Gold Monitoring Thread £ GBP only

[Robda1986]

If it tanks great if it jumps great but it's just a guessing game till the market opens back up

[Richym99]

1 hour ago, GoldenGriffin said:

I've noticed adverts outside jewellers, for example, but what makes it more prominent is the fact that TV and radio adverts start to come on and I've not heard or seen these for quite a number of years, which indicates a big push to sell and possibly driven by more powerful entities.

I would put it down more to opportunism. Many are struggling for cash with furlough and more and more businesses closing. There are plenty of business models that use the hook of quick liquidating of assets into cash to pursuade people to part with their possessions at a fraction of their worth. Anything from jewelry and cars to houses. (We buy any car for example). 

[GoldenGriffin]

38 minutes ago, Richym99 said:

I would put it down more to opportunism. Many are struggling for cash with furlough and more and more businesses closing. There are plenty of business models that use the hook of quick liquidating of assets into cash to pursuade people to part with their possessions at a fraction of their worth. Anything from jewelry and cars to houses. (We buy any car for example). 

Possibly, it's difficult to tell for sure.

But interesting to see wider audience targeting and timing between Turkey and here.

Edited April 4, 2021 by GoldenGriffin
.

[GoldenGriffin]

Has anyone calculated how much 1 oz of gold would be worth if calculated the total global debt over the total gold mined?

Moving target with debt increasing and total volume of gold that's been mined increasing too, but might help with gold price forcasting?

Also, not sure where you'd get shadow banking debt figures, but those would need to be included too, to get a more accurate picture (gold's price potential).

Edited April 4, 2021 by GoldenGriffin
.

[Spark268]

total amount of gold in the world. approx 9 trillion dollars/6 bln ounces. Total debt: 300 trillion dollars.

Implied gold price: 49,100 per ounce.

[Paul]

1 minute ago, Spark268 said:

total amount of gold in the world. approx 9 trillion dollars/6 bln ounces. Total debt: 300 trillion dollars.

Implied gold price: 49,100 per ounce.

[Stacktastic]

2 hours ago, Richym99 said:

There are plenty of business models that use the hook of quick liquidating of assets into cash 

I remember it vividly in 2009 or there after. loads of letter through my door asking to sell gold - door to door salesmen too. 
Band wagon and a good head wind sign if you ask me. Best news ever after the last 3 months! I am -£1200 on my miner stocks. 

When these people surface its fabulous as they  know its gonna pop in the next 1-3 years so they will get people desperate for cash,
esp. post stimulus & if there is inflation. I might be wrong but there is an economical s**** storm ahead. £30k gold would be fabulous!! 

Edited April 4, 2021 by Stacktastic

[ady]

Better to look at gold/population, comparing in all fiat is meaningless. Capital has to be risked and productive to be meaningful.

[GoldenGriffin]

When I saw George Gammmon's video a few years ago, on global debt and Shadow banking debt, he said with Shadow banking debt (non conventional banks) you can double it. So, $49,000 becomes $98,000 per oz.  

But remember, take this ball park figure as gold's potential and use it as guide - other assets can be revalued to extinguish some of the debt, but this shows very strong potential for gold going forward - it now makes £1,250 look cheap 😅

If gold is due to hit that high in our lifetime then, I think government controls will definitely kick in...

Something to think about.

@Paullove the homer dance! 🤣

Edited April 5, 2021 by GoldenGriffin
.

[GoldenGriffin]

On 05/03/2020 at 00:17, sixgun said:

This is an 1805 note - it is a bank note - it is a bank of England promissory note - here the payee is named, a Mr Newland or whomsoever is the bearer the sum of one pound.

Apologies, but I can't remember now, exactly where I heard or read this but it is interesting...

The 'promise to pay the bearer the sum of...', on old bank notes is in proper case lettering and between the left and right margins on the note, and the amount and signature are also between the margins on the note, which, I believe makes the document binding and legal. The above note, looks to only have a left margin.

