Gold Confidence Index plummets as Fed indicates benchmark hike this year

[Asiantravel]

I am laughing so much because your statement about trust. When it comes down to the wire you can't trust desperate politicians and bankers with who have their backs against the wall to stop the printing press and Zimbabwe is an excellent example of how others Fiat currencies are going to go.

One factor leading up to Zimbabwe’s problems was the land reforms that moved land ownership from white (former colonists) to local black people.

This lowered production significantly and thereby the country’s export, it undermined trust in property ownership, it lead to exclusion from Commonwealth, and several sanctions that included freezing of foreign assets.

Unemployment rose to 80% and the government was printing money to pay government employees, including the military (they were involved in the war in Congo), and the government was probably among the most corrupt (and least transparent).

So Zimbabwe’s path is not “an excellent example of how others [sic] Fiat currencies are going to go”.

But as far as Zimbabweans not being interested in gold I don't think Zimbabweans are even on the radar screen compared to Indians, Chinese, Russians and Arabs because goldh as never been part of their historic culture

I think you missed the point that was being made, namely that during a real crisis, gold is impractical.

I am not sure I really buy that everybody but westerners are buying up gold, at least it’s not showing in the price of gold, and the article you linked to mainly highlighted the relative increase in how much the various central banks bought measured in weight, so if a central bank spends a fixed amount of money each year on gold, then it would only follow naturally that if the gold price drops by 20% they will actually buy 25% more gold.

So to take the article seriously, it should have stated how much money (in the country’s currency) was spent on gold, and it should compare that to what other reserve currencies this country was buying. For example China still buys far more US dollars than gold.

" I am not sure I really buy that everybody but westerners are buying up gold, at least it’s not showing in the price of gold "

That comes as no surprise because we are in an Alice in Wonderland situation where the gold price is currently dominated by the paper gold market which is 100 times bigger than the physical gold market. Owning paper gold defeats the purpose rather I mean you would probably be no better off than owning a Zimbabwean dollar when this eventually happens

MoneyWeek admits that gold futures market contracts exceed the amount of physical metal available for delivery by a factor of 100

http://investmentwatchblog.com/moneyweek-admits-that-gold-futures-market-contracts-exceed-the-amount-of-physical-metal-available-for-delivery-by-a-factor-of-100-central-banks-are-starting-to-panic-and-want-their-bullion-back-from/

Edited June 15, 2015 by Asiantravel

[WorkingTourist]

" I am not sure I really buy that everybody but westerners are buying up gold, at least its not showing in the price of gold "

That comes as no surprise because we are in an Alice in Wonderland situation where the gold price is currently dominated by the paper gold market which is 100 times bigger than the physical gold market. Owning paper gold defeats the purpose rather I mean you would probably be no better off than owning a Zimbabwean dollar when this eventually happens:hit-the-fan:

MoneyWeek admits that gold futures market contracts exceed the amount of physical metal available for delivery by a factor of 100

No-one admits anything. There are no quotes from anyone, no references to data, nothing. There is even a line saying Everything Ive laid out above is conjecture, of course. And then there is a sign up for our buy gold newsletter.

Forgive me for not putting too much faith in that guys theories.

[Asiantravel]

" I am not sure I really buy that everybody but westerners are buying up gold, at least its not showing in the price of gold "

That comes as no surprise because we are in an Alice in Wonderland situation where the gold price is currently dominated by the paper gold market which is 100 times bigger than the physical gold market. Owning paper gold defeats the purpose rather I mean you would probably be no better off than owning a Zimbabwean dollar when this eventually happens:hit-the-fan:

MoneyWeek admits that gold futures market contracts exceed the amount of physical metal available for delivery by a factor of 100

No-one admits anything. There are no quotes from anyone, no references to data, nothing. There is even a line saying Everything Ive laid out above is conjecture, of course. And then there is a sign up for our buy gold newsletter.

Forgive me for not putting too much faith in that guys theories.

Huh ? It’s such common knowledge you don’t need " quotes from anyone “. I mean I hope you are not that naive to think the regular “ smash downs “ that occur in the price of gold is the result of people selling their bullion?

Dichotomy Occurring In Gold Market; Physical Demand Soars; ETF Holdings Decline

" All of the selling has been in paper forms of gold. We’re seeing hardly any sales (from investors) of physical forms of gold.”

http://www.forbes.com/sites/kitconews/2013/04/24/focus-dichotomy-occurring-in-gold-market-physical-demand-soars-etf-holdings-decline/

Edited June 16, 2015 by Asiantravel

[Asiantravel]

Really. Please tell me in which major national or international crisis you could eat gold? If things are that bad and people were starving, would someone trade a loaf of bread for a kilo of gold? War? What defensive weapon is gold?

I agree things are going to get terrible so lets get together and trade all of our worthless money for bread. Then when things get bad enough starving people will give us all their gold for our bread. We can let BuaBS in on our group buying physical bread - not bread futures because if you don't hold it you don't own it.

The future is bread.

" trade a loaf of bread for a kilo of gold "

That is both a disingenuous and fallacious argument:rolleyes:

http://www.combibar.com/

When I was in Zimbabwe, I saw lots of people coming over the border from Zambia with shopping carts filled with bread, and people were waiting in lines to convert their Zimbabwean dollars to flour and similar.

I never saw or heard of anyone interested in gold. But why would they? They could use US dollars, South African rand, or any other currency that is both relatively stable and easy to spend in a neighbouring country.

Pretty much anywhere in the world you’ll be able to get a meal for forty US dollars or forty euros, but try pay with a 1 gram stamp sized piece of gold paper, and they’ll think you’re trying to scam them.

If you do believe that all the world’s major currencies will be subject to hyperinflation at the same time, then you ought to place your money in something that has intrinsic value. Buying silos of cereal, rice, and gasoline, seems like a better hedge against the imminent zombie apocalypse. And of course, lots of shotgun ammunition!

" I never saw or heard of anyone interested in gold "?

Strange because your statement directly contradicts what people are saying in this video

Gold For Bread - Zimbabwe

https://www.youtube.com/watch?v=MSYrCoD-8FY

[WorkingTourist]

When I was in Zimbabwe, I saw lots of people coming over the border from Zambia with shopping carts filled with bread, and people were waiting in lines to convert their Zimbabwean dollars to flour and similar.

I never saw or heard of anyone interested in gold. But why would they? They could use US dollars, South African rand, or any other currency that is both relatively stable and easy to spend in a neighbouring country.

Pretty much anywhere in the world you’ll be able to get a meal for forty US dollars or forty euros, but try pay with a 1 gram stamp sized piece of gold paper, and they’ll think you’re trying to scam them.

If you do believe that all the world’s major currencies will be subject to hyperinflation at the same time, then you ought to place your money in something that has intrinsic value. Buying silos of cereal, rice, and gasoline, seems like a better hedge against the imminent zombie apocalypse. And of course, lots of shotgun ammunition!

" I never saw or heard of anyone interested in gold "?

Strange because your statement directly contradicts what people are saying in this video:unsure:

Gold For Bread - Zimbabwe

https://www.youtube.com/watch?v=MSYrCoD-8FY

The video is basically showing that one of the gold mines are still being operated, but by the locals, and their salary is the gold they are able to dig up, which they then trade for a loaf of bread or similar.

I assume that connected people would get this gold out of Zimbabwe, where it could be sold, and then bring back foreign currency, which was much more valuable inside Zimbabwe.

I did not visit any of the gold mines when I was in Zimbabwe, presumably if I had, I would also have seen this, but in other parts of the country, gold was not traded, and at the prices quoted in the video, it should be obvious why.