Trouble at COMEX

79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
edited May 2016 in About Gold
Via Twitter (retweeted by our own @ArtMatters)

http://dailyreckoning.com/geologists-case-gold/

Something big is happening with gold. Over the past few years, if you bought and owned gold and gold mining shares, it’s been frustrating with gold prices in the doldrums of 2015, 2014, 2013, 2012. That’s four years of downside correction. But, that was then, and this is now. Let’s discuss what’s happening and nail down some serious opportunity…

Follow the money and right now money is moving into gold and select miners. In fact, there’s so much interest in “paper” gold that physical supply has utterly broken down. As in… crashed and about to burn in a roaring fireball!

This is critical. The amount of physical gold in storage in Comex versus the number of registered “owners” against each ounce is nuts.

From a few owners per ounce, it jumped to 542 by this March!



Own physical gold. If you don’t have some, get some. Go for basic bullion coins. Don’t worry about numismatic coins. Don’t pay big premiums. Just get U.S. Gold Eagles, Canadian Maple Leafs, South African Krugerrands, etc. Build your stash while you can, because some day, you won’t be able to get gold, period.

Second, you should strongly consider quality mining stocks. Right now, my stock-buying focus is on well-capitalized miners in production with a solid reserve base. Some of these companies have been beaten up so badly over these past few years, their upside is practically unlimited when gold really takes off. It’s been so bad that it’s actually getting good. It’s called a “buyer’s market.”

My view is that we’re in a sweet spot. Any rebound (short or long term) can vault you high and far when the turnaround hits. And it will hit.

Sooner or later, it will hit.


http://dailyreckoning.com/geologists-case-gold/

Comments

  • anthony28anthony28 Posts: 43 Copper ✭✭
    Very interesting. Reading a lot more about this happening.

    Do people think owning gold in the bit gold vault is as good as having physical gold??
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @anthony28

    The difference between vaulted gold with BitGold and COMEX (or LBMA) paper gold is that BitGold is 100% allocated. 1-to-1 as opposed to 542-to-1.

    I personally think that gold in the BRINKS vault managed by BitGold is safer and more convenient than physical gold.

    Gold vaulted with BitGold:
    • Pros: safe, highly liquid, fungible, no storage fees, low transaction fees, ACH transfers, GoldMoney card, payments, gifts, etc.
    • Cons: requires a functioning Internet

    Gold or silver kept at home:
    • Pros: close at hand, can be fondled and ogled, can be converted to jewlery, can be accessed at all times
    • Cons: can be lost or stolen, less liquid - need to find buyer, higher transaction fees (buy and sell)
  • anthony28anthony28 Posts: 43 Copper ✭✭
    Ya I would agree with you on all your pros and cons.

    What i personally like about gold in the Brinks vault is that it is so liquid and can't be matched on price anywhere.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @anthony28
    anthony28 said:

    can't be matched on price anywhere.

    B)

  • GoldmattersGoldmatters Posts: 4,028 Admin
    @79Au197 Lol is that you will the cool face on Twitter? I didn't even know!


    @anthony28 @79Au197 breaks it down very well. Though I don't think it's hard to find a buyer. There are many reputable coin shops that will take metal off your hands for a fair price. I would reccomend forming some relationships with your local shop before anything goes down. What's kinda funny is my local coin shop guy has my number and often texts me for information and or advice about his customers LOL. He's the one selling the stuff remember, but that doesn't make him an expert. Just like a like of CEOs of mining companies know very little about the product they sell..... My point is offloading the physical really isn't as hard as you might think and is a very quick process. Of course keeping it in the Bitgold vault has many advantages as is pointed out by @79Au197 . I think dividing some portion between the two is appropriate.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    @79Au197 Hoping all members of BitGold having sufficient Gold deposits as secure Insurance and at time of needs. :)
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @ArtMatters

    "offloading the physical really isn't as hard as you might think and is a very quick process"

    Not so much hard to offload as it is to get a price near spot.

    Has anyone tried to offload a GoldCube?
  • GoldmattersGoldmatters Posts: 4,028 Admin
    @79Au197 I think keeping an eye on the Bitgold eBay store will give us a decent indication. Looks like they dropped the "buy it now' in favor of auctions. So far price discovery seems to be taking place
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @ArtMatters

    @79Au197 I think keeping an eye on the Bitgold eBay store will give us a decent indication. Looks like they dropped the "buy it now' in favor of auctions. So far price discovery seems to be taking place

    I think that the "but it now" is only valid until the first bid.

    The current "price discovery" for both the 10g and 10gx2 is USD 41/g +-

  • GoldmattersGoldmatters Posts: 4,028 Admin
    @79Au197 will be interesting to see how that particular marker proceeds
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    Stupid iPad key board

    "but it now" ===>>> "buy it now"
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