T Nation

50g Gold Tabs: Sign of the Times?

Gentlemen, somehow I find this to be very though provoking.

In stores, where you can buy physical gold, you can now buy these.

These are basically 50g gold tablets where you can break off single gram units like you would from a chocolate bar.

& months ago not one shop in Vienna had them.

Now they all do.

[quote]orion wrote:
Gentlemen, somehow I find this to be very though provoking.

In stores, where you can buy physical gold, you can now buy these.

These are basically 50g gold tablets where you can break off single gram units like you would from a chocolate bar.

& months ago not one shop in Vienna had them.

Now they all do. [/quote]

What’s the going price? It may just be a profiteering tactic and not really significant in any other way.

Jis sayin’

[quote]Neuromancer wrote:

[quote]orion wrote:
Gentlemen, somehow I find this to be very though provoking.

In stores, where you can buy physical gold, you can now buy these.

These are basically 50g gold tablets where you can break off single gram units like you would from a chocolate bar.

& months ago not one shop in Vienna had them.

Now they all do. [/quote]

What’s the going price? It may just be a profiteering tactic and not really significant in any other way.

Jis sayin’[/quote]

Well the price is a bit higher than if you would buy 50g outright, but not outrageously so and significantly cheaper than it would be if you stacked smaller sizes.

What I find interesting is that this thing is specifically designed to be prepared for and be used for black market purposes.

On the one hand, makes me damn proud of my people, I see the lessons of two wars have not been forgotten, on the other hand if quiet docile Austrians actually start to prepare in a quiet, completely anonymous way that is more interesting to me than any interest rate, say, Spain is supposed to pay.

I have looked into US gold stores now and they do not seem to have those, then again you have no collective memory of how to run a whole economy on cigarettes and clipped gold chains.

[quote]orion wrote:

[quote]Neuromancer wrote:

[quote]orion wrote:
Gentlemen, somehow I find this to be very though provoking.

In stores, where you can buy physical gold, you can now buy these.

These are basically 50g gold tablets where you can break off single gram units like you would from a chocolate bar.

& months ago not one shop in Vienna had them.

Now they all do. [/quote]

What’s the going price? It may just be a profiteering tactic and not really significant in any other way.

Jis sayin’[/quote]

Well the price is a bit higher than if you would buy 50g outright, but not outrageously so and significantly cheaper than it would be if you stacked smaller sizes.

What I find interesting is that this thing is specifically designed to be prepared for and be used for black market purposes.

On the one hand, makes me damn proud of my people, I see the lessons of two wars have not been forgotten, on the other hand if quiet docile Austrians actually start to prepare in a quiet, completely anonymous way that is more interesting to me than any interest rate, say, Spain is supposed to pay.

I have looked into US gold stores now and they do not seem to have those, then again you have no collective memory of how to run a whole economy on cigarettes and clipped gold chains. [/quote]

43 Euros a block is quite a manageable size. But I still don’t see it being feasible until there is a total societal collapse, like you say as in the two WW…but hey, no one expects the Spanish Inquisition lol.

Initially up to 200 of the so-called “Gold ATMs” will be installed in airports, railway stations and shopping malls across Germany, Austria and Switzerland.

[quote]Neuromancer wrote:

[quote]orion wrote:

[quote]Neuromancer wrote:

[quote]orion wrote:
Gentlemen, somehow I find this to be very though provoking.

In stores, where you can buy physical gold, you can now buy these.

These are basically 50g gold tablets where you can break off single gram units like you would from a chocolate bar.

& months ago not one shop in Vienna had them.

Now they all do. [/quote]

What’s the going price? It may just be a profiteering tactic and not really significant in any other way.

Jis sayin’[/quote]

Well the price is a bit higher than if you would buy 50g outright, but not outrageously so and significantly cheaper than it would be if you stacked smaller sizes.

What I find interesting is that this thing is specifically designed to be prepared for and be used for black market purposes.

On the one hand, makes me damn proud of my people, I see the lessons of two wars have not been forgotten, on the other hand if quiet docile Austrians actually start to prepare in a quiet, completely anonymous way that is more interesting to me than any interest rate, say, Spain is supposed to pay.

I have looked into US gold stores now and they do not seem to have those, then again you have no collective memory of how to run a whole economy on cigarettes and clipped gold chains. [/quote]

43 Euros a block is quite a manageable size. But I still don’t see it being feasible until there is a total societal collapse, like you say as in the two WW…but hey, no one expects the Spanish Inquisition lol.[/quote]

The point is, there must be quite a few people who do not only think it possible, they are preparing for it.

Actively-

The market already creates products for it.

Easily, anonymously acquired substitute money.

[quote]LIFTICVSMAXIMVS wrote:

Initially up to 200 of the so-called “Gold ATMs” will be installed in airports, railway stations and shopping malls across Germany, Austria and Switzerland.[/quote]

Yeah, but those only sell relatively small quantities at a high price.

The spread on those small bars and coins is downright wrong.

Yet, coin a large enough amount so that the price per gram becomes reasonable and make it easily divisible, in case you actually, like, want to spend it…

Because in case you need to spend it, you really want small bars and coins, but in case you do not need them and want to sell them untouched you dont want to make much of a loss.

Above is the perfect answer.

The only thing more useful if push comes to shove is a 1000 l diesel tank in your garage and a shotgun.

Gold is no longer a bull market. That’s why lots of people are selling at or below spot price. And investors will really be up shit creek if China decides to dump their reserves on the market - something they do periodically anyway. The funniest thing will be the gold bugs who bought at >$300 an ounce ten years or more ago and who will possibly end up with nothing for their trouble.

