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 Replies: 146 / Views: 25,258 |
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New Member
United States
15 Posts |
Who needs gold when you have all these mints to print all the money we need! lol  Edited by justinberry
04/03/2019 10:48 am
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Valued Member
 United States
461 Posts |
I.G.E.,
You are not the first person on this thread to refer to banks stockpiling gold. That is something I have never heard of before this thread, and banks, in my experience, have typically leveraged themselves to the full extent allowied by the law to maximize profits. That behavior was behind the 2008 financial crisis which required a taxpayer funded $800 billion bailout because the banks lacked the assets to stay afloat. I followed events at the time closely and with great trepidation and never heard anyone mention gold.
So I am wondering if the banks hoard gold concept has a basis in fact or is just an urban legend. If anyone could direct me to information on the bank gold hoards, I would be grateful, as I am very curious.
Obviously governments, which have different concerns, hoard gold. See Fort Knox.
Finally, if banks have so much physical gold, where are they keeping it? There is no private Fort Knox that I know of.
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New Member
United States
15 Posts |
Maybe Brinks keeps up with it for them lol.
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Bedrock of the Community
United States
36684 Posts |
Edited by IndianGoldEagle
04/03/2019 12:34 pm
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Moderator
United States
187950 Posts |
Quote:
You can't use a gold bullet to kill a zombie apocalypse werewolf.
Silver is where it's at!  |
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Valued Member
United States
461 Posts |
I thought silver was just for werewolves.
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New Member
United States
15 Posts |
If warewolves were real I would use my Sterling not my Troy silver.
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New Member
United States
15 Posts |
Indiangoldeagle probably the ones that have better purity. I don't blame them.
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Pillar of the Community
United States
3343 Posts |
justinberry, sterling flatware is another interest of mine as a collectible/asset. Also a classy way to eat (not sure about warding off bacteria). Sometimes it sells below melt, though not often.
If werewolves were real I would stick a fork in them.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
04/05/2019 2:07 pm
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Pillar of the Community
 United States
7936 Posts |
It looks like the side discussion between sharkman and I.G.E. is related to the difference between private banks and central banks? Central banks hold gold reserves. Private (comercial) do not.
As for whether gold is an investment, well, that's silly. Of course it is.
Not all "investments" generate an income stream (one of the arguments in the OP link). This is generally the case for all "collectibles."
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Valued Member
United States
302 Posts |
Think about gold this way.
In 1964 gold was $35 per ounce.
If you had put 1oz of gold and $35 in paper money in a safe deposit box and opened that safe deposit box today, what would you have? Paper money worth $35 and 1oz of gold worth HOW MUCH?
Gold (or any hard asset for that matter) is a store of value while paper money is just toilet paper.
Edited by mmerlinn
05/04/2019 7:57 pm
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Valued Member
United States
461 Posts |
On 12/31/64 the Dow Jones was $874.13. Currently it is at $26,504.95.That is a little more that a 3300% increase in value, not accounting for dividends or compounding. Gold is currently $1,280.20. It provides neither dividends nor an opportunity for compounding. That is almost a 2500% value increase. In 1964, $35 had the purchasing power that $284.57 has today. The real question is whether the $35 in 1964 should have been used to buy gold or invest in the stock market or something else. There are legitimate arguments either way. But $35 in 1964 was not toilet paper. If someone chose to just let it depreciate for 55 years, then I guess they got the value of their investment decision.
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Valued Member
United States
302 Posts |
The Dow is kind of a rubber yardstick as it always has expanded and shrunk massive amounts in relatively short periods of time. On the last Friday of October this year (2019) you might want to re-evaluate your argument using the Dow.
Expanding on my last post, here are some other numbers to consider.
In 1964 I was paying 35 cents per gallon for gasoline. Yesterday, that same gallon of gasoline at the same gas station at the same exact location as in 1964 was selling at $3.35 per gallon. Current spot price of gold is $1279/ounce.
Using those numbers we have the following.
1964:
$35 would buy 100 gallons of gasoline
1 ounce of gold would buy 100 gallons of gasoline
Today:
$35 would buy 10.44 gallons of gasoline
1 ounce of gold would buy 381.79 gallons of gasoline
Granted, the price of gasoline also goes up and down rather dramatically, so these numbers do not tell the whole story. However, I could do the same thing with any number of items and come up with similar results. I can remember buying Wrigley's Juicy Fruit gum for 5 cents per pack and 10oz Coke in glass bottles for 10 cents each, but since neither of them are sold that way any more, trying to use them for comparison purposes is hard.
Regardless, using the gasoline comparison above, it is quite obvious that nothing would have been lost except the use of the money if gold had been stored instead of dollars. Would it have been better to invest and re-invest the money instead of storing the gold? Maybe, maybe not. If one had invested in Montgomery Wards, one would have lost all. Ditto with numerous other companies existing in 1964.
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Pillar of the Community
United States
789 Posts |
Quote:
In 1964 I was paying 35 cents per gallon for gasoline. Yesterday, that same gallon of gasoline...was selling at $3.35 per gallon. Well, sort of. Today that gasoline is unleaded. It's going into a far more fuel efficient vehicle, giving you much better mileage. The amount of excise tax on that current gallon makes me weep. The oil that the gasoline is made from is a commodity, just like gold. Edited by joecoin
05/05/2019 05:57 am
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Bedrock of the Community
Australia
21786 Posts |
As mentioned in an earlier post in this thread, I have never seen gold as an investment despite the fact that I have perhaps 30 gold coins covering a period of 23 centuries in my collection. (numismatic value of these coins is another subject)
Nevertheless, I have used the value of gold against other commodities in ancient times,
and
compared the value of gold against other commodities in modern times.
The results of some interesting research in this vein, using the value of gold as a medium:
In the time of Caracalla, a Roman soldier was paid $11.52 per day.
In 2018, a U.S. Army soldier is paid $49.65 per day.
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Posted 04/03/2019 11:00 am
