Gold at ATH.....what do your tea leaves say?
- Thread starter mybullion.com.au
- Start date
Open interest has been declining along with price since the highs of Oct/Nov.
That's considered bearish.
That's considered bearish.
Metals selling for spot here in the States.
No one is buying, makes for great deals to be had!
Anytime I can buy 150 year old gold coins for spot, I'm all in on that.
No one is buying, makes for great deals to be had!
Anytime I can buy 150 year old gold coins for spot, I'm all in on that.
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How long has that been going on for?
betterinvestmentthanshare
Well-Known Member
My wife, 50 years of age, retired, educated at Monash University in finance and economics, worked for 2 of the big 4 has always said since the lockdown that stagflation will be inevitable and we invest and live accordingly. Having said that, our government and their policies change all the time to suit their agenda, always kicking the can down the road until the can has disintegrated. Gold will continue to increase in value with corrections from time to time. In this economic climate, all in is not a crazy game plan but a safe one. As her wealthy father once advised, knowing when to jump all in is important, equally important is knowing when to jump out and we see no reason in the foreseeable future to jump out yet.
Yep, all government spending is value based. But I'm not exactly sure what is meant by "kicking the can down the road", it implies that government is putting something off, but what exactly is it delaying?
Buzz the wife!
Haha used to do that with weed when i was younger...id get smashed and "stash" it sometimes then find it later, if only id have done it with Gold
A few weeks now for sure.
betterinvestmentthanshare
Well-Known Member
We have a fractional reserve banking system (it’s no longer sustainable).
No government wants to be the one in power when there are no more options (no can) left to kick the can down the road. It’s inevitable, when? Depends on what’s left of the can and it ain’t much. Things mays appear to be improving within the next 6 months but our bet is, it won’t last.
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That was abandoned a long time ago. Banks don't lend reserves and they don't lend deposits, they create deposits with loans. If I want to buy a car I'll ask the bank for a loan, the amount is deposited into the seller's account by my bank and they debit my account with a negative balance. The system is sustainable for as long as the State (central banks) exists.
Sorry, but I'm still no clearer to understanding what "kicking the can down the road" implies with regard to government. I'm going to assume it refers to the government's financial position. I can understand it if the saying is applied to a business or family budget, but the options available to government are limitless. They just create another acronym and everything gets back on path. In other words, it can last for as long as the State exists because the "can" is bottomless.
I'm liking the odds on offer for a horse in R3 at Yarra Valley getting up today better than the odds that things won't last.
I think it was like that for most of 2024 over here, with the exception maybe of the more well-to-do markets.
Real $ Return
Well-Known Member
Agreed but this is all being going on for years and same narrative told and retold, things have gone to shit and $ devalued but assets have been and will be the place to put our filthy fiat. All in implies total faith and this is not a world of sureties as we have very little control of anything domestically or macro related. I love PMs but all in on one thing leaves more possibilities for failure, def have major % in personally and much more then "experts" recommend but just imo lotta stress nothing guaranteed so physical and digital or paper assets covers most.
Real $ Return
Well-Known Member
Its a corrupt and dirty system...and we must play with the pigs!
Generic silver has been close to spot a few times that ive seen. Also Maples, Britannias, Krugs and those types have been low.
The 1876 gold Double Eagle I bought awhile back was spot price which shocked me for a nice old coin like that but premiums seem low for gold too.
Silver Eagles are always a bit higher of course and Mexican silver is just ridiculously priced for the most part.
$22.41 is melt value for a silver dollar but culls are almost $27 and the price goes up fast from there.
That's the Apmex price here and sometimes they have "worse than cull" which means bent, holed or flat /extremely worn coins.
That's the Apmex price here and sometimes they have "worse than cull" which means bent, holed or flat /extremely worn coins.
betterinvestmentthanshare
Well-Known Member
Banks use your savings as collateral when borrowing from the central bank so they can credit it out.
It’s still fractional reserve banking
Credit MUST continually be issued
Inflation MUST continually rise
Fiat WILL continually lose purchasing power
Then add government into the picture
The price of gold is a dead giveaway to where things are headed.
Kicking the can down the road
We hear the saying “the gab between rich and poor continues to grow larger and larger)
It’s not sustainable, the only way government handles it is by throwing money at it, subsidies, one off help payments etc etc, this is also a dead giveaway that it’s not sustainable.
betterinvestmentthanshare
Well-Known Member
The can is always bottomless until it’s not
It might be 2025 the most advanced civilisation ever lived but one thing never changes
Human Nature
The study of economics
It might be 2025 the most advanced civilisation ever lived but one thing never changes
Human Nature
The study of economics
That is not correct.
I'd suggest hopping over to the RBA's website and reading about repos, ES balances and the TFF etc for info about when and how banks borrow from the RBA.
Yes, yes and yes.
Actually they're first step in the process not the last. They must spend first in order to meet their obligations as determined by society as a whole.
Here's a quick reader on that: https://moslereconomics.com/wp-content/uploads/2024/12/The-General-Theory-of-Value-12-25-2024.pdf
The price of gold is determined by the market and like the stock market, RE, wages etc rises over time. The fact that these things rise over time is not an indicator of impending economic failure but appreciation.
The only thing that would not make it sustainable is a lack of resources. Spending is part of the government's obligation to provide services for the greater good, presumably those obligations are determined by society generally and barring a holocaust, meteor strike or massive environmental disaster, the government deliberately has an excess of resources available at its disposal.
betterinvestmentthanshare
Well-Known Member
Hmmmm, not sure that I can change what you believe in, you trust everything that is stated on official sites. I understand that your thinking is”why should we not believe” and that’s fine but I believe someone that has their whole career in the system.
I’ll leave you with this,
There are many University lecturers of finance and economics that have come from the banking industry, many will tell you, what is taught is not actually how it’s done in the system
I’ll leave you with this,
There are many University lecturers of finance and economics that have come from the banking industry, many will tell you, what is taught is not actually how it’s done in the system
Ok, we've got ourselves a good old fashioned standoff between 2 different schools of economics. Lol