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Old 01-15-2013, 07:19 AM   #61
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$5800 is about 108 grams gold. That translates to about 5.613 cc/cm3, or a cube about 1.777 cm each dimension. If they could get hold of a real gold bar at 28-30 pounds, then someone probably would get their wrist/foot hurt by passing it around.

I heard that some investors even have already distributed their physical gold holdings across multiple vaults in different geographic locations to reduce their risk. Go figure who is capable of and will be trying really hard to go after those gold bars during crisis. About a country's official gold reserve figure, how can it be independently verifiable by other sources/countries, or it's better not to open this Pandora's box?
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Old 01-15-2013, 07:33 AM   #62
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I had a brief professional relationship with the NY Fed. They once gave me a private tour of the gold vaults. Part of the tour was holding one of those gold bars. They give you metal clog like things that go over your shoes to make sure you don't hurt yourself.

Before they handed me one of the gold bars, they warned me it would be heavier than I was expecting. Even with that warning, it was much heavier than I was expecting. I then understood why I had to wear the metal clogs.
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Old 01-15-2013, 09:21 AM   #63
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For those who may be interested in gold as pivotal part of the economy, this article may be interesting. It details the movement of gold from the NY Fed to the German Bundesbank.
Bundesbank to repatriate gold from Paris and NY - The Local
The link to visual representation of physical gold (in a previous post) shows the dichotomous relationship of liquid asset location to trust in international banking.

This movement of physical gold is the first in some time. It should be interesting to see if the coming year will see more of this rebalancing.
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Old 01-15-2013, 09:22 AM   #64
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A visual on who owns and where the world's gold is:

Gold - Visualized in Bullion Bars


Interesting..... and I can see they had a young person proof the copy... from the site...

"This is how much Gold the average man could haul in his truck without braking the suspension"


I have seen this many times where they use the wrong break...
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Old 01-15-2013, 09:38 AM   #65
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Is there any point in having a gold reserve since the dollar is not tied to it now?
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Old 01-15-2013, 09:43 AM   #66
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Is there any point in having a gold reserve since the dollar is not tied to it now?
I think it's there so the Pres can have some way to buy cigarettes if the fit really does hit the shan.
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Old 01-15-2013, 09:45 AM   #67
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Question from a very unsophisticated potential investor.

Am 100% risk averse, but have been getting some "feelings" from friends, and a few goldbug websites that owning physical gold may be a good hedge right now.

Would like to hear some thoughts from those who know about these things. Mainly, safety... thinking four or five years out.
IMH) You gotta be nuts.
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Old 01-15-2013, 06:37 PM   #68
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Like others, I have difficulty investing in treating gold as a mainstream investment becuase of its lack of measurable fundamentals. That said, we have a few ounces tucked away in a safe deposit box "just in case" and a larger but not material investment in paper silver which was made in an attempt to diversify our portfolio somewhat.

I have recently opened a position in platinum.
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Old 01-16-2013, 12:27 PM   #69
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Like others, I have difficulty investing in treating gold as a mainstream investment because of its lack of measurable fundamentals...
But it's shiny!
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Old 01-16-2013, 12:39 PM   #70
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But it's shiny!
And nobody should underestimate humans' attraction to shiny things...
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Old 01-16-2013, 03:10 PM   #71
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Originally Posted by imoldernu
Question from a very unsophisticated potential investor.

Am 100% risk averse, but have been getting some "feelings" from friends, and a few goldbug websites that owning physical gold may be a good hedge right now.

Would like to hear some thoughts from those who know about these things. Mainly, safety... thinking four or five years out.
Some of your net worth in physical precious metals is not a bad plan.

Personally I have about 1% of my liquid net worth in pre 1933 gold coins and bags of Mercury Head dimes / Walking Liberty halves. Would like to gradually move that to 2%. There is just a comfort feeling in holding real money in your hand. Paper bills , bank statements, brokerage numbers as they update in real time on your computer - just too abstract a value concept.
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Old 01-16-2013, 06:58 PM   #72
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Some of your net worth in physical precious metals is not a bad plan.

