Gold

[Jean-David Beyer]

On 01/12/2017 02:44 PM, Jean-David Beyer wrote:

> Thanks Jean-David, You bring up an interesting dimension and that is
> the true 'street value'.  For the small quantities that I'm speaking
> of, I'll probably only revalue it a couple of times a year and live
> with a reduced book value based on the spot price.  I'll also try
> setting it up as a mutual
> fund as you suggest.
> 

Getting the real value of precious metals, whatever it might be, is
tricky. The spot price is the price of a contract (100 ounces of gold or
5000 ounces of silver), and has nothing to do with the actual price you
have to pay to get the stuff. And since there are something like 250
contracts out for every contract amount of the metal (big banks sell
naked shorts), it means that most of the holders of these contracts, if
they stood for delivery, would get stiffed. If the banks are still
solvent, they would redeem the contracts in cash (the price being _the
previous day's price_), so if the price of the metal spiked, too bad
for you. And if the bank were insolvent, due to their naked short
positions, you would get nothing. My suggestion: unless you are a
day-trading speculator, deal only with physical metal in your
possession, not paper contracts, mutual funds, or ETFs. There are one or
two ETFs that actually have the gold (or silver), but most are actually
holding contracts, not the physical metal.

The way I determine the actual price for gold and silver is to go to
this web site (there are others, but it is the one I use), where you can
actually buy these precious metals. They post the spot prices almost
every day, and they also post the prices they have charged that day for
the various items. they will buy these things back from you, but at a
lower price.

http://libertycoinservice.com/wp-content/uploads/quotes/daily_quotes.pdf

-- 
  .~.  Jean-David Beyer          Registered Linux User 85642.
  /V\  PGP-Key:166D840A 0C610C8B Registered Machine  1935521.
 /( )\ Shrewsbury, New Jersey    http://linuxcounter.net
 ^^-^^ 07:40:01 up 2 days, 16:25, 2 users, load average: 4.10, 4.21, 4.26