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-   -   $55,000 Gold...How it happens (http://glocktalk.com/forums/showthread.php?t=1501272)

Glocksanity 08-29-2013 15:33

$55,000 Gold...How it happens
 
FOFOA really does a good job of explaining how this happens.

http://fofoa.blogspot.com/2013/08/five.html

The BIS basically wakes up one day and says, 'Hey, we buy gold for $55,000 and we sell it for $56,000.

Boom. Paper markets for gold at $1,400 collapses and we have a new price for gold.

Bread is still $2 a loaf. Gas is still $4 a gallon. And everyone holding gold gets a nice bump in real wealth.

Why does the BIS do this? Read the article and find out!!

Atlas 08-29-2013 15:34

:popcorn:

NeverMore1701 08-29-2013 15:35

Ok, sure.

Angry Fist 08-29-2013 15:39

Well, I'm going to sell blue waffle grade hookers for $4500 per hour... any takers?

NeverMore1701 08-29-2013 15:40

Discount for two?

Angry Fist 08-29-2013 15:42

No, 4 is a party.

Glocksanity 08-29-2013 16:15

Quote:

Originally Posted by NeverMore1701 (Post 20580381)
Ok, sure.

Wow, you read the whole article in two minutes? You must have mad reading and comprehension skills.

NeverMore1701 08-29-2013 16:18

I have mad BS detecting skills.

.264 magnum 08-29-2013 16:19

Quote:

Originally Posted by Glocksanity (Post 20580377)
FOFOA really does a good job of explaining how this happens.

http://fofoa.blogspot.com/2013/08/five.html

The BIS basically wakes up one day and says, 'Hey, we buy gold for $55,000 and we sell it for $56,000.

Boom. Paper markets for gold at $1,400 collapses and we have a new price for gold.

Bread is still $2 a loaf. Gas is still $4 a gallon. And everyone holding gold gets a nice bump in real wealth.

Why does the BIS do this? Read the article and find out!!

Dude, you are a 5150 candidate.

hpracing007 08-29-2013 16:21

A major asset class goes up 3900% and the price of everything else remains the same? Not worth reading.

Glocksanity 08-29-2013 16:50

Hey, I'm just trying to give some Glockers a heads up on securing their financial future.

A word to the wise is sufficient.

KevinFACE 08-29-2013 16:57

Quote:

Originally Posted by Glocksanity (Post 20580570)
Hey, I'm just trying to give some Glockers a heads up on securing their financial future.

A word to the wise is sufficient.

What book / site / membership are you trying to sell?

NeverMore1701 08-29-2013 16:57

Quote:

Originally Posted by Glocksanity (Post 20580570)
Hey, I'm just trying to give some Glockers a heads up on securing their financial future.

A word to the wise is sufficient.

Haaaaaaaaaaaahahaha :rofl::rofl::rofl::rofl::rofl:

Dennis in MA 08-29-2013 17:01

So now the world currency markets WON'T collapse? I'm having a hard time keeping up.

hpracing007 08-29-2013 17:04

Okay... In very simple term, if your gold all of a sudden had a price of 55k oz, would you not exchange some if your gold for something else? If not you, wouldn't the other who own gold?

What do you think would happen when the supply of gold for sale skyrockets?

When gold somehow rockets up to that number, I would not be able to afford as much of it, and there are many other assets I could purchase which are relatively cheaper. There would be much less demand for gold. What do you think would happen then?

Glocksanity 08-29-2013 17:04

Quote:

Originally Posted by Dennis in MA (Post 20580592)
So now the world currency markets WON'T collapse? I'm having a hard time keeping up.

That's okay. The only thing worth keeping up, well other than that thing, is your stack of gold.

Dennis in MA 08-29-2013 17:24

Quote:

Originally Posted by hpracing007 (Post 20580596)
Okay... In very simple term, if your gold all of a sudden had a price of 55k oz, would you not exchange some if your gold for something else? If not you, wouldn't the other who own gold?

What do you think would happen when the supply of gold for sale skyrockets?

When gold somehow rockets up to that number, I would not be able to afford as much of it, and there are many other assets I could purchase which are relatively cheaper. There would be much less demand for gold. What do you think would happen then?

Yup. IF that happened, prices would drop very quickly as there would be no liquidity.

Glocksanity 08-29-2013 17:39

Quote:

Originally Posted by hpracing007 (Post 20580596)
Okay... In very simple term, if your gold all of a sudden had a price of 55k oz, would you not exchange some if your gold for something else? If not you, wouldn't the other who own gold?

What do you think would happen when the supply of gold for sale skyrockets?

When gold somehow rockets up to that number, I would not be able to afford as much of it, and there are many other assets I could purchase which are relatively cheaper. There would be much less demand for gold. What do you think would happen then?

Actually, that is a very good question! And your reasoning is right on. This is all about getting gold to flow.

What most people don't realize is that the flow of gold is getting reduced to zero. I am not talking about a little bullion here and there, I am talking about the real wealth accumulation of bullion by nations, oil producers, and the giants of wealth in the world. At current prices it is getting frozen and the only way to get gold flowing again is to raise its price in real terms, not just notional terms. That is why it must rise while everything else stays the same in price.

Gold must flow. That concept is not taught in the West so it is foreign to economic theory here. But soon gold flow will come to a standstill and the only way to release it is to jack up the price. And with all the money printing of the last twenty years, $55,000 is about the right price for gold to get moving again.

Read the article for a much much better explanation.

Restless28 08-29-2013 17:40

Y'all are wasting your time with the goldbug. He won't budge from his fantasy position.

Glocksanity 08-29-2013 17:41

Quote:

Originally Posted by Dennis in MA (Post 20580649)
Yup. IF that happened, prices would drop very quickly as there would be no liquidity.

The article addresses exactly what you are talking about.

But what you don't realize is that most gold is not currently moving at the low paper prices of today.

Read the article and you will realize that at $55,000, there actually will be liquidity where it really matters, among the giants!

Atlas 08-29-2013 17:47

Everyone asserts that there can be no radical (by today's market rate) upheaval in the price of precious metals, and yet the counterpoint is still:


what defines the limits of (the ongoing) devaluation of the dollar?



.

Restless28 08-29-2013 17:50

Backup has arrived.

tehan2 08-29-2013 17:51

Quote:

Originally Posted by Angry Fist (Post 20580394)
Well, I'm going to sell blue waffle grade hookers for $4500 per hour... any takers?

Since this is a money/investment thread (of sorts), let me do the math

At $4500 an hour, that's $75 a minute. At 90 seconds per "incident" that's
$112.50 per said "incident"

or

dinner for 2 with a couple drinks at "the olive garden"
$75 including tip
movie for 2 with popcorn and soda
$45

repeat for second date, maybe 3rd

forget it.... can you get me the phone number of the Blue Waffle?

Atlas 08-29-2013 17:51

Quote:

Originally Posted by Restless28 (Post 20580716)
Backup has arrived.


You care to field the question then I assume?

Glocksanity 08-29-2013 17:55

Quote:

Originally Posted by Restless28 (Post 20580716)
Backup has arrived.

At least read the article and make an intelligent rebuttal to the arguments on why this will happen.

To just dismiss it out of hand suggests ignorance rather than an honest intellectual examination into the argument.


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