Precious metals are not useful in a collapse scenario!

[freshman777]

No, you did not. In your imagination maybe.

At Comex they sell gold contracts backed at 1:100. If 2 out of 100 people ask for delivery, poof, Comex has a provision to settle them in cash. When the price rises, you can't swap these contracts for bullion unless you're one of the 1% with connections.

I can buy Comex bars near spot at FidelityTrade. Was doing during the 2008/2009 price collapse.

There weren't just 100 people buying, so you buying them didn't make a difference. 2 out of 100 is not about people, it's about ratio of delivered to what they keep in warehouses. They could deliver 1 of 100 sold contracts, they would have to settle in cash if 2 of 100 sold contracts were asked to be delivered.

[markj113]

No, you did not. In your imagination maybe.

At Comex they sell gold contracts backed at 1:100. If 2 out of 100 people ask for delivery, poof, Comex has a provision to settle them in cash. When the price rises, you can't swap these contracts for bullion unless you're one of the 1% with connections.

I can buy Comex bars near spot at FidelityTrade. Was doing during the 2008/2009 price collapse.

There weren't just 100 people buying, so you buying them didn't make a difference. 2 out of 100 is not about people, it's about ratio of delivered to what they keep in warehouses. They could deliver 1 of 100 sold contracts, they would have to settle in cash if 2 of 100 sold contracts were asked to be delivered.

Actually comex is leveraged over 542:1, if fiat went to shit would you be happy to get settlement in toilet paper or would you want the real metal?

[iamnotback]

Here is the 90% tax coming on your gold:

The hunt for money is intensifying with the aid of banks no less. India was the balloon. They simply canceled the current with no notice and imposed a 90% tax on anyone holding the high denomination notes. This is how the world governments operate. The first bail-in was done in Cyprus.

I warned about this years ago:

http://www.marketoracle.co.uk/Article20327.html

[iamnotback]

Boys FidelityTrade has the bars in stock. I don't have to buy a Comex contract. 

[tvbcof]

...
Just imagine how you would trade your gold for a loaf of bread in a collapse scenario... You'd have to have a tiny fraction of a gold bar to be able to do that - whilst it is easy-as with cryptocurrencies like BTC.

I don't think that the divisibility issue would last very long in a collapse scenario.  Basically any convenient item would take over the 'exchange' role and be priced against the 'backing store' naturally by market forces.  Gold would be the most likely 'backing store' in a situation where crypto were not sufficiently developed to work off-grid and/or under successful attack (technical and/or legal and/or sociological, etc.)

A backing store requires a deep liquid market maker. This can't exist when everyone is willing to kill him and take his gold.

In the MadMax scenario everything reverts to chaos and warlords. Money can't develop. That is why food becomes money. Sorry.

But nobody would kill someone to take their food if food were being used as money?  You might have more success here if you thought about what you say a little bit assuming you have that capability.

It is true in 'mad max' scenarios and otherwise that they people who have more of whatever may be considered valuable have consequently more capabilities at their disposal to ensure that they remain in possession of it.  A high density-value item such as Au offers even greater options than something like food or fuel.

If it is practical for others to relieve a value possessor of their (say) gold or BTC in a major way then it is basically the fault of the possessor for not being more careful.

I would also argue that 'warlords' are basically the direct opposite of 'chaos' (aka, anarchy) and are an inevitable and predictable sign that 'chaos' is diminishing.  I would not expect that 'chaos' would or could exist for longer than a month or two before things start to 'precipitate'.

[markj113]

Here is the 90% tax coming on your gold:

The hunt for money is intensifying with the aid of banks no less. India was the balloon. They simply canceled the current with no notice and imposed a 90% tax on anyone holding the high denomination notes. This is how the world governments operate. The first bail-in was done in Cyprus.

I warned about this years ago:

http://www.marketoracle.co.uk/Article20327.html

You are so full of shit.

They can make high denomination notes no longer legal tender forcing people to change to lower value notes imposing a tax at the same time.

You cannot make gold worthless and impose a tax and force people to convert to fiat - The gold confiscation in America proves this as only a tiny % was ever handed over to the government.

[freshman777]

Here is the 90% tax coming on your gold:

The hunt for money is intensifying with the aid of banks no less. India was the balloon. They simply canceled the current with no notice and imposed a 90% tax on anyone holding the high denomination notes. This is how the world governments operate. The first bail-in was done in Cyprus.

I warned about this years ago:

http://www.marketoracle.co.uk/Article20327.html

It's a tax on government money. Physical gold is immune to this crap. If you have it.

[freshman777]

Boys FidelityTrade has the bars in stock. I don't have to buy a Comex contract. 

It's a drop in a bucket. Think big, think scale.

[iamnotback]

It's a tax on government money. Physical gold is immune to this crap. If you have it.

