patrick.net

The bond market has been on the way to implosion for a while. No one has confidence in the US government to repay debt anymore, or in paper money to be honored years from now. That's the high level. Rumor is some VERY powerful buyers have started dumping dollars for real money in the past few weeks. Either way the outcome will be economic collapse. Whether you run to the jails of CDBC, or the freedom of real money on the other side is up to you. If you aren't prepared, I'd guess they'll have some carrots to get you into the cages. Please be prepared...

richwicks says

NuttBoxer says

It was a voluntary turn in, not mandatory confiscation. Feel free to provide a citation proving otherwise,

Executive Order 6102 - https://en.wikipedia.org/wiki/Executive_Order_6102

It was a bailout of the Federal Reserve that was counterfeiting money.

Executive Order 6102 required all persons to deliver on or before May 1, 1933, all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve in exchange for $20.67 (equivalent to $487 in 2023)[7] per troy ounce. Under the Trading with the Enemy Act of 1917, as amended by the recently passed Emergency Banking Act of March 9, 1933, a violation of the order was punishable by fine up to $10,000 (equivalent to $235,000 in 2023),[7] up to ten years in prison, or both.

It won't work this time. People who own bullion would rather dump the stuff in the Mariana Trench than give it to the government.

I just want to say this for all the Ukrainian, Israeli, and US government supporters. The above clearly demonstrates I was wrong, and Rick was right. I have no problem admitting I made a mistake. Feel free to do the same any time, no one will think less of you.

I respect people who hold to the truth, not people who try to win arguments.

If you didn't know, gold and silver have been suppressed for over a hundred years. The connection of real physical to fake paper is gone.

https://www.rt.com/business/595122-west-losing-gold-east/

Patrick says

Can someone explain this graph?

The key here is "real rates"; i.e., inflation-adjusted. If inflation is high, bond rates net inflation plummet, since bonds lag inflation. Gold prices in general follow asset prices, which are the first to rise before general consumer price inflation; i.e. asset price inflation is a leading indicator of general inflation (often by multiple years in advance).

Look at the late 1970's - gold shot up as well has housing prices. Then the Fed put interest rates close to 20% (which was much greater than the inflation rate, so "real" rates skyrocketed) and crashed the banking system, the housing market, gold, and the industrial economy.

"Austin cookie delivery firm Tiff's Treats is branching out from chocolate chips to gold bullion. Riding a wave of global interest in the precious metal, the new initiative is a way for the cookie delivery company to expand its appeal in this Amazon-fueled age of immediate gratification. Instead of paying about $21 for a box of a dozen chocolate chip cookies to be delivered to your friend, coworker or loved one, you can now pay roughly $2,500 for what the company deems its "bullion bundle" — a box of cookies plus a one-ounce, 24-karat bar of gold. The price of the package fluctuates with the daily gyrations of gold.

In South Korea: Aside from ramen and sausages, South Korea’s convenience stores have a new popular item on the menu — gold bars. The country’s largest convenience store chain, CU, has been collaborating with the Korea Minting and Security Printing Corporation (KOMSCO) to offer customers mini gold bars — and they’re selling like hot cakes.

A variety of finger-nail sized gold bars weighing between 0.1 gram and 1.87 gram have been up for sale at CU outlets since April. A 1.87-gram bar sells for 225,000 won ($165.76) and a 0.5-gram bar sells for 77,000 won.

Priced at 113,000 won each, 1 gram bars were sold out within two days, according to local news reports. The bars come with congratulatory messages, birthday wishes and even designs for personality types.

People in their 30s were most active in purchasing these gold bars, accounting for over 41% of the total sales since their launch, according to CU’s commerce phone app Pocket CU. Those in their 40s make up 35.2% of the sales, followed by people in their 50s at 15.6%. People in their 20s accounted for 6.8% of all sales."

- Franklin Sanders

The only problem with the "consumer gold" is when you try to sell it for anywhere near the price at which you bought it - try a 50% haircut at least. The big question for "consumer gold" (as opposed to "collectible" coins or good delivery bars) is provenance. For all anyone knows, it's gold-plated tungsten (which is virtually identical in density to gold). Plus, there is the BSA/AML aspect, "Why do you have so much gold, are you a terrorist or money launderer?" You have to clear 30% just to net out on the collectibles tax, to which gold is subject.

No, gold for most people is an insurance policy against the resolution of the Triffin Dilemma; namely, the dissolution of Bretton Woods / Petrodollar.

Everyone's holding..

https://www.zerohedge.com/personal-finance/vast-majority-professional-investors-own-some-gold

It's not quite the Rubicon, but gold crossed $2500 at closing on Friday:



From about $250 in 2000 to $2500 today. Not bad for a lump of metal. But muh Bitcoin . . . suck on a tulip bulb.

stereotomy says

It's not quite the Rubicon, but gold crossed $2500 at closing on Friday:



From about $250 in 2000 to $2500 today. Not bad for a lump of metal. But muh Bitcoin . . . suck on a tulip bulb.

Gold went up about 10% annually over last 24 years.

I would not put no more than $30,000 or 3% of assets (whichever is greater) in Bitcoin as a hedge in a fiat currency environment.

.

From what I'm reading of various Wall Street pundits recommendations to high wealth clients (+$3 million in stocks/ETFs/liquid assets), put 3% of assets in a Bitcoin ETF, 6% in gold and silver, and 6% in an oil and gas ETF.

Well, I have to agree with Stephanie Pomboy - I'll take the short-term hit on gold as long as we don't have globomomo WWIII:

Looks like a buying opportunity is approaching. Maybe. It's still way up.