Gold Price - Where is it heading?

[Trembling Hand]

Additional Indicators of Delusional Behaviour (again from your link)

- Despite his/her profound conviction, there is often a quality of secretiveness or suspicion when the patient is questioned about it.

- The patient expresses an idea or belief with unusual persistence or force ("should I say 100 times"!)

Or could just be sick of fools who cannot read data but happy to spew out conspiracy without taking the time to find out there legitimacy.

https://www.aussiestockforums.com/f...=2366&page=261&p=780338&viewfull=1#post780338

Tell me if you need further awaking and explanation is needed. If not enjoy your mis-understanding.

 

[Bintang]

Or could just be sick of fools who cannot read data but happy to spew out conspiracy without taking the time to find out there legitimacy.

https://www.aussiestockforums.com/f...=2366&page=261&p=780338&viewfull=1#post780338

Tell me if you need further awaking and explanation is needed. If not enjoy your mis-understanding.

Delusional Disorder Indicator No. 6:
"An attempt to contradict the belief is likely to arouse an inappropriately strong emotional reaction, often with irritability and hostility."

It was you who posed the rhetorical question "That I guess makes one of us clinical delusional".
wherein 'us' means either 'you' or 'Explod'.

Thanks to your subsequent responses I am left with no mis-understanding about who is delusional.

 

[Trembling Hand]

Delusional Disorder Indicator No. 6:
"An attempt to contradict the belief is likely to arouse an inappropriately strong emotional reaction, often with irritability and hostility."

It was you who posed the rhetorical question "That I guess makes one of us clinical delusional".
wherein 'us' means either 'you' or 'Explod'.

Thanks to your subsequent responses I am left with no mis-understanding about who is delusional.

How is that gold trading going mate?

 

[Bintang]

How is that gold trading going mate?

I don't trade it. I buy physical only and store it.
Trading it is for mugs.

 

[Trembling Hand]

I don't trade it. I buy physical only and store it.
Trading it is for mugs.

So you waiting for the default in paper gold?

 

[Bintang]

So you waiting for the default in paper gold?

No. I just collect for the sake of it. Same as I insure my house for the sake of it - which does not mean that I am waiting for my house to burn down.
Besides gold bars are beautiful to look at. Can't say the same for paper.

 

[Trembling Hand]

No. I just collect for the sake of it. Same as I insure my house for the sake of it - which does not mean that I am waiting for my house to burn down.
Besides gold bars are beautiful to look at. Can't say the same for paper.

So its insurance against something? what?

 

[explod]

Or could just be sick of fools who cannot read data but happy to spew out conspiracy without taking the time to find out there legitimacy.
Tell me if you need further awaking and explanation is needed. If not enjoy your mis-understanding.

I just want to understand why (to me) there seems to be more gold in/or on paper than there is physical gold.

Why is the question one that seems to make you angry and give you a regard that some of us are stupid.

Is it perhaps that mere mortals at the bottom of the pile are not allowed to have a straight forward idea of how finance works.

That assumes of course that you do know.

Apparently the current backwardation in gold is the highest of all time now. Your take on this would also be worthwhile for me as a lot of these overseas sights one visits have to be regarded with some caution.

 

[explod]

I don't trade it. I buy physical only and store it.
Trading it is for mugs.

In 1970 gold was $35 an ounce. Even after the crash in 1980 down to $260 in 1999 a gold holder was very well ahead indeed. Today of course it is around $1300

35 into 1300 over 43 years is pretty good in my book.

Now I bet some of the older traders/students of people like W D Gann would have roughly picked the bottoms and tops and done very very well indeed.

So like you Bintang I am holding, as the blow off the top like we had in 1980, on looking at both charts, is still well ahead of us yet.

But we shall see.

 

[zac]

I just want to understand why (to me) there seems to be more gold in/or on paper than there is physical gold.

Theres a few reasons as to why which im trying to get my head around, but in a sense its no different to how theres more debt in the world than there is money.
Fractional Reserve/Banking.

Can sell far far more than you have in reserve.

 

[Bintang]

So its insurance against something? what?

The unexpected.

 

[Trembling Hand]

I just want to understand why (to me) there seems to be more gold in/or on paper than there is physical gold.

