GLD on sale LOL

Quote from PiratesSayARRR : 1) Gold is still being valued at something and it is relative to currency. What is the value of gold if all currencies collapse (yes highly unlikely, but you have to be able to assign a value). Maybe an ounce will be worth 3 chickens and a bucket of water.

Yes, in dollars. What are dollars? A bank's liability. What's gold? A wholly-owned financial asset. Why do central banks own gold? Because it has "no intrinsic value?" Think again.

Quote : The free market will dictate the value of gold and anything else. Gold intrinsically has no value.

You understand that present day gold price "discovery" is based on bought and sold by paper futures contracts that are 100% manipulated by those that control the flow of capital and derivatives around the world. Some suits in London (LBMA) meet once a day and "fix" the price. Yes, it's based on something, but it sure ain't a free market. Don't get me wrong, I'm not saying they're suppressing the price; I'm simply saying this idea that the "free market" sets asset prices such as commodities is a joke.

Let's spin the argument on its head. If Gold is use-less or worth 3 chickens or whatever else is said abuot it here..why would government's try to ban the ownership of it?

http://www.forbes.com/sites/richa...n-on-gold/

There has to be something inherently valuable about this shiny metal to scare governments into action no?

I don't think so. If there was ever truly a world wide economic collapse across all currencies how would you value gold?

Quote from PiratesSayARRR : I don't think so. If there was ever truly a world wide economic collapse across all currencies how would you value gold?

Currencies don't "collapse," they just reach a termination point in faith and trust. When that point is reached and you'd have to value the debt outstanding, then you'd have to fix it to gold. They've tried this in the past and it never works. Yet another reason to own gold; it's not "fixable."

The value of holding gold is to get you to the other side during such an incident. If there were no cycles of boom-bust in nature of the economy, the would be little reason to hold such an asset. Remember gold declined in $US for nearly 20 years after it's 1980 peak. It has nothing to do with fiat and everything to do with faith in the State. Again, why is gold at all time highs in the Yen?

Quote from barnz008 : Again, why is gold at all time highs in the Yen?

Gold is the same price in the Yen as it is to the dollar considering the exchange rate. Perhaps I'm failing to see your point.

Quote from PiratesSayARRR : Gold is the same price in the Yen as it is to the dollar considering the exchange rate. Perhaps I'm failing to see your point.

How much Yen buys gold.


How much $US buys gold.


Do this with any sovereign currency you want and it's a similar pattern. Stockcharts only goes back 3 years unless you have an account. Looks like the Yen may be the first to go.

Quote from barnz008 : How much Yen buys gold. How much $US buys gold. Do this with any sovereign currency you want and it's a similar pattern. Stockcharts only goes back 3 years unless you have an account. Looks like the Yen may be the first to go.

This has to do with the fluctuation of currency relative to the price of other currencies not the price of gold.

Quote from barnz008 : How much Yen buys gold. Do this with any sovereign currency you want and it's a similar pattern. Stockcharts only goes back 3 years unless you have an account. Looks like the Yen may be the first to go.

With your price discrepency theory in two of the most common global currency, anyone could easily just exchange yen to USD or vice versa and made a killing with arbitrage opportunity.

Quote from kyotuosa : With your price discrepency theory in two of the most common global currency, anyone could easily just exchange yen to USD or vice versa and made a killing with arbitrage opportunity.

right, which is why his theory is bullshit

Anyone buying here? Cramer did a nice bearish chart analysis on metals yesterday. I am tempted to add to some of my long-term CEF holdings here.

Plenty of support at $0. Get out while you can. It's over.

A poke below $1500 would be fabulous.

Quote from kyotuosa : With your price discrepency theory in two of the most common global currency, anyone could easily just exchange yen to USD or vice versa and made a killing with arbitrage opportunity.

Anyone? You're not anyone. I suspect the market makers are only a few trades ahead of you.

Quote from barnz008 : Anyone? You're not anyone. I suspect the market makers are only a few trades ahead of you.

Yes, anyone. The point is arbitrage is there just take advantage of it. What if you are Japanese, you can just buy gold at a discount and bring gold in to sell in US for profit? The point is it's an arbitrage with no barrier to entry and according to you the market DOES NOT self-correct. Lets play alone and show you how funny your comeback really is.

So in your theory, gold price discrepency between currency are always there and only market maker can take advantage of it. So what if you are a market maker, you get access to risk free cash till the end of the world. Woohoo free money for life.

How big is the gold market? Why aren't there new billionaire born everyday?