Purchasing Gold

WhiteHorse

Jegersmart wrote: »

I don't think there is an oil shortage now, I am talking about the coming decades.

Judging by the desperation with which the United States is attacking countries with oil, it may be closer than we have been led to believe.

Linton

MrInvestor wrote: »

You live in a bubble if you think that economic collapse in the UK is not possible.

Have you never heard about the economic collapse of the Russian Ruble in Russia, 1998? The Euro is on the very brink of collapse today. The USA's total debt is increasing year on year as they cannot afford to service their debt and probably still couldn't if their economy recovered overnight. What effect do you think that would have on the UK's economy?

We have the USA directly to the West, and Europe directly to the East!!

The result of this is that other economies and currencies prevail - China, Japan, India. How do you buy the much needed supplies from these countries if the Euro, the USD or even the US£ have collapsed? With the gold bullion you were so keen to snub.

You are an idiot for even saying that the thread is ludicrous. Armageddon is also a poor choice of words as it refers to total worldwide chaos - your words, not the OP'ers.

How gloriously bizarre:rotfl::rotfl::rotfl:

So how do you use your gold for personal imports of provisions from the Far East?? Send off a messenger with a bar of gold and hope he comes back with sacks of rice or whatever? After all, you cant send your bullion round the world via the internet.

Do you go into Tescos with a bag of gold dust and wait whilst the checkout people weigh it out?

You mentioned Russia - last time I looked it was still there, getting vaguely more prosperous and still apparently using roubles.

Sure currencies may come and go. Reminbi may replace the $ as the major international currency, the Euro may split, we as a nation may get relatively poorer, but there will always be a convenient means of interchange of wealth. Exchanging lumps of metal just doesnt work in a nation of 60million or a world of 8bn or whatever it is now.

sabretoothtigger

If it was possible hundreds of years ago to deposit gold and send forth a note of credit. Im pretty certain we can manage it in this day and age. Why would what has been true previously become ridiculous

So far as I know some banks will accept gold as a deposit and then allow it as security to buy shares and other assets. Not quite the same as going shopping down tesco but its a fair exchange. They use gold bars in Vietnam to buy houses, possibly because their inflation is double digits it makes alot more sense. The UK has and will see similar instability at some point

Linton

sabretoothtigger wrote: »

If it was possible hundreds of years ago to deposit gold and send forth a note of credit. Im pretty certain we can manage it in this day and age. Why would what has been true previously become ridiculous

So far as I know some banks will accept gold as a deposit and then allow it as security to buy shares and other assets. Not quite the same as going shopping down tesco but its a fair exchange. They use gold bars in Vietnam to buy houses, possibly because their inflation is double digits it makes alot more sense. The UK has and will see similar instability at some point

100s of years ago we didnt have a global industrial economy with trillions of $s worth of money circulating in milliseconds around the world. Global interchange of wealth was based on a few wealthy banking families whose name could be trusted.

Your "notes of credit" sound a bit like bank notes to me ("I promise to pay the bearer on demand..."). Presumably they will have an exchange value less than face value depending on the wealth of the merchant who issued them. How does anyone know they are genuine without the personal guarantee of the local Rothschild or whoever?

Countries would quickly re-invent paper currency. You cant feed, clothe, defend, and tax a large population without it.

We had double digit inflation in this country 30-40 years ago. I remember it well and can assure the younger particpants that it didnt lead to people paying for their cornflakes, or their houses, with gold bars or private letters of credit.

sabretoothtigger

Countries would quickly re-invent paper currency.

Currency always has a backing to it. In 1971 they decided that backing would not be gold but promises. At the time USA was an exporter of goods.
That idea is now more stretched then ever hence the calls for resumption of gold which has been exchanged physically or via notes for much longer then 40 years

Sure there is trust involved always, sometimes that is misplaced hence the argument for a collapse in the current unbacked notes

I remember it well

Im glad we have someone with experience. Do you remember currency controls. This is what the communists currently use to suppress their population.
I dont want us to go that way personally and I would not be writing how you were correct if such things occur
http://www.cepr.org/pubs/bulletin/dps/dp294.htm

Exchanging lumps of metal just doesnt work in a nation of 60million or a world of 8bn or whatever it is now.

coins? Im mostly referring to the backing of whatever is used, if all wealth was in coins we would be debating the fine metal content percentages.
Obviously the majority is not coins and never appears physically, it still requires actual backing of some kind.
Modern can not mean, we need to add on some zeros onto the end of our banks balance sheet and our debts are paid

dreem

Getting back on the subject here... I personally would go for recent, e.g. 2011 or 2012 gold Britannia coins for their VAT and capital gain tax free status... You need to ensure they are sealed in the Royal Mint plastic vac-seal packaging. You can buy them individually but a full sheet of 10 gold Britannia coins is a thing of beauty! Just don't open them! Look but don't touch! Chards are very good but i'm pretty sure at 7.5% over spot price 'the Gold Bullion Company' in Birmingham are the cheapest place I can find them online. If you want to buy in smaller value denominations, 2012 Gold Sovereigns are about a quarter the price and come in similar packaging. Many bullion dealers will buy sealed / mint sovereigns and britannias a spot price.

dreem

Something else to consider... If you look at the inflation adjusted price of gold from the late 1980's it's pretty much at the same price as today!

sabretoothtigger

Since 1990 a 1 pound note has roughly become 50p in worth even though rates were 10% in 1990 its a losing position and now... what do you think

WhiteHorse

sabretoothtigger wrote: »

Do you remember currency controls. This is what the communists currently use to suppress their population.

I too remember the Wilson government ...

sabretoothtigger

Roubles are in name only, the connection from the original worth of the currencies that used that name to now, is like a cup of tea to an ocean in proportion. The pound can at least say its 1 or 2% maybe

http://www.telegraph.co.uk/finance/comment/tom-stevenson/9076261/Lessons-to-be-learnt-from-rampant-inflation-of-the-70s.html