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Costco gold bars are selling out within hours

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Re: Costco gold bars are selling out within hours

#71

Earlier quoted context omitted.

You don't need to lose trust in the system as a hole. Only in the fact that the system serves you. Bank accounts gets frozen all the time and for a variety of reasons.

Like supporting the free speech rights of some truckers (now matter how misguided and annoying they might have been). De-banking people for wrongthink is absolutely terrifying, because any of us could be next depending on the mood of the current government.

Define "supporting the free speech rights"?

Re: Costco gold bars are selling out within hours

#72
post #67

Earlier quoted context omitted.

In Britain they're called "gold sovereigns", though I've never heard of anyone owning one — only from references in James Bond films and so on. I wasn't aware the nominal value was £1.

Lots of wealthy buy these by the tube. Being legal tender they are free of VAT and CGT on sale, which isn't true of investment grade gold biscuits.

False, you pay CGT on investment gold in almost all countries.

Re: Costco gold bars are selling out within hours

#73
post #15

Earlier quoted context omitted.

Physical gold might have value in situation where financial institutions and markets start to lose any trust in themselves. Either by manipulation, government confiscation or fraud. But, things will be pretty bad at that point from every viewpoint. As essentially global markets are crashing. On other hand, in even bigger crisis gold won't be that valuable at least for a while. If food and fuel are first priority peop…

I don't understand why people keep thinking that a financial meltdown means societal meltdown. There's plenty of places where the economy is or has already melted down even right now -- Sri Lanka, Argentina, Venezuela, etc. We can observe what happens when political institutions completely and utterly collapse, because it's happened multiple times already . What happens is not immediate apocalypse where people riot a…

Sri Lankan here. I personally experienced this last year and was very surprised. We Sri Lankans love to criticise ourselves for our wonky moral compasses, so when the early protests started, I stocked up on food and installed an extra CCTV camera, expecting widespread riots and looting. They never came. There were many organised protests, and protesters did clash with riot police around government buildings, but people overall were unusually helpful toward each other.

Several times, I had taxi drivers refuse to accept fare when they picked me up from a bus stop late at night (both petrol/gasoline and buses were in short supply for a while). Once a motorcyclist literally stopped by and handed me his spare helmet saying "If you're heading my way, I can take you". Many people (including my wife and I) drove around distributing food and supplies to folks we felt were in need. It's hard to describe what came over us, but it seemed like a common phenomenon that affected a lot of people.

I still think if food became really scarce, selfish, violent behaviour would have emerged. But fortunately it never came to that and the country managed to go into a debt restructuring program with the IMF.

Re: Costco gold bars are selling out within hours

#74
post #60

I struggle to find the value in keeping gold. You can't eat it. You can't use it as a tool. You can't even buy groceries with it (well at least today. Point is: it's not a liquidity). But yes, maybe you'll be able to make a profit in the future, by selling it to people who can't eat it or use it as a tool either. Or I guess trade it to save your life in a hypothetical future scenario. It's just a weird way of keeping…

Could you not say the same thing about cash? The one difference here is it a defacto nation-agnostic currently that can (because we decided to) be easily traded nearly anywhere in the world. One advantage of it is the relatively fixed supply. It's still all made up but at least you can touch it and carry it with you. Land is great, but you can't take it with you.

> Could you not say the same thing about cash?

Cash is how taxes, payments for state services, public workers salaries, and public investments are specified. If the goal of cash is to serve as money then those all on themselves already set very concrete measures of value.

Re: Costco gold bars are selling out within hours

#75
post #15
post #8

I'd love to see an economists take on the value to a consumer of holding gold in this form, at the price. Investment gold is usually kept in vault, and you trade ownership arms length. Direct gold ownership is rife with risks: fineness, substitutions and overpriced purchase. Yes, you can always sell at a mall gold trader but that's way way off market price. So it's an inflation hedge with a lot of cost and risk and d…

Physical gold might have value in situation where financial institutions and markets start to lose any trust in themselves. Either by manipulation, government confiscation or fraud. But, things will be pretty bad at that point from every viewpoint. As essentially global markets are crashing. On other hand, in even bigger crisis gold won't be that valuable at least for a while. If food and fuel are first priority peop…

If things have collapsed far enough where physical gold is the only currency, physical gangs will be out there confiscating said gold from physical corpses not in said gangs. The word for a catastrophe where middle-class people survive without being press-ganged into a military or otherwise being placed under the thumb of a strongman is "contrived" or, perhaps, "fictional". If you want a collapse, look at what happened in Russia in 1917, or Cambodia in 1970.

