Our Gold May Be Gone?

[Outback]

Australia's gold in London is a worry , will we ever get it back ?

https://thedailycoin.org/2019/02/19/australias-gold-at-the-bank-of-england-extended-q-a/

:8

 

[DrDuck]

Very interesting indeed...

Very bad decision by Peter Costello to sell all that gold for a song, too.

https://www.theaustralian.com.au/ne...n/news-story/ffb632d0dee80cfb7ac840a2002c8912

 

[silver]

This is troy ounces of gold to the ton

this is by 80.... so ouncest to eighty ton is

if there is 20 million of us.... this is the percentage of one ounce that we all own each from that 80 ton of gold

 

[Jaros]

Well they can have the Queen and give us back the Gold. :N:

 

[user 4386]

80 tonnes is not a lot in terms of national debt etc. - probably less than large corporations short-change the government in tax every year, and probably less than 1% of one years expenditure by Australian governments (to put it in perspective).

Australia produces more than 300 tonnes each year, and we have many times that measured and in the ground still.

The RBA loan up to 100% of the 80 tonnes at times, eg 2004 (only ten tons at the moment). Here is the RBA reasoning (basically, London is where gold trading occurs):

https://www.rba.gov.au/qa/gold-holding.html

 

[user 4386]

Very interesting indeed...

Very bad decision by Peter Costello to sell all that gold for a song, too.

https://www.theaustralian.com.au/ne...n/news-story/ffb632d0dee80cfb7ac840a2002c8912

Well - it is worth less now than when this article was written nearly ten years ago. You can make a case if you selectively choose the right date - it earns no interest and one has to consider the time value of money. So if we still had it, we would have lost money since the article was written

i.e. he sold at about $US500 per ounce in 1997.
Consider one person sold an ounce then and invested it at 5% per annum up to the present (an easy average to maintain over that period) - they would now have $3600
Consider another person has kept his ounce since 1997 until he sold now - now what was the gold price today ($1344)?

So we probably came out well ahead on his sale.

 

[DrDuck]

Good point, but PC sold all the gold at US $308. So it was a bad deal, even given the movement in the gold price since the story was published.

 

[user 4386]

Good point, but PC sold all the gold at US $308. So it was a bad deal, even given the movement in the gold price since the story was published.

True - if you bit the bullet and sold now (that is the problem with something that earns no interest - total dependence on capital gains.

In the interest of honesty, my last figure was a typo, it should have been $1326 if the money was invested. So the two people came out pretty even.

I was being conservative though - I have averaged a lot better than 5% over that period.

 

[Goldfreak]

Well they can have the Queen and give us back the Gold. :N:

Ransom the Corgis !

 

[Goldpick]

I remember they said the Mint in Australia doesn't need to hold reserves of gold due to the sheer number of reserves still sitting in the ground, though different case if you have Chinese invested/owned gold mines in Australia shipping bullion direct to China. A continual issue of not having enough wealthy investors in Australia to bankroll exploration and new mines - junior companies are constantly looking abroad for willing investors these days.

 

[Outback]

Gold has retained its buying power still today .
Example - I nice suit cost around an ounce of gold back when it was $35 , now you can buy at least 2 nice suits for an ounce !
I know it's a rough example but you get the picture .

With the debt levels world wide in fiat moneys a reset is not only inevitable But inescapable , real estate / stock values are so over the top .
Money in a bank is not your money ' it's the banks ! bail in laws were passed a year ago to take that money when needed .

The only real money is Gold & Silver held in the actual metal form .
See this definition :

Physical gold is a timeless asset which will always have a value and always lasts the test of time. Physical gold provides the ultimate insurance for your wealth against any future financial crisis in an under performing wider economy.

:beer:

 

[Ridge Runner]

Well they can have the Queen and give us back the Gold. :N:

The Queen is the Head of State in Image "Only" and has nothing to do with Gold or The Bank of England, and Last but not Leased The Government, She has No Say what so ever,

It was the Part time prime minster Gordon Brown who sold off all the UK's Gold at a Low Down Price for less than 2/3rds of it's value back in the 1990's/early 2000's.

If you google Gordon Brown sells Gold it should come up with the facts. :Y:

 

[Outback]

Russia & China have been buying up huge amounts of gold in resent years to take on the USA' s power of hegemony .
It's that simple , those who control real wealth require gold & silver to be able to dominate commerce .

Get yourself some precious metals Now before they are unobtainable using today's paper fiat money .

Hegemony is the political, economic, or military predominance or control of one state over others .

Have Fun
Jack

 

[user 4386]

Yes, Russia has really been adding to its gold stocks in recent years (I don't know to what extent from its own production). They probably cant lose by doing so, as it is a great devaluation hedge on their shaky currency. China also, but purchases there have been as much private as government (if you can separate the two). Both countries are buying less than they themselves produce from their mines each year (to keep it in perspective). China is the world's largest producer, Russia the ?fourth largest (Australia and the USA being the other two).

Seems to me there are two issues with gold. The first is speculation on the price, which is little more than gambling day to day. The second is the real one - protection against massive devaluation of currencies, economic crises. We all know there is a crunch coming and some economists speculate that it could exceed the GFC. I am happy to hold some gold as part of a balanced portfolio - so long as you are in no danger of HAVING to sell, and can sit on it as security..

 

[goldtrapper]

Wasn't all that long ago in the US that private gold ownership was illegal and the State could and did confiscate it! I could see both China and the USSR enforcing this.