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SOTP: Spot Price Swindle: Paper gold decouples from physical gold markets

From the article....

Falling prices are associated with a drop in demand, and an increased number of sellers. However, that's the exact opposite of what we are seeing in physical markets. This means that the two markets are separate, and unequal.

So what gives? People are naturally losing trust in financial institutions, so the gap between how much people value a promise from an investment firm and an actual hunk of gold is widening. In a perfect world, investors would value paper gold just as much as the real thing. In a world where the European Central Bank can steal 80% of someone's bank account in the middle of the night (that is to say, the world we live in), you can easily see how the market value of a paper promise would diverge from the real thing.

Even Germany will have to wait seven years before the US Federal Reserve Bank of New York coughs up their gold, which was supposedly waiting in a vault. If you had a friend that said he was keeping $500 bucks in his closet for you, and told you it was going to take seven years for him to get it to you in installments, would you suspect that maybe he didn't actually still have the $500?

http://shadesofthomaspaine.blogexec.com/index.php/entry/pape...

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The modern futures markets are part of the Fed Rese swindle.

Silver
http://pricedingold.com/silver/

Gold and silver prices in $FRN are crazy. It's part of the swindle.
http://www.sharelynx.com/chartsfixed/600yeargoldprice.gif

Free includes debt-free!

None of it would be possible

without infinite printed money.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

The new $100 bill

What they really need is a $1000 bill

Twenties and hundreds don't go as far as they used to.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Those Who Hold The Gold Make The Rules.

The "Spot" price is a farce, in my opinion!

Why ?

Because it represents a "wholesale" price of Gold, which almost no single individual can pay.
Can individuals buy a freight car load of sugar, wheat, pork, etc. etc.
My answer is a loud "NO"!

Therefore, local coin dealers who hold Gold in inventory can and will set prices of the Gold they hold.

beesting

When I was a kid

I used to buy silver rounds AT spot for 5 bucks. I could sell them back for 30 cents under. This spread between spot and retail is a new thing.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

What' the biggest premium over spot you've seen?

I've seen it selling as much as $11 over spot for standard bullion.

Junk silver is going for at least $7 over spot, I've seen as high as $10.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

You have to be talking silver

I consistantly see gold eagles at $60 over spot. Up until last week I was seeing silver eagles at $2-$3 over spot. Now the same shop has them at $9 over spot. I don't know the truth but it seemed like to me that they did not want to lose money on their existing stock that they bought before the correction because they are charging the same price as it was before the drop in spot. I called four other shops and two had none available and the other two were $12 and $14.50 over spot.

I went in and spoke with the shop owner and we had a good conversation about price manipulation. She had never seen a market where she cannot keep enough in stock because of high demand while prices were plummeting. She tod me that she is being charged $30 from The Mint for the next batch of silver eagles that she is getting in, and that it is due to a higher premium from The Mint.

I don't know how the contract works from The Mint. Does The Mint allow dealers to aquire the coins and pay them the price of spot on the day of sale or do dealers have to pay the spot up front and then try to sell them?

I guess I'm not alone

Yes, Silver

Gold is generally $80-100 over spot.

The mint just sells 500 coin "monster boxes" and forgets about it. You don't have to be certified to sell; anyone can buy one. But yes, these things are selling for many dollars over spot per coin.

Two prices means two goods, to me.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Monster boxes are the only

Monster boxes are the only way the "bullion" coins are sold from the Mint, and they do indeed sell only to authorized dealers. The only coins the Mint sells directly to consumers are individual proof and uncirculated, which are highly overpriced and are just for numismatists. They charge the dealers $2 per coin over spot for the silver eagles, and 3%, 5%, 7% and 9% per coin over spot for the 1/10 oz., 1/4 oz., 1/2 oz., and 1 oz. gold eagles.

Please come join my forum if you're not a trendy and agree with my points of view.

Now here is some awesome information.

I've seen monster boxes for sale, but I admit these are second-hand.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Well that makes more sense

to me because The Mint is running behind on its orders because there is so much demand. If it takes a month to deliver on an order then the shop is buying at the price of spot last month.

This shop's gold eagle price is $60 above spot even today.

I guess I'm not alone

Of course, in a month

we shouldn't expect a drop in physical prices, since shops paid the high price the entire time.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Maybe they

haven't realized the lower prices yet and will in a couple weeks; or are you saying that The Mint really is charging a higher premium than the $2 their website claims?

I guess I'm not alone

We shall see.

I think they'll run out of silver if the low prices hold out for any length of time.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Agreed

I am going to take a chance and wait. At the very least I think we have $5 to move up with the price of spot before the actual price of attaining the coin changes.

I guess I'm not alone

One thing is certain

Long term, the value of silver, gold, peanuts, marbles and garden rakes will stay mostly constant while paper currencies continue their gradual approach to zero.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Yesterday

At my shop I noticed that someone asked about a golden owl coin with two small diamonds in the eyes.

The shop owner said it would cost 1900. It was a 1 once coin.

I don't buy diamonds (except that one time) so I don't know the value of them at all. I would guess that at 1400 spot price for the coin and another 100 to 200 $.
So I would guess the premium was around 3 to 400 $.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

Yikes

Now that I think of it, I've seen Silver Eagles for sale in the Wall Street Journal for something like $45 dollars, so thats about double spot.

The price of diamonds goes by an insane factor of size, so if they were small, they could have been $20.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417