"Gold Market is too small" - Yi Gang.

[ZenOps]

http://www.bloomberg.com/news/2013-03-13/china-may-limit-gold-to-2-of-foreign-reserves-pboc-s-yi-says.html

Of note, official gold holdings per nation:

US holds 8,133 tonnes
Germany 3,396 tonnes
China 1054 tonnes

And

Canada 3.4 tonnes

Canada does not hold gold as a strategic reserve, we use nickel. Canada also has no need for a petroleum reserve (its in the ground)

The US government holds 2,400x more gold than Canada.

[BigMass]

Nothing new. China keeps talking down gold as much as they can while the buy and mine it on the back end like there’s no tomorrow. The last thing they want is to telegraph their interest in gold and drive the price up before they can acquire enough of it.

[Feruk]

Enough for what exactly?

[rinny]

Perhaps enough to have a significant control of prices and supply :dunno: . Similar to what they're doing with rare earth metals.

http://www.theatlantic.com/sponsored/bank-of-america/archive/2012/09/chinas-monopoly-on-rare-earth-mining-and-exports-erodes/262938

[BigMass]

Originally posted by Feruk
Enough for what exactly?

Enough to maintain the purchasing power of their reserves, strategic global economic posturing, and leveraging their ability to sustain a long and drawn out currency war amid rising commodity prices. It’s really a matter of national security for these nations to bolster their gold reserves. The currency war is a far greater threat than any coming from terrorists, Iran, North Korea or whatever other boogie men you see on the evening news.

[ZenOps]

Originally posted by Feruk
Enough for what exactly?

Enough for a solid gold toilet of course.

At 3.4 tonnes in Canada volumetrically less than a cubic meter. There might be *just* enough to make one.

But I'd still rather have a solid nickel toilet.

[BigMass]

Originally posted by ZenOps


Enough for a solid gold toilet of course.

At 3.4 tonnes in Canada volumetrically less than a cubic meter. There might be *just* enough to make one.

But I'd still rather have a solid nickel toilet. \

for those unaware how rare gold is and how little Canada holds, this is 1 tonne
http://blog.silvercoins.ru/wp-content/uploads/2012/09/1000-1.gif

[dawerks]

Originally posted by BigMass


Enough to maintain the purchasing power of their reserves, strategic global economic posturing, and leveraging their ability to sustain a long and drawn out currency war amid rising commodity prices. It’s really a matter of national security for these nations to bolster their gold reserves. The currency war is a far greater threat than any coming from terrorists, Iran, North Korea or whatever other boogie men you see on the evening news.

“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything."

Warren Buffet.

I'm with Zenops on this, I would rather have a functioning gold toilet, at least it would be good for something.

[BigMass]

Originally posted by dawerks


“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything."

Warren Buffet.

I'm with Zenops on this, I would rather have a functioning gold toilet, at least it would be good for something.

Warren Buffet is a crony that benefits from government programs, federal reserve policies and pushes agendas to further elitist control. Quoting him as an argument against owning Gold is complete joke. Gold is money and it maintains its value against what is currently the greatest threat to global stability, the currency war. Buffet’s comments on gold are platitudes that have no relevance to anything. Your comment shows a complete lack of understanding of what gold is and it’s economic relevance.

[Feruk]

Here's my problem with gold: in theory, it always goes up. Economy's bad, get into gold as a currency "hedge." Economy's good, more demand for gold, get into gold for scarcity.

[BigMass]

Originally posted by Feruk
Here's my problem with gold: in theory, it always goes up. Economy's bad, get into gold as a currency "hedge." Economy's good, more demand for gold, get into gold for scarcity.

Gold is not an investment. It’s money. You have a problem with gold? This is my problem with fiat currencies. Your original $1 is now worth around 3 cents. No fiat currency has and ever will last.
http://3.bp.blogspot.com/-4N2Q2_nzXVA/TxQuUegfhlI/AAAAAAAAAkM/yA8doncCYZw/s1600/Value+of+US+Dollar.jpg

[sputnik]

Originally posted by BigMass


Gold is not an investment. It’s money. You have a problem with gold? This is my problem with fiat currencies. Your original $1 is now worth around 3 cents. No fiat currency has and ever will last.


Who holds their net worth in cash?

[BigMass]

Originally posted by sputnik


Who holds their net worth in cash?

Straw man. It’s part of diversification

[G]

Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.
Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?
Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual production of gold command about $160 billion. Buyers – whether jewelry and industrial users, frightened individuals, or speculators – must continually absorb this additional supply to merely maintain an equilibrium at present prices.
A century from now the 400 million acres of farmland will have produced staggering amounts of corn, wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the currency may be. Exxon Mobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The 170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can fondle the cube, but it will not respond.
Admittedly, when people a century from now are fearful, it’s likely many will still rush to gold. I’m confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at a rate far inferior to that achieved by pile B.

Warren Buffet

[Beerking]

You're first mistake is believing that the US still holds those figures (rehypothecation).

Second, China has WAY more than the official number posted (last updated 2009). They will not release their new numbers until they are ready.......

Bigmass has it, FIAT is not money, welcome to Curreny War 3

[dawerks]

Originally posted by BigMass


Warren Buffet is a crony that benefits from government programs, federal reserve policies and pushes agendas to further elitist control. Quoting him as an argument against owning Gold is complete joke

How many ounces of Gold do you own?

[93VR6]

Isn't gold just another form of fiat currency? Us as a species give value to things, nothing has true value.

