At what point will a bullion sovereign become too expensive to buy?

[COBRASTACKER]

20 minutes ago, flyingveepixie said:

Quite. I think the question was asked on a personal level though, ie when would a bullion sovereign be too expensive to buy (in your own opinion)?

Talking of dead currencies I just did a quick search of the gov.uk website and look what I found.  I think everyone will find this link rather interesting..

https://www.civilservicejobs.service.gov.uk/csr/index.cgi?SID=b3duZXJ0eXBlPWZhaXImcGFnZWFjdGlvbj1zZWFyY2hjb250ZXh0JmNvbnRleHRpZD0yMzY0OTgzOSZvd25lcj01MDcwMDAwJnBhZ2VjbGFzcz1TZWFyY2gmcmVxc2lnPTE2NzUwMDgyMjEtNWUwMDU2NjM3YzllMDQ0N2MwNGU3NThjNDA2OTlmNzdjMzU4YWMxNw==

I think the biggest questions is if the digital currency will be backed by gold or if it will be another form of fiat currency 

there is no question in my mind that a digital currency will come to be

[theman73]

3 minutes ago, GoldCobra said:

the digital currency will be backed by gold or if it will be another form of fiat currency

Pretty sure will be backed on thin air

[ShineyMagpie]

2 minutes ago, GoldCobra said:

if the digital currency will be backed by gold or if it will be another form of fiat currency

The follow up question to that is....if they move to digital currency with they keep making gold/silver coins? I understand that the while technically Britannia and Sovereigns are legal currency they are not really used as such. So will they stop making these all together and just be Gold Silver Bar's?

[sixgun]

47 minutes ago, flyingveepixie said:

Quite. I think the question was asked on a personal level though, ie when would a bullion sovereign be too expensive to buy (in your own opinion)?

Talking of dead currencies I just did a quick search of the gov.uk website and look what I found.  I think everyone will find this link rather interesting..

https://www.civilservicejobs.service.gov.uk/csr/index.cgi?SID=b3duZXJ0eXBlPWZhaXImcGFnZWFjdGlvbj1zZWFyY2hjb250ZXh0JmNvbnRleHRpZD0yMzY0OTgzOSZvd25lcj01MDcwMDAwJnBhZ2VjbGFzcz1TZWFyY2gmcmVxc2lnPTE2NzUwMDgyMjEtNWUwMDU2NjM3YzllMDQ0N2MwNGU3NThjNDA2OTlmNzdjMzU4YWMxNw==

Well as far as i can see HM Treasury aren't taking CBDC very seriously. What calibre of candidate are they going to attract to be head of their CBDC with a £66.5k salary in Central London? He, i say he as i'm sexist, won't be buying many sovereigns.

Edited January 29, 2023 by sixgun

[sixgun]

30 minutes ago, GoldCobra said:

I think the biggest questions is if the digital currency will be backed by gold or if it will be another form of fiat currency 

there is no question in my mind that a digital currency will come to be

i see this question asked - will the currency be backed with gold?
Will the digital GBP or whatever it is called be backed with gold?
Where is this gold coming from?
How is UK plc going to buy the gold to cover its digital currency?
The country is bankrupt. The US defaulted in 1971 - it went bust right there and then. It issued promissory notes but couldn't honour the promises. The BoE cannot pay the bearer anything other than another plastic note. 
Come the real Great Reset quite a number of nations in the West are going to be flat on their arses. Welcome to England. Welcome to the Third World.

Keep stacking - this is your insurance policy. 

[COBRASTACKER]

3 minutes ago, sixgun said:

i see this question asked - will the currency be backed with gold?
Will the digital GBP or whatever it is called be backed with gold?
Where is this gold coming from?
How is UK plc going to buy the gold to cover its digital currency?
The country is bankrupt. The US defaulted in 1971 - it went bust right there and then. It issued promissory notes but couldn't honour the promises. The BoE cannot pay the bearer anything other than another plastic note. 
Come the real Great Reset quite a number of nations in the West are going to be flat on their arses. Welcome to England. Welcome to the Third World.

Keep stacking - this is your insurance policy. 

