@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
All comments reflect the opinion of the author, even when irrefutably accurate.
Im not a seller but I cleared out a bunch of sterling Franklin Mint coins my dad had that took up a lot of storage space because they were in books. Also sterling silverware and broken jewelry, 80%/50% Canadian I've had since a kid, 40% halves and a bunch of modern $1 commemoratives that were also taking up a bunch of space. Trying to get the "stuff" down to a point that it's more organized in case I'm not around when the kids need to get rid of it!
@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
@Cuprinkor said:
I wonder if people are also sending MS64/lower Blue Ikes to the refinery.
Sure, among many other coins. A significant amount of pre-1933 gold has been lost with this run-up, as well. Some refineries, for the first time, had to rent extra storage for all the silver sent to its demise. I wish that the refineries were required to keep records, but I'm sure employees can rescue some things.
@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
Well, sure. But it really depends on how you define the health of the economy. Is an economy healthy that borrows growth from the future? Is an economy addicted to cheap money and trillion dollar deficits healthy?
All comments reflect the opinion of the author, even when irrefutably accurate.
@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
Well, sure. But it really depends on how you define the health of the economy. Is an economy healthy that borrows growth from the future? Is an economy addicted to cheap money and trillion dollar deficits healthy?
Everything is relative right? In my lifetime you can pick out the times when the economy has been better and when it's been worse, so 'healthy economy' would refer to those better times.
@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
Well, sure. But it really depends on how you define the health of the economy. Is an economy healthy that borrows growth from the future? Is an economy addicted to cheap money and trillion dollar deficits healthy?
Everything is relative right? In my lifetime you can pick out the times when the economy has been better and when it's been worse, so 'healthy economy' would refer to those better times.
Don't get me wrong. I'm not suggesting doom and gloom. But there is an undercurrent of concern out there and central banks aren't immune to it. I'm just pointing out that it's out there, so evidenced by Bill Jones and others.
I'm 80% in stocks, 75% US, 25% international. The other 20% is in bonds, by the way. I'm not expecting collapse. But, I'm also not a PM stacker.
All comments reflect the opinion of the author, even when irrefutably accurate.
@BillJones said:
It doesn't seem like the economy is bad enough to rate gold prices at this level. I"ve lived long enough to have seen $850 gold which dropped down do $300. It makes me wonder if a major correction is in order.
I have a lot of gold, but it's "the wrong stuff." It's collectors' items, including a few sets and a gold type set. The current price of bullion has sucked the numismatic value out of a lot of items like common date $20 gold coins, even in grades like MS-63 and 64. If bullion drops, the collector base can no longer save you.
Why does the economy have to be bad in the US for the US Dollar price of a global commodity to go up? Why can't it be a function of supply and demand?
Gold has long been touted as a hedge against inflation and economic uncertainty. Inflation is low, and stock market is doing well. Before this cycle, the last time gold really went crazy was circa 1980 when inflation was 20%. In the past gold has been antidote for pessimism.
The argue about supply and demand is circular. Demand goes up for various reasons, including a hedge against inflation.
Gold is the anti-dollar. But strong demand is coming from central bank bulk purchases globally. This demand does not correlate to the strength of the US economy. That was my point to counter the assertion that gold only or mostly goes up when the economy is bad. It's simply not a requirement at all.
The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy.
If the European or Japanese or African or Asian central banks are buying gold, I'm not sure it's because of their confidence or lack there of the US economy. I would surmise it's more likely due to their own financial condition. The world doesn't revolve around the US, although we like to think it does.
If they are buying gold rather than US Treasuries, it does reflect on their view of the dollar if not the economy in general. There's a reason central banks had sold off their gold in recent decades. There's little point to a central back holding a volatile asset that doesn't pay any yield.
If there's little point, why are they buying now? I would venture it's a move to shore up their own balance sheets and be backed by something other than debt because the US (and world's debt-to-GDP ratios are getting a little high). US debt levels are out of control, but that doesn't mean the economy is doing good or bad, it just means we have or have had some eager spenders in control of the pocket book. Eventually debt loads will take a toll on the economy but it's not happening yet. The central bank gold purchases have been happening for years, it is not a recent phenomena. The CBs became net buyers in 2011 and really stepped it up 3 years ago over a time period that the economy has done pretty well.
Because they no longer want to hold dollars. It is fundamentally a statement on the "reserve currency".
