"Central banks have 10-15,000 tonnes of gold less than their officially reported reserves of 31,000" the Chevreux report announced. "This gold has been lent to bullion banks and their counterparties and has already been sold for jewelry, etc."
"Start hoarding," said Paul Mylchreet...
And the CBs are not pro-active in this matter? It seems silver is a better bet. This current release of gold smells distinctly off.
Seeking Alpha looks at silver, as does AME, who note:
… volatility is your main problem. Thus you should not put money into silver that you may need to call on …
and
Trading in silver options is for experts and even they will avoid margin because of the volatility factor; this is not for the average investor.
You need to progressively pick up small amounts and see it as long. It's not a market consideration - it's a long term safety consideration.
Fin24 looks at platinum and this is current:
"Platinum metal demand is thus dominated by two superb drivers; supportive environmental legislation and the burgeoning Chinese consumer."
Reuters looked at nickel in January so that's a possibility too.
It depends how you see the situation, either as an oncoming bear market or as something more dire and the recent Fed rates seem to suggest the latter, combined with all the other non-financial societal moves going on.
If it is more dire, than commodities funds would not seem so wise although defensive industries might be a reasonable strategy.
I must be thick when I look at the hoarding of gold and other precious commodities in a survival situation.
ReplyDeleteFor example. I live in a free country and have a MP5SD6 and 1000 round plus several 12G multi round shotguns with thousands of rounds of ammo and 2 Glock 40s with another few thousand rounds. (obviously this is not the UK. because I used the word free not because I can't get the kit)
Someone wants to buy one of my Glocks and has a gold bar. Now I have no idea how to calculate gold or even what a good rate is and we both will be looking at different rates.
On the other hand, I have no gold and want his food.
I think I see a solution for my problem although not his.
Am I just being stupid here? How exactly does this work? I still think we need civilisation as such to make gold and silver work.
Silver is taxed to death.
ReplyDeleteSecond-hand tender gold isn't.
Gold costs more in amount, but does less to support the gumment.
Ah Bag - realeconomics of the next ten years.
ReplyDeletePietr - needs to be considered.