Who buys gold

[trigger_andy]

17 hours ago, htb said:

Just as well I've already cased the joint, when I picked up mill.

Its not in the Cookie Jar, I promise. 

[Deafhead]

Cookie jar it is then.

[Billhook]

Cannot understand why gold would go down slightly when the world is facing the biggest financial meltdown in history.

[BishBashBosh]

33 minutes ago, Billhook said:

Cannot understand why gold would go down slightly when the world is facing the biggest financial meltdown in history.

 Investors are selling off assets to raise cash and cover losses in other markets. Buying on Margin means that investors are required to repay the loan if their investment falls below a set price, hence the need to generate cash through asset selling

 

Gold is still holding up pretty well, broadly flat over the last month as the downward pressure from the above is balanced by its traditional safe haven buying. The industrial precious metals (Platinum, Palladium) by contrast have dropped 30% in the last month as manufacturing demand vanishes.

[Billhook]

4 hours ago, BishBashBosh said:

 Investors are selling off assets to raise cash and cover losses in other markets. Buying on Margin means that investors are required to repay the loan if their investment falls below a set price, hence the need to generate cash through asset selling

 

Gold is still holding up pretty well, broadly flat over the last month as the downward pressure from the above is balanced by its traditional safe haven buying. The industrial precious metals (Platinum, Palladium) by contrast have dropped 30% in the last month as manufacturing demand vanishes.

Yes, I understand all of that but I would have thought that gold would be taking off and have sailed past the £2000/ounce mark especially when the Eastern countries are badly affected by all of this.

[BishBashBosh]

18 hours ago, Billhook said:

Yes, I understand all of that but I would have thought that gold would be taking off and have sailed past the £2000/ounce mark especially when the Eastern countries are badly affected by all of this.

 The size of the "dash for cash" is so large that it's suppressing any upward Gold trend. 

When demand recovers for all goods and bearing in mind the vast increases in money supply that governments are using to prop up our economies then the risk of high inflation may see a surge in Gold as it fulfills its traditional role.

 

 Most western economies haven't experienced significant inflation for so long that people have forgotten how it just eats an economy.

 

Edited March 21, 2020 by BishBashBosh

[Billhook]

26 minutes ago, BishBashBosh said:

 The size of the "dash for cash" is so large that it's suppressing any upward Gold trend. 

When demand recovers for all goods and bearing in mind the vast increases in money supply that governments are using to prop up our economies then the risk of high inflation may see a surge in Gold as it fulfills its traditional role.

 

 Most western economies haven't experienced significant inflation for so long that people have forgotten how it just eats an economy.

 

So why was there not massive inflation, German 1920s style,  after the last massive QE session in 2008?

Also I would have expected a bog roll supermarket type frenzy on gold with similar mindlessness!

[BishBashBosh]

Most of the QE money was retained by the  financial sector to prop up their balance sheets which were loaded with toxic debt, hence didn't generate the classic inflationary pressures.

[Sutton]

Our grand daughter is a news junkie and dabbles in RT for a bit of re-balancing. Or so she says.

Apparently every advert break is pushing bullion sales. "Own a gold sovereign" kind of thing.

Being an economics student, I believe her when she says that "paper gold", likewise, isn't the safe haven it used to be.

 

Think of all those treasure hordes dug up from after the Roman Empire fell. When society implodes what can you actually do with your gold? Who would want it? What can you get for it? The people who buried that gold never came back for it. Telling times.

 

The government is trying to re-assure us that history wont repeat itself. If you like what they are doing, buy some of their bonds

[trigger_andy]

On 21/03/2020 at 09:19, Sutton said:

Being an economics student, I believe her when she says that "paper gold", likewise, isn't the safe haven it used to be.

As far as Im concerned paper gold is just that, a bit of paper. I like to have some physical.

 

On 21/03/2020 at 09:19, Sutton said:

When society implodes what can you actually do with your gold?

Gold is a store of wealth, has been for the last 6000 years. Currencies barely last 100 years, I think 60 years is the average* , but Id have to look. Yet the gold burried in Roman times is still as valuable as when it was buried. 

 

So what can you do with the gold? Well, a gram or two sure is lighter than carrying a few hundred killos of Tatties on your back. No, you cant eat gold, but maybe the person you want to buy carrots from does not want your tatties. So you have to barter or exchange something else. Gold is also much easier to conceal than a big bag of spuds.When society implode no one throws their gold in the street. Its the only real currency and returns to that state.

 

The people who never came back for their gold where not coming back for anything else either. So its really an irrelevant point. 

 

*Edit- Its 27 years. 

Edited March 25, 2020 by trigger_andy