Where Is Gold Going In This Market

[yoshiwara]

So when you sell .9999 gold bullion in one ounce squares, in Bangkok Chinatown, what should you expect to be paid relative to the spot price? Thanks.

fair price per ounce would be 300-350 Baht below international spot.

Listening to the gold bugs one would think that the price of physical gold was way above the spot price......

[midas]

So when you sell .9999 gold bullion in one ounce squares, in Bangkok Chinatown, what should you expect to be paid relative to the spot price? Thanks.

fair price per ounce would be 300-350 Baht below international spot.

Listening to the gold bugs one would think that the price of physical gold was way above the spot price......

oh just wait ................ Peter Schiff said its coming

Edited October 26, 2013 by midas

[mccw]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

[yoshiwara]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

A question. If the spot price is sometimes supposedly manipulated down and at the same time the demand for physical gold is going up, what is the the gold bug explanation for the lack of divergence?

Edited October 26, 2013 by yoshiwara

[mccw]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

A question. If the spot price is sometimes supposedly manipulated down and at the same time the demand for physical gold is going up, what is the the gold bug explanation for the lack of divergence?

That there are far more paper contracts being sold than physical bullion being brought.

[mccw]

/ Even though the physical demand is higher, there is even more paper selling to push the price down.

It would only become apparent when physical supply is exhausted, paper turns to zero and physical prices explode.

I think the big purchaser china is being careful not to buy so much as to bring this about since they would rather keep buying as long as possible for the cheap prices of today. While at the same time western central banks are releasing bullion trying to keep the physical market liquid enough not to give the game away.

This is definitely happening. Question is for how long it can go on. Will west recover enough to not play any more or china grow tired and change policy? I doubt either. But I think it can go on like this for quite some time yet. So maybe not a great use of funds- but worth holding a bit, just in case.

[Naam]

it is useless to discuss the price of physical gold. everybody knows that physical gold is not available, the shelves in the goldshops are empty and whatever nuggets are newly mined go straight into the vaults of the central banks who are required to keep 99% of their liquid reserves in gold, effective... any day from now.

[farang000999]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

how about when you sell it?

[Naam]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

how about when you sell it?

why would anyone sell physical gold?

[farang000999]

can only imagine gold investment in the USA.

buy 8% above spot

sell 8% below spot

tax as collectible 28%

for a 44% tax rate...

versus paying 15% for long term capital gains plus two $15 buy/sell transaction fees.

[mccw]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

how about when you sell it?

1% under spot

No capital gains tax on gold in UK.

Silver on the other hand is horrible.

20% VAT when buying + the mark up 8% +

Any gains are taxed at 40% capital gains Tax.

[Naam]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

how about when you sell it?

1% under spot

No capital gains tax on gold in UK.

Silver on the other hand is horrible.

20% VAT when buying + the mark up 8% +

Any gains are taxed at 40% capital gains Tax.

does Her Majesty's Revenue Service know what amount of silver you hold and at what price you bought it?

[mccw]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

how about when you sell it?

1% under spot

No capital gains tax on gold in UK.

Silver on the other hand is horrible.

20% VAT when buying + the mark up 8% +

Any gains are taxed at 40% capital gains Tax.

does Her Majesty's Revenue Service know what amount of silver you hold and at what price you bought it?

Any/ every bullion purchase over £10,000 is recorded and ID, proof of address etc required by the company selling the bullion for the register. Anti money laundering rules since a few years already.

Smaller dealings in cash can be off books or take a ferry to guernsey to buy and sell tax fee.

[falang07]

so the answer might be to buy in chunks of £9,999

[falang07]

Gold is one of the sexyist investments available: Up and down, up and down, up and down. Whew! Would that make JP Morgan analogous to the Manhattan Madame?

well, something that goes up and down, up and down, up and down forever enables for much higher profits compared with a simple long-term investment (provided you know how to benefit from the down slopes, as the market-makers do)

[Naam]

In the UK the price of physical gold is about 4-8% over spot depending where you buy it. Thailand is lucky to very low margins.

A question. If the spot price is sometimes supposedly manipulated down and at the same time the demand for physical gold is going up, what is the the gold bug explanation for the lack of divergence?

the divergence is either caused by the proverbial Grinch (the one who spoiled Christmas) or the evil sister of the Fairy Queen.

[Naam]

Russia sells gold for first time in a year • 10:35 AM

• Russia's central bank - which accounted for 30% of official gold purchases since 2010 - sold 12K ounces of the metal in September, the first sale in a year, according to IMF data. "Gold really doesn't have much to offer," says commodity analyst Joe Murphy in one of those quotes you never hear at tops. "People are seeing better opportunities, whether that be in bonds or equities."
• Central banks have a dubious track record with gold, and were regular sellers for years up until 2009, and became net buyers in 2010 - particularly the emerging market central banks. Thomson Reuters GFMS sees central banks as cutting back gold purchases by 34% this year - so while they're not buying as aggressively, they're certainly not becoming net sellers yet. Contrarian bulls need to stay patient.

seekingalpha.com

[Naam]

Sell While You Still Have A Chance

http://seekingalpha.com/article/1776192-gld-sell-while-you-still-have-a-chance?source=email_rt_mc_focus_0

[Naam]

World Gold Council's Feldman: Case To Own Gold Remains Strong.

http://seekingalpha.com/article/1779962-world-gold-councils-feldman-case-to-own-gold-remains-strong?source=email_rt_mc_related_1

