US Gov. Shutdown Affect

[aztecstargazer]

It is official. The US government is shut down. I'm just looking to start a debate as to what affect this will have on precious metals. I know the U.S. dollar continues to weaken compared to other major currencies. So to what extent should we expect the world to react to this news?

[airmac]

It shouldn't really have any effect on the rest of the world as it's only a partial shutdown. All essential services continue as always

[kimchi]

6 minutes ago, airmac said:

It shouldn't really have any effect on the rest of the world as it's only a partial shutdown. All essential services continue as always

It's not unheard of and the last time was in 2013 I think (?). Seems like a test of Trump and his team to me, seeing as he blamed it on Obama last time.

It's not huge (yet) but it's not insignificant imho - there is a lot happening on the ground in the US that is simply not reported.

It's going to be an 'interesting' year.

[Cacc]

My guess is that prices will stay stagnant until it is sorted. The US holds gold reserves of basically the next three countries in line combined, but that has remained without movement for many years. Russia and China seem to be in a race to catch up, but that should not affect the value. The US dollar may weaken a little, but that will just raise the US dollar amount paid for precious metals but my prediction is that it will remain basically the same for the rest of us non-US dollar countries.

[kimchi]

50 minutes ago, Cacc said:

The US holds gold reserves of basically the next three countries in line combined, but that has remained without movement for many years.

From the bottom of the list up (maybe)...

[Cacc]

9 minutes ago, kimchi said:

From the bottom of the list up (maybe)...

The countries with the largest gold reserves, as of June 2017, include:

• United States: 8,133.5
• Germany: 3,374.1
• Italy: 2,451.8
• France: 2,435.9
• China: 1,842.6
• Russia: 1,715.8
• Switzerland: 1,040.0

* Amounts in metric tons.

And a more up to date list can be found here: https://tradingeconomics.com/country-list/gold-reserves

[mr-dead]

Ill be in that list one day

Got more than Canada so its a start.

 

[Cacc]

6 minutes ago, mr-dead said:

Got more than Canada so its a start.

 

I was about to say that too! A metric tonne is only 32,150 troy ounces, so it should not be hard to catch up to the US either. That's what, only 261,498,097oz? That has been my 5 year plan all along and that is why I have a big safe. At £958.93/oz it would only take £250,758,370,156.21 to buy all the US held gold. I think I have that little in my sofa cushions.

[mr-dead]

Just need to buy one of those central bank printing machines on ebay and your good to go.

[Pete]

I am not convinced the big players have these inventories of physical gold as it has probably been traded several times over.
As for the US government shutdown over the weekend - about as significant or maybe less so than a London Underground strike.

[Cacc]

2 minutes ago, Pete said:

I am not convinced the big players have these inventories of physical gold as it has probably been traded several times over.

You are semi-correct with that one (from what I have read). Germany is a good example where they technically own 3,374 tonnes of gold but they don't actually possess it on hand as written by Forbes:

Germany is in the process of   repatriating its gold from foreign storage locations, including New York and Paris. Last year, the country’s Bundesbank transferred 210 tonnes, and it plans to have the full 3,381 tonnes in-country by 2020.

[tbone]

To da moon!!! 

(US national debt that is)

[KevinG]

Are you sure the gold in the american vaults is real and not tungsten.

[Cacc]

1 hour ago, KevinG said:

Are you sure the gold in the american vaults is real and not tungsten.

In a quick search, things get a little more fun than that. As mentioned before, China and Russia have been building up the amount of gold they have over the last few years (https://www.gold.org/data/gold-reserves). According to Wikipedia, China and Russia also have the largest production of tungsten (https://en.wikipedia.org/wiki/Tungsten#Production). China with 64,000 tonnes...and they also happen to be the main source for fake gold. Coincidence?

[augur]

8 hours ago, Cacc said:

Germany is a good example where they technically own 3,374 tonnes of gold but they don't actually possess it on hand as written by Forbes:

Germany is in the process of   repatriating its gold from foreign storage locations, including New York and Paris. Last year, the country’s Bundesbank transferred 210 tonnes, and it plans to have the full 3,381 tonnes in-country by 2020.

That's wrong! Germany has received only half its gold back. The rest will stay in London and New York with no plans to change this. 

[Paul]

Unless the USA runs out of zero's for the printing press no shut down is ever likely any time soon

They didnt bat an eye lid getting to twenty trillion $, why would things be any different on the way to fifty, or hundred trillion

 "To Print-finity AND BEYOND ! "

[PansPurse]

1 minute ago, Paul said:

Unless the USA runs out of zero's for the printing press no shut down is ever likely any time soon

Ummmm, have you not been watching the headlines?

[kimchi]

1 hour ago, augur said:

That's wrong! Germany has received only half its gold back. The rest will stay in London and New York with no plans to change this. 

The problem is the gold in London is on paper and is actually the same gold on paper in New York. The fourth owner of the same gold is China and they have a bit of an advantage there as it's the actual physical metal 

[augur]

58 minutes ago, kimchi said:

The problem is the gold in London is on paper and is actually the same gold on paper in New York. The fourth owner of the same gold is China and they have a bit of an advantage there as it's the actual physical metal 

That's the great suspicion in Germany as the gold was never allowed to be audited in the US.

Better keep stacking while we can

[KDave]

I read headlines about government shutdown then in brackets there is a long list of services that are being continued regardless. What exactly has shut down? 

One thing is clear. Gold was obviously being proped up by the US government and now the manipulation is finally over the price is falling yay! 

[Pete]

6 hours ago, KDave said:

I read headlines about government shutdown then in brackets there is a long list of services that are being continued regardless. What exactly has shut down? 

I was in Washington DC when they had a government shutdown like the one just now.
You could not visit museums, libraries or national monuments that have people in uniform ( with oversized badges ) trying not to fall asleep whilst keeping an eye on things - you know like our gallery attendants. I wanted to go to the top of the obelisk thing opposite the Whitehouse you see in all the movies but it was closed due to the shutdown.