450 reasons gold will continue to climb

derryb

In 2011, central banks and governments around the world purchased a staggering 450 tons of gold. 18% of all of the gold mined last year found its way into central bank vaults. Central banks now realize that owning gold as a reserve asset beats low-yielding U.S. dollars or debt-riddled euros any day. Smart, individual savers will come to the same conclusion.

OnlyGoldIsMoney

I'm doing my part. Hopefully I will add this week in Baltimore.

pf70collector

The goal of Central Banks is to ultimately own countries which Thomas Jefferson forewarned. Greece is the first. Of course I would think any democratic government with the will of the people could abolish any Central Bank.

Baley

sounds like 450 fewer reasons to buy even more of the yellow stuff, because the central banks you refer to collectively are 450 tons closer to their goals

derryb

<< <i>sounds like 450 fewer reasons to buy even more of the yellow stuff, because the central banks you refer to collectively are 450 tons closer to their goals >>


Come on Baley, even you can present a better argument than that.

MsMorrisine

goal?

money printing is still infinite right now.

I see no fixed goal yet.

gecko109

Just a quick coincidence that means absolutely nothing, but the 2 stats/numbers in Derry's opening post were 450 and 18%. Currently the U.S. government spends about 450 billion dollars annually to service the nearly 15.5 trillion debt....thats interest only. That 450 billion represents about 18% of our nation's gross receipts.

Strange coincidence!

piecesofme

The goal of Central Banks is to ultimately own countries which Thomas Jefferson forewarned. Greece is the first

Greece is fast realizing that a 1/2 loaf of bread is better than none.

cohodk

If Greece had a lot of gold, how would that have changed their problems?

derryb

<< <i>If Greece had a lot of gold, how would that have changed their problems? >>


with enough, they could get out of debt on their own.
having a bunch, but not enough made them a bigger target for those that came in to "help"

cohodk

<< <i>

<< <i>If Greece had a lot of gold, how would that have changed their problems? >>


with enough, they could get out of debt on their own.
having a bunch, but not enough made them a bigger target for those that came in to "help" >>




How could it help them get out?

guitarwes

cash it in

gecko109

<< <i>

<< <i>

<< <i>If Greece had a lot of gold, how would that have changed their problems? >>


with enough, they could get out of debt on their own.
having a bunch, but not enough made them a bigger target for those that came in to "help" >>




How could it help them get out? >>





It couldnt. The U.S. is the single largest holder of gold bullion in the world.....by a very large margin. If all that gold was sold today, it would generate just 400 billion dollars. That is not even enough to pay down all of Greece's debts. And thats assuming it was Greece, not the U.S. that held the most gold in the world. In reality, even if Greece held 1/4th the gold we hold (and China doesnt even own 1/6th for comparrison) then even with a massive pile of metal, Greece would still be about 300 billion in the hole if they liquidated.

At current prices, there is not enough gold in the world to balance the sheets. Probably not enough to balance even 10% of the sheets.

Cakes

<< <i>

<< <i>

<< <i>

<< <i>If Greece had a lot of gold, how would that have changed their problems? >>


with enough, they could get out of debt on their own.
having a bunch, but not enough made them a bigger target for those that came in to "help" >>




How could it help them get out? >>





It couldnt. The U.S. is the single largest holder of gold bullion in the world.....by a very large margin. If all that gold was sold today, it would generate just 400 billion dollars. That is not even enough to pay down all of Greece's debts. And thats assuming it was Greece, not the U.S. that held the most gold in the world. In reality, even if Greece held 1/4th the gold we hold (and China doesnt even own 1/6th for comparrison) then even with a massive pile of metal, Greece would still be about 300 billion in the hole if they liquidated.

At current prices, there is not enough gold in the world to balance the sheets. Probably not enough to balance even 10% of the sheets. >>




We think the US is the single largest holder but until we see what's inside Fort Knox we will never really know.

derryb

central bank actual gold holdings are closely guarded secrets and are most likely way off of what they publicly say they hold.

1jester

<< <i>

<< <i>

<< <i>

<< <i>If Greece had a lot of gold, how would that have changed their problems? >>


with enough, they could get out of debt on their own.
having a bunch, but not enough made them a bigger target for those that came in to "help" >>




How could it help them get out? >>





It couldnt. The U.S. is the single largest holder of gold bullion in the world.....by a very large margin. If all that gold was sold today, it would generate just 400 billion dollars. That is not even enough to pay down all of Greece's debts. And thats assuming it was Greece, not the U.S. that held the most gold in the world. In reality, even if Greece held 1/4th the gold we hold (and China doesnt even own 1/6th for comparrison) then even with a massive pile of metal, Greece would still be about 300 billion in the hole if they liquidated.

At current prices, there is not enough gold in the world to balance the sheets. Probably not enough to balance even 10% of the sheets. >>



So obviously gold is way undervalued on the market; anyone can see that.

cohodk

<< <i>cash it in >>




Why couldnt they just sell state owned assets like the parthenon or olive groves or some islands?

ricko

I am not sure all of Greece is worth what they owe.... Cheers, RickO

Baley

<< <i>

<< <i>sounds like 450 fewer reasons to buy even more of the yellow stuff, because the central banks you refer to collectively are 450 tons closer to their goals >>



Come on Baley, even you can present a better argument than that. >>



it's not an argument, only an observation that after I've shopped for something and acquired it, I don't need to keep shopping, at least, not as much, as I do not want to buy infinity of them.

piecesofme

Russia has alot more physical gold than most people realize.