Gold Overvalued?

[shan]

the biggest merit of gold is it's tax free

the biggest disadvantage is that you are highly possible to be murdered when you hide or carry it 

maybe more dangerous than a bomb

[The Smoking Man]

And the higher the value ... the less safe you are.


Unless you're Mr. T.

[The Smoking Man]

the biggest merit of gold is it's tax free

Gold is and was currency.

If you are paid in gold coins ... Krugerands for example ... you will indeed pay tax on the value of your pay.

[Art]

I know.  But fashion, thinking, ideas are all circular.  They will eventually catch up with you if you even stay put.
 
Da Kapital (? ) is being widely sold again in Germany I hear.

If you are investing in the hope the gold standard will be re-enacted then you will be sorely disappointed Polly 

There is not the remotest chance on Earth that will ever happen any more than the likelihood of the world scrapping currencies altogether and returning to a barter system.

[Polly]

Gold & Silver Break Through Resistance

http://goldmoney.com/en/commentary.html

[shan]

奥巴马在丹佛自然科学博物馆举办的签署仪式上承诺将推出新的措施稳定银行系统、阻止房屋止赎势头蔓延，并在长期内解决财政赤字急剧扩大的问题。奥巴马说，这些目标都不那么容易实现，复苏之路不会一帆风顺，但会取得进展。他意识到过程中可能会遭遇损失，也会面临风险和阻碍。但也许他没有意识到在忧虑情绪笼罩下，金融板块就在签署仪式当天遭遇重挫这一际嘴巴打的实在太狠。高盛大跌11.14％，花旗集团大跌12.32％，美国银行大跌12.03％。（奥巴马两行无奈的泪水——这是为什么呢？）

[Polly]

Paulson kneeled down to plead with Peloski.  It's can only be expected that when the Democrates want to pass their thing, the Republicans put up their best resistance.

Also not borne into the network of power, Obama is really a "single unit and lone man" 孤家寡人.

[Polly]

[Polly]

Gold going mainstream.  The revival is going to be huge.

________________________________________________________________________




German firm plans 'Gold-to-Go' ATMs to sell tiny, pricey gold bars
Reuters 
Published: Wednesday, May 20, 2009


 A German asset management company plans to set up 500 "Gold-to-Go" ATMs in Germany, Switzerland and Austria this year. A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's main railway station for a one-day marketing test yesterday. A one-gram piece of gold, the size of a child's little fingernail and about as thin, cost US$42.25--a 30% premium to the spot market price. The flat rectangular piece came out of the cash-only ATM in a tin box, including a certificate of authenticity. "This is more than a marketing gimmick," said Thomas Geissler, chief executive of TG-Gold-Super-Markt.de, the company planning to set up the 500 gold ATMs at a cost of ¤20,000 ($31,500) apiece. "It is an appetizer for a strategic investment in precious metals. Gold is an asset everyone should have, between 5% and 15% of your liquid assets in physical gold," he said.
 

[Polly]

http://www.timesonline.co.uk/tol/money/investment/article6521486.ece

[Polly]

China encourages (gold and) sliver bullions as investment

[Polly]

THE DYNAMICS OF THE GOLD & SILVER
MARKETS?....EXPLOSIVE!

http://marketforceanalysis.com/Published%20Articles_2009_assets/DYNAMICS%20OF%20THE%20GOLD%20AND%20SILVER%20MARKETS.pdf

[Polly]

China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.

......

http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0

[Polly]

.......

But what is more important is that the data reveals a very shocking trend. That is
that the registered (dealer) inventory is being drawn down at a phenomenal rate.
In silver the inventory has dropped by 24% in 6 months while in gold it has
dropped an eye-popping 41% in 6 months! The withdrawal to deposit ratio for
registered silver is 14:1 and in gold it is 5:1. If this rate of drawdown continues
the registered inventory of silver will be exhausted in 18.8 months and in just 8.5
months for gold!

........

This rapidly shrinking inventory is coherent with other indications of a growing
shortage of precious metals. During the last two years the US mint has
periodically suspended production of gold and silver eagles due to shortages of
bullion, the COMEX futures have displayed contracting contango and/or mild
backwardation, which is indicative of physical market stress. There is anecdotal
evidence of the LBMA OTC market in London having difficulties in making
deliveries and requiring central bank gold to do so. There are also rumors of
large premiums being offered for cash settlement in lieu of the bullion. Sources
active in the London market tell us it is difficult to find bullion in size. The Central
Banks have stopped selling and have become net buyers of gold. Furthermore,
the politically connected Barrick Gold announced a panicked buying back of its
hedges at the end of last year.

Investors should make sure they own physical bullion and not a paper substitute.

......

https://marketforceanalysis.com/index_assets/COMEX%20Inventory%20Shows%20Alarming%20Trend.pdf

[Polly]

....

If we believe that it is necessary to close your account immediately in order to limit losses by you or us [GG: We really don’t give a s**t about you; it’s us that we care about], we may close your account prior to providing notice to you. Notice from us to one of you is notice to all of you [GG: the nerve of these people!]. If we close your account, we reserve the right to convert your Precious Metals to U.S. dollars and tender the balance to you by mail [GG: I am willing to bet my entire Gold stash that when you receive these "converted" dollars, they will be nowhere near the market price of physical. What did you think that whole "limit losses" thing meant?] .

.....

Citibank recently issued this notice to its checking account (remember the type of account where you thought you could withdraw your money whenever you wanted? Well, not anymore) customers

Withdrawal Notice:

We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts.

....

http://www.zerohedge.com/article/its-going-implode-buy-physical-gold-now