silenceissilver

Reading this original thread makes me laugh and cry:

Tube of Brits for me pure and simple but not when spot is £1025+ oz t.

I don't want to rush into buying when spot is so high,

I wouldn't buy them at this point as there is a more than even chance of the £ price of gold falling.

9 minutes ago, Mcgrimes said:

My point is that just because you admire gold, doesn’t give it magical properties amongst other stores of value.

We have all thought about swapping our gold for iron, at some point, given the unparalleled iron to gold ratio.

2 hours ago, Mcgrimes said:

In times like this, investors may flock to gold pushing its value even higher - I think there will be?

Gold prices would likely fall it everyone loses their job and has to dip into savings, whether this is cash savings, stock investments or physical assets

You are talking about a deflation. We have seen what you describe already (not the end of deflation but people selling gold for liquidity). I'm talking about the next stage of the crisis, the hyperinflation.

1 hour ago, MancunianStacker said:

It was in Mike Maloney’s old book:

https://s3-us-west-2.amazonaws.com/gs-live/pdfs/GTIIGS_MikeMaloney.pdf
 

He is giving it away free! A good read no matter what you think of him (as he sells gold and silver himself).

 

But this is about gold keeping it's value, whereas buying a house for 3 ounces is much more than that, it's an enormous increase of gold's purachasing power. That's two different things. We all know gold gets you through hyperinflation, that's not the question. The question is, will there be a huge, short term spike of gold's purchasing power

1 hour ago, BullionBuyer said:

Just because we are not on the gold standard does not mean that we cannot price things in gold. Gold is a currency after all - in fact it is THE universal currency - more so than the Dollar. 

I think you are right in that the price of gold will ultimately be driven by the supply and demand of physical gold. Today gold price MAY be manipulated (COMEX market for example or the disclosure of traders who have admitted to manipulating price- can't remember which banks) but ultimately when the SHTF it will be real demand and supply that will determine price. 

The CEO of on of the biggest gold retailers in Europe, Markus Krall from Degussa, said he thinks that he gold price might reach 3000 or 4000 Dollars unless the paper market collapses because of too many delivery demands. Then everything would be possible, for a short time of course. He said the paper market is about 80 times bigger than the physical one this wouldn't be a problem, normally - emphasis on normally.

I've listened to a ca 10 year old talk where a German professor said at the time of the hyperinflation in Germany you could buy a banker's villa for 3 ounces of gold and a few ones for 15. I've tried to verify it but couldn't. There are all kinds of reports like this about Venezuela and I came across one in Argentina as well. Most are unverified hearsay but I wonder if there is some truth to it.

I'm  concerned about the gold price rising so high that I can only afford one eighth Sovereign every 3 months rather than about a low gold price.

22 hours ago, Foster88 said:

I think, but I might be wrong that this is a forum for healthy debate and opinions and you feel the need to pick one sentence from my comment and belittle me but I might be wrong.

How sad you feel the need to belittle others. 🤔 But I might be wrong.

You might want to try being nice, I know that might be slightly alien to you but try it sweetie, it might suit you.

Did you know, perhaps not, but silence is also an option. Apparently and ironically silence is golden would you believe.

Now stop belittling others and volunteer for NHS, as have I.

I’ll look forward to that rain in 2020/21, it will make a refreshing change in UK. 😘

I didn't belittle you but wanted to express, I think the crisis is about to come for sure. I tried to say in an understatement, sorry it sound belittling to you. And, no, I won't help the NHS, I would rather have it abolished and replaced with private health care. Then I wouldn't pay for it, get nothing out of it and be asked to work for them for free on top of it and probably it would become more apparent than it is anyway that Corona is a normal seasonal flu. In any case with less government poor people wouldn't be that poor and could afford much better private health care for probably £100 a month.

9 minutes ago, sixgun said:

More potential Wrong Think on the forum - this has been detected and reported to the Thought Police.

My defence will be, "at least I didn't committ Wonger Think"

On 28/03/2020 at 03:19, Foster88 said:

I think, I might be wrong but I think we are heading for a huge recession.

I think, I might be wrong but I think we are heading for rain somewhere in the UK, in 2020/2021.

But I might be wrong.

6 hours ago, Wonger said:

What with $300t of global debt and you think a lousy government package will overcome this deflation, are you serious? 

Deflation before inflation, no exceptions ever in history!

First deflation before Hyperinflation was the more likely scenario all along. As said before, the Corona version of the crash is now about to shorten the deflation phase of the crisis. Even if not, gold and silver were expected to fall at the beginning of the crisis and to both have their time during the crisis, gold first, silver later but stronger.

