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Iggy-poo

Well-known member
Joined
Jan 10, 2017
Messages
77
https://www.rt.com/business/415131-gold-prices-rise-2018/

"According to Claudio Grass, of Precious Metal Advisory Switzerland, the total trading volume in the London Over-the-Counter (OTC) gold market is estimated at the equivalent of 1.5 million tons of gold. Only 180,000 tons of gold have actually been mined up to today."
 
I said this two years ago on here with exactly the same reasoning and got laughed at 8) 8)
 
If you look how long it’s taken national banks to return gold to other national banks you can see there is a big problem in the system somewhere, if all the holders of paper gold insisted on physical delivery of actual metal it would be very very interesting to see how the banks would respond.... :shock:
 
nickvc said:
If you look how long it’s taken national banks to return gold to other national banks you can see there is a big problem in the system somewhere, if all the holders of paper gold insisted on physical delivery of actual metal it would be very very interesting to see how the banks would respond.... :shock:

Will it even take that much. I'm curious what would happen if simply one big refinery offering pool accounts were to fold. Depending on the refinery, the insurance MAY get everyone at that refinery paid, but I think once word got out, it would then be a house of cards on pool accounts.

But heck, refineries probably have greater physical accountability requirements than national banks do.

I have very little understanding of the economy...and it's this goofy thing, the more I educate myself, the less I understand it, or at least understand how it's still kicking.
 
snoman701 said:
nickvc said:
If you look how long it’s taken national banks to return gold to other national banks you can see there is a big problem in the system somewhere, if all the holders of paper gold insisted on physical delivery of actual metal it would be very very interesting to see how the banks would respond.... :shock:

Will it even take that much. I'm curious what would happen if simply one big refinery offering pool accounts were to fold. Depending on the refinery, the insurance MAY get everyone at that refinery paid, but I think once word got out, it would then be a house of cards on pool accounts.

But heck, refineries probably have greater physical accountability requirements than national banks do.

I have very little understanding of the economy...and it's this goofy thing, the more I educate myself, the less I understand it, or at least understand how it's still kicking.


Typical banking practices... smoke and mirrors :evil:
And guess who will have to pay to bail them out... again :shock:
I think all people involved in any new or slightly dodgy schemes, read as most banking money making schemes, should have their bonuses held for 5 years so if it all collapses they lose out not just walk away with a fat bank account. They get well paid so it should be bareable for them.
 
snoman701 said:
nickvc said:
If you look how long it’s taken national banks to return gold to other national banks you can see there is a big problem in the system somewhere, if all the holders of paper gold insisted on physical delivery of actual metal it would be very very interesting to see how the banks would respond.... :shock:

Will it even take that much. I'm curious what would happen if simply one big refinery offering pool accounts were to fold. Depending on the refinery, the insurance MAY get everyone at that refinery paid, but I think once word got out, it would then be a house of cards on pool accounts.

But heck, refineries probably have greater physical accountability requirements than national banks do.

I have very little understanding of the economy...and it's this goofy thing, the more I educate myself, the less I understand it, or at least understand how it's still kicking.


It's still "kicking" because the "kickers" are still getting commissions and bonuses :evil: .

James
 
Palladium said:
It's still kicking because they have a printing press and a whole lot of paper! :D

I don't think they bother with the presses and paper any more, I think it is more like adding lots of zeros at the end of their balance.
 
Hi my Friends!
Lets say two years ago I took the warning and started stockpiling the gold that I produced. I'd have a amount of gold buttons.
I have a farm house that was bought (5/8ths) down payment form the gold I recovered in two years.
(about 3/8ths is a (60month land contract) I've made payments 2-48 with the profit from turning my gold and purchasing material to recover and refine. No money from my regular work.
In my opinion! It"'s much better than sitting here with a box full of buttons waiting for this big jump in price to come. Been watching gold and silver for 40 years and don't see the logic.
Art.
 
artart47 said:
Hi my Friends!
Lets say two years ago I took the warning and started stockpiling the gold that I produced. I'd have a amount of gold buttons.
I have a farm house that was bought (5/8ths) down payment form the gold I recovered in two years.
(about 3/8ths is a (60month land contract) I've made payments 2-48 with the profit from turning my gold and purchasing material to recover and refine. No money from my regular work.
In my opinion! It"'s much better than sitting here with a box full of buttons waiting for this big jump in price to come. Been watching gold and silver for 40 years and don't see the logic.
Art.

Best way to invest is real estate. Best thing ever is to have your property paid off, debt free. When we started this recycling business 28 years ago, my wife and I both had full time jobs and decided that all profits would go towards the house payment. Nothing feels better than making that last payment 13 years early.
 
silversaddle1 said:
artart47 said:
Hi my Friends!
Lets say two years ago I took the warning and started stockpiling the gold that I produced. I'd have a amount of gold buttons.
I have a farm house that was bought (5/8ths) down payment form the gold I recovered in two years.
(about 3/8ths is a (60month land contract) I've made payments 2-48 with the profit from turning my gold and purchasing material to recover and refine. No money from my regular work.
In my opinion! It"'s much better than sitting here with a box full of buttons waiting for this big jump in price to come. Been watching gold and silver for 40 years and don't see the logic.
Art.

