""There was a time when gold was money. In today's uncertain world, we believe that gold is back in fashion. Gold simply, is a better store of value when everything else seems risky. As such we continue to expect gold to reach $2,200 an ounce within 18 months.""
I reality-checked some of my gold, and the reality is that it's still gold, it still doesn't need government say-so to be worth something, it still has no counterparty risk, and it's still recognized as such by just about everyone, worldwide.
Q: Are You Printing Money? Bernanke: Not Literally
I wonder why they stop at 45-1? Is that sector regulated to where that's the max? Why not just sell 500-1 or 10,000-1? At 45-1, what difference does it make? Swimming in 8 feet of water is the same thing as swimming in 8,000 feet of water, right?
currently 45:1 on the COMEX. Determined by paper demand and vault holdings, no set limit.
Like bank leverage (loans vs. deposits) it works until the music stops. Stopped in 08 for the banks, FED stepped in to prevent run on the over leveraged banks. Like it is for most ebay bullion pre-sellers, the day of reckoning eventually arrives. COMEX is currently "selling" 45 times more gold than it has. As MsMorrisine points out, its continued survival is dependent on everyone not wanting their gold at once. In reality much, much less than all of them could turn the COMEX upside down by demanding their gold at the same time. The real question is "could something happen that would increase demand for the COMEX gold?" I say there are many things that could create a sudden loss of confidence not only in the COMEX but in the economy as well.
derryb
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""There was a time when gold was money. In today's uncertain world, we believe that gold is back in fashion. Gold simply, is a better store of value when everything else seems risky. As such we continue to expect gold to reach $2,200 an ounce within 18 months.""
Awesome! New all-time highs! We can hardly wait!
Liberty: Parent of Science & Industry
I reality-checked some of my gold, and the reality is that it's still gold, it still doesn't need government say-so to be worth something, it still has no counterparty risk, and it's still recognized as such by just about everyone, worldwide.
I knew it would happen.
as long as delivery on those full size contracts are not taken en masse there will be no squeeze.
think musical chairs except there are 45 players and only one chair. The key is keeping the music going.
Give Me Liberty or Give Me Debt
...by not taking delivery en masse, a/k/a everyone not sitting at once.
I wonder why they stop at 45-1? Is that sector regulated to where that's the max? Why not just sell 500-1 or 10,000-1? At 45-1, what difference does it make? Swimming in 8 feet of water is the same thing as swimming in 8,000 feet of water, right?
Derry....what is typical leverage against the physical bullion?
currently 45:1 on the COMEX. Determined by paper demand and vault holdings, no set limit.
Like bank leverage (loans vs. deposits) it works until the music stops. Stopped in 08 for the banks, FED stepped in to prevent run on the over leveraged banks. Like it is for most ebay bullion pre-sellers, the day of reckoning eventually arrives. COMEX is currently "selling" 45 times more gold than it has. As MsMorrisine points out, its continued survival is dependent on everyone not wanting their gold at once. In reality much, much less than all of them could turn the COMEX upside down by demanding their gold at the same time. The real question is "could something happen that would increase demand for the COMEX gold?" I say there are many things that could create a sudden loss of confidence not only in the COMEX but in the economy as well.
Give Me Liberty or Give Me Debt
gold at 300
45/1 eh??? That's down Big from 100+\1...
As usual meaningless info...