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The $10K Per Ounce Figure


wealthymattersGold bugs tend to get long term trends right.

They however routinely make the mistake of thinking that others are as cautious, prudent and willing to err on the side of caution as they themselves.

Most of the world is not.

So their scenarios tend to pan out, but not before may others have been acclaimed right and then proven wrong by time.

Read what Jim has to say and think about it if ever you are contemplating getting rid of old gold stocks and going gold free. But don’t waited with baited breath to realize such prices either.

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On Why Bitcoin Can’t Replace Gold Bullion


Physical gold is prized as “real” money in that in physical terms it is tradable for remarkably constant quantities of staples such as wheat or a fine set of clothes ,across cultures and down the ages.

Unfortunately, Bitcoin that is supposed to behave like gold-money shows nothing of this consistency.

Here’s what Bitcoin could have purchased you since in the last few years:

1 Jan 2010

Value of bitcoin : $0.08 : Rs 3.7
What you could buy: Small packet of biscuits Read more of this post

The Switch


wealthymattersIn 1910 the British GOI increased the import tariffs on silver from 5% to 11%. A market report in 1912, by Pixley & Abell, a gold wholesaler, pointed to a 28% fall in silver demand in the Indian bazaars in the three years following the increase. They attributed this to not just a fall in demand for silver due to tax increases, but also a substitution of gold for silver in people’s savings as gold became more attractive on a relative basis.Between 1910 and 1930 net imports of silver in India fell from 98m ounces to 31m, according to British Geological Survey reports. After this time India gradually became the world’s largest gold consumer, a position it finally lost to China in 2015.

Nilesh Shah On Gold @KotakSecurities #KotakMidCapMeet15


wealthymattersPaper Investors have a fundamental difference in thinking from those who prefer tangible assets.
His argument is that as India is the only buyer of gold, the day we all wish to sell, we will find no buyers offering a good price. Banks are prohibited by law to buy-back gold and jewelers have stocked up gold on credit.
My understanding is that, gold sold at the time of large scale distress, such as war or its aftermath, might not get us a good price in any given currency, but gold is “money” that is directly exchangeable for goods and services.
Buying gold is a statement on non confidence in the currency of any given country. And the establishment that devalues it.

 

And in anycase, Mr Nilesh Shah is wrong on fact. Indians are not the only buyers of gold.

The Immediate Future Of Gold


Gold Price Prediction

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