Not immune. Unless you want to bury in the ground.

[iamnotback]

Boys FidelityTrade has the bars in stock. I don't have to buy a Comex contract. 

It's a drop in a bucket. Think big, think scale.

Only for those who are complaining and don't avail it. For me it is the reality.

[markj113]

It's a tax on government money. Physical gold is immune to this crap. If you have it.

Not immune. Unless you want to bury in the ground.

So the government is going to go house to house searching for gold?

Dont think so.

You didnt answer my point either

Here is the 90% tax coming on your gold:

The hunt for money is intensifying with the aid of banks no less. India was the balloon. They simply canceled the current with no notice and imposed a 90% tax on anyone holding the high denomination notes. This is how the world governments operate. The first bail-in was done in Cyprus.

I warned about this years ago:

http://www.marketoracle.co.uk/Article20327.html

They can make high denomination notes no longer legal tender forcing people to change to lower value notes imposing a tax at the same time.

You cannot make gold worthless and impose a tax and force people to convert to fiat - The gold confiscation in America proves this as only a tiny % was ever handed over to the government.

[iamnotback]

Here comes $850:

Marty; I find the Global Market Watch really amazing. The talk of India banning gold imports could lead to a crash you have warned about under $1,000. The weekly level in gold came up and said about to crash and even caught the high the week of 07 November. The monthly also caught the high and said it was important back in July. But the monthly level at the close of October said a waterfall in motion. It seems like the GMW can even anticipate fundamentals. I really do not understand how the gold bugs keep attacking you. It appears they enjoy losing.

ANSWER: The Global Market Watch is purely pattern recognition. It is a confirming tool to cycles and reversals. It did a good job on gold. Yes, there are two risks to gold. First the ban by India, but second, as the debt crisis explodes, we will see more central bank selling. We will do a report on gold for year-end. Nothing has changed from what we laid out months ago or at the WEC.

[markj113]

Here comes $850:

Firstly no one has crystal ball, that price is someones opinion and nothing more.

For every "gold price is going to bomb" story it is just as easy to find one saying "gold price is going to the moon", very easy to select stories to fit your agenda.

You still did not address my point where you attempted to scaremonger regarding a 90% tax applied to gold  

How about this -

"Putin "Buys The Dip" - Russia's Gold Buying In October Largest This Millenium"
http://www.zerohedge.com/news/2016-11-23/putin-buys-dip-russias-gold-buying-october-largest-millenium

But I suppose you are better informed than the Russian government in your mamma's basement.

I wonder why Russia isnt buying all the bitcoin up  

[freshman777]

I am surprised that many Indians forgot their culture and held large savings in government money.
This wouldn't have happened to them if they held physical gold.

Indian Currency Crashes To Record Low As Cash Exchange Of Old Notes Suspended
http://www.zerohedge.com/news/2016-11-24/india-panics-rupee-crashes-record-low-modi-cuts-banknote-exchange-6-weeks-early

[babo]

Life is about stability + security.. AKA: Back up plans.

this phrase resume my life motto.. i have B-backup plan and C-backup plan and D-backup plan

because Murphy Law Exist and works

[iamnotback]

And what was that tinfoil hat nonsense about Indians turning to gold as a currency which I rebutted upthread:

India Economy Falls into Chaos – Dollar Rise in Huge Demand

US dollars are soaring in premiums on the street. There is a serious risk that the government has shaken the confidence of the people to such a degree, that they trust the US dollar more than their own currency.

...

When Japan would routinely devalue the outstanding currency in the same manner each time a new emperor took the throne, the population responded by using rice and Chinese coins. The Indian economy is turning to the dollar. Physical dollars are commanding a premium because they can politically trust the dollar and not their own currency.

India is Paying $900+ for Bitcoin Amid Cash Crisis

https://news.bitcoin.com/india-paying-900-bitcoin-cash-crisis/

What do you think about this?

They will need to switch to Bitcoin to escape from government taxes:

http://www.hindustantimes.com/india-news/after-complaints-of-printing-variations-rbi-says-new-rs-500-rs-2000-notes-legal/

[markj113]

And what was that tinfoil hat nonsense about Indians turning to gold as a currency which I rebutted upthread:

India Economy Falls into Chaos – Dollar Rise in Huge Demand

US dollars are soaring in premiums on the street. There is a serious risk that the government has shaken the confidence of the people to such a degree, that they trust the US dollar more than their own currency.

...

When Japan would routinely devalue the outstanding currency in the same manner each time a new emperor took the throne, the population responded by using rice and Chinese coins. The Indian economy is turning to the dollar. Physical dollars are commanding a premium because they can politically trust the dollar and not their own currency.

India is Paying $900+ for Bitcoin Amid Cash Crisis

https://news.bitcoin.com/india-paying-900-bitcoin-cash-crisis/

What do you think about this?

