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Because of the risk of getting supply of natural-gas from Russia then neither the Swiss franc nor the Japanese yen have been very good financial sanctuaries. And so gold has tended to hold with the dollar instead of opposite the dollar.
However, gold, in addition to being a commodity, is also a financial asset. And then most all financial assets should drop with the FRB reducing its balance-sheet.
Now the dollar could go up with rising overnight bank rates but does the dollar go down on the shock of FRB balance-sheet reduction ?
Here is how not to buy gold. Apparently, counterfeiting is prolific. China is flooding the US with counterfeit coins and bars. Even silver coins are being counterfeit. They are counterfeiting everything. Beware, especially sales advertised on social media. Be extremely cautious. You may not even know your stash has been counterfeit until you go to sell and the dealer tells you it is worthless.
Look at its history and see if you still like it.
When you take your gold bar to the store how are you going to remove the correct amount of gold to pay your bill and how are you going to prove to the store that your bar of gold does not have other mentals in it thus reducing its value.
You do realize that gold is an element in the periodic table and is almost infinitely divisible as far as we are concerned? You can melt a gold coin into tiny bbs to take to the store. You can file gold dust off your coin into a small pile that can then we weighed to establish its value. You can cut a small wedge off with tin snips.
I have seen your comment many times and the simple truth is, if your life depended on it, you could easily divide a gold coin into many small bits of gold in any number of ways. Melting, filing, sanding, snipping.
You could probably take a solder gun and just melt the edge of coin at low temp until a small bb falls into an iron skillet, then weigh it to estabish value. The store then trades you an equivalent amount of goods or services.
Gold is almost infinitely divisible until you get to where you have individual gold atoms. Gold is a basic element. That is one of the properties that makes it so valuable.
I remember leading all the way to 1987 crash,no one cares about gold,as 30 years T Bond was yielding plenty.
After the 1987 crash,gold did nothing .
now as the Fed talks about raising rate,gold keeps rising,there is another factor involved,more than inflation as back then in the 1980s,there is inflation.
so what is the other factor??
For a couple of gangsters with guns, it's either one-month's pay or one-year's pay but only one-hour's work. Now delivery drivers are noticing deliveries and local bullion sales personnel are noticing sales.
Local bank personnel notice trips to the safe-deposit box.
If the house has a safe then that's where the gold is. Otherwise the gold is in a safe-deposit box. Now did someone notice the delivery of a safe to the house ?
delivery of safe would be to business owners who stash cash at home to avoid the tax man,like those who run restaurants and gift shops BUt there are those who sell hash which is considered illegal drug and cannot deposit cash in Fed chartered bank would have to find a state bank or keep them in a vault.
they can also use cash to pay their landlord or supplier
Now the dollar could go up with rising overnight bank rates but does the dollar go down on the shock of FRB balance-sheet reduction ?
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Just read Muni bond has the largest withdrawal since xxxx and the bank deposits are declining,where do all the cash go?can be all used to buy grocery??
dollar should go up with the Fed balance sheet reduction as it signals rate is rising so the currency is worth more,as you can see,Europe is not raising its rates.
The Vietnamese boat people managed to leave Vietnam and arrived here with their gold.
You are assuming they made it here. The old timers usually say nothing, but the ones that do generally have some awful stories to share. But gold was helpful if they made it and were able to hang onto it.
I am looking to buy gold. I do not want to hold onto cash anymore. How does it work? If gold is a certain price on the market, wouldn’t it cost the same no matter where I bought it from? I want actual gold an not certificates. My concern is when I would ever want to sell, will I get the going rate or would I need to go to some pawn shop and get minimal for it? If paper currency ever did disappear, would it be advantageous to have gold or silver?
Have not heard in a long time people buying gold coins. Canada dollars, Australian dollars, US Mint coins used to compete with each other. Some new issues bought from the mint. Then stored in safety deposit boxes.
Buy for a price, sell for a price. Get no interest while you hold the coin. When preserved the coins make very pretty designs. Do need to check if a 1oz coin is 99.99% pure gold.
Does seem like since all the wafer coins the hobby is less popular than it was years ago. Maybe coins from 100 years ago or older still have some value depending on their scarcity.
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