Why the price of gold cannot be allowed to rise

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derryb
derryb Posts: 38,608 ✭✭✭✭✭
in Precious Metals
At least until COMEX can cover it's promises







"... this means that as of today, the gold "coverage" ratio, or the amount of paper claims for every ounce of physical, has just hit a new all time high of 293 ounces of paper per ounce of registered physical."





Can you imagine the demand placed on COMEX for the physical stuff if the price suddenly climbed. Cannot be allowed to happen.

Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat

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  • rawteam1
    rawteam1 Posts: 2,472 ✭✭✭
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    lol, there is no physical demand, hence the increase in paper ratio per contract...

    the trend is down, its always good to have others take the kool aid and trade against...

    keceph `anah
  • RedneckHB
    RedneckHB Posts: 20,236 ✭✭✭✭✭
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    Allowed. ...forced. ... I love this place.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52
    jmski52 Posts: 24,011 ✭✭✭✭✭
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    I don't think it's about gold as much as it is about bonds. Bond prices cannot be allowed to go down, nor can rates be allowed to go up, lest the stock market crash and the debt load explode.



    Gold is just one of the pieces of the puzzle, and it's either a Tier One internationally recognized asset or just a commodity like beans or cotton. We report, you decide.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunner
    roadrunner Posts: 28,374 ✭✭✭✭✭
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    Originally posted by: rawteam1

    lol, there is no physical demand, hence the increase in paper ratio per contract...

    the trend is down, its always good to have others take the kool aid and trade against...





    Then please explain what has been happening in China and India in 2015 with respect to silver and gold purchases, specifically imports. I don't think the Asian nations drink Koolaid like we do.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • metalmeister
    metalmeister Posts: 4,633 ✭✭✭✭✭
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    We will find out sooner or later. Seems like spreading $$$ out over multiple asset classes makes the most sense to me at this time.
    email: ccacollectibles@yahoo.com

    100% Positive BST transactions
  • rawteam1
    rawteam1 Posts: 2,472 ✭✭✭
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    What does the tea in China have to do with the tea here in America?... Nothing...
    keceph `anah
  • jmski52
    jmski52 Posts: 24,011 ✭✭✭✭✭
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    What does the tea in China have to do with the tea here in America?... Nothing...

    Only if the Balance of Trade doesn't matter either.

    'course, if you smoke the same tea that Bernanke smokes, that's exactly what ya'll think.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • gsa1fan
    gsa1fan Posts: 5,566 ✭✭✭
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    Originally posted by: rawteam1
    What does the tea in China have to do with the tea here in America?... Nothing...


    Fidelity sent me a invest in China strategy email. I replied NEVER send me China Sh*t AGAIN!image


    image
    Avid collector of GSA's.
  • s4ny
    s4ny Posts: 1,594 ✭✭✭
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    If there was an actual shortage of physical gold some astute trader with deep pockets

    (Goldman Sachs?) would buy and squeeze.



    A short squeeze in gold has been the ultimate trading dream all the way back to

    Jay Gould in 1869.
  • OnlyGoldIsMoney
    OnlyGoldIsMoney Posts: 3,576 ✭✭✭✭✭
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    I am happy to add more at or around $1,100 an ounce - regardless of why it is at that price.
    NO END IN SIGHT Liberty Head $2 1/2 Gold Basic Set, Circulation Strikes (1840-1907)
    https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907/publishedset/15628

    March of Time - 27 Centuries in Gold
    https://coins.www.collectors-society.com/WCM/CoinCustomSetView.aspx?s=36590
  • Baley
    Baley Posts: 22,663 ✭✭✭✭✭
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    If "they" won't "allow" gold to rise, why are we buying it? image



    Edit: I wish it (whatever "it" is, that is implied will happen to make gold go up) would hurry up and happen..



    ..not getting any younger, may not live long enough to see the next bull market in gold



    Go on line, there sure seems to be a heck of a lot of "physical gold" available for sale...



    ... for example, in the advertisements in the margins of the linked article image

    Liberty: Parent of Science & Industry

  • bidask
    bidask Posts: 14,057 ✭✭✭✭✭
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    Buffet does not like it .does not like gold
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • OPA
    OPA Posts: 17,166 ✭✭✭✭✭
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    Rehash of an old article written several years ago. We all know Buffets "public" feeling on PM's.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."

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