And yes, a supply and demand shock that we have now meeting more money devalues money of course. It's about to go directly into the real economy not into the bubbles as in the past (banking rescue packages after 2008). Of course the bubble money is also still there and ready to flood the real economy once a hyperinflation is being triggered

4 hours ago, richatthecroft said:

@WongerThis current worldwide situation is unprecedented- I’m pretty sure there is no chart or stat in history to liken it to.

That's true in many respects but there is a very interesting parallel to Weimar Germany before the hyper inflation. Many Germans in the factories suddenly stopped working because of the occupation of the Ruhr in the 1923 by French troops. There was amassive deflationary shock, just like now

Now, guess how the government reacted - with massive rescue packages. We know the outcome back then and if the Corona hysteria doesn't stop very soon and the governments follow through with their "rescue packages" for the mess they themselves created in many ways, from allowing and supporting fiat money creation to the Corona madness, the outcome will be the same.

We know the murder rate and general criminality rate spiked dramatically during the Weimar hyperinflation.

I'm sure the governments will find a good explanation for that, too. Blame people like me for example who call the lockdown madness.

56 minutes ago, Wonger said:

Do you really think that consumers buying food and amazon goodies will overwhelm the complete deflationary collapse of global securities resulting in inflation pushing up Gold? Really? 

Troll confirmed (once again). It's the rescue packages that will lead to hyperinflation and I said that.

1 hour ago, Wonger said:

Gold and Silver get crushed in deflation and deflation always comes before inflation, always and boy oh boy are we going into deflation now!

Yes and no

We are indeed at the beginning of a very severe deflation now. However, unlike assumed before the Corona hysteria it's not going to last about 2 years but a few months. The reason is, without the Corona hysteria, you could have expected the following scenario:

A black swan of a much smaller scale, a recession, the  companies that would have gone bust in the last decade but didn't because of the easy money that thus accumulated to about 15% of "zombie companies" in 10 years, would have gone under, which would then have brought the banks into trouble before we would have seen the rescuing of banks. This would have taken one to two years of severe deflation but now the governments all over the world are about to pump money directly to consumers and much earlier so. So the hyperinflation is coming much earlier.

But even if it did take 2 years - so what - then there will be hyperinflation with many markets having crashed and gold and silver going up in purchasing power. I wish gold and silver would go down for another 2 years.

And also, although particularly silver does go down in a deflation, even in the 2 year deflation scenario I doubt it gold would have gone down during this period.

1 hour ago, Wonger said:

You will when its $400!

A Sovereign for £82 🤩

If only

3 minutes ago, sixgun said:

i will say there is the mother, father, uncle, aunt and 6 generations of cousins of a financial problem.

I certainly agree with that and it's mostly due to how money is created and by whom (as debt by a corporatism of the central banks and the normal banks). However, I don't think we are seeing the early days of its manifestion now. I think this will probably happen after the US election.

8 minutes ago, sixgun said:

Hope you have got plenty in your stack already then. 

I could be less, it could be more. I won't say how much I have, on this forum. But I'm a buyer.

1 minute ago, sixgun said:

i expect price to get choppy - the bulls and the market riggers are going to have a big scrap in the coming days - 

Not again! If it continues like this all I will be able to afford a month, will be half gram bars, by the end of the year.

Great opportunity to buy a few sovereigns and other shiny objects, obviously. I'll see if I can make it but I won't know till pretty late in January, as it seems.

9 minutes ago, Melon said:

My setup was pretty rough to be honest. The scales I have that are accurate to 3 places but only weigh up to 50 grams max (pocket sized), so the water container has to be very small.

My sacle with the same accuracy weighs up to 200 g and even with that the water container needs to rather small. I'm only guessing but I think this very small water container might be the cause for the inacurracy.

12 minutes ago, Melon said:

I've seen handing water baskets on YouTube that I think would be a good investment, but can't find them online anywhere. I think I'd like to get a half decent setup that doesn't take forever to use, as this seems like a very useful test going forward.

I have tried this threadless method too but without any specific water basked, basically just a random can, hanging under the sacle, inside the water. That was a friend's scale though, mine would have been unsuitable for this method.

15 hours ago, Melon said:

This may be silly, but when measuring coins that weight 4 grams I wonder how much a wet string can impact the readings - perhaps that's pushed all the 'in water' readings north a little.

From my experience, not that much, I too thought maybe the accuracy goes down with half sovereigns (at at time when I only had one half sovereign, the rest of what I had was all full sovereigns). I turned out it was not the string but it was fake indeed, 18K Gold, as mentioned in other threads, before.

I have used dental flosses and thought, maybe that's too big threads but I don't think it is, even for half sovereigns. If you used normal sewing threads, it will impact the accuracy even less.

Having said that, you must have made something wrong, your control object, the quarter maple, is way off which makes all the other results questionable, in my opinion.

What was your exact set-up?