The purchasing power of gold vs. inflation

Discussion in 'Bullion Investing' started by Herberto, Jan 5, 2022.

  1. baseball21

    baseball21 Well-Known Member

    It would take significant effort to sell 1 million of gold bullion and you'd be taking a discount if not a big discount for it. Very few companies have 1 million laying around nor would want to take that risk if gold goes down knowing they have to sell it all for a profit.
     
    GoldFinger1969 likes this.
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  3. GoldFinger1969

    GoldFinger1969 Supporter! Supporter

    You could unload it via a big NYC or LA dealer....futures....or an ETF.

    Ways to lock in the price.
     
  4. Gam3rBlake

    Gam3rBlake Well-Known Member

    I’m sure there are a lot of refineries and banks that buy large amounts of gold on a daily basis.

    $1,000,000 isn’t even that much when you consider the total gold market.

    It’s about 500 oz of gold. Or about 1 monster box of American Gold Eagles.

    Even companies like APMEX & JM Bullion could likely buy a full Monster Box of American Gold Eagles at not too much of a discount.

    In fact JMB sells 80-100 1oz AGEs every day and makes a profit so I’m sure they or any big retailer could buy a monster box of AGEs without needing to rip off the seller to do so.
     
    Last edited: Feb 25, 2022
    Dynoking and GoldFinger1969 like this.
  5. -jeffB

    -jeffB Greshams LEO Supporter

    I get about about 36 pounds (avdp) and 52 cubic inches for $1M worth of 24K gold. You could fit it into a Small Flat Rate box if you cast it into the right shape, with room for a layer of bubble wrap. Your mail carrier would be very surprised.
     
  6. baseball21

    baseball21 Well-Known Member

    That all takes significant effort moving it with a limited market
     
  7. -jeffB

    -jeffB Greshams LEO Supporter

    All markets have limits, of course. I think the point here is that the limit for moving physical gold is likely well over $1M.
     
  8. baseball21

    baseball21 Well-Known Member

    There's no limit to moving gold or really anything. The limit is the amount of effort and what price you will take. You can sell basically anything depending on what price you will take. Big PM dealers do hedge but they also dont make money by paying what someone would want whenever they want which was the point
     
  9. Pickin and Grinin

    Pickin and Grinin Well-Known Member

    I see you are still paying the price.
    Now thats funny!
     
  10. GoldFinger1969

    GoldFinger1969 Supporter! Supporter

    The SPYDER Gold ETF trades about $1.7 billion in gold each day...futures much more....then other gold ETFs.

    I think you can easily sell up to $10 MM in gold daily without impacting the market if you sell it right. You have to be a smart seller/buyer.

    I once moved the Treasury market by doing a trade about 30 seconds before the Fed Wire ended at 3 PM. Bought about $900 MM in agency bonds and someone obviously hedged the purchase.
     
  11. baseball21

    baseball21 Well-Known Member

    If you just do stocks you can move it easily or sure. The comments were about physical though
     
  12. Captain Sully

    Captain Sully Active Member

    I don't see any action in coin talk since this. are we up and operating
    navyaiar123@gmail.com please let me know why I am not getting any notifcations
     
  13. GoldFinger1969

    GoldFinger1969 Supporter! Supporter

    Captain, I think this thread was just inactive, CT is alive and well. :D
     
  14. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Who doesn't like GOLD...LOL
     
    GoldFinger1969 likes this.
  15. GoldFinger1969

    GoldFinger1969 Supporter! Supporter

    To a retail dealer or outlet, sure...but selling $1 MM in gold via the daily gold trading volume wouldn't be that difficult.

    You can also HEDGE by selling one of the gold ETFs short.

    Daily gold trading is about $40-$50 billion a day.
     
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