Where to sell?

All your questions about physical and paper gold
bailouts4ever
Bronze Member
Posts: 127
Joined: 08 Oct 2011, 15:36

Re: Where to sell?

Post by bailouts4ever » 17 Nov 2011, 09:18

Even worse.

Talked to a dealer recently who told me that at his business size (10 million Euro annual revenue) he does not hedge his stock at all. He just can't afford. Thus, when the market goes down due to paper influences he keeps selling at a loss just financing his business activities from cash flow. Remember the statement "as long as the money is turned I'll be ok" thus, if the velocity stops most unhedged dealers will be screwed...

Further what we can expect at this market conditions is that the spot price will further decouple from reality.

Imagine you are a dealer having bought gold at 1700$/oz. Overnight the price falls to 1300$/oz. Would you sell? No. None of the unhedged (majority) dealers will. Thus making the paper market a joke. The September 2011 silver market was a good example for this. Yes, there was a low spot price but you could not buy at these rates.
0.00 € is what your account statement will show on a long enough timeline.


User avatar
Blondie
Posts: 52
Joined: 15 Oct 2011, 12:07
Contact:

Re: Where to sell?

Post by Blondie » 17 Nov 2011, 10:19

Talked to a dealer recently who told me that at his business size (10 million Euro annual revenue) he does not hedge his stock at all. He just can't afford.
Obviously the premiums he charges are too low. :lol:
You don't own your stuff; your stuff owns you.
http://flowofvalue.blogspot.com/

User avatar
d2thdr
Posts: 13
Joined: 16 Oct 2011, 12:19

Re: Where to sell?

Post by d2thdr » 21 Nov 2011, 22:57

Rasta wrote:@Blondie

It is personal preference, but I am actually planning on selling my gold after we hit the big revaluation. Well perhaps not all of it, but certainly the bulk of it.

Gold remains an excellent consolidator of wealth, but it doesn't allow you to increase your wealth. I am planning to make "my gold" productive, by exchanging it for income generating investments. The reason for me is simple: I am still young, and possibly the wealth after the revaluation doesn't allow me to retire early. I need my wealth to grow, in order to decently retire when time comes.

The older you are, or the more you have been able to load up before the revaluation, the less need there should be to make your gold productive.
Good point. I have recently reached my planned core holding target which I set in 2008. Everything here on purchased is only for eventual sale post freegold. However, I will definitely deploy my core holding later as well if its required, though most will just lie still for the future generations.

Post Reply