Leaving the casino and hiding in the bunker - wealth goes from paper to physical gold

[pmbug]

... it was the Q1 ETF outflows of 176.9 tonnes, equating to a 7% decline in total gold ETF holdings that obscured the strong rise in investment for gold bars and coins at the retail level. In the face of the huge 'paper' gold ETF outflows, 'physical' gold demand surged to its highest in 18 months...

...

More: http://www.zerohedge.com/news/2013-05-16/gold-demand-one-chart-physical-vs-etf

Lot's of interesting comments on that thread.

 

[DCFusor]

You mean the rest of the world is finally catching on to what we think we know and have been trying to tell them for years?

Say it ain't so, joe.../sarc

 

[pmbug]

I think the Cypus bail-in message was received loud and clear. All your paper are belong to the bankers/counterparties.

 

[bushi]

...at this speed, all other things being equal, it won't take long, until all weak hands, willing to part with their paper "metals" are shaken off.

...

...what then?

 

[DCFusor]

As the disconnect between paper and phyzz increases, and premiums for phyzz go up at the usual dealers as a reflection of that, I'd just love to see this come down via people standing for delivery at the COMEX paper prices - a big player can afford to do that, skip the premium charged by the usual suspects (like say Apmex) and get a decent price - or a nice cash bonus if they negotiate a cash settlement.

But I'd like to see them refuse that option and just get the gold...it'd be the trigger that finally breaks all this loose and kills the naked paper shorts. Doesn't look like it would take too many big players standing for delivery to make it happen at this point. If you wanted that much phyzz in one buy - why not get it without the middleman a ton cheaper anyway?

While I've been stacking at the reduced prices (I am not crazy) - between those premiums and my own smallness I probably don't make any kind of ding in this market. But others could...I hope. I can't afford to stand for delivery on a standard contract, sadly....at least not too often.

And yes, Cyprus, which we find out other countries have put in the legal framework to duplicate, is scary. I've been converting fiat into a number of things much harder to ctrl-x/ctrl-v away from me, from solar panels to other preps and PMs. Just seems prudent. I think even Kyle Bass would approve - a solar system creates ongoing stream of value, as does say, a completely self-sufficient water system, or the garden/farm.

The solar system just crossed a significant milestone for me - now, I get enough for my "normal" activities even on a dark cloudy day. So, if I hunker down just a little on those days (eg, don't charge the car or heat water with electricity) I can now go backup-generator-free - or very nearly. I'll have to actually establish a preventative maintenance schedule for it now, so it'll be working if/when I actually want/need it.

That's a biggie for me - electricity created via gasoline is among the more expensive commodities there is - works out to about $1.64/kwh. (It's not just the gasoline, over which I have no control on pricing, it's the whole shebang - generators wear out and so on). There are times when that's worth it - but they are rare.

 

[bushi]

EDIT: removed OT rant, moved to another topic

 

[rblong2us]

Thanks for the link in the o.p. Bug
Some very interesting comments as you say .......

Im with the guy who is hurting because he did what seemed right and bought lots of pm's and now has no more ammo :flail:

this link was somewhere in the comments -

http://seekingalpha.com/article/143...-you-think-it-is?source=email_portfolio&ifp=0

He suggests that Bernanke is preparing the banks for a major market correction and the system for a reset and a new, partially gold backed, currency too.

 

[DCFusor]

Bushi - my bad for going O/T here, let's take the energy stuff over someplace it fits, like: http://www.pmbug.com/forum/f6/main-solar-system-upgrade-2368/