TESCO Buying Gold! omg they are tin foil hatters too!

PasturesNew

Fiat money refers to the fake money that banks generate in order to lend it out willy nilly.... you could say it stands for: F*ckin' Int Anything There!

Cleaver

PasturesNew wrote: »

Fiat money refers to the fake money that banks generate in order to lend it out willy nilly.... you could say it stands for: F*ckin' Int Anything There!

My understanding is that's it's also the money you have in your bank account, or the twenty quid note you have in your back pocket. It's any money that isn't tied to something else, like the price of gold. It isn't just money that is lent out.

Derivative

Cleaver wrote: »

My understanding is that's it's also the money you have in your bank account, or the twenty quid note you have in your back pocket. It's any money that isn't tied to something else, like the price of gold. It isn't just money that is lent out.

The £20 in your back pocket was lent out at some point. More debt exists in the world than assets. Has been that way for a long while now (probably not soon after fractional reserve banking became commonplace).

Cleaver

EdgEy wrote: »

The £20 in your back pocket was lent out at some point.

Well I guess that's technically true, in that it isn't tied to anything. But you would not ever really say that I've 'borrowed' that £20.

vivatifosi

chucky wrote: »

if you had said silver in your post i would have said 100% agreed.

but (IMO) gold is a little bit different, it's virtually become a currency in itself so i don't think what you would say would apply.
i'll let the purch's or generali's comment more on this point though.

I don't know the answer chucky and would want to hear this from several sources across different countries. However I don't think that jewellery prices have risen as quickly as that of the raw material, so there must be some price sensitivity at the manufactured end. I've read in the past that gold the material is 1/4 of the cost of gold the manufactured jewellery product. You can buy a basic curb chain in 9ct gold from £15 per gram upwards, about twice what Tesco is paying (curb chains are one of the easiest forms of jewellery to make and therefore among the cheapest).

I've seen figures for jewellery as a percentage of the gold market from 50% to 80%, a huge range. But wherever it sits on that range, if the market does feel toppy I don't see how such a big segment can't have an impact on the investment value.

However one comment is a long way from a market movement. It is interesting to think through potential consequences though.

ViolaLass

In what way exactly is Tesco a Jewish company?

pwllbwdr

ViolaLass wrote: »

In what way exactly is Tesco a Jewish company?

Not to mention that "Tesco" aren't actually "buying up" gold and silver.

greendollar

Just a quick search and you'll find that 9ct gold is selling for £10 + a gram making Tesco's £7.81 pretty poor .......if you've got gold to sell don't take it to Tescos

Really2

ViolaLass wrote: »

In what way exactly is Tesco a Jewish company?

I must admit the pig based products don't look that Jewish.

WhiteHorse

Graham_Devon wrote: »

You could be on to something there. £1.6bn profit for 6 months is chicken feed when you think about it.

bengalknights wrote:

They have £2.8bn in the bank plus a further £30bn available in credit line on top of the £3.4bn profit

Accounts can be made to say anything. Paper profit and a line of credit do not add up to much when it comes to the crunch.

There are plenty of signs that there is not quite the amount of liquid cash in the business that they would like the market to suppose.

Nor are Tesco the only large company to be in this situation.