You are absolutely right many other countries are buying gold on a massive level

i don’t think they will let us but gold so easily if they back it by gold 

but in the same token I agree they don’t have sufficient holdings to make it work 

[COBRASTACKER]

45 minutes ago, ShineyMagpie said:

The follow up question to that is....if they move to digital currency with they keep making gold/silver coins? I understand that the while technically Britannia and Sovereigns are legal currency they are not really used as such. So will they stop making these all together and just be Gold Silver Bar's?

It’s a very good question 

I think if they back a digital currency with gold they won’t be able to let us buy gold as they will need to have it in the reserves 

I guess we shall see 

[SidS]

1 hour ago, Darr3nG said:

Behaviours

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• Leadership
• Seeing the Big Picture
• Communicating and Influencing
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• Making Effective Decisions

We only ask for evidence of these behaviours on your application form:

• Leadership
• Seeing the Big Picture
• Communicating and Influencing

Arrghh my eyes! 😁

[SidS]

48 minutes ago, theman73 said:

Pretty sure will be backed on thin air

Backed by the promises, truth and integrity of politicians.

🤣

[dicker]

52 minutes ago, theman73 said:

Pretty sure will be backed on thin air

Agree with that 100pct

[SidS]

49 minutes ago, ShineyMagpie said:

The follow up question to that is....if they move to digital currency with they keep making gold/silver coins? I understand that the while technically Britannia and Sovereigns are legal currency they are not really used as such. So will they stop making these all together and just be Gold Silver Bar's?

Well they still make Maundy Money. Which had its origins in alms giving. They were actually for the poor to spend. In modern times, although they are nominally legal tender, they've long moved away from their function as money into momento land. Same thing would happen with Britannias and sovereigns. They'd still make them, but any link to actual day to day money will have been severed.

[dicker]

But coming back to the core question from our friend @GoldDiggerDave I suspect if inflation were to go nuclear and gold prices with it, people would keep buying gold but in:

- Half Sovs

- Quarter Sovs

- 1/10th Brits

Best

Dicker

 

[sixgun]

1 hour ago, theman73 said:

Pretty sure will be backed on thin air

The problem then is, we are seeing much talk about asset back currencies in the Global South.
Who in their right mind would accept a digital token backed by nothing when there are asset backed currencies out there? How is the UK going to pay for imports?

Edited January 29, 2023 by sixgun

[ZRPMs]

I Think those that buy on a regular basis will continue as long as they need to have the cash. Those that currently don't are unlikely to think about it, but the halfway mark might get a bit blurry.  New comers may start with smaller coins or bars. I've already seen more bars on the move at places I frequent. People that at one time were buying ounce coins will be more inclined to buy smaller. I still think the sovereign is a good coin to get in any scenario.

[GoldDiggerDave]

11 minutes ago, dicker said:

But coming back to the core question from our friend @GoldDiggerDave I suspect if inflation were to go nuclear and gold prices with it, people would keep buying gold but in:

- Half Sovs

- Quarter Sovs

- 1/10th Brits

Best

Dicker

 

Actually the tubes of the 1/10 gold brits are quite cute........Just don't fancy the premium on those,  almost as much as silver 🤣   

[flyingveepixie]

https://greeneryfinancial.com/gold-backed-currency/

Fifth paragraph down the page "there are no currencies that are directly backed by gold"

So why would CBDC be any different..

Edited January 29, 2023 by flyingveepixie

[GoldDiggerDave]

1 minute ago, flyingveepixie said:

https://greeneryfinancial.com/gold-backed-currency/

Fifth paragraph down the page "there are no currencies that are directly backed by gold"

So why would CBDC be any different..

Agree, fiat literally  means "let it be done"    If someone in power and influence decrees something is real we will all accept it, the only thing that is real is the punishment for not going along with it, and you are treated as a heretic if you dare call into question the edict.......sound familiar?   

[pricha]

5 hours ago, sixgun said:

i just heard this morning that a third of children in the UK are in food poverty. i don't live in the UK so i have got out of touch with how fooked up it is and my family who are there are 'well off' so are probably oblivious to this sort of thing. But it sounds like the average Joe doesn't have the spare money to buy sovereigns and probably didn't in 1957.

