Discussion in 'Bullion Investing' started by Santinidollar, May 6, 2021.
Interesting day to do it. Gold shot over $1810 today.
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Edit.... I just looked at both silver and gold charts and it appears they have both made a sizable jump today....
It may be inflation fears. Or it could be simply looking for something with upside potential since a large number of stocks are at least tapping the ceiling.
It got over $2,000 very briefly last year.
in a few days Au will loose a big slice of that pie!
(Hopefully not, he said, setting on 25 oz.)
The other major outlier that could dramatically affect gold would be if central banks start stockpiling again. That could be the start of a new bull market, but they almost never telegraph such things.
It's above my pay grade - I not sure what part gold plays in the banking system anymore.
Not much except for perceived protection of the currency. If investors know X central bank owns 87 tons of gold, they have more faith in the currency. That is the real reason we made Ft Knox, to give investors assurance the USD was stable.
Countries that liquidate their gold reserves are almost always followed by massive hyperinflation in the currency.
You're right about central banks historically not advertising their purchases, but it could be very different this time around. Countries looking to win over businesses and investors in this economic climate will probably not be so secretive if they believe they are in a stronger position than most other nations.
do you think banks are going to go to coins shops to buy all their gold?
That is a nonsensical question. Demand for gold is fungible, purchases of a large number of bars would cause other forms to appreciate in price.
Not only is no employment recovery in sight . . . the prospects for the survival of companies still in operation are dwindling as well.
I always thought that if we ever faced a depression again, that it would be delivered by a sudden event such as the Crash of 1929. Instead, this time it is born of the insidious gradual leakage of employer's assets during and following COVID. The money it takes to float businesses in good times has been siphoned off by months of hanging on during the bad.
I don't claim to know that gold is the safest place one can park their worth, but it's what I've chosen to erect our bulwark. While it won't produce as much ROI as other vehicles, I think we're less likely to get caught pants-down-to-the-ankles in gold than in any other store of value.
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