Gold at record price today

Over £1,600 an ounce

Silver ratio way off

Silver rally incoming?

Yes all time high yesterday, gold price in UK £1611, on it's way to £2000 an oz. At last the metals are wakening up to our inflation.

All our other bills are up 25% this past year not 10,1% as Mr Hunt tells us.
Add 25% to £1600 is £2000.

But gold is not really going up, remember it is the £ that is going down. Toast really!
Hope the next Bank to have problems is not our Central Bank of England eh!

Hunt is not a safe pair of hands, he couldn't even run Health. He's no different from Kwasi Kwarteng or Liz Truss, who are all of these people? Where did they come from?

Keep on changing your fiat into real money. Protect your wealth now.

And here I am tempted to sell a tube of 1/10th gold to help fun my wifes car. I dont think so.

Hmmm I think I will be holding onto my precious metals for now.

They are using the ESF that would normally be used to smack down the gold price to fund the bail outs of the failed banks.

Well a small climb down from $2000 but I have the impression it will soon be back.

Credit suisse has gone this week, which bank will it be next week.

I read an interesting report that the the $200 billion US bailout figure has ballooned to $2 trillion, the Federal Reserve has effectively committed to printing $2 trillion in a week, which is unprecedented.

SanMarino wrote:Well a small climb down from $2000 but I have the impression it will soon be back.

Credit suisse has gone this week, which bank will it be next week.

I read an interesting report that the the $200 billion US bailout figure has ballooned to $2 trillion, the Federal Reserve has effectively committed to printing $2 trillion in a week, which is unprecedented.

Credit Suisse were to be bought out by UBS who took a 14% hit to their share price the moment this was announced and now the whole thing is being backstopped by the US Fed. This can't possibly end well, the policy being announced seems to be everyone willl be bailed out, currently all the small banks in the US are being propped up by the big banks and this will certainly apply to the too big to fail banks. So it's effectively risk off for all the financial institutions, they can be as reckless as they like and take as many gambles as they like in the knowledge they will be covered.

Combine this with the big political debate in the US about raising the debt ceiling but wait until they inevitably do raise the debt ceiling and then find out nobody want's their treasury bonds. They always did buy them themselves as the US is the only country never to have a failed bond auction but all this all adds up and compounds their problems.

They have too many plates spinning at the one time IMO

The Fed rate decision will be interesting, keep raising rates and let the people eat massive inflation or pivot and head back to negligable interest rates with massive money printing, either way they are stuck. If they pivot there will be one last hurrah in cryptos and the stock market as all that currency looks for something to buy.

They are gunning for Crypto. And it shows. Any bank in its way is smacked down and wiped off the face of the earth.

Scary time not to have liquid money in both bullion and physical cash. Yes Physical cash will be for those who are slow to keep up... and are the first to fall.

@Admin please could you explain to this rookie what you mean when you say "Physical cash will be for those who are slow to keep up... and are the first to fall." Thank you

physical fiat money is based on an IOU and ultimately confidence of the country to pay it back aka the health of their economy

Having some cash is fine but there is the risk that there comes a point during an inflationary cycle depending on how bad it is that all your cash is doing is losing purchasing power as it devalues, something holding gold instead negates.
I remember reading a story about some guy, he might have been Polish but I can't remember for certain who planked thousands in cash away when he was younger and in his old age gave it to his granddaughter in order to solve all her woes during the last financial crisis upon which his granddaughter told him that his notes had been done away with years ago and were not even recognised today.

Thanks  @SanMarino and  @Rod Panhard. Rod, that is a scary story
I have to get my head around the definition of fiat money. I sort of get it, but could use an idiot's guide. All I know for sure at the moment is that I like shiny coins with great artwork on them and that tell a story of some kind. I think at the moment I'm more of a collector than a stacker, but would like to become more of a stacker with the way the world's economy is going. How to make the transition? I'd really love to hear other people's experiences!

Bondie wrote:Thanks  @SanMarino and  @Rod Panhard. Rod, that is a scary story
I have to get my head around the definition of fiat money. I sort of get it, but could use an idiot's guide. All I know for sure at the moment is that I like shiny coins with great artwork on them and that tell a story of some kind. I think at the moment I'm more of a collector than a stacker, but would like to become more of a stacker with the way the world's economy is going. How to make the transition? I'd really love to hear other people's experiences!

The beauty of buying gold is you are not really parting with your cash, you are just swapping it out for another form of currency, one that has proven itself over thousands of years and is regarded as real money.  you get the feeling of spending and the "retail therapy" this brings but in reality you have not really parted with your cash only transferred it.  Over the long term you will never lose out, metals can go up and down and you can go through bear markets that can last years but it always keeps up with inflation over the long term and is vital insurance against hyper inflation.

