Wrong. Gold competes directly against the U.S. dollar. Why the hell do you think the Fed keeps trying to obliterate the price of gold??? It’s what’s propping up the worthless fiat nobody wanted. Now they want it, but only because gold is massively oversold. Yet to the vast majority of investing idiots, pieces of paper are “real” wealth. This approach is going to wipe out holders of paper currency at some point. And that day is fast approaching, be it a year or three away….it’s going to happen.
Those that take advice from William Devane (not Defoe) the TV actor, not Gold expert. And believe all the nonsense hype the last 20 or 30 years at least.
Why the hell then store gold if trying to undermine the price? Although the Federal Reserve does not own any gold, the Federal Reserve Bank of New York acts as the custodian of gold owned by account holders such as the U.S. government, foreign governments, other central banks, and official international organizations. The United States Bullion Depository, often known as Fort Knox, is a fortified vault building located next to the United States Army post of Fort Knox, Kentucky. It is operated by the United States Department of the Treasury. The vault is used to store a large portion of the United States' gold reserves as well as other precious items belonging to or in custody of the federal government. It currently holds roughly 147 million troy ounces (4,580 metric tons) of gold bullion, over half of the Treasury's stored gold. The United States Mint Police protects the depository.
Your thoughts are very typical at market bottoms. We have been here before with gold and silver. If you want to be a trend chaser that's fine. You can then get some silver later. And you may be absolutely correct that you are putting the odds in your favor by doing that. It's just not my personal strategy.
But even with all that bad new MrMuppet, why can't gold/silver still not be a store of value? I mean, like you said, no central bank is going to ever count on gold reserves, and that's because they want to have the ability to print money left and right even without gold reserves. Which, in and of itself, should make gold/silver and even better store of value. Not just because of the increases in money supply, also because of the risk that the central bank could cause those increases to grow more and more at any given time.
FreeGoldRush, when you say holding costs are zero for 99.9% of us, isn't there a holding cost on most sliver investments? Like if you hold futures I forget what its called, but the carry cost? That sort of thing? Thanks.
First of all, have you ever realized how much money there is out there and how little gold? If e.g. China invested their 2021 trade surplus into the annual gold production of every country there is, they'd still be left with 70% cash while completely cornering the gold market. In addition, they would have to ship it to China where it needs to be stored. If they wanted to pay with it, they'd have to ship it again. It's totally impractical and unrealistic that we ever go back to a gold standard. I mean for this exact reason, the gold standard has been dropped. There isn't enough gold and there are better ways to spend trade surplus than into physical metal.
They are only allowed the equivalent of 10k per trip. In cash but 70k in gold, of course that's small potatoes relative to how much they must be be discounting mined gold to get it refined. UAE is helping them break sanctions and providing an offramp for their crypto also. China seems to be taking a lot of gold too. https://www.swissinfo.ch/eng/ngo-fe...=display&utm_content=o&utm_source=swissinfoch https://www.reuters.com/business/ex...ating-crypto-uae-seek-safe-havens-2022-03-11/