[Naam]

Gold: When Will It Crash Again?

http://seekingalpha.com/article/1778782-gold-when-will-it-crash-again?source=email_macro_view&ifp=0

[churchill]

India: Part of the fabric

Can the government curb the country’s insatiable appetite for gold?

http://www.ft.com/cms/s/0/f69fae7e-4148-11e3-b064-00144feabdc0.html?siteedition=uk&siteedition=intl#axzz2jIY2xTus

[yoshiwara]

India: Part of the fabric

Can the government curb the country’s insatiable appetite for gold?

http://www.ft.com/cms/s/0/f69fae7e-4148-11e3-b064-00144feabdc0.html?siteedition=uk&siteedition=intl#axzz2jIY2xTus

Its amazing where they get it from since all the shops everywhere in the world haven't any more left to sell.

[midas]

Finland’s Gold

On Wednesday Finland gave in to public pressure and revealed where she stores her gold reserves. The statement followed a press release by the Bank of Sweden on similar lines released on Monday.

http://www.goldmoney.com/research/research-archive/finlands-gold#

Edited November 4, 2013 by midas

[johnnybgood]

Anyone know what caused this movement? ........Was it the Euro?

[mccw]

From biz insider app:

WHOLESALE London prices for gold pushed higher in quiet trade Friday morning, on course for the largest November drop since 1978 in US Dollar terms.

Down 5.9% from the last London Fix of October, Dollar gold this morning touched $1249 per ounce.

That would be the lowest monthly finish since June's 3-year low.

Global stock markets meantime hit fresh 6-year highs on the MSCI World index, as the Japanese Nikkei closed its strongest November since 2005.

The Japanese Yen today hit its lowest level in a half-decade to the Euro.

Gold for Japanese investors rose to 1-week highs Friday morning, cutting November's drop to 1.9%.

"Trading has been relatively subdued," says a European bank dealing desk, pointing to the US Thanksgiving holidays.

"Some light buying from short-term players," says a Swiss refiner's note, again citing "very thin conditions."

Tracking Friday's rally in gold, silver also rose but held $2 per ounce below the end of October, heading for a 9.1% drop in November at $19.93.

"Physical [gold] demand is solid," says ANZ Bank's commodity team in a special report, "but not bullish enough to spark significant short covering [by bearish traders in gold futures].

"[That's] reflected in subdued Shanghai Gold Exchange premiums."

Trading volumes in Shanghai gold slipped back Friday, pulling the premium above London settlement down to $6 per ounce from the recent peak of $9 hit Thursday.

ANZ now forecasts 2013 gold imports to China of 1,050 tonnes, topping last year's record by some 80%.

"[but] we believe caution is warranted in expecting the growth in Chinese gold demand will be repeated next year," says the banks' analysts, stating a "baseline expectation" of a drop in 2014 imports back to 900 tonnes.

Meantime in former world No.1 gold consumer nation India, where gold prices on the MCX futures market ended the day unchanged near 6-week lows, "People have started coming with recycled gold," Reuters quotes a gold retailer in the famous Zaveri Bazaar.

Thanks to the Indian government's gold import rules effectively shutting legal inflows, "There is no gold available in the market this wedding season," the retailer, Kumar Jain, goes on.

So the parents of brides-to-be "have started exchanging their old gold for new, and paying the labor charges," he adds, forecasting perhaps 400 tonnes of gold recycling this year, compared with more typical levels of 130 tonnes.

Import duties, the lack of supply and other costs have pushed Indian gold dealers' quotes for physical bullion to $130 per ounce above world prices this month.

Adrian Ash

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[Naam]

From biz insider app:

Import duties, the lack of supply and other costs have pushed Indian gold dealers' quotes for physical bullion to $130 per ounce above world prices this month.

Adrian Ash

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Mr. Adrian Ash hasn't done his homework. yesterday's price for gold bullion 999.9 in India was $1,549/ounce = $307 above offshore price.

[mccw]

Wow. Trip to India with a few fat Thai chains round our necks could = free holiday n then some.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[Naam]

Wow. Trip to India with a few fat Thai chains round our necks could = free holiday n then some.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

not advisable! because walking with a few "fat Thai chains" through the green channel in Mumbai, Delhi, Kolkata or Chennai will cause a lot of trouble assuming the gold purity is 22k or higher.

[churchill]

SGE Delivery YTD 1928 tons, 43 tons in Week 47

http://www.ingoldwetrust.ch/sge-physical-delivery-week-47

[churchill]

'

E-gold Founder Backs New Bitcoin Rival That Will Have Gold Reserves

Now this is an interesting e-currency. FT reports:

Coeptis’s “global standard currency” would be fully backed by reserves of gold, held in a trust, effectively turning the precious metal into a medium of exchange.Douglas Jackson is consulting for a membership organisation called Coeptis that hopes to launch a new version of his gold-backed currency, which attracted millions of users at its height.The aim is to lure many of the people who have been attracted to Bitcoin and other virtual currencies this year, including businesses that are looking for a cheap way to process payments outside the traditional banking system.The founder of one of the earliest virtual currencies has re-emerged with a rival to Bitcoin, more than five years after his first venture, e-gold, was shut down by the US Department of Justice.

see http://www.economicpolicyjournal.com/2013/11/e-gold-founder-backs-new-bitcoin-rival.html