery of US (and UK) gold that would be resisted. There's 123 times more paper gold (claims to each ounce of gold) than there is physical gold. https://usdebtclock.org/gold-precious-metals.html A potential era of financial/economic warfare.

January 1933 US compulsory purchased all American's investment gold, shortly thereafter ramped the price up by 70% or suchlike. UK in 1966, to stop the decline in the pound, the UK government banned citizens from owning more than four gold or silver coins and blocked the private import of gold. The ban was only lifted in 1979. The ban was an attempt to restrict the amount of money leaving the country, as gold was seen as a stable store of value. However, this policy had the opposite effect, and it caused the value of the pound to plummet. https://goldconsul.com/ban-on-gold-in-history/ In 1968 Roy Jenkings (then Labour) had the bright idea of increasing top rate tax to 130% (retrospective tax) - money (David Bowie, Rolling Stones ...etc.) flighted the country. The 1960's were the years when the Beatles released 'Taxman' "19 for you 1 for me" in reflection of their 95% taxation rate. Policy seems to have changed however. Issue inflation bonds and if inflation rages they can revise the taxation rate, as good as partial defaults without having to declare a actual default. Similar for other things, when you can direct money printing, taxation and define inflation rates there's no need for direct confiscations instead you can grab peoples money in a more progressive/gradual manner to similar overall effect. Basically diversify gold holdings across multiple forms, coins, BullionVault ...etc. If you can then if necessary rather than attempting to smuggle gold to safer pastures (overseas) instead liquidate, electronic transfer the sale proceeds and repurchase at the target location. Being in hand ownership is also more opaque, not mine, I gifted it years ago and here's the paperwork for that.

Losing it is easy, its finding it again that's the problem. Found treasury = Crowns. Or unaccounted - and suspected as smuggled so confiscated.

Unfortunately if things were excessively bad such that gold did soar likely they'd ban being able to hold/trade/export it.

Could be more a case of self-fulfilling prophesy, yield curve inverts and many start looking for what bad thing might happen - and something identified that induces a panic mass reaction that makes it actually happen.

Yield curve inversion (2 year Treasury yields higher than 10 year) often is a precursor to a recession. With a normal yield curve longer dated tend to pay a higher yield in compensation for taking on inflation risk. With a inverted yield curve risk is being suggested as a near-end/soon to occur event.

Seems like Jim Carrey's also heard

With CGT allowance having declined from £12K/year to £3K/year, having some taxable gold might be used to tax harvest capital losses that offset capital gains elsewhere. Not sure if your buy/sell price should be calculated as the average across all your holdings or whether you can selectively pick which gold/coin was sold, i.e. for one coin it might be a capital gain, for another a capital loss.

$188 Billion in T-Bills $325 billion in stocks = 64/36 stock/bond asset allocation. Of that Apple made up near 50% of the stock holdings. Reducing that exposure by $21 billion is around 15% of holdings, reduces the concentration risk down to more like 40% of stock holdings, 27% of combined stock/cash value (still relatively concentrated), and having increased cash by around 12%.

Something like a 212 brokerage account and save into a gold ETF/fund until you have enough to buy a 1oz Britannia. Still has you averaged into that coin over 10/whatever months and tendency for narrower/tighter spreads than the spreads on smaller physical amounts. I'd personally however mix that also with some stock purchases/averaging in, perhaps 67/33 proportions of VMID and gold. Broadly that has tended to compare to all-stock rewards but done so with less risk/volatility (US data) https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=288phRIg0TDBWzJMSVWzpJ

I like how his eyebrows have a life of their own and slide so smoothly up and down his forehead

Fair warning was given