Best way to invest is real estate. Best thing ever is to have your property paid off, debt free. When we started this recycling business 28 years ago, my wife and I both had full time jobs and decided that all profits would go towards the house payment. Nothing feels better than making that last payment 13 years early.

No there's a difference. Having your own home paid off is not an investment that's security. Your own home doesn't make you any money at all unless you downsize in later life and spend the excess money. A second property would be an investment. What you have done is given yourself security which is admirable but I repeat not an investment.
 
anachronism said:
silversaddle1 said:
artart47 said:
Hi my Friends!
Lets say two years ago I took the warning and started stockpiling the gold that I produced. I'd have a amount of gold buttons.
I have a farm house that was bought (5/8ths) down payment form the gold I recovered in two years.
(about 3/8ths is a (60month land contract) I've made payments 2-48 with the profit from turning my gold and purchasing material to recover and refine. No money from my regular work.
In my opinion! It"'s much better than sitting here with a box full of buttons waiting for this big jump in price to come. Been watching gold and silver for 40 years and don't see the logic.
Art.

Best way to invest is real estate. Best thing ever is to have your property paid off, debt free. When we started this recycling business 28 years ago, my wife and I both had full time jobs and decided that all profits would go towards the house payment. Nothing feels better than making that last payment 13 years early.

No there's a difference. Having your own home paid off is not an investment that's security. Your own home doesn't make you any money at all unless you downsize in later life and spend the excess money. A second property would be an investment. What you have done is given yourself security which is admirable but I repeat not an investment.

Sorry, but in this case you are incorrect. Since my whole scrap business is located and ran off the property my home sits on, it's a money maker for us.
 
silversaddle1 said:
anachronism said:
silversaddle1 said:
Best way to invest is real estate. Best thing ever is to have your property paid off, debt free. When we started this recycling business 28 years ago, my wife and I both had full time jobs and decided that all profits would go towards the house payment. Nothing feels better than making that last payment 13 years early.
No there's a difference. Having your own home paid off is not an investment that's security. Your own home doesn't make you any money at all unless you downsize in later life and spend the excess money. A second property would be an investment. What you have done is given yourself security which is admirable but I repeat not an investment.
Sorry, but in this case you are incorrect. Since my whole scrap business is located and ran off the property my home sits on, it's a money maker for us.
My wife and I paid off our mortgage before we started flipping houses. We paid $105K for it, and when we started flipping we were able to secure a $135K home equity line of credit against it, which we used to buy and rehab the houses. You don't necessarily have to sell a house to leverage the increase in value.

Whether it's the best way to invest depends on the economics at the time.

Dave
 
Yes Dave. You used the equity to leverage another investment. As such you realised an asset and used that asset to add another investment to your "portfolio."

I'd agree that if Scott used money from his house to do that and make more money then the same would apply, but paying off one's mortgage and being rent free in your own home isn't property investment it's (and wisely so) security.

Everyone has a different risk profile. Some are more comfortable with risks that others would find unacceptable. Neither is wrong and people tend to live their lives according to their perception of risk. Like Dave I would leverage an asset to make more money - in fact I do it to buy stock for my refining business because the more I buy the more I make and that's a risk I am comfortable with. That's using my house as an investment in my eyes, and oddly enough Dave and I share a view on this.

But heck Scott - your view is your view. We're all entitled to our opinions and every one is as valid as the others.
 
Actually to add meat to the bones of the post I just made because it's something close to my heart. If I leave $300,000 in my property it might grow at 3% per annum which is $9,000 per year. By using it to buy product I can make $300,000 in the first year alone therefore putting myself in the situation where at the end of the first year I can either pay it back or invest $600,000 in the second year, and so on and so forth. That's an easy choice for me.

Regards

Jon
 
In my opinion gold and other precious metals are not a good investment. Maybe as a small percentage of your net worth as a hedge against disaster but nothing beyond that. You are much better off turning the gold into cash and using that cash for investments that will return 10 percent to 1000 percent per year or more. I have purchased pallets of items at business or industrial auctions that returned unbelievable profits.
 
torch01 said:
In my opinion gold and other precious metals are not a good investment. Maybe as a small percentage of your net worth as a hedge against disaster but nothing beyond that. You are much better off turning the gold into cash and using that cash for investments that will return 10 percent to 1000 percent per year or more. I have purchased pallets of items at business or industrial auctions that returned unbelievable profits.

Tell that to everyone who sold their gold pre-2005.
Investing in gold (escrap and jewelry) has been extremely lucrative to myself and many others on here.
But I could be wrong.
 
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