Precious Metals New Thread 2.0

Yup. That's basically how this thread has gone OZ.

 

By "just sold" I meant it finished last month.

Hopefully it was a wise decision and in the public interest. History suggests otherwise.

 

I was agreeing with you

I know thats a new thing that might take some getting used to

 

Our dollar was at par with the USD as recently as 2012 , with essentially no gold reserves .

"Back in the 1960s, Canada held more than 1,000 tonnes of gold. But it began steadily selling off its hoard, and by 2003, the country had just 3.4 tonnes.

Now, Canada has less than one"

"Year-end data from Finance for each of the last 10 years shows that Canada's gold hoard has been worth a maximum of $181 million US during that span."


http://www.cbc.ca/beta/news/business/gold-canada-reserves-1.3443700

 

If the price of gold goes up, and the value of all of Canada's gold is a steady $180M, then it just means that Canada is selling its gold. Right?

 

What

 

A max means there was a peak, just like any commodity Gold not only goes up but down. This thread is about the potential for Gold to skyrocket up, which is something that could possibly happen but is by no means a sure bet. If it was you'd see every corporation, large asset holder, and grandma buying up every ounce they can find. That's not happening.

Maybe it will happen one day. Maybe it won't. I like the discussion but let's not act like gold becoming worth 10K an ounce is going to happen in 10 years as a foregone conclusion.

Oh, and the BOC (Bank of Canada, that's who owns that gold actually) converted that gold to other holdings. It wasn't just sold and left as cash to rot. The point of the sale was to increase liquidity. During the last oil crisis Canada couldn't sell the gold fast enough to use the equity it held. So another approach was decided up which has worked very well.

 

Canada selling gold at the bottom wasn't a good idea, they were just filling demand...
No one with any brains sell at the beginning of a bull run, it was for a reason....
The west is refusing the reality that the world is going back to hard assets or investments based on real value..

If gold doubles we win, the last bull run was 300% the next one will be similar but probably much higher...

Most of the western nations are bankrupt and full of debt but we get to set all the prices...
Eastern countries with better growth, no debt, gold reserves and cash reserves but the west says their money is no good?????

It's hard to understand that the petrol dollar is dying, but it is and no one is trying to fix, they just keep spending money they don't have..
But they can just print up more money, and it's worth more????

The petrol dollar is the oldest fiat currency in the world at 43 years old and at the end of it's cycle...

PMs are just off the bottom it doesn't get to much better of a time to jump on the next bull run of an undervalued asset...

 

Canada has been selling off its gold for 50 years

Hello hello , is this thing on ?

 

I'm back, we went to Memphis, with the car, so no Ozarks run.....

Yeah and now they basically out of gold, but they still have untapped reserves in the mountains, so not all is lost...
From an investing stand point they nailed the bottom, good call.
But someone was out of gold and they needed to meet demand and the west is almost out of gold so it's Canada's turn to sell...
But unlike England, Canada still has gold in the mountains.
So from a real money stand point Canada is still in better shape than England.

 

So is this a fake rally or will PMs keep going...
I say stocks are in a fake rally and PMs will resume the bull run.

They are shorting like crazy but physical and paper demand is too high.
The big money is going nuts in mining stocks right now.
Silver is lagging because silver investors buy physical so the paper price is lagging gold.
Gold is out performing because lots of new money is going long in the ETFs " high risk".

I know they are still trying to keep PMs down but it's starting to fall apart so at some point they will be forced to back off or it will blow up in their face.

Hopefully we can get a big jump before countries start going to gold backed currencies...

 

Time for a vid

 

Not sure what you mean by " Canada's turn to sell " unless you mean our turn has been going on for 50 years

The maximum gold assets Canada has held in the last decade was like $150 million , which is a figure that is so small when compared to our economy it would make zero impact on our dollar either way

 

So if everyone is selling gold and fiat currencies are coming to an end what are you saying will replace the "petrol dollar"?

And where is this demand for gold and silver coming from other than investors?

 

Yeah that's what's confusing, no one is on or even going back to the gold standard so Canada holding or selling gold is the same as the US holding or selling oil in the SPR aka strategic petroleum reserve. Bottom line is a country's gold holding has absolutely no nearing on their currency.

 

That's what they want you to believe.
That in over 5000 years gold has been used as money and now just because the west is over spending and can't balance a budget that it's not money anymore.
That's why we have a 20T deficit, 300T in derivatives and 127T in unfunded liabilities...
Endless spending and fake investments.
Real money limits spending.

 

None of those statements make sense. It's not just the west. It's a global economy. Where is your data? Sure we have a deficit and derivitives and unfunded liabilities but that's comparing apples to oranges. We are not going back to a gold standard, EVER. And the dollar isn't going away nor is it declining. In fact it's only getting stronger. Those are facts.

You should be clear when making statements. Do you think the world is going back to a gold standard? Yes or no.

 

Gold in mountains? Who cares. Honestly every resource in the ground is a potential revenue source towards enhancing gross economic output which increase GDP and, usually, the value of a countries currency. Right now the CAD is down because our dollar skyrocketed when:

1. Our accessible oil reserves were re-evaluated for the first time in decades and turned out to be the 2nd largest in the world. Our total reserves, if technology can be found to extract it all, are the largest.
2. Oil shot up past $100 a barrel causing uncontrolled investment in Canadian oil related industries causing a cascading effect throughout the economy causing a rapid increase in GDP.

Once the hype over having a few trillion barrels of oil re-evaluated died down and the value of oil crashed our dollar came back to pre boom level. It's not rocket science. Gold had nothing to do with it.

Oh, and most of Canada's gold isn't in mountains. It's in the Canadian shield and the large meteoric formations throughout the shield. I thought a gold "expert" would know that.

 

Where is your proof the gold standard will not happen? FACT is, YES the gold standard CAN be brought back. It also may not be brought back. In either event, holding PM is a hedge and is to be used as capital preservation. I wonder why China (which is some ways is the largest economy in the world) is accumulating massive amounts of gold?!

Also, the dollar is viewed as strong in relation to other currencies. The dollar is still weak, just not as weak as other currencies. It will be the last man standing, but that does not mean it is not loosing value, it means it is not loosing value as fast as other currencies. Read up on Currency Wars.

On a side note, I think the recent 'recovery' of the stock market is short term, but the overall trend is going down. Who knows though, every market is so heavily manipulated, suppression can be forced at the cost of future generations.