tag:blogger.com,1999:blog-7982981413278241287.post8724984768473221348..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: India, American Barrick, Anglogold Ashanti: Gold Is Going Much, Much HigherDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-7982981413278241287.post-88261249525541881672009-11-09T05:05:52.258-07:002009-11-09T05:05:52.258-07:00I am truly agree with the fact that the prices of ...I am truly agree with the fact that the prices of gold are increasing day by day and a time comes when the value of art remains because its become very difficult for every body to purchase gold coins in higher rates.http://www.gold101.com/bullion-commentary/prices gold coinshttp://www.gold101.com/bullion-commentary/noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-41595759441840658742009-11-06T10:52:21.430-07:002009-11-06T10:52:21.430-07:00"Gold is the ultimate fiat currency..."
..."Gold is the ultimate fiat currency..."<br /><br />Actually, the only country I know where gold is routinely accepted as money for purchases (i.e. "currency") is Zimbabwe. <br /><br />This is because the government-issued currency there is now worthless. The end product of political corruption and monetary recklessness.<br /><br />But that would never happen here, right?Amannoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-36665628195036461602009-11-05T19:02:21.132-07:002009-11-05T19:02:21.132-07:00So, paper money is only worth the value that is as...So, paper money is only worth the value that is assigned to it, because it is a fiat currency...but gold is valuable and holds it's value because, I guess, it looks pretty. <br /><br />Gold is the ultimate fiat currency...because there is almost a religious following, assigning value to a piece of metal that has very few uses other than flashy four-finger rings and false teeth.<br /><br />At the end of the day, gold is only worth what the next fool is willing to pay for it, just like any other made up currency.<br /><br />I agree with holding hard assets because of their value as a commodity including, copper, zinc, alumminum, etc. but gold...give me break, silver is far more valuable as a usefull commodity.<br /><br />By the way, I've never seen anybody discuss the Tax implication of buying and selling gold coins or do we just ignore that it is taxed a twice the amount as any other investment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-44941353066378456092009-11-04T23:04:24.431-07:002009-11-04T23:04:24.431-07:00Thanks for the great reading, we buyGold in a rece...Thanks for the great reading, we buy<a href="http://www.goldcoinsgain.com/gold-bullion-coins.html" rel="nofollow">Gold</a> in a recession. I will pass this on to our ira clients to readgoldcoinsgainhttp://www.goldcoinsgain.comnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-54951826853379851132009-11-03T20:31:21.582-07:002009-11-03T20:31:21.582-07:00That's an excellent question. There were a fe...That's an excellent question. There were a few comments about that in tonight's Midas, so you can check those out too. <br /><br />I can toss out a few observations, and it could be tied to any or all of these factors:<br /><br />1) silver may be consolidating gains vs. gold right now. thru 9/30 YTD, gold was up 14% and silver was up 45%. so, to say silver is lagging over the past couple weeks doesn't take into account a wider data sample.<br /><br />2) another way of looking at #1 is using the gold/silver ratio. it got as high as around 80 in the summer of 2008. Right now it's 63, and i think it was a bit below 60 when silver was testing 18 a couple weeks ago. i don't watch this ratio as closely as i could, because i think we'll see a ratio below 30 before the precious metals bull is over.<br /><br />3) I don't know if you look at lease rates, but here's the link: <br /><br />http://www.kitco.com/market/LFrate.html<br /><br />These rates are the rates charged by Central Banks to lease gold/silver out to "bullion" banks. Occassionally, when the rates are negative, it means the CB's will actually pay a bank to borrow gold/silver. If you look at the charts for gold and silver, you'll see the lease rates for silver have been negative across the shorter terms since like July. This typically indicates that Central Banks are trying to force metal into the market to alleviate a shortage. Usually when leasing rates go negative, it indicates a price smack is coming. It's been negative long enough for silver that when it pops back to positive, I bet silver really spikes.<br /><br />4) premiums on silver bullion coins are still very low relative to the past couple years. indicates there's a lot silver coin inventory at dealers. i think this overhang will soon clear and silver will spike up.<br /><br />Like a lot of people, I think silver will substantially outperform gold over the long term (next couple years).<br /><br />Hope that helps. Would love to hear anyone else's thoughts on this.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-87964702588917621702009-11-03T20:05:11.228-07:002009-11-03T20:05:11.228-07:00Dave,
I left this question on the CNBC thread:
Any...Dave,<br />I left this question on the CNBC thread:<br />Any ideas why silver is not running with the golden bulls?EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-57891120038616423222009-11-03T20:02:19.652-07:002009-11-03T20:02:19.652-07:00Appreciate the feedback. It will be interesting t...Appreciate the feedback. It will be interesting to see the COT report Friday, as it will capture the commercial short position thru today. We'll get to see if the bullion banks covered some of their massive short on this run gold over the past couple days or if they continue to fight it by adding to their record net short.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-73455616917016558472009-11-03T19:13:17.813-07:002009-11-03T19:13:17.813-07:00Can never be too long if it is good!Can never be too long if it is good!EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-41256059577457631282009-11-03T19:12:05.735-07:002009-11-03T19:12:05.735-07:00Agree with anon, and it's not too long at all....Agree with anon, and it's not too long at all.U6noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-91566601937569948932009-11-03T18:12:35.321-07:002009-11-03T18:12:35.321-07:00Thanks! Still tinkering with edits. I hope it...Thanks! Still tinkering with edits. I hope it's not too long for people to read.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-51923721544064948132009-11-03T18:09:45.875-07:002009-11-03T18:09:45.875-07:00Great analysis!Great analysis!Anonymousnoreply@blogger.com