Personally I have about 1% of my liquid net worth in pre 1933 gold coins and bags of Mercury Head dimes / Walking Liberty halves. Would like to gradually move that to 2%. There is just a comfort feeling in holding real money in your hand. Paper bills , bank statements, brokerage numbers as they update in real time on your computer - just too abstract a value concept.
I'd rather have shortstops.
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Old 01-17-2013, 04:25 PM   #73
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I don't guess that anyone would be interested in this blog about gold, and the world economy, but am leaving the link here... to perhaps return to a month or three from now...
It's just a blogger's view of gold.
A new Gold Standard is being born – Telegraph Blogs
The guy makes sense to me, but talk is cheap.
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Old 01-18-2013, 06:56 AM   #74
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Thanks for sharing the blog. Gold is worth not too much all by itself, but it serves special and important role because it can not be easily QEd just by punching extra zeros via computer keyboard. Like the blogger said:
Quote:
A third reserve currency is just what America needs. As Prof Micheal Pettis from Beijing University has argued, holding the world’s reserve currency is an “exorbitant burden” that the US could do without.
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Old 01-18-2013, 09:15 PM   #75
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<SNIP>

"This is how much Gold the average man could haul in his truck without braking the suspension"


<SNIP>
Taking this 90 degrees to the right (or left depending upon your chiral affinity): With gold at about $1700/(t)oz, your same truck could cart around about the same weight in US$50 bills. Only problem is not everyone recognizes (or accepts) US currency and your truck would be bulging with bills instead of it's floor being lined with "celestial paving stones". This is all in the FWIW department, so YMMV - and be sure to check your breaks (er, brakes) even for the "Grants".
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Old 01-19-2013, 12:52 AM   #76
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I have a fair amount of my net worth invested in PHYSICAL gold/silver (more gold than silver). Given that bonds offer horrible risk/reward right now and stocks are just getting goosed higher by central bank manipulation, I don't know why anyone wouldn't want 10% or a little more of their portfolio gold.

When contrasted to FRNs, precious metals really do give you a warm fuzzy feeling inside.
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Old 01-19-2013, 01:56 AM   #77
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Buy gold only to keep in reserve for true economic calamity. And if that is the reason to own it you would not sell it at any price unless our currency is worthless. Better to invest in producing assets. 'Ya know, people will always buy soap (PG) and ketchup (HNZ). Best to be an investor rather than a trader.
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Old 01-19-2013, 01:59 AM   #78
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Buy gold only to keep in reserve for true economic calamity. And if that is the reason to own it you would not sell it at any price unless our currency is worthless. Better to invest in producing assets. 'Ya know, people will always buy soap (PG) and ketchup (HNZ). Best to be an investor rather than a trader.
I agree. Staples where companies have got the the consumers no matter what should do well.
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Old 01-19-2013, 08:39 AM   #79
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Buy gold only to keep in reserve for true economic calamity. And if that is the reason to own it you would not sell it at any price unless our currency is worthless. Better to invest in producing assets. 'Ya know, people will always buy soap (PG) and ketchup (HNZ). Best to be an investor rather than a trader.
+1
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Old 01-19-2013, 10:46 PM   #80
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I have a fair amount of my net worth invested in PHYSICAL gold/silver (more gold than silver). Given that bonds offer horrible risk/reward right now and stocks are just getting goosed higher by central bank manipulation, I don't know why anyone wouldn't want 10% or a little more of their portfolio gold.

When contrasted to FRNs, precious metals really do give you a warm fuzzy feeling inside.
Shotshells and ammo give me a much warmer, fuzzier feeling. There is currently a silly panic going on and ammo is now scarce. Looks like I could sell some of my stash for 2 to3 times what I paid for it over the last 6 months.
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