I used this webpage to see what 'average' income was. https://ifs.org.uk/tools_and_resources/where_do_you_fit_in#tool-results-section
Of course average is misleading b/c high income family skew the average up.
Sovereigns have been out of the reach of the average Joe since the early 2000's. 
People will buy them - i would still buy them at £2k a pop b/c that would be the price of gold.

The issue isn't that gold is too expensive, it is that paper money, especially Sterling has gone to rat shlt. There is a website - https://wtfhappenedin1971.com/

Here is a US chart showing how pay has not kept up since the 1971. That isn't coincidence it was the year money went full fiat. Real growth in Western economies stopped around that time - everything after that has been an illusion. 

So in conclusion, the average Joe cannot afford sovereigns - they are either scrapping along or they are blowing it on some consumer crap they never needed.

I don't get the link between food poverty and the highest obesity rate in Europe 

[ZRPMs]

1 minute ago, pricha said:

I don't get the link between food poverty and the highest obesity rate in Europe 

Cheap, processed fats and sugar laced food's.  

[pricha]

5 minutes ago, ZRPMs said:

Cheap, processed fats and sugar laced food's.  

Laziness I'd say.  100% .  You can't tell me someone who can afford takeaways can't afford to cook healthy food. 

Edited January 29, 2023 by pricha

[pricha]

Turn the question around. If gold prices collapse will you keep buying more sovereigns? My guess is the vast majority will say fill your boots. In reality many will probably offload at a large Loss.  Normally happens.  People's timing is terrible usually 😆  well mine is. 

Edited January 29, 2023 by pricha

[MonkeysUncle]

3 minutes ago, pricha said:

Turn the question around. If gold prices collapse will you keep buying more sovereigns? My guess is the vast majority will say fill your boots. In reality many will probably offload at a large Loss.  Normally happens.  People's timing is terrible usually 😆  well mine is. 

Majority of people are terrible at timing markets. The armies of numpties Stateside who paid megabucks for Tesla and are now ejaculating on mahoosive losses.

It's still worth more than it were two year ago. Although depending on timescale between me typing and you reading that could be well out...

[ZRPMs]

Laziness I'd say.  100% . 

 

I'd say in the main your right. However I do know of at least 2 families that are really struggling. It's easy to say life choices and that's true.  Little ones are not at fault though, but they end up being affected the most. One of the families have 4 children. Hand me down clothes, second hand toys they do their best. The father had a work related accident years ago. Only ever done manual labour. Not qualified and not able to do all he knew. The other half looks after all 6 really. They try. I called round once and they couldn't offer a cuppa. 

Just reminds me of my childhood. Mother used to go to the local veg shop and used to get the bruised or damaged veg under the guise it was or the animals. I can see her now cutting the bad of the veg to make up some meals. I help a bit logs fruit etc. but when the choice is £2.50 for a bag of chopped up chicken scraps, fortified with god knows what, pressed into a comma shaped mouth full, or £8.75 for a tiny cut of meat. Its not a hard choice for them. 

God I sound like a freaken right happy clapper. Any one that knows me knows different. Just wanted to say there are sadly, cases of poverty out there.

Edited January 29, 2023 by ZRPMs

[GoldDiggerDave]

10 minutes ago, pricha said:

Turn the question around. If gold prices collapse will you keep buying more sovereigns? My guess is the vast majority will say fill your boots. In reality many will probably offload at a large Loss.  Normally happens.  People's timing is terrible usually 😆  well mine is. 

For me yes, if for example gold lost 95% of its value over night I would buy as much as I could the next day even if it's just to fill my date run of sovereigns.  Even if gold became worthless it would not effect my daily life one bit don't get me wrong a lot of my wealth  would have vanished but thats what happens with almost everything else you buy, cars, technology fixtures and fittings, etc.

[pricha]

7 minutes ago, GoldDiggerDave said:

For me yes, if for example gold lost 95% of its value over night I would buy as much as I could the next day even if it's just to fill my date run of sovereigns.  Even if gold became worthless it would not effect my daily life one bit don't get me wrong a lot of my wealth  would have vanished but thats what happens with almost everything else you buy, cars, technology fixtures and fittings, etc.

Me to. I'd be buying like crazy if prices collapsed.  I just can't see a situation where that would happen in the present climate.