true price of gold?

[blindguy]

for those of you in the states have you noticed the price of gold depends on where you look. right now gold price on fox business is $1742 a ounce, apmex its $1711, blomberg its $1665, sd bullion it $1704.  the price depending on where you look varies up to $80 each way.  Jim

[5huggy]

according to https://www.usdebtclock.org/ (towards bottom right) - gold is - - - - $18,069 against the dollar !!

[BullionBuyer]

Jim Richards says that the current true price of gold is nearer to $10k. This is based on the current levels of global debt divided by the money supply and assuming that 40% of the money supply is backed by gold.

[blindguy]

25 minutes ago, BullionBuyer said:

Jim Richards says that the current true price of gold is nearer to $10k. This is based on the current levels of global debt divided by the money supply and assuming that 40% of the money supply is backed by gold.

i think you are right on. it is why i am buying all the gold and silver i can.  any excuse to buy PM's and i am onboard.  Jim

[cravethatcoin]

The issue with comparing it to the debt is that we aren't on a gold standard so it's not relevant.

The price of gold is worth what someone will pay for it. Right now I think $2000 is about what someone would pay for it. No one will spend $10,000 or even $5000 for 1oz of gold.

[mr-dead]

51 minutes ago, cravethatcoin said:

The issue with comparing it to the debt is that we aren't on a gold standard so it's not relevant.

The price of gold is worth what someone will pay for it. Right now I think $2000 is about what someone would pay for it. No one will spend $10,000 or even $5000 for 1oz of gold.

people where throwing $19k to buy a bitcoin so don't be so sure

[GoldenPhil]

5 hours ago, blindguy said:

for those of you in the states have you noticed the price of gold depends on where you look. right now gold price on fox business is $1742 a ounce, apmex its $1711, blomberg its $1665, sd bullion it $1704.  the price depending on where you look varies up to $80 each way.  Jim

Gold price.org and bullion by post have not shown gold over $1700 yet. 

[CadmiumGreen]

I heard somewhere on here that it was $400...just can’t remember where.🤔

[silenceissilver]

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.

[cravethatcoin]

4 hours ago, mr-dead said:

people where throwing $19k to buy a bitcoin so don't be so sure

My comment was referring to people not paying that right now for gold.

They were indeed, but Bitcoin and gold are not the same thing. Bitcoin had a huge buzz about it back in 2017 and people thoughts they were going to become millionaires by buying it. No one has ever had that impression with gold because it's a different kind of investment. I think most of the people including me buy gold for safety and to retain as much purchasing power as possible overtime.

[5huggy]

10 hours ago, cravethatcoin said:

The issue with comparing it to the debt is that we aren't on a gold standard so it's not relevant.

The price of gold is worth what someone will pay for it. Right now I think $2000 is about what someone would pay for it. No one will spend $10,000 or even $5000 for 1oz of gold.

YET! 🤫 😉 👍

[BullionBuyer]

11 hours ago, cravethatcoin said:

The issue with comparing it to the debt is that we aren't on a gold standard so it's not relevant.

The price of gold is worth what someone will pay for it. Right now I think $2000 is about what someone would pay for it. No one will spend $10,000 or even $5000 for 1oz of gold.

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. 

[5huggy]

If it gets drastic out there (just take recent Venezuela )

those that had pm's could take a ferrari for X bolivar - the swappee then would trade the pm's for food stuffs etc BECAUSE no one wanted BOLIVARS and they distrusted the $ 

Now its just who values/will accept what for what!??  

IMHO

[silenceissilver]

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.

[MancunianStacker]

11 hours ago, silenceissilver said:

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.

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).

 

[MancunianStacker]

I’d be happy to buy a 2nd home for an oz of gold!

The fact that it’s invisible to Govt is great. Most means-testing is based off savings account balances. 👍🏻 

The price of Gold in Bolivar went up 117 times in the last 5 years. Price means nothing, value does. Is some other Bolivian wants to trade their 5 bed mansion for your oz of gold then that’s the price/value. 

Gold for big purchases & silver for general barter if it gets Bolivia/Zimbabwe bad

Edit:

If you have a fixed rate mortgage you could repay it very cheaply indeed if wages have to keep up with hyperinflation and you get paid £100,000 a month. 

Edited April 10, 2020 by MancunianStacker

[Mcgrimes]

3 hours 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. 

what do you mean by gold is the universal currency? I’ve never bought goods with gold

[MancunianStacker]

Just now, Mcgrimes said:

what do you mean by gold is the universal currency? I’ve never bought goods with gold

You can exchange gold for any currency in the world at any jewelers/ pawn shop.

Its why pilots used to get a few Sovereigns in their belt in case they crashed behind enemy lines (Iraq war).

[Mcgrimes]

You can exchange most metals in all countries - gold just has a higher value per unit weight than most

Edited April 10, 2020 by Mcgrimes

[MancunianStacker]

When people realise that their £600 in the bank can no longer buy a decent TV they will start to look for an alternative to cash savings or spend it. This could start pushing prices up as demand for stuff goes up and sellers can still sell at a higher price. It will also push physical gold prices up.

[silenceissilver]

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

Edited April 10, 2020 by silenceissilver

[Mcgrimes]

28 minutes ago, MancunianStacker said:

When people realise that their £600 in the bank can no longer buy a decent TV they will start to look for an alternative to cash savings or spend it. This could start pushing prices up as demand for stuff goes up and sellers can still sell at a higher price. It will also push physical gold prices up.

all prices will rise due to inflation, not just gold. This is assuming people still get paid as opposed to redundancies

Physical Gold is a useless currency, it’s not divisible and the spread is too large. Imagine trying to buy a 15p bar of fudge using gold 

‘that’ll be 0.0036g please, but we only offer 97% spot value’

 

 

[5huggy]

38 minutes ago, Mcgrimes said:

what do you mean by gold is the universal currency? I’ve never bought goods with gold

I have! 👍

[Mcgrimes]

10 minutes ago, silenceissilver said:

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 time spike of gold's purchasing power

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

[GoldenPhil]

5 minutes ago, Mcgrimes said:

all prices will rise due to inflation, not just gold. This is assuming people still get paid as opposed to redundancies

Physical Gold is a useless currency, it’s not divisible and the spread is too large. Imagine trying to buy a 15p bar of fudge using gold 

‘that’ll be 0.0036g please, but we only offer 97% spot value’

 

 

I like the logic where in a world where currencies no longer have any value and you have to use PM to buy anything at all that there will be an over supply of chocolate fudge.