Quick question about metals

[I'm all 67X]

I can't figure this out in a logical sense...

Dealers are saying buy precious metals, as are many investors and financial analysts. But what about the declining/dying dollar? Why would the dealers want to sell their metals in exchange for worthless fiat currency? Wouldn't they want to keep it in the end? Seems to me they stand to lose, especially considering the reported shortages in silver. Why would they let it all go for lousy dollars?

Pretend I'm dense, it shouldn't be hard. :hat:)

[Rondaben]

generally it is because they are a business. You can take dollars to pay your mortgage, electric bill, groceries bill and kids tuition. You can't take an ounce of gold or 5 ounces of gold to the store to buy your Easter dinner.

It's about Gold and Silver being a one off currency still It holds and maintains value but isn't able to be used as currency.....yet.

[I'm all 67X]

generally it is because they are a business. You can take dollars to pay your mortgage, electric bill, groceries bill and kids tuition. You can't take an ounce of gold or 5 ounces of gold to the store to buy your Easter dinner.

It's about Gold and Silver being a one off currency still It holds and maintains value but isn't able to be used as currency.....yet.

Ok. Speculation, that makes better sense, it just seems it would be hoarded somewhere by someone...I just can't wrap it up in a nice tidy package, though I would like to and should have bought some 2 years ago when I had the means.

[Rondaben]

I'd look at it in light of the overall economy.

Say you have 100 ounces of gold stored up. That is a nice chunk of change at today's prices.

Now look at your situation if you are an "average" American.

Your house payment has gone WAAY up with your ARM resetting
Groceries are twice as high as they were a few years ago
Gasoline is 3-4 $ per gallon and you are driving an SUV from a few years ago
Your credit card debt is around $10,000 and you are paying 25%+ on it
Your electricity, water, gas bills are easily going to double
You probably have student loans and a car payment (you are upsided down in)
You haven't taken a vacation in a couple of years now
Your kids are demanding the latest IPOD, WII, or gadget

Most people would rather sell gold at this high price and get rid of a few of these headaches. Its a focus on relieving the pain of living here and now versus preparing for much larger pain n the future. People tend to want to deal with today's problems right now and let tomorrow worry about itself.

[JenGC]

generally it is because they are a business. You can take dollars to pay your mortgage, electric bill, groceries bill and kids tuition. You can't take an ounce of gold or 5 ounces of gold to the store to buy your Easter dinner.

It's about Gold and Silver being a one off currency still It holds and maintains value but isn't able to be used as currency.....yet.

The only reason why I have gold in the first place. I have half in gold and half in cash. If the dollar is totally useless, then I have gold to bargain for (I have small amounts as well due to the fact that the majority of society doesn't have any gold to "change out" if you have a whole ounce). But if it doesn't and I am just being paranoid, I have cash for my expenses. Like Rondaben said, right now, you need cash to carry on daily life, but you might need gold in the coming months.

There is also the fact of people looking at gold like stock. Buy low and sell high. The attraction of $1000 an ounce is tempting to sell (I have thought about it too) but those that are "hording" it for security purposes, doesn't really care how much it is worth now, but what it will be worth when the dollar eventually plummets to no value. :)

[I'm all 67X]

Grrreeaaaat...

Perth Mint and Kitco Scheme Exposed

By: Jason Hommel, Silver Stock Report


-- Posted 26 March, 2008 | Digg This ArticleDigg It! | Discuss This Article - Comments: 6


(What's going on here?!)
Silver Stock Report

Yesterday, I got into a bit of trouble by writing that the NorthWest Territorial mint was bankrupt, which they are not (consider this a second retraction). The NorthWest Territorial mint only has a risk of bankruptcy since they have so much silver owed to them by their suppliers, and those risks concern me in light of shortages of silver reported everywhere, and their long delivery times.

What is going on with Perth and Kitco is very unfortunate, since the Perth Mint is reportedly one of the largest bullion dealers in all of Asia, and Kitco has the largest presence on the internet, ranking number two in the search terms for silver and gold, just behind wikipedia.

So I have to choose my words carefully regarding the Perth Mint & Kitco. Perhaps the words of Jesus and Andrew Jackson are appropriate to quote in this context:

"You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning." --Andrew Jackson, 1828

Matthew 23:33 "You snakes! You brood of vipers! How will you escape being condemned to hell? 34 Therefore I am sending you prophets and wise men and teachers. Some of them you will kill and crucify; others you will flog in your synagogues and pursue from town to town.


You know who Jesus and Andrew Jackson were addressing? The moneylenders who offer to hold your money for you!

Since I advocate that you hold your own bullion yourself, I've wondered if the business practices of Kitco gave them a bias to rarely ever publish my articles, even though I was an advertiser for years, and my articles appeared far more regularly at gold-eagle.com and goldseek.com. I think I finally figured it out, and it's time for me to finally burn my bridge to kitco; as I don't need them anyway, and stopped advertising with them a while ago.

Kitco is a partner in a bullion certificate scheme with the Perth Mint, and also offers a pool account like Perth Mint does.
https://online.kitco.com/pmcp/

I believe, but cannnot prove, that Kitco is short of bullion owed to their own customers in their pool account, and this would explain why they publish the anti-gold articles that they do. If you own precious metal in a pool account or certificate form with anyone, Kitco, Perth, Monex, Goldline, any Major Bank or Brokerage, or anyone else, I think you would be wise to cash out, and get real silver somewhere else, even if you have to pay extra fees to do so.

Here are my five witnesses in my case against the Perth Mint (Kitco is implicated only by association, as they advertise the Perth certificates.)

The testimony of the people below go to show that you cannot trust silver certificates, nor can you trust allocated silver storage, nor can you trust government guarantees. (Trusting government guarantees for bullion is the most absurd thing I can think of, since governments are the ones who are printing money which competes with the demand for silver as money!)

[FarmBoy]

I can't figure this out in a logical sense...

Dealers are saying buy precious metals, as are many investors and financial analysts. But what about the declining/dying dollar? Why would the dealers want to sell their metals in exchange for worthless fiat currency? Wouldn't they want to keep it in the end? Seems to me they stand to lose, especially considering the reported shortages in silver. Why would they let it all go for lousy dollars?

Pretend I'm dense, it shouldn't be hard. :hat:)

They are a business and they make money on every transaction whether its coming in the door or going out, its all about turning the inventory over as quickly as possible. Don't worry, they have plenty set aside for themselves.

[I'm all 67X]

Sorry- forgot to add the link to the above: http://news.silverseek.com/GoldIsMoney/1206572052.php