If you look at todays money, the 'promise to pay the bearer the sum of...' is all in upper case lettering, which, legally, does not have any meaning whatsoever and is seen as a sign and nothing more.

On a new £20 note for example, on the front of the note, the '£20' is on the left (in the margin) and at the back it's on the right (in the margin). And the chief cashier name is also in the margin.

If the text is in the sides of the document (the margins of the note), it isn't taken into account as being part of the note / the document.

At the front of the note to the right, it has a '20' but missing the '£' sign and in the main (coloured part) of the note.  And on the back it has a '20', again missing the '£' sign.

So, today's money is truly worthless and has no legal backing and if went to court, you could be compensated with 20 pebbles or 20 of whatever and not £20! 🧐🤣

Edited April 5, 2021 by GoldenGriffin
.

[sixgun]

8 minutes ago, GoldenGriffin said:

Apologies, but I can't remember now, exactly where I heard or read this but it is interesting...

The 'promise to pay the bearer the sum of...', on old bank notes is in proper case lettering and within the left and right margins on the note, and the amount and signature are also within the margins on the note, which, I believe makes the document binding and legal.

If you look at todays money, the 'promise to pay the bearer the sum of...' is all in upper case lettering, which does not have any meaning whatsoever and is seen upon as a sign and nothing more.

On a new £20 for example, the £20 is in the margin on the left on the white margin background at the front and at the back it's on the right white margin background.

At the the front of the note on the right, it has a 20 without the £ sign, but not in the margin (the main coloured part of the note).

If it's off the margin of the note (the document), it isn't taken into account.

So, today's money is truly worthless! 🧐🤣

i have certainly read and heard that text if in different case (upper v lower) can have different meaning - it may even extend to different font. Additionally something inside a box is as if on a different page, a different document. If you sign inside a box you aren't signing for whatever else is on the page. 

Fiat bank notes are only worth anything if someone believes they are and they will accept them in payment for whatever it is. When that belief is lost widely enough a currency will collapse and you see hyperinflation. Then it really doesn't matter what the font, case are, inside or outside a box.

Edited April 5, 2021 by sixgun

[SidS]

Originally banknotes were promissory notes. The £1 note being a credit note for a gold coin. The US notes were a little more blunt in that they stated exactly what the note could be changed for, 5 gold dollars, or 1 dollar in silver coin etc.

With regards to old white British notes of this era, they would be cancelled when the money was paid out, usually by having holes put through the note or cutting a section out.

I always thought it odd that many banknotes of the era were denominated in pounds (great for swapping into silver coinage) but not so great for swapping into guineas, where you'd have to pay a shilling coin with your note to get the gold coin.

That said some notes were denominated in guineas.

Edited to add:

From memory, I do believe the first notes issued with values lower than £5 came into circulation in the 1790s as an emergency measure, due to the various French wars that Britain was involved in, and that convertibility into gold was suspended temporarily and remained so until the 1820s or so, some years after Napoleon was defeated. I'm happy to be corrected though on precise dates.

Edited April 5, 2021 by SidS

[TutoredSoup232]

15 hours ago, SidS said:

Originally banknotes were promissory notes. The £1 note being a credit note for a gold coin. The US notes were a little more blunt in that they stated exactly what the note could be changed for, 5 gold dollars, or 1 dollar in silver coin etc.

With regards to old white British notes of this era, they would be cancelled when the money was paid out, usually by having holes put through the note or cutting a section out.

I always thought it odd that many banknotes of the era were denominated in pounds (great for swapping into silver coinage) but not so great for swapping into guineas, where you'd have to pay a shilling coin with your note to get the gold coin.

That said some notes were denominated in guineas.

Edited to add:

From memory, I do believe the first notes issued with values lower than £5 came into circulation in the 1790s as an emergency measure, due to the various French wars that Britain was involved in, and that convertibility into gold was suspended temporarily and remained so until the 1820s or so, some years after Napoleon was defeated. I'm happy to be corrected though on precise dates.

