Topic: Gold Losing It's Shine? - page 3. (Read 6860 times)

Just the way it happens right now. See currency wars (or Soros attack on the pound). I assume no one is talking about moving fiat entirely into the crypto domain (or public network)...

 
 
A national crypto is a flawed premise that is doomed to failure. 
 
Can you imagine if the entire value of the United States Dollar or Russian Ruble was held in a publicly attackable network?  Welcome to the wars of the future!  We would be torn between securing our own currency and attacking our rivals through all sorts of devious attacks. 
 
And guess what wins?  The neutral currencies that don't draw lines in the sand and welcome all members of humanity.
 

And thats why Russia and China are buying it by the tonne every month and the gold/silver demand at the moment is so high its leading to premium spikes and shortages.  Other countries are fighting to get their gold repatriated but for some reason the US is unable to meet their demands (read it as they no longer have it as its sitting in a vault in China).

UBS are currently ratting out all the other bankers over Gold price fixing.

Gold will see all time highs by end 2016 or beginning of 2017.

Governments will probably launch their own versions of crypto in the future and will maintain control.  Bitcoin will banned and eventually die.

Money = power, currently Bitcoin is insignificant which is why governments haven't tried to crush it yet but why people here think that the bankers and governments will just hand over all that power via bitcoin without a fight are deluded.

Well, the only thing gold had going for it was it was the best decentralized form of money we had until crypto.  It has absolutely shitty velocity and in modern day can't be used for anything.  Gold will die, sadly.  It has been good to us and it will always have value but it will not keep up with "inflation" in coming years.  It won't die all at once, but those who think they will see a massive rise in gold prices may find themselves with a nasty surprise: gold is nearly useless in the modern world.

Yes, gold derivatives do affect the price of gold in the sense it would be quite different (sometimes... often times) had there not been paper gold around. But I still wouldn't call this influence negative, since the word negative has, well, negative connotation associated with it, wtf...

Really, how can it be negative if it allows to get more profits (more often than not)?

Gold is being used as ornaments and jewellery so i don't think they will loss its charm in real life. This also have direct impact upon the demand and the price of gold. But yes with the latest technology like bitcoin and cryptocurrency a new type of assets has been added in the financial market other than gold and silver.

I not thing gold have anything similar to bitcoin in terms of price and its use. They are like two different things from different sources.(natural/from technology)

Miss pricing gives rise to corrections. Happens in every single asset.

That is what I'm referring to. The "true" price of gold, as determined by how you mentioned it, is what derivatives have a negative impact on. Wouldn't you agree?

Gold has its value but it was definitely hyped up in recent years. I prefer bitcoin because of the portability of it.

I thought you were referring to the "true" price of gold as determined by the balance of physical supply and demand. But never mind. The incredible manipulation capabilities that you are talking about wouldn't be possible without people buying all that paper gold or silver, right?

So the dishonesty and manipulation of the markets is quite in harmony with the greed and venality of the profiteers

And I was sitting pretty during that time. By "negative influence" I refer to the incredible manipulation capabilities it affords these financial institutions, the same ones that brought us to our knees in 2008. Do you agree that derivitives bring dishonesty and manipulation to the markets?

It all depends on what you mean by "negative influence". You should remember that just a few years ago silver surged up to $50 an ounce. Obviously, that wouldn't be possible without paper silver...

So it cuts both ways really

Why do you ask me?

Actually, Chinese are only the 7th to answer that question. You should first ask the US government what they are going to do with their 8,133.5 tonnes of gold, which is 72.6% of all gold held by governments including the International Misery Fund (as of February, 2015)...

I'm referring to the trading of gold derivatives as "fractional reserve" since there is only a fraction of those promises backed by physical gold. Please excuse the inclusion of "system" for that refers to something different . I do not trade gold futures; my business is buying and selling physical gold OTC.

Derivatives are a negative influence on the true physical supply/demand price of gold. Would you agree?

And what are they gonna do with that gold? Hold it hug it?

You also fail to understand that those gold futures are mostly cash-settled, i.e. you can't demand physical delivery even theoretically (e.g. miNY at Comex). Besides, the fractional reserve system has nothing to do with gold or any other futures...

And yes, I trade gold futures. Do you?

Gold will always serve as a good store of value, as long as it cannot be produced synthetically in a cheap manner. However, what most people don't understand is that the price of gold/silver is not based solely on it's true physical supply and demand, but more so it's derivative (futures contract) price. The spot price of gold is determined by what these futures contracts trade for, which are essentially just promises of delivery of physical gold a few months into the future. Unfortunately, there are more future "promises" of gold delivery then there is gold backing those promises. This makes an inflated fractional reserve system that could fall apart if all the hodlers of these futures contracts were to take delivery at the same time. This allows the institutions who have the largest hodlings of contracts to manipulate the price (Goldman Sachs) to their liking. They have an incentive not to take delivery of all those contracts since it would collapse that derivatives bubble.  The gold price is not determined by true physical supply and demand due to these derivatives!

In the end, always buy physical gold/silver that you can hold and store for yourself. Never buy a promise of gold.

The next step is to pop the derivatives bubble to unveil the true price of gold. Blockchain technology may help. 

China is the largest holder of the US debt (at about $1.3 trillion). I don't think they care how high or how low the gold price is. Gold is physical, Treasuries not...

Chinese`s holding most of gold stocks. Why are they waiting to get so low on price no body knows. For past few months gold really drooped the minimum for 6years interval. YEA! First time in 6 years gold is at the lowest price and it keeps falling down.

Anyway I admire platinum price.. and im tracking and buy/sell only that. Gold remains mystery.

Gold is always a guaranteed bet... if I was rich (sadly im not) I would have at least 50% of my fortune in gold by now. Anyone that is rich and has more than 50% of their fortune on banks is simply insane. I would put the rest across banks and some solid companies, and I would at least invest in Bitcoin with a 10% of my fortune because it's the most exciting place to be for the future.