Posted on 07/08/2020 9:22:56 AM PDT by Perseverando
LONDON (Reuters) - Gold pushed above $1,800 an ounce on Wednesday for the first time since 2011, with analysts expecting further gains as investors stock up on an asset they expect to hold its value while the coronavirus convulses the global economy.
Spot gold prices have surged 40% in the last 14 months and are within striking distance of 2011's record high of $1,920.30 an ounce.
"We'll be challenging the $2,000 level by the end of the year," said Ross Norman, an independent analyst. "We are in a bull market for gold."
(Graphic: Gold's latest rally, https://fingfx.thomsonreuters.com/gfx/ce/jznpnzmokpl/GR%20RALLY.JPG)
Powering the rally is economic and political uncertainty caused by the COVID-19 pandemic and action by central banks, which have responded to slowing growth and the virus by slashing interest rates and flooding markets with cash.
This has fuelled fears of inflation, which would typically devalue other assets, and has also lowered returns on government bonds, making gold more attractive.
Gold's rise has been mirrored by a slide in real yields on 10-year U.S. bonds, which at around minus 0.8% are near record lows.
(Excerpt) Read more at finance.yahoo.com ...
It may be similarly undervalued now.
Every 10-20 years PM’s tend to surge.
As a gold bug I know all about it. There is even an organization set up to expose the manipulation of Gold.
Google: “Gold Anti Trust Action” for more if interested!
If someone on this thread could please forgive my ignorance, and explain to me what good gold would be during a societal collapse? You can’t spend it. It’s not actual money. You couldn’t sell it because money would be nearly, if not completely, worthless. Alcohol, ammunition, cigarettes, fuel, medicine, etc. seem to be a more realistic currency than a shiny, soft metal.
I just don’t get how you’re supposed to spend flakes of gold if there’s no more economy.
When coins and retail bullion products are tight, like they have been, you should be able to get very close to spot when selling. Maybe even more. Dealers make money on the “spread” and will offer better prices to coax people to sell. It’s kind of a sliding window of prices compared to the “spot” price. If you go to buy, on the other hand, the premium over the spot price may be large as well.
The retail market is different than futures and the big bars. Smaller coins like 1 oz Maples or Kruggerands are basically just jewelry, in a sense. They are desirable in the sense they don’t need assay, difficult to counterfeit, and are convenient to both buy and sell. Being able to purchase one or two at a decent price is kind of deceptive. In big cities, they won’t even let you in the door unless you’re buying 10 at a time. The profit margin on gold bullion is very small and competitive. They might make 50 bucks on a generic bar or coin buying or selling.
1970
average new car price: about $3,500
gold price about: $35 / ounce
100 ounces of gold bought you a decent car
today
average new car price: about $30,000
average gold price this year, say about $1,700 / ounce
100 ounces of gold will buy you 5 decent cars
you can’t get a decent used car for $3,500
that’s why you buy gold
If the S—t hits the fan you can always barter with smaller amounts of gold. That’s why its useful especially in lower denominations i.e 1/4th an ounce.
Silver is also a good alternative. A silver coin costs like 15-20 bucks. Always good to own some just in case and you can easily trade it no problems for goods.
People will accept silver/gold for goods and services and have done for thousands of years.
Hope that helps.
There was an alternative, gold miner shares in a mutual fund. I did buy the mutual fund and have taken continuous profits as the price rose
The miner stocks lag some what but mirror the price of the actual metal. You don’t need to worry about keeping the actual gold safe or to pay storage charges.
“The sky is falling! Oh noes oh noes!!”
I just don’t get how you’re supposed to spend flakes of gold if there’s no more economy.
Alright, now you've done it. Standby for a lively discussion about gold. LOL!
A few of my thougts on the subject (in no particular order):
1. If you're seriously hungry a can of beans would be worth nearly its weight in gold.
2. Gold, like food and other property, is only yours if you can protect it from those who would seek to take it by any means necessary.
3. Gold coins will always be valuable, even if just used to put in a sock and use to smack someone in the head with it to proect your hearth and home. However, firearms have been proven to be much more effective.
Yeah, you would think they are starting to manufacture them out of gold.
I've always had the opposite impression. When a washed-up actor is peddling some kind of investment on a 30-minute infomercial at 2:00 AM, I assume the value of that investment is going to plummet very soon.
Grocery store chains have been dealing with an ongoing supply-chain problem tied to absenteeism in their warehouses. Many of them have responded by paying bonuses to loyal workers to get them to stay on the job. And a restaurant that can only open 25% of its seating area can't even cover the cost of opening the doors unless it charges its customers higher prices.
Look how many things have seen DECLINING prices in recent months. Gas prices are only beginning to recover from a historical decline a couple of months ago. Commercial rents are through the floor in many places.
Just trying to move a couple of 1 oz Buffaloes.
Frankly I can’t purchase enough to make a difference and I continue to believe more gold has been sold than exists. Add to this the tales of counterfeit gold and I’m more reluctant to purchase even a few ounces. Wife used to work for a jeweler who purchased gold. It was not uncommon for people to bring in foreign coins under the belief they were gold. In almost every case testing revealed they were not gold.
Maybe I’m wrong but it just makes sense to me that if the economy is no mas, as in money is worthless, and everything comes crashing down around us and our day to day looks more like fallout 4, it just seems like things that aid survival would take precedence over a shiny metal that you can’t eat, it can’t keep you warm, won’t fuel a vehicle, won’t produce electricity, etc
I didn’t see the unfunded liabilities listed?
Of course, that was always predicated on the assumption that you're fleeing from a collapsing sh!t-hole and moving to a stable place.
I know what you are saying. It "would be" a whole new dystopian world, one that I don't want to participate in. I think it would be a place where all bets are off and only the strong, ruthless and collabobarators would survive the longest. Except, of course, for those who can build an adequate group defense force/network, or for those who can bug out the best.
When there are no cops around you are on your own.
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