Fool's Gold?

[parallaxtech]

I have a few questions on buying gold bars ( 5 & 10B) in Thailand.

 

1.  Thai gold bars are typically 23k (96.5%) gold.  Since the world gold price is based on 24k gold per ounce, does Thailand calculate their price based on 23k gold?

 

2.  I recently went to a major gold store to enquire about purchasing a large amount of gold bars and the owner requested a passport or Thai license.  Is that standard?

 

3.  Should the gold be tested or can we trust a multi-location gold store?  They weigh it in front of you, but it still could contain tungsten (similar in weight to gold) or other cheaper metals.

Edited June 16, 2018 by parallaxtech
syntax

[Oxx]

1. The price is adjusted from world prices to factor in the lower gold content.

 

2. For larger quantities, yes.

 

3. Go for a reputable name and you won't have a problem.  Many stores offer a guaranteed buyback, so it's not in their interests to cheat you.

[Justfine]

Thought this topic would be about crypto coins.

 

Where are you going to store the gold?

 

With zero dividends/interest there is little value in buying gold unless you think the price will increase dramatically.

[parallaxtech]

Oxx:  Thanks!  These were just the answers I was looking for and really appreciate it!

 

JF:  I started buying gold (bars and mining stocks) when gold was $400/ounce so am doing just fine.  In the next few years I feel that the only thing that will be rising will be precious metals.  As they say, in ten years, would you rather find a suitcase full of gold or cash?  I've been in the stock market since 1996 and have lost quite a bit of money (except for mining stocks).  I will stick to what has always made me money: gold and real estate.

[Hummin]

4 hours ago, Justfine said:

Thought this topic would be about crypto coins.

 

Where are you going to store the gold?

 

With zero dividends/interest there is little value in buying gold unless you think the price will increase dramatically.

You store it in a bank safety deposit box! And if buying coins, it is tax free in Europe! 

[Timebandit]

22 hours ago, Hummin said:

You store it in a bank safety deposit box! And if buying coins, it is tax free in Europe! 

Stay away from banks for storage. As soon as the bank box closes the gold becomes theirs, same is true with your account. There are commercial vaulting companies you can find with a little  investigation. Do not tell ANYONE you have it. Don't get overly excited by the price of greatly manipulated paper money. This gold is an insurance policy for inflation and a monetary crisis. 

Edited June 18, 2018 by Timebandit

[exemplary21]

I found it hard to find a shop that sold ingots (smallish provincial city).

 

When I did they charged standard sell price + 50 baht/baht, then buy back for standard buy price minus 50 baht/baht. This basically increased the spread from 100 baht to 200 baht.

 

Those that didn't sell ingots said there wasn't enough profit in it.

[Justfine]

2 minutes ago, exemplary21 said:

I found it hard to find a shop that sold ingots (smallish provincial city).

 

When I did they charged standard sell price + 50 baht/baht, then buy back for standard buy price minus 50 baht/baht. This basically increased the spread from 100 baht to 200 baht.

 

Those that didn't sell ingots said there wasn't enough profit in it.

100 baht fees

No dividends

No interest

Paying for storage

 

You would have to get the timing right and only been 2 large booms in 100 years.

[janclaes47]

On 6/17/2018 at 5:47 AM, Justfine said:

With zero dividends/interest there is little value in buying gold unless you think the price will increase dramatically.

Why it would need to increase in price dramatically?

 

If it increase 5% per annum you beat the banks already

[Justfine]

4 minutes ago, janclaes47 said:

Why it would need to increase in price dramatically?

 

If it increase 5% per annum you beat the banks already

5% less fees is nothing. Bank shares pay higher dividends.

[Hummin]

2 hours ago, Timebandit said:

Stay away from banks for storage. As soon as the bank box closes the gold becomes theirs, same is true with your account. There are commercial vaulting companies you can find with a little  investigation. Do not tell ANYONE you have it. Don't get overly excited by the price of greatly manipulated paper money. This gold is an insurance policy for inflation and a monetary crisis. 

You talking about bank where? Us or Europe and EU member? I would bet a Swiss bank or simular country would take care of your belongings, more safe than any other instutution. Switzerland is not part of EU. 

Edited June 18, 2018 by Hummin

[Kurtf]

On 6/17/2018 at 5:47 AM, Justfine said:

Thought this topic would be about crypto coins.

 

Where are you going to store the gold?

 

With zero dividends/interest there is little value in buying gold unless you think the price will increase dramatically.

You sir obviously are not aware of the value of gold. People do not buy and own gold strictly in the hopes it will increase in value in the immediate future. Gold is a method of PRESERVING wealth. It counteracts inflation. A bank account that gives you 1.6%- 2.0% of interest is a sure fire way of losing and diminishing your wealth over an extended period of time. I guess you are not aware of how insidious inflation is and how gold over thousands of years has been able to continue to maintain the purchasing power of the original investment.

[Kurtf]

24 minutes ago, Justfine said:

5% less fees is nothing. Bank shares pay higher dividends.

The banks love uninformed people like yourself. May God protect you from your own stupidity.

[Justfine]

1 minute ago, Kurtf said:

You sir obviously are not aware of the value of gold. People do not buy and own gold strictly in the hopes it will increase in value in the immediate future. Gold is a method of PRESERVING wealth. It counteracts inflation. A bank account that gives you 1.6%- 2.0% of interest is a sure fire way of losing and diminishing your wealth over an extended period of time. I guess you are not aware of how insidious inflation is and how gold over thousands of years has been able to continue to maintain the purchasing power of the original investment.

