What new highs do you think gold will hit in the near future?

[Oldun]

That will be a heck of a 30 year head and shoulders if it gets below the neckline

[Oldun]

It was a heck of a inverse head and shoulders prior to this and included  “w” shaped bottoms in the process.

 

[Oldun]

So what was going on in the EU in 1995 ?

https://europa.eu/european-union/about-eu/history/1990-1999/1995_en

1994

https://europa.eu/european-union/about-eu/history/1990-1999/1994_en

https://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Trade

[silenceissilver]

On 11/06/2020 at 08:48, StackerCollector said:

After the 2nd world war and a currency reform for a very short period gold went up sky high in Germany - you could get a house for an ounce. So sky's the limit, all depends on government monetary reforms and how much fiat money winds up in the markets, speaking velocity. 

But for the moment I'll go with Bank of America's forecast:

https://www.bloomberg.com/news/articles/2020-04-21/bofa-raises-gold-target-to-3-000-as-fed-can-t-print-gold

I have heard that before. You would have been able to buy a banker's villa for 3 ounces. But I couldn't verify it. Do you actually have a reliable source?

[StackerCollector]

1 hour ago, silenceissilver said:

I have heard that before. You would have been able to buy a banker's villa for 3 ounces. But I couldn't verify it. Do you actually have a reliable source?

I do not. But I have also heard and read that the government introduced an additional real estate tax a few years later to fleece those who might have gotten a bargain.

[Kman]

1 hour ago, silenceissilver said:

I have heard that before. You would have been able to buy a banker's villa for 3 ounces. But I couldn't verify it. Do you actually have a reliable source?

It does seem to go against common sense

If the currency isn't worth anything at the time what can you do with 3oz gold? at least you can live in the house

Maybe you could swap it for some food easier than you could swap a house for some food but still, probably rather find another way 

It was probably something that was technically true for a short period but was never going to play out in reality, like silver dropped to £9 in March during the market crash, you couldn't buy it for that anywhere (other than virtually) 

[Robda1986]

I wouldn't be surprised to see sovs selling for 500 tbh

[StackerCollector]

49 minutes ago, Kman said:

It does seem to go against common sense

If the currency isn't worth anything at the time what can you do with 3oz gold? at least you can live in the house

Maybe you could swap it for some food easier than you could swap a house for some food but still, probably rather find another way 

It was probably something that was technically true for a short period but was never going to play out in reality, like silver dropped to £9 in March during the market crash, you couldn't buy it for that anywhere (other than virtually) 

To my knowledge, this "phenomena" happened twice in Germany. Once after or at the tail end of the hyperinflation and the second time around 1946/47. But these astronomical gold prices only lasted for a very brief time, just a few months.

[silenceissilver]

2 hours ago, StackerCollector said:

I do not. But I have also heard and read that the government introduced an additional real estate tax a few years later to fleece those who might have gotten a bargain.

The real estate tax was there rather to pay national debt/to effectively back the new currency with it, as far as I know. Basically this tax was as if you had taken an additional mortgage on your property. Effectively you had to pay your house a second time. That was the case regardless of how or when you bought it. It's also the reason that still today Germans rent much more and own much less the properties they live in, compared to the Brits

1 hour ago, Kman said:

It does seem to go against common sense

If the currency isn't worth anything at the time what can you do with 3oz gold? at least you can live in the house

Maybe you could swap it for some food easier than you could swap a house for some food but still, probably rather find another way 

It was probably something that was technically true for a short period but was never going to play out in reality, like silver dropped to £9 in March during the market crash, you couldn't buy it for that anywhere (other than virtually) 

If it was technially true you should still be able to see in some charts today. I'm not even sure there are such charts for that period for Germany that was dominated by the black market, certainly for every day life times.

46 minutes ago, StackerCollector said:

To my knowledge, this "phenomena" happened twice in Germany. Once after or at the tail end of the hyperinflation and the second time around 1946/47. But these astronomical gold prices only lasted for a very brief time, just a few months.

I also heard it happened twice. Also the mortgage equivalent tax, I think.

This one ounce for a house really seems to be an urban legend. I hope it is because if it happens again @mr-dead might committ suicide.

[Martysmith]

On 11/06/2020 at 07:14, Cornishfarmer said:

Personally I think it will be down a tickle. We are still artificially 20% high because of Brexit. Can see that eroding.     We are a few hundred $ higher because of carona virus    So when Brexit and the virus sort out it would drop a lot but the economic crisis Will inflate it so I’m thinking it will stay around £1400-1500 for some time

Think your probably right there. If we get a decent (or any really) trade deal then I have no doubt sterling will strengthen and value of gold in £ will stay the same, or perhaps a little lower, whilst gold in $ increases. I see gold being $1800 by year end. 

[Martlet]

Selling houses for a few ounces of gold says more about value of the house than of gold, and not really an indicator of hyperinflation.  I'd also suspect someone selling a property for small amount of gold is on the run, never to return, so an extremely distressed sale.   

[HawkHybrid]

2 hours ago, Kman said:

If the currency isn't worth anything at the time what can you do with 3oz gold? at least you can live in the house

 

probably something like maintenance and mobility would have been in

gold's favour at the time.

 

HH

[Robb]

Since 2016 the overall inflation rate in Venezuela is 53,798,500%, which is pretty high.  BTW, that is a real number.  US Dollars are the go to currency and has been for awhile now.   Gold?  Not so much.  1 troy oz of gold would set you back about 350 million Bolivars and you really don't want to be shopping your stash on Craigslist looking to swap for a beach house on Margarita Island or wandering into a Caracas market to buy groceries with a gram of gold.   You might be followed outside 😉

A crisp $100 USD bill officially trades for about 8 million Bolivars but in reality it is much higher.  Right now, the dollar is king down there, not the shiny yellow stuff.  Not every Mom and Pop or large merchant has a $1000 Sigma Metalytics but they all have a $3 pen to check for counterfeit Benjamins.  

 

[mr-dead]

1 minute ago, Robb said:

Since 2016 the overall inflation rate in Venezuela is 53,798,500%, which is pretty high.  BTW, that is a real number.  US Dollars are the go to currency and has been for awhile now.   Gold?  Not so much.  1 troy oz of gold would set you back about 350 million Bolivars and you really don't want to be shopping your stash on Craigslist looking to swap for a beach house on Margarita Island or wandering into a Caracas market to buy groceries with a gram of gold.   You might be followed outside 😉

A crisp $100 USD bill officially trades for about 8 million Bolivars but in reality it is much higher.  Right now, the dollar is king down there, not the shiny yellow stuff.  Not every Mom and Pop or large merchant has a $1000 Sigma Metalytics but they all have a $3 pen to check for counterfeit Benjamins.  

 

But if you had your wealth held in gold pre collapse rather than the local currency you wouldn't have lost your ass.

[Robb]

Just now, mr-dead said:

But if you had your wealth held in gold pre collapse rather than the local currency you wouldn't have lost your ass.

True, or even if you held it in Dollars or Colombian Pesos or pretty much anything other than Bolivars.   It has been devastating to the middle class (and well, just about all classes!).  Many Venezuelans invested in RE hoping that it would rise with the inflation but instead, property values have fallen as fast as the inflation has risen. In the last 12 months alone, I think property values have dropped about 68%.  Ouch!  Some of the areas (location, location and of course location) have been hanging on with their fingernails but the noose is getting tighter all the time.  Outskirts and rural areas have been hit hardest.  A sad situation for many.