Holy Crap! Gold Tops $1770 Overseas.

Kitco ^ | 8-8-11 | Kitco

[South40]

Does that mean gold bars are not made of gold?

It means that there is more than one ownership claim on each gold bar and thus, logically, gold has been sold that doesn't exist if the owners of the gold ask for it.

[South40]

yes, but not those that hold the gold in their hands

Of course not. But how many do not hold gold in their hands? How many who have jumped into the recent 'buy gold' frenzy do not possess gold physically but hold nothing more than a piece of paper citing ownership?

The gold market is a ponzi scheme.

[kevao]

LOL. I just knew....

[panaxanax]

Physical.

Paper is what got us into this mess.

[steveab]

“...gold has been sold that doesn’t exist if the owners of the gold ask for it.”

So, if there are more call contracts, and everyone of them wanted delivery, than the physical supply somebody is SOL, right? Which would make someone that has already taken delivery of gold very wealthy, more than $1770.00 per ounce. Hate to be the gold mine that has sold its future deposit 10 times over.

[Atlas Sneezed]

480 grains per troy ounce.
24 grains per pennyweight.
20 pennyweight per troy ounce.
12 troy ounces per troy pound (which is a “pound” of sterling in the British sense).

[Atlas Sneezed]

That’s what all perennial gloomsters were saying about the dot.com stocks in the 1990s. And how did that advice turn out?

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The problem with your logic is that just because all bubbles are preceded by rises does not mean all rises are bubbles. Some things rise and stay risen.

[South40]

Firstly, I consider gold to be a terrible investment, today, anyway, as it does not offer dividends. With that said, there is no doubt that some, many and perhaps even most current gold investors will be disappointed if and when they should demand their gold only to discover it has been oversold. And of course those who have taken physical possession (as I have) will fare better and for obvious reasons. That's the way ponzi schemes work; some make out and some get hosed.

I bought gold in the 1980s; I invested $10k and I paid about $325/oz. While I could cash in now and enjoy a rough profit of $44,000, I’m waiting until it peaks. When will that be and could it go even higher if those holding certificates demand their gold? Decisions, decisions…

[depenzz]

The last time I bought silver it was $3.76 an oz. as I remember. So, where would some of you who purchased recently send me to buy some more. Seriously, I want to buy from the most reliable , least expensive source. I’m not being coy, just looking for someone that has delt in it recently with a source they would recommend.

[demsux]

A lot of people are going to be very disappointed when they discover more gold is being sold than exists.

That should make it MORE valuable.

[matthew fuller]

Yes, I know- I made a calculator error. The only reason that I tend to use grains is that they are the same whether you’re using troy or avdp., and my scales are in grains.

[South40]

More valuable for those who actually have possession of gold and worthless for all those who hold certificates should they try to cash out at the same time.

[steveab]

I’m with you.