They will need to switch to Bitcoin to escape from government taxes:

http://www.hindustantimes.com/india-news/after-complaints-of-printing-variations-rbi-says-new-rs-500-rs-2000-notes-legal/

Well you have defo lost all credibility with me :

"Gold premiums in India jumped to their highest in 21 months, as demand surged after the government abolished two high-value currency notes"

http://in.reuters.com/article/asia-gold-demand-idINKBN1360OI

[Oppolee]

And what was that tinfoil hat nonsense about Indians turning to gold as a currency which I rebutted upthread:

India Economy Falls into Chaos – Dollar Rise in Huge Demand

US dollars are soaring in premiums on the street. There is a serious risk that the government has shaken the confidence of the people to such a degree, that they trust the US dollar more than their own currency.

...

When Japan would routinely devalue the outstanding currency in the same manner each time a new emperor took the throne, the population responded by using rice and Chinese coins. The Indian economy is turning to the dollar. Physical dollars are commanding a premium because they can politically trust the dollar and not their own currency.

India is Paying $900+ for Bitcoin Amid Cash Crisis

https://news.bitcoin.com/india-paying-900-bitcoin-cash-crisis/

What do you think about this?

They will need to switch to Bitcoin to escape from government taxes:

http://www.hindustantimes.com/india-news/after-complaints-of-printing-variations-rbi-says-new-rs-500-rs-2000-notes-legal/

Well you have defo lost all credibility with me :

"Gold premiums in India jumped to their highest in 21 months, as demand surged after the government abolished two high-value currency notes"

http://in.reuters.com/article/asia-gold-demand-idINKBN1360OI

Similar cases exist. This is due to the fact that India has a national tradition as dowries to use gold. The demand for this metal is traditionally high. In other countries it's not, so we are trying to use bitcoin.

[iamnotback]

I am also from India and facing this issue as well.The main reason behind this have our government is taken a huge step and banned the higher value notes to take control of black money.So peoples here are trying to either buy gold with them quickly and some who know about bitcoins want to buy it.
Every day i see in our india exchange btcxindia.com,the price of bitcoin is just inreasing.

Is gold viable as a currency? How do you trade a gold necklace for a hamburger?

Wouldn't an instant currency transfer with your mobile phone be more practical?

Aren't Indians very fond of having a smart phone as soon as they can afford one?

The government can't stop people from using crypto-currency unless they block the Internet.

Am I correct that Indians hate to pay taxes?

India is Paying $900+ for Bitcoin Amid Cash Crisis

https://news.bitcoin.com/india-paying-900-bitcoin-cash-crisis/

What do you think about this?

They will need to switch to Bitcoin to escape from government taxes:

http://www.hindustantimes.com/india-news/after-complaints-of-printing-variations-rbi-says-new-rs-500-rs-2000-notes-legal/

Sadly yes indian dont love to pay taxes but i am totally against it because there is a huge lot of black money in our country which is slowing down country's progress for sure,thats why that strong step being taken to remove all those black money.

Bitcoin can be an option but still to buy bitcoin people have to first deposit their cash to bank account and then buy bitcoin and i that way government can track that big amount is being deposited but yes they can never know how much bitcoins have been holded and hence cannot take tax for that.

Bitcoin has that problem of onboarding, but Steem(it) does not. And there is a better clone/kind of Steem(it) coming which I think is going to make it very easy for the people to get crypto-currency without needing to go through an exchange. And then the world will change. I say this, because I am the person who is creating this new project.

Why is not paying taxes bad for your country? The government is the most inefficient use of resources, so keeping resources out of the government's hands should be the best for growing the economy.

“An elephant is a mouse built to government specifications.”  ― Lazarus Long

You think the government is the only entity which can build roads, schools, and provide food and health care to the indigent?

Rather the problem in India is your country doesn't allow foreigners to invest there without a lot of corrupt bureaucracy. The problem of India is all the corruption. I read there are corrupt police and officials and it is very difficult and dangerous to attempt to do business there.

So what you really need in India is to stop the caste system and stop the corruption.

With crypto-currency and the Internet, we can empower the people of India to rise above the corruption, because the government officials can't control the Internet, the way they can control the lands, the licenses to build infrastructure and do physical business. The virtual economy is global and the people can increasingly go to it to earn income which can't be corrupted.

This is the future.

[Pearls Before Swine]

Call me crazy, but I just read about the situation in India with everyone scrambling at the banks to get rid of the banned currency...and the Cypress situation that happened a couple of years ago, and Greece.  I remember those things, and every. Time. I . Do. I realize how so very fucking important it is to have physical assets.  Gold & silver, weapons, and real estate.  All good things to have, because any government can do exactly what India just did and declare their money worthless.  Think about it.