Banks have over $1.8 trillion in excess reserves.
I don't think they need to sell anything to stay liquid.
Posted on 06/25/2013 8:01:01 PM PDT by blam
Banks have over $1.8 trillion in excess reserves.
I don't think they need to sell anything to stay liquid.
You are giving bad advice. Go to tulving.com or any physical seller to be cured of your ignorance.
If I remember correctly, the current ‘horrible’ price/value of gold is still about $450 above where it was when Obammie the Commie began his economic destruction of this nation.
Paper gold is backed by physical gold. The thing about paper gold is that it moderates both upward and downward movements. When the spot gold price exceeds the ETF share price, ETF managers buy shares (and sell physical gold) until the spot gold price and the ETF share price are identical. When the spot gold price is less than the ETF share price, ETF managers issue new ETF shares (and buy gold with the cash raised), until the spot gold price and the ETF share price are identical.
Storage capacity isn't much of an issue, because the $43b worth of gold owned by GLD would fit into a small living room measuring 12'x12'x12'. Even security isn't a problem, because the fund charges 0.40% of total assets, which comes to $172m a year, to manage the fund. And that management relates mainly to (1) issuing and buying back ETF shares, (2) buying and selling gold in relation to ETF share issues and buybacks, (3) making sure that the gold's kept safe, and (4) keeping up with the requirements of a New York Stock Exchange listing.
He’s already addressed this. He has for years.
Don’t look at PM’s as an investment to make profits. You purchase PM’s to protect your purchasing power for when the monetary unit in your country is destroyed by central management.
If you bought high and the price drops, so what? Hold on to it and pass it on to your children.
I agree, if this drop is driven by banks, then they are just selling high.
I think this is driven by just other non-government sellers (funds, individuals) and drop in retail demand (down markets in emerging economies).
m4l
The Chinese demand evaporated with the rise in rates.
I would agree.
You can’t EAT gold. You can’t BUY food with gold if there is no food.
I’m not suggesting you buy FOOD instead, buy BULLETS. You can’t eat them, but with them you can get anything you want and keep what you’ve got.
In a sense it’s even worse than 2008. Silver got cut in half then; so far $50 down to $19 is a little over 60% off, just over a longer period of time.
I would not recommend buying metal from Tulving . Yes they have low prices but if you read the reviews people are having to wait months for delivery, the owner will not answer calls, and yells at customers. Mr. Tulving was in trouble with the FTC and went bankrupt.Buyer Beware.
Handful of silver coins will be worth far, far more than a fistful of dollars when the SHTF, which, BTW, is looking more likely every day.
Im far from being in a losing position but Im not worried about it either way. Im not selling cause longterm, our currency is in trouble. Im not selling ANY of my precious metals. Im buying more and im passing it on to my daughter.
Exactly.
Lest anyone forget, a huge percentage of the folks giggling about a 30 dollar gold decline at any given day here are the ones that spent the last 5 years on here saying it was a “bubble” from about $450 on up.
The only reason their crowing is to reassure themselves they made a good decision in not buying it in the sub thousand range...
Wake me up when 2 silver dimes DON’T buy a gallon+ of gas for about 6-8 months running...
Or perhaps another way to see it - the Dollar sucks less than any other currency at the moment.
Thanks, chump
I doubt it. Good luck with that. best strategy is asset diversification.
Propaganda from the masses too. A lot of people find it so much harder to work for a living than simply sitting back and slandering those that do.
Tulving is cranky (his employees are fine), but always delivers. They also disclose wait times (but are slow when your trading in some metal and taking other metal in exchange).
Please post links to tell me more about your claims.
I’m unaware of anyone ever being cheated by Tulving.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.