Merrill Lynch States Some Wealthiest Clients Insisting On Delivery Of Physical Gold

This trade seems to tough. Like most trades. You would think with paper being worthless gold would be the spot.

But with paper being worthless and people don't have jobs, who the hell is going to pay up for gold.

Many times I thought about buying gold for safety.

So I get in - now what - gold could go to 300 or 1500 who knows what the real value of gold will be without knowing the future economic picture.

We it be run away inflation like a banana republic or will it be soup lines.

The oil market seems to be saying soup lines.
 
Gold has been, and still is, the biggest Ponzi scheme out there...makes poor Bernie look like a piker....

It has no real value other than what a jeweler will pay...it is not, repeat not, a SAFE store of value.....very few people will actually buy the stuff from you when you want to sell....

You paid $800/oz in 1980? and now someone will bid $600/oz...that is a 25% loss after 30 years!!!!

Gold is more akin to a work of art.....sounds good to pay $100,000 for a painting, but try to sell it when you need to...lots of luck


SteveD
 
Quote from SteveD:

Gold has been, and still is, the biggest Ponzi scheme out there...makes poor Bernie look like a piker....

It has no real value other than what a jeweler will pay...it is not, repeat not, a SAFE store of value.....very few people will actually buy the stuff from you when you want to sell....

You paid $800/oz in 1980? and now someone will bid $600/oz...that is a 25% loss after 30 years!!!!

Gold is more akin to a work of art.....sounds good to pay $100,000 for a painting, but try to sell it when you need to...lots of luck


SteveD
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Do a little research on gold. Gold has been and always will be money. It is NOT a commodity for jewerly. Just because there was a 20 year disinflationary period and gold performed poorly doesn't mean gold has changed. Gold will always be a store of value. Nations store gold and it ain't for jewelry.
 
Timeframe is everything. Instead of your 25% cumulative loss, if you bought in 1971 (at $35) and still hold today ($800), you would have an 8.8% compound annual return. Every market (stocks, bonds, etc) goes to sleep for secular, 20+ year bear markets, then wakes up to go higher than people can imagine in the secular bull wave.

Gold will be around and valuable when we're all dead; the dollar might not be.

Austin

Quote from SteveD:

Gold has been, and still is, the biggest Ponzi scheme out there...makes poor Bernie look like a piker....

It has no real value other than what a jeweler will pay...it is not, repeat not, a SAFE store of value.....very few people will actually buy the stuff from you when you want to sell....

You paid $800/oz in 1980? and now someone will bid $600/oz...that is a 25% loss after 30 years!!!!

Gold is more akin to a work of art.....sounds good to pay $100,000 for a painting, but try to sell it when you need to...lots of luck


SteveD
More...
 
muhamed(spell check) stored grain around ,way before christ, mesopotamia i think,and a whole civilization migrated north for food and water and adopted a religion,food is very valuable,all the gold in that drought ridden civilization couldnt buy an ounce of water or grain,gold is worthless,it is akin to any other false belief,when the shit hits the fan ,it won't hold water,great to trade,just dont for a second beleive it has any real value
 
Quote from ammo:

muhamed(spell check) stored grain around ,way before christ, mesopotamia i think,and a whole civilization migrated north for food and water and adopted a religion,food is very valuable,all the gold in that drought ridden civilization couldnt buy an ounce of water or grain,gold is worthless,it is akin to any other false belief,when the shit hits the fan ,it won't hold water,great to trade,just dont for a second beleive it has any real value
More...

Gold is worthless huh. Why have Nations risked heavy seas just to transport their gold? Yes, we all know that you can't eat or drink gold.
 
Quote from harkm:

Gold is worthless huh. Why have Nations risked heavy seas just to transport their gold? Yes, we all know that you can't eat or drink gold.
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just saying that its worth is speculative only,like the oil ballon
 
Quote from ByLoSellHi:

http://www.telegraph.co.uk/finance/...ays-rich-turning-to-gold-bars-for-safety.html

Merrill Lynch says rich turning to gold bars for safety

By Ambrose Evans-Pritchard
Last Updated: 10:32AM GMT 09 Jan 2009

krugerrand_1218838a.jpg

Rich investors are spurning gold exchange traded funds in favour of krugerrands

Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or "paper" proxies.

Gary Dugan, the chief investment officer for the US bank, said there has been a remarkable change in sentiment. "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs," he said, referring to exchange trade funds listed in London, New York, and other bourses.

"They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands," he said.

Merrill predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June.

The metal should do well whatever happens. If deflation sets in and rocks the economic system it will serve as a safe-haven, but if massive monetary stimulus gains traction and sets off inflation once again it will also come into its own as a store of value. "It's win-win either way," said Mr Dugan.

He added that deflation may prove the greater risk in coming months. "It's very difficult to get the deflation psychology out of the human brain once prices start falling. People stop buying things because they think it will be cheaper if they wait."

Merrill expects global inflation to hover near zero, with rates of minus 1pc in the industrial economies. This means that yields on AAA sovereign bonds now at 3pc will offer a real return of 4pc a year, which is stellar in this grim climate. "Don't start selling your government bonds," Mr Dugan said, dismissing talk of a bond bubble as misguided.

He warned that the eurozone was likely to come under strain this year as slump deepens. "There is going to be friction as governments in the south start talking politically about coming out of the euro. I don't see the tensions in Greece as a one-off. It is a sign of social strain in countries that have lost competitiveness".
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anyone? it may only take 3 of us but with some explosives and a taser gun we may be able to randomly aquire alot of gold and alot of rich people putting it under their mattresses maybe randomly misplace their gold.....
 
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