The mainstream financial media is looking at this the wrong way. It’s not gold that’s going up, but rather the dollar that is going down. For the most part, all the derivative currencies are doing even worse. The main reason is not imminent hyperinflation but rather fear of default as the fiat debt burden continues to rise exponentially.
Gold futures surged to around $3,750, while bullion for immediate delivery traded above $3,700 per ounce.
Of course, that’s why it was considered a standard. A full gold bar will still buy a house, as it did in the past, it has intrinsic value. so that means the currency has changed ‘value’.
All currency is fiat, subject to the whims of the government as to what it’s worth.
I wouldn’t trade my gold in for canadian pesos, they are worthless, but i’d trade you a handful of .22’s for a chicken, or some eggs, i’d fix your tractor if you’d dig the hole for my foundation..
My dad bought our home in 1961 for C$14,800 – or about 400 oz of gold at $35 per oz. A few years back, when was gold was around C$2,500, a house down the street from my old place sold for C$1 million – or about 400 oz. of gold. But I don’t think even real estate is going to keep up with gold now
In 2014 I bought some silver Maple Leaf coins for $21/ounce. Today’s spot price is $61.
All fiat currencies will eventually lose their value especially when govt prints more currency to ‘stimulate’ the economy.
Al_in_Ottawa
The problem with silver is its relative high premiums on it vs value.
If you sold it, the buy price is $51. Plus Cap gains if not a cash sale. Still a profit, but tempered.
On the other hand, AU has provided a great paper profit!
“Why don’t we sell some honey?.”
“Because we don’t NEED to”
I got mine when the Biden/Trudeau govs went mad during Covid. It was clear these miscreants don’t care about inflation, or finances. The value of fiat currency was guaranteed to get worse, much worse.
Given the current trajectories of both US and Can governments (yes, Trump’s gov), the debasement shall continue and accelerate.
If/when gold, hits $10k/oz, it’s still cheap today in relative terms.
The interest the debt is generating will suffocate governments soon. At their current rates, it will happen during our lifetime.
Hope everyone has assets outside of the monetary system. It’s almost too late.
Gold, Silver, and Copper are 5000 year old forms of storage of wealth whether used for exchange or not.
“Paper money (and digital) eventually returns to its intrinsic value – zero.” ~ Voltaire
Every past empire/civilization went down this road.
Devaluing the coin of the realm.
Adding lead to their silver coin until none would accept it.
Fiat money is theft,we have had this going on for so long we treat it as “normal”..
Until you arrive where Zimbabwe and Venezuela are.
I had been putting some silver aside,until I realized Base metals would be more important.
If you purchase from the Canadian Mint, know that they have a file on you.
As the supply of Other Peoples Money dries up,the OPM addicts will come for every pool of wealth that they have records of.
Here we go again,as another Kleptocracy implodes.
The true value of gold or silver is not measured by today’s fiat dollars, but rather, what they can be traded for when the shit hits the fan.
I have a very good friend who stores large quantities of bullets. That’s what he’s doing for when the shit hits the fan. Not just for shooting the people coming for his food … but for trading with others who have food, and are willing to trade food for bullets to secure their own family and food.
Psst … Canada appears closer to THEIR shit hitting the fan than their sister country, Cuba.
Did the amount of gold actually mined and stored actually equal the amount actually sold?
I remember an article about this years ago, there was a huge difference at the time, way oversold.
As with any commodity, buyers routinely enter into contracts to purchase supplies in the future that have yet to be mined or grown. Those contracts typically go out for one season, in the case of ag commodities for instance. I’m not aware of any imbalance larger than that, although it would make for interesting reading.
Futures are paper gold, and damages are usually limited to face value or current value, if your insurance is good.
Futures are traded, standardized contracts to deliver a specific amount of a commodity to an agreed on place, and within a set time. Legal contracts. Versus an ETF, which is the IOU version, because “Trust me!”.
You need lead to protect your gold.
Or in my case, silver.
Buy ammo in bulk.
Of course, it’s ANYTHING that trades in US$, like Crude Oil, S&P 500, or Wheat, but you all knew that, right?
I remember saying something about watching gold many weeks ago; we’ll see what happens.
I disagree. The price of gold is going up because of demand for the metal. Yes, the USD is being inflated as the fiat currency is being created at an unprecedented pace. But general commodities (e.g. copper, soy beans, sugar, platinum, nickel, oil, gas) are not going up like gold. And most major currencies are not appreciating against the USD because they are also inflating their currency. We are witnessing the greatest theft of wealth since the 1930s depression in the form of a voluntary tax that few people understand. To get out of debts owed (future IOUs), governments are deflating their currency to offset their debt obligations.
The reason for gold demand is a positioning by certain countries for a new world currency. I think they are a little early because the USD isn’t going anywhere for awhile. But when it does finally start to go …. oooohhhh mmmaaaammmmaaaaa as someone is fond of saying.