Imagine an apocalypse happens tomorrow you survive with 100 tonnes of gold and your neighbor survives with 100 tonnes of non perishable food. Who do you want to be?

[BigMass]

Originally posted by 93VR6
Isn't gold just another form of fiat currency? Us as a species give value to things, nothing has true value.

Imagine an apocalypse happens tomorrow you survive with 100 tonnes of gold and your neighbor survives with 100 tonnes of non perishable food. Who do you want to be?

So you’re saying that gold is a fiat currency and that you can’t eat gold so it’s useless in an apocalyptic situation. I just don’t even know where to begin… What are schools teaching these days? Help me lord

[ZenOps]

Originally posted by 93VR6
Isn't gold just another form of fiat currency? Us as a species give value to things, nothing has true value.

Imagine an apocalypse happens tomorrow you survive with 100 tonnes of gold and your neighbor survives with 100 tonnes of non perishable food. Who do you want to be?

I've heard that the richest billionaires don't hoard food.

They just build yachts that are capable of storing millions of gallons of gasoline and can survive years at sea. And then they fill it with half a tonne of wine.

[sputnik]

Originally posted by BigMass


Straw man. It’s part of diversification

Cash for most people is a VERY short term hold immune from inflation.

Additionally, the majority of people I know that hold cash do it to avoid paying taxes on it, so they are already well ahead of the game too.

Cash is rarely a tool for diversification rather just used to give people access to quickly access money in the event of an emergency. You can claim that you could do the same with gold, but if the banks are running out of cash in a time of need what makes you think that your gold will be useful or quickly converted into goods and services?

[CapnCrunch]

Originally posted by 93VR6
Isn't gold just another form of fiat currency? Us as a species give value to things, nothing has true value.



Totally agree with this. Paper money, shiny metal. Both are useless to me if shit hits the fan.

[dawerks]

In an apocalyptic situation I'll take my little .22 Cal Mossberg.

I'm pretty sure my bullets will be worth a little more than trinkets.

The problem with Gold bugs is that
a) They usually don't even own any gold, but they are the biggest loudmouths for it.
b) They're proponents of fear and future disasters, yet they are usually the least prepared people.

Right Bigmass?

[BigMass]

Originally posted by dawerks
In an apocalyptic situation I'll take my little .22 Cal Mossberg.

I'm pretty sure my bullets will be worth a little more than trinkets.

The problem with Gold bugs is that
a) They usually don't even own any gold, but they are the biggest loudmouths for it.
b) They're proponents of fear and future disasters, yet they are usually the least prepared people.

Right Bigmass?

You’re right. Better call up central banks around the world and educate them on the error of their ways. It’s a shame the Chinese are so stupid and you’re so smart. You could be saving them from the trouble they’re going through accumulating these worthless trinkets. Oh and nice touch on the, “proponents of fear and future disasters” when you’re the only person in this thread talking about apocalyptic situations. Are you expecting the second coming or something?

[93VR6]

Originally posted by ZenOps


I've heard that the richest billionaires don't hoard food.

They just build yachts that are capable of storing millions of gallons of gasoline and can survive years at sea. And then they fill it with half a tonne of wine.

It's just an example where food would be more valuable than gold.


Originally posted by BigMass


So you’re saying that gold is a fiat currency and that you can’t eat gold so it’s useless in an apocalyptic situation. I just don’t even know where to begin… What are schools teaching these days? Help me lord

It's just an example to say that gold has no real value, we give it value.


Originally posted by BigMass


You’re right. Better call up central banks around the world and educate them on the error of their ways. It’s a shame the Chinese are so stupid and you’re so smart. You could be saving them from the trouble they’re going through accumulating these worthless trinkets. Oh and nice touch on the, “proponents of fear and future disasters” when you’re the only person in this thread talking about apocalyptic situations. Are you expecting the second coming or something?

I was just using an apocolpyse as an example, ya it probably won't happen but I'm just saying gold has no real value we have to give things value.

No caveman would ever trade his fire away for gold because it has no value to him. (just an example)

[Beerking]

Originally posted by 93VR6


It's just an example where food would be more valuable than gold.



It's just an example to say that gold has no real value, we give it value.



I was just using an apocolpyse as an example, ya it probably won't happen but I'm just saying gold has no real value we have to give things value.

No caveman would ever trade his fire away for gold because it has no value to him. (just an example)

6,000 years of Gold and Silver used as median of exchange says otherwise. FIAT has no value; Gold, Silver, Land, does. When the FIAT ponzy crumbles GOLd and Silver will be reinstated. There is a reason the Canadian and US Mints stopped making quarters and dimes out of silver.

But, you guys are right if there is an Apocalypse then ya, Gold won't get you very far.....but that is a world I do not want to live in anyways.

Plus, if you own Gold you sure as shit don't tell people you own it.

Edit* And now there are bank runs in Cyprus, think this can't happen here? Europe will drag us all down.

http://www.bbc.co.uk/news/world-europe-21814325

[effingidiot]

People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said. Those with greater sums will lose 9.9%.

Now that is some quality wealth redistribution.

[dawerks]

Cyprus says; "It's immoral to let a sucker keep his money*."



*Canada Bill Jones.

[effingidiot]

Originally posted by dawerks
ECB says; "It's immoral to let a sucker keep his money*."



*Canada Bill Jones.

ftfy

[ZenOps]

Thanks for the story find, would never have thought they would go to such drastic measures.