Why is the question one that seems to make you angry and give you a regard that some of us are stupid.

EXPLOD I have asked you many many many times to show me WHERE there is more paper than physical. Not some nut bag gold bug posting it on his silly conspiracy blog. Actual data.

Until you do that its clear you have nothing but a conspiracy theory. I have shown you the data but you have repeatedly ignored it in favour of you gold bugs nonsense.


SO PLEASE LETS SETTLE THIS. WHERE IS ALL THE PAPER GOLD TO THE VALUE OF 100 TIMES??

Gee even 20 times more

 

[explod]

if you can lever that 100 to 1 you can sell the entire globe's Gold production (on paper) within 48 hours from a mere $1 billion creation!

In simple words to someone who does not understand T/H, what does the above sentence mean?

 

[Bintang]

I have shown you the data but you have repeatedly ignored it in favour of you gold bugs nonsense.

You imply that the data you have shown us is the only reliable data in existence. Is it? What makes you so sure? Is it factual? Indisputable? have you read the fine print on the bottom of that CME report?:

"The information herein is taken form source believed to be reliable. However, it is intended for the purposes of information and education only and is not guaranteed by the CME Group as to accuracy,
completeness ...."

 

[Trembling Hand]

You imply that the data you have shown us is the only reliable data in existence. Is it? What makes you so sure? Is it factual? Indisputable? have you read the fine print on the bottom of that CME report?:

"The information herein is taken form source believed to be reliable. However, it is intended for the purposes of information and education only and is not guaranteed by the CME Group as to accuracy,
completeness ...."

Are you serious?

- - - Updated - - -

In simple words to someone who does not understand T/H, what does the above sentence mean?

It means nothing. It is completely baseless. It has no actual data to back it.

 

[satanoperca]

SO PLEASE LETS SETTLE THIS. WHERE IS ALL THE PAPER GOLD TO THE VALUE OF 100 TIMES??

I finally get what the hell you have been trying to say.

Cheers

 

[Trembling Hand]

I finally get what the hell you have been trying to say.

Cheers

I have said many times.


World production for 2011 was at 2,700 tonnes.

So called paper gold contracts from my calculations = 800 tonnes outstanding.

Where is the 100 times the bugs keep telling us?

 

[Uncle Festivus]

SO PLEASE LETS SETTLE THIS. WHERE IS ALL THE PAPER GOLD TO THE VALUE OF 100 TIMES??

Gee even 20 times more

Perhaps doesn't show up on Comex?? Only the US Fed & allied CB's knows who owns what & who is entitled to what? It appears that Germany is not entitled to their gold?

Nick of Sharelynx.com does a rough calculation of the open interest/registered or dealer's gold. The number of owners per ounce is up to a bull market high of 46 claims for every ounce registered as deliverable.?

 

[skc]

World production for 2011 was at 2,700 tonnes.

So called paper gold contracts from my calculations = 800 tonnes outstanding.

Where is the 100 times the bugs keep telling us?

May be they were referring to volume of paper gold traded rather than open interest. It wouldn't surprise me if that ratio is 100:1.

Comments to be expected when few realise that the paper price of gold due to derivatives and paper notes on leased gold of up to 100/1 bears little semblance to the physical shortage and the premium most are paying to obtain physical in the hand.

Where do physical gold comes from? Gold miners digging it up from the ground predominantly.

At what price do gold miners sell their physical gold? The spot price... Unless they have entered various hedging / forward arrangements.

If there was a premium between physical and paper gold, why would a physical gold producer be willing to sell at the lower paper spot price?

 

[Trembling Hand]

May be they were referring to volume of paper gold traded rather than open interest. It wouldn't surprise me if that ratio is 100:1.

But what is the volume of existing gold? At 2500 new tones every year, as it doesn't get used for anything and is completely recyclable, even that doesn't stack up. It trades about 3 tonne a day. Maybe 6 on a high vol day and real extreme vol 15 tonne.

Considering BHP trades about 2 to 4 % of market cap a day we are talking similar numbers (if not way way less for gold). Where are all the BHP bugs crying conspiracy? I mean you can even buy BHP paper derivatives!!