 If gold stays the same price then inflation means it's worse less than money in the bank. So unless it goes up it's dead money.

 

Gold was a dog for 30 years as an investment and if you look at 100 year charts it's had 2 major booms.

 

Meanwhile property and shares have had many booms.

 

 

[Justfine]

2 minutes ago, Kurtf said:

The banks love uninformed people like yourself. May God protect you from your own stupidity.

Ironic given your comments indicate you don't understand what a good return is.

 

There are bank shares yielding 6% and 7%.

 

Educate yourself.

[Justfine]

In 20 years out of 40 years the uk gold price in pounds lagged inflation.

 

That's a bad performance 50% of the time.

 

 

[TPI]

1 hour ago, Kurtf said:

You sir obviously are not aware of the value of gold. People do not buy and own gold strictly in the hopes it will increase in value in the immediate future. Gold is a method of PRESERVING wealth. It counteracts inflation. A bank account that gives you 1.6%- 2.0% of interest is a sure fire way of losing and diminishing your wealth over an extended period of time. I guess you are not aware of how insidious inflation is and how gold over thousands of years has been able to continue to maintain the purchasing power of the original investment.

Gold always seems to swing with inflation, that's why it's such a good investment!

[TPI]

57 minutes ago, Justfine said:

In 20 years out of 40 years the uk gold price in pounds lagged inflation.

 

That's a bad performance 50% of the time.

 

 

Yes but what percentage? It's better than cash or the stock market!

[TPI]

1 hour ago, Justfine said:

Ironic given your comments indicate you don't understand what a good return is.

 

There are bank shares yielding 6% and 7%.

 

Educate yourself.

Surely not "ponzi" schemes? 

[Justfine]

12 minutes ago, TPI said:

Surely not "ponzi" schemes? 

Is that something you sell?

[Justfine]

14 minutes ago, TPI said:

Yes but what percentage? It's better than cash or the stock market!

Stock market beats gold most years.

 

Why don't you guys do some research? Then you wouldn't have to guess.

[janclaes47]

1 hour ago, Justfine said:

Ironic given your comments indicate you don't understand what a good return is.

 

There are bank shares yielding 6% and 7%.

 

Educate yourself.

I could educate you, but i think it doesn't make sense to argue with someone who made 3500 post in little over 5 months.

[Justfine]

Just now, janclaes47 said:

I could educate you, but i think it doesn't make sense to argue with someone who made 3500 post in little over 5 months.

I don't think so. If you don't know 5% minus inflation minus fees is a poor return you can't educate anyone.

 

 

 

 

[Justfine]

" It counteracts inflation. "

 

It's common knowledge amongst professionals that gold is a hedge against a crisis not inflation. Inflation beats gold half the time.

 

 

Over the past 30 years, the price of gold has increased by 335%. Over the same period, the Dow Jones Industrial Average(DJIA) has gained 1,255% and the FidelityInvestment Grade Bond Fund (FBNDX) has returned 672%.

[Timebandit]

3 hours ago, Hummin said:

You talking about bank where? Us or Europe and EU member? I would bet a Swiss bank or simular country would take care of your belongings, more safe than any other instutution. Switzerland is not part of EU. 

I don't mean to offend you or your lovely country but a Swiss Bank several months ago refused to produce the gold owned by a Swiss customer and insisted on giving francs instead. It was a big story in the gold World. That is the case of a middleman failing on his promise again. Good fortune to you.

[parallaxtech]

I have to agree with Kurtf regarding gold.  The main concern with any fiat currency is purchasing power.  Think of what you could get twenty years ago with 100 baht and what it buys now.  The US$ has less than 4% purchasing power left and is falling.  Gold never loses purchasing power -- an ounce 100 years ago would buy a nice suit and today it still will!  Inflation is rising dramatically while the paper currencies are losing their value.

[Hummin]

7 minutes ago, Timebandit said:

I don't mean to offend you or your lovely country but a Swiss Bank several months ago refused to produce the gold owned by a Swiss customer and insisted on giving francs instead. It was a big story in the gold World. That is the case of a middleman failing on his promise again. Good fortune to you.

You have a link? 

 

Im not Swiss by the way, but yess Switzerland is a lovely country as far I know

[Timebandit]

1 minute ago, Hummin said:

You have a link? 

 

Im not Swiss by the way, but yess Switzerland is a lovely country as far I know

Search google. I don't save links just for lazy you.

[Kurtf]

2 hours ago, Justfine said:

I don't think so. If you don't know 5% minus inflation minus fees is a poor return you can't educate anyone.

 

 

 

 

Just Fine. I think you should trust all big governments and all big banks to protect you and all your investments. They surely will look out for your best interests. And don't believe history and fiat currencies. That never happens. Ohh by the way. How much is 6-8% worth on the Venezuelan currency today?

[Oxx]

9 minutes ago, Timebandit said:

Search google. I don't save links just for lazy you.

 

But Google doesn't give any reference from a reputable news source of any such event.  Not one.

 

The story appears to have originated with an unsubstantiated and unattributed tale at https://kingworldnews.com/major-alert-greyerz-warns-swiss-bank-says-it-will-no-longer-hand-over-clients-physical-gold/ and repeated elsewhere.

 

There is not a shred of hard evidence that any such event ever happened.  And if it had, you can be sure the mainstream financial press would have been all over it.

 

In other words, it didn't ever happen.  It's a fairy story.