From memory I think you're correct. The £1 note was in circulation and very easy to forge. There was a back and forth as to whether or not people should be punished for forging the note if they made it that easy. I believe they also applied the same penalty to those found in possession of the note as those who were forgers. 

[Nick1368]

Gold just needs to break through $1800 

[dicker]

Gold finally touched 1260 again. I think it was at 1260 on about the 24th March and then dropped back. 

[Stacktastic]

On the way to £1300 now I would say looking at my stock turn around. 
The run is probbaly back on again.

[Nick1368]

I don't know about you but I see Gold , Silver and Alt coins taking advantage of this Bitcoin Consolidation period .

[dicker]

Gold remains stable / up a little.  Surprise to me!

[Spark268]

its the pound, down abt 1.5% this week

[GoldenGriffin]

14 hours ago, Spark268 said:

its the pound, down abt 1.5% this week

Apologies for my ignorance but does that mean less liquidity in the system (less money creation in £'s) against USD or more money creation in £'s against the USD?

If there's more liquidity created in the system in both GBP and USD at the same rate, they should equal, meaning more money creation and GBP and USD on par with each other, but if one is creating more currency, more than their normal creation rate, does this then reflect in the ratio and one currency becomes weaker than the other?

[GoldenGriffin]

When money is created, does it sometimes sit unallocated by default against gold and this is reflected in gold going up and then, when it's allocated to something else, gold then goes down and that something else goes up?

And sometimes the money creation is allocated straight away and doesn't impact on gold?

Edited April 8, 2021 by GoldenGriffin
.

[Spark268]

29 minutes ago, GoldenGriffin said:

Apologies for my ignorance but does that mean less liquidity in the system (less money creation in £'s) against USD or more money creation in £'s against the USD?

If there's more liquidity created in the system in both GBP and USD at the same rate, they should equal, meaning more money creation and GBP and USD on par with each other, but if one is creating more currency, more than their normal creation rate, does this then reflect in the ratio and one currency becomes weaker than the other?

 

that's not ignorance - no one really understands money/currency. In the longer run, on average that is correct - the exchange reflects the supply and demand for a currency. Short term movements happen for any reason though (someone having a bad day??).

Both US and the UK have had huge liquidity injections, so they are on  par with each other. GBP has done a bit better over the year because Brexit has been less bad than predicted by the markets (?!), so it is understandable that it has fallen back since. It is worth noting that Gold hit all time highs in most currencies before COVID hit, but i don't think it has yet done so in USD. 

I don't understand the question in your second post. When money is created, its given to someone, who can chose to spend it on something.  The owner of that something gets the money and spends it on something else. In theory, this increased demand raises the prices of these things that have been bought. Since '09 however, most of that money either sits in a bank account or only gets spent on bonds and stocks, so it hasn't really impacted other things including gold.

 

Edited April 8, 2021 by Spark268

[dicker]

1272!

[Martlet]

1 hour ago, GoldenGriffin said:

When money is created, does it sometimes sit unallocated by default against gold and this is reflected in gold going up and then, when it's allocated to something else, gold then goes down and that something else goes up?

And sometimes the money creation is allocated straight away and doesn't impact on gold?

Money creation has zero direct effect on gold.  It springs forth into accounts for institutions to give liquidity and hopefully lend.  The amount might have an indirect effect on gold, depending on how much money and a dozen or more other economic or geopolitical factors. And speculation, never forget the daily (even weekly) prices are much about traders speculating what will happen next. 

I say hopefully lend, because having all that money sitting on bank balance sheets means its not doing much useful. Part of the reason we haven't seen much inflation the past decade is a lot of the liquidity is sloshing around bank balance sheets, not flowing out to the wider economy.

[Nick1368]

looking good, let's hope this time £1270 will hold and continue it's way to £1300 🤞