 I'm really talking about gold here more than silver, during a crisis silver always tends to sligshot higher than gold and is currently massively undervalued IMO so is worth having some but gold is the daddy, it's gold that's the Tier 1 asset and it's gold the Central Banks hold, it's easier to liquidate than silver and currently if you are in the UK it's easier to buy you are not having 20% VAT taken off you like you are with silver and the premiums are more realistic.  i would say go for collectable stuff when the trend is downwards in the price of metals but just go for the cheapest bullion you can find when the trend is upwards.

I forgot to add until the 70s money was based on either the gold standard or at times the silver standard

This has not been the case for a while

Thanks again  @SanMarino and  @Rod Panhard
Lots to think about there, Rod!
Does anyone else have any thoughts to share with the rookie?

Debt is the killer
It killed the British empire economically speaking and the USA took over
It will will kill the USA empire economically when a rival emerges which is likely to be a Chinese digital Yuan backed by gold

I must admit I hadn't considered gold as an option, mainly because I don't like the colour especially (weak reasoning, I know), but am I being short-sighted? Would both silver and gold be a wise strategy? This is a really helpful discussion - for me anyway!

Bondie wrote:I must admit I hadn't considered gold as an option, mainly because I don't like the colour especially (weak reasoning, I know), but am I being short-sighted? Would both silver and gold be a wise strategy? This is a really helpful discussion - for me anyway!

I think we vered off to a SHTF senerio and if that's the case, money will be fast for quick things. Second security for your other precious metals .
If TSHTF than you better know a guy. LOL

No more in that

Bondie wrote:@Admin please could you explain to this rookie what you mean when you say "Physical cash will be for those who are slow to keep up... and are the first to fall." Thank you

So As you know I posted under my alt account AceBullion.

I was using a basic SHTF or Stuff hits the fan scenario . Should that happen you wont have access to physical cash, something I have seen happen across the globe. I am a firm believer in having a little bit more cash than you need on hand. For emergencies such as a cooker needs repair or a car bill or if the SHTF. IF banks closed their doors and you could not take out money, I could take my cash and make it to a airport with my family in time with my gold and silver, and move to America in about 3 hours tops. Long before the actual problems or potential collapse happens fully. Airlines will still fly and My cash is good there. Yes I would still have a bank account but it is a emergency back up. I also have a pile of American Dollars in hand as well. This is a insurance policy and it gets renewed when family or friends visit me I exchange it with them for pounds.... But it is a emergency exit that I have always had in place.

If the Pound or Dollar collapses than it is no good unless your dealing with local people who might not be aware and you might need to use it as a quick exit.

I hope that helps. I do not believe in holding onto a vast sum of money, but having some physical cash is always a good thing.

Thanks  @Admin That's really helpful, and lots more to consider  What are your thoughts regarding gold vs silver, if you don't mind me asking?

I think this is my 100th post, btw. I must be enjoying the forum

Bondie wrote:Thanks  @Admin That's really helpful, and lots more to consider  What are your thoughts regarding gold vs silver, if you don't mind me asking?

I think this is my 100th post, btw. I must be enjoying the forum

That is a tough one to answer. People naturally turn to gold but silver has always been there in the shadows.
I want to add another metal, platinum. All 3 are great. Gold for higher purchases and Silver for lower. Platinum is a in-between metal.

I like to keep you on your toes  @AceBullion
I also like your answer, and the way you've lobbed platinum into the mix... thank you!

Both platinum and palladium shot up in price when they began fitting up catalytic converters to every car, the short squeeze on these led to huge increases in prices. The good thing about both these metals is they have no history as monetary metals so the "cabal" are less inclined to try an manipulate the price doownwards. This is not the case with gold and silver because they both have history as actual money.

Interesting  @Rod Panhard There's a lot to learn!

If you are of the belief that the gold to silver ratio will return to its historic 1:15 and not the 1:65 average which has been the case since they removed the gold standard from currency , then silver is arguably the better bet

SanMarino wrote:If you are of the belief that the gold to silver ratio will return to its historic 1:15 and not the 1:65 average which has been the case since they removed the gold standard from currency , then silver is arguably the better bet

It is one heck of a stretch. But those " historic " numbers were not really that historic. That Ratio lasted for about 15 years. But since it has fallen to a ratio that is not appropriate. I don't think Silver will shoot up to the moon.... But I cant see Gold plummeting to £800 per oz. either.
So hmmm