Re: Costco gold bars are selling out within hours

#76
post #8

I'd love to see an economists take on the value to a consumer of holding gold in this form, at the price. Investment gold is usually kept in vault, and you trade ownership arms length. Direct gold ownership is rife with risks: fineness, substitutions and overpriced purchase. Yes, you can always sell at a mall gold trader but that's way way off market price. So it's an inflation hedge with a lot of cost and risk and d…

It's not actually that stable of an investment vehicle, sure price have generally been going up over the past ten years, but if you bought gold in around 2012, you would have lost money if you where not able to hold on to it for another eight to ten years.

Personally I think the prices might be to high and a drop is coming. To keep the market moving someone is now trying to create a new market segment and is attempting to pull in new customers, apparently via Costco. This is either to prevent a slump in sales or to offload gold holdings before the price starts dropping.

Re: Costco gold bars are selling out within hours

#77

Earlier quoted context omitted.

Like supporting the free speech rights of some truckers (now matter how misguided and annoying they might have been). De-banking people for wrongthink is absolutely terrifying, because any of us could be next depending on the mood of the current government.

Define "supporting the free speech rights"?

https://en.m.wikipedia.org/wiki/Section_2_of_the_Canadian_Ch...

Re: Costco gold bars are selling out within hours

#78
post #55
post #38

Earlier quoted context omitted.

Aluminum is 3rd most abundant element in earth crust. Gold is 75th most abundant. I don't think so. https://en.m.wikipedia.org/wiki/Abundance_of_elements_in_Ear...

pure gold does exist in nature, pure aluminum not so much

Right, that's exactly why aluminum had such a wild swing in value.

Gold is not hard to extract, so that won't happen with it. Instead it's hard to get in any form, so people can dig out more but the cost of extraction keeps increasing.

Re: Costco gold bars are selling out within hours

#79
post #8

I'd love to see an economists take on the value to a consumer of holding gold in this form, at the price. Investment gold is usually kept in vault, and you trade ownership arms length. Direct gold ownership is rife with risks: fineness, substitutions and overpriced purchase. Yes, you can always sell at a mall gold trader but that's way way off market price. So it's an inflation hedge with a lot of cost and risk and d…

I’m not sure an economist (a mainstream economist) would really care that much about an individual holding gold. Maybe there’s an interesting behavioral question about why people become so paranoid about the value of the dollar when it’s proven to be so incredibly stable (yes, even with the recent spike in inflation—it’s nothing close to hyperinflation). But people going to Costco and buying gold doesn’t have an effe…

> why people become so paranoid about the value of the dollar when it’s proven to be so incredibly stable

Every fiat currency that ever existed collapsed at some point.

> Gold is not money. It’s never going to be money again. So why care?

Gold survived all of them. It’s still being used as a financial instrument, after thousands of years, countless wars, changes of government, complete societal collapse and reorganization…

Gold is definitely a safer long-term bet.

Re: Costco gold bars are selling out within hours

#80

Earlier quoted context omitted.

You can see it happening right now in Argentina: the local currency is worthless, and people are flocking to ... US Dollars. Not gold, not bitcoins, but good old benjamins. So gold isn't even a good inflation hedge: if you walked the streets of a failing economy (pick one: Argentina, Venezuela, Sri Lanka, there's plenty more) and tried to exchange gold for goods, you're not gonna get far (and will probably get mugged…

Why do you think that people in Argentina are flocking to Dollar and not to Bitcoin or Gold? When I look at the search trends in Argentina, I see Bitcoin in a very volatile longterm uptrend, Gold in a longterm downtrend and the Dollar being constantly a distant third: https://trends.google.de/trends/explore?date=all&geo=AR&q=go... Over the 20 years which the Peso has been devaluing, Bitcoin has outpaced the others by…

Do people in the USA do a Google search for Visa or Mastercard when they want to pay for something? Of course not, they just use their credit card.

It’s the same with dollars in places where it’s an actively used alternative to devaluating national currencies. You don’t search for “dollar” online, you just buy and sell in the street and use it to pay for things directly.

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