Gold

[Bjauck]

Interesting view from Forbes on returning to a gold standard. Seems unlikely, but China certainly has a strong affinity to gold.

https://stockhead.com.au/resources/g...0says%20Forbes

I guess Gold in your own vaults cannot be confiscated by an enemy unless they successfully invade your country.

[Bjauck]

Yep, the difference between bid & off = spread.
There are always physical premiums or location discounts to consider but these are typically very small.

For comparison the bid / offer spread on CMC markets is typically around 40c.

I have seen some American coin dealers occasionally offer coins at spot price and even - rarely - below spot price! Presumably they are marketing and publicity strategies.

Of course, being physical items, you need to check on the costs of freight.

[Daytr]

I guess Gold in your own vaults cannot be confiscated by an enemy unless they successfully invade your country.

The US Government confiscated gold in the 1930s, it was really the start towards what would be the decoupling from the gold standard.

[Bjauck]

The US Government confiscated gold in the 1930s, it was really the start towards what would be the decoupling from the gold standard.

During the depression to try to stimulate the economy, They nationalised with compensation gold from their own citizens. There were exemptions.

[Daytr]

During the depression to try to stimulate the economy, They nationalised with compensation gold from their own citizens. There were exemptions.

Yep but the Government set the price.
I wonder who got exemptions?
Anyway I'm just pointing out that even in a country like the US the so called land of the free things like this can happen.

India has done something similar by raising duties on gold to try & modernize the rural economy.

[Bjauck]

Yep but the Government set the price.
I wonder who got exemptions?
Anyway I'm just pointing out that even in a country like the US the so called land of the free things like this can happen.

India has done something similar by raising duties on gold to try & modernize the rural economy.

They compensated at about $20/ounce which was the price (and face value of a gold eagle coin) for years but then they revalued gold to about $35/ounce!! Difficult times, can result in drastic actions. American exemptions included industrial uses, and a personal allowance of 5 ounces.

With respect to sovereign reserves, gold in vaults in your own country are safer than foreign currency funds. For example Russian sovereign foreign currency funds held overseas were effectively blocked as Europe and the USA prohibited transactions with Russia’s Central Bank. Whereas Gold from your own vaults would not be encumbered and Russia could use them to transact with friendly countries. China would have taken note.

Edit: Info. on prosecutions was incorrect.

[airedale]

To move to another definition of margin or spread or profit margin. If one buys an ounce of gold at NZ 3,000 dollars from a reputable dealer. What would the dealer offer if it was offered back to him the next day [assuming the bullion and exchange rates stayed the same].

[Daytr]

To move to another definition of margin or spread or profit margin. If one buys an ounce of gold at NZ 3,000 dollars from a reputable dealer. What would the dealer offer if it was offered back to him the next day [assuming the bullion and exchange rates stayed the same].

All I would suggest is, you don't do that.

[ynot]

To move to another definition of margin or spread or profit margin. If one buys an ounce of gold at NZ 3,000 dollars from a reputable dealer. What would the dealer offer if it was offered back to him the next day [assuming the bullion and exchange rates stayed the same].

Whatever the NZ margin is the loss you experience with the dealer will be minimised in a rising market if that's any consolation.

[Daytr]

Reportedly China has paused its gold purchases. Always hard to know with Chinese data but last month holdings stayed static after significant purchases over the last year or two.
I hear they are pretty well stocked with copper as well.
It will be interesting to see if it's a data blip or short term thing, which that latter I suspect is correct.