OK, but that's not a new thing. The big shift from selling to CB buying started in 2012.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
Well, sure. But it really depends on how you define the health of the economy. Is an economy healthy that borrows growth from the future? Is an economy addicted to cheap money and trillion dollar deficits healthy?
Everything is relative right? In my lifetime you can pick out the times when the economy has been better and when it's been worse, so 'healthy economy' would refer to those better times.
Don't get me wrong. I'm not suggesting doom and gloom. But there is an undercurrent of concern out there and central banks aren't immune to it. I'm just pointing out that it's out there, so evidenced by Bill Jones and others.
I'm 80% in stocks, 75% US, 25% international. The other 20% is in bonds, by the way. I'm not expecting collapse. But, I'm also not a PM stacker.
And I'm just pointing out that this concern has always been there. It may be growing lately but it's hard for me to tell because it's still the same voices saying basically the same thing as 20+years ago.
@Cuprinkor said:
Anybody cutting up 1959-64 mint sets to sell 10c-50c at junk silver prices?(This is for coins not worth paying the $23 economy tier grading fee).
Just curious . . . .
Heck no - strong retail so they pay for my coffee and snacks.
Comments
I wonder if people are also sending MS64/lower Blue Ikes to the refinery.
Which is right after the banking crisis and corresponding quantitative easing.
You can also be a net buyer and only put 1% into your reserves.
If you look at this graph, central bank reserves have only gone up about 10% since 2010 which puts them equal to the reserves in 2000 and below the level in 1970. (In tonnes)
You will also note that central bank holding are actually DECREASING as a percentage of total gold reserves. [Blue line is above ground total gold reserves.]
This should be contrasted with the total central bank foreign currency reserves which exploded from $1.2 trillion in 2000 to $12 trillion today. This actually means that gold is barely keeping up as a percentage of total reserves even given the huge run in gold. [Dollars]
The gold bugs - and I don't mean you - like to focus only on gold and ignore the context around it.
All comments reflect the opinion of the author, even when irrefutably accurate.
Im not a seller but I cleared out a bunch of sterling Franklin Mint coins my dad had that took up a lot of storage space because they were in books. Also sterling silverware and broken jewelry, 80%/50% Canadian I've had since a kid, 40% halves and a bunch of modern $1 commemoratives that were also taking up a bunch of space. Trying to get the "stuff" down to a point that it's more organized in case I'm not around when the kids need to get rid of it!
My only point was that a source of major gold demand started around 2012 and has increased since. The economy wasn't "bad" during all 13 of these years in response to @BillJones assertion that "The central banks used to sell gold to tamp down the price when it was rising. Now you say they are buying which says they have no confidence in the dollar, which says they have no confidence in the U.S. economy."
As the central bank buying has been going on for 13 years during all kinds of different economies, this statement is just not true. In fact, until about 2 years ago they had tons of confidence in the dollar as proven by the US being able to sell large quantities of long term debt at abysmally low rates. If that doesn't show confidence in the US dollar I don't know what does. This has changed in the last year or two though, but the central bank gold buying started way before that. Thus it is hard to draw a conclusion between the CB gold buying and the confidence in the dollar or the US economy.
http://ProofCollection.Net
Sure, among many other coins. A significant amount of pre-1933 gold has been lost with this run-up, as well. Some refineries, for the first time, had to rent extra storage for all the silver sent to its demise. I wish that the refineries were required to keep records, but I'm sure employees can rescue some things.
Founder- Peak Rarities
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Well, sure. But it really depends on how you define the health of the economy. Is an economy healthy that borrows growth from the future? Is an economy addicted to cheap money and trillion dollar deficits healthy?
All comments reflect the opinion of the author, even when irrefutably accurate.
Everything is relative right? In my lifetime you can pick out the times when the economy has been better and when it's been worse, so 'healthy economy' would refer to those better times.
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Don't get me wrong. I'm not suggesting doom and gloom. But there is an undercurrent of concern out there and central banks aren't immune to it. I'm just pointing out that it's out there, so evidenced by Bill Jones and others.
I'm 80% in stocks, 75% US, 25% international. The other 20% is in bonds, by the way. I'm not expecting collapse. But, I'm also not a PM stacker.
All comments reflect the opinion of the author, even when irrefutably accurate.
And I'm just pointing out that this concern has always been there. It may be growing lately but it's hard for me to tell because it's still the same voices saying basically the same thing as 20+years ago.
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Heck no - strong retail so they pay for my coffee and snacks.