[quote]SexMachine wrote:
Gold is no longer a bull market. That’s why lots of people are selling at or below spot price. And investors will really be up shit creek if China decides to dump their reserves on the market - something they do periodically anyway. The funniest thing will be the gold bugs who bought at >$300 an ounce ten years or more ago and who will possibly end up with nothing for their trouble.[/quote]

That I doubt very, very much.

Both the Euro and the USD is in trouble and the Swiss National Bank has made clear that they will Francs like there is no tomorrow to keep it at a bearable exchange rate to the Euro.

Where else will you run to?

Maybe real estate and there a bubble is forming in Vienna too.

Or not, because if they are right its not really bubble.

If you want to buy gold, I would wait until the next big leg down in the stock markets.

If speculators need to free up capital to prevent margin calls on currencies or stocks, the first thing to go will be their heavily margined gold positions. If you need confirmation of my statement, just look at the daily S&P chart from July-Sept 2011 with an overlay of the Gold chart.

Of course some smart guys want to sell us gold now in small bite-size chunks, but I’m not buying until after we’ve got a good solid move downwards. This goes the same with US oil, which I would like to see at 70-72 bucks a barrel.

But I’m a bear and am short on the DAX (7125) and Oil (95.85) and it’s looking good right now.

[quote]Cuso wrote:
If you want to buy gold, I would wait until the next big leg down in the stock markets.

If speculators need to free up capital to prevent margin calls on currencies or stocks, the first thing to go will be their heavily margined gold positions. If you need confirmation of my statement, just look at the daily S&P chart from July-Sept 2011 with an overlay of the Gold chart.

Of course some smart guys want to sell us gold now in small bite-size chunks, but I’m not buying until after we’ve got a good solid move downwards. This goes the same with US oil, which I would like to see at 70-72 bucks a barrel.

But I’m a bear and am short on the DAX (7125) and Oil (95.85) and it’s looking good right now.[/quote]

While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.

Your average return on real estate here right now is around 3% and it sells like sliced bread anyway.

I think there is the feeling out there that it would be very, very good to sit on a solid, reliable long term hedge though I doubt they would call it that, mostly because they dont know what it is.

[quote]orion wrote:
While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.[/quote]
Well at only 23000 dollars a pound, I don’t think anyone with real money is going into an exchange and buying 5 of those 50 gm tablets. I see where some people could just waste some money on a tablet to feel secure, but what is 1 gm of gold going to buy you after a financial collapse? Your life? A meal?

I think other strategies are better to weather the storm, because when the buying power of all currencies is reduced to 0 then everybody is broke, and we’re back to a barter system.

It’s going to cost somebody a shitload of gold to pay me to drill them a new well by hand.

The tablets are just what they are: pacifiers for the white collar upper floor execs who are gullible enough to buy gold at any price because somebody found a clever marketing instrument.

[quote]SexMachine wrote:
Gold is no longer a bull market. That’s why lots of people are selling at or below spot price. And investors will really be up shit creek if China decides to dump their reserves on the market - something they do periodically anyway. The funniest thing will be the gold bugs who bought at >$300 an ounce ten years or more ago and who will possibly end up with nothing for their trouble.[/quote]

And yet Asian central banks are buying gold.

http://www.digitaljournal.com/pr/789564

[quote]Cuso wrote:

[quote]orion wrote:
While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.[/quote]
Well at only 23000 dollars a pound, I don’t think anyone with real money is going into an exchange and buying 5 of those 50 gm tablets. I see where some people could just waste some money on a tablet to feel secure, but what is 1 gm of gold going to buy you after a financial collapse? Your life? A meal?
[/quote]

It could buy your or your family’s life.

[quote]LIFTICVSMAXIMVS wrote:

[quote]Cuso wrote:

[quote]orion wrote:
While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.[/quote]
Well at only 23000 dollars a pound, I don’t think anyone with real money is going into an exchange and buying 5 of those 50 gm tablets. I see where some people could just waste some money on a tablet to feel secure, but what is 1 gm of gold going to buy you after a financial collapse? Your life? A meal?
[/quote]

It could buy your or your family’s life. [/quote]

Or it could get you killed for having it, if the dire scenario you’re envisioning comes to pass. The only thing that will be of real value will be in demand skill sets in that scenario.

[quote]Neuromancer wrote:

[quote]LIFTICVSMAXIMVS wrote:

[quote]Cuso wrote:

[quote]orion wrote:
While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.[/quote]
Well at only 23000 dollars a pound, I don’t think anyone with real money is going into an exchange and buying 5 of those 50 gm tablets. I see where some people could just waste some money on a tablet to feel secure, but what is 1 gm of gold going to buy you after a financial collapse? Your life? A meal?
[/quote]

It could buy your or your family’s life. [/quote]

Or it could get you killed for having it, if the dire scenario you’re envisioning comes to pass. The only thing that will be of real value will be in demand skill sets in that scenario.
[/quote]

Or a revolver.

If I could get killed for having gold then I could also get killed for having any other barter item.

[quote]LIFTICVSMAXIMVS wrote:

[quote]Neuromancer wrote:

[quote]LIFTICVSMAXIMVS wrote:

[quote]Cuso wrote:

[quote]orion wrote:
While I agree to some degree, I do not think the people buying this particular product care about market fluctuations.[/quote]
Well at only 23000 dollars a pound, I don’t think anyone with real money is going into an exchange and buying 5 of those 50 gm tablets. I see where some people could just waste some money on a tablet to feel secure, but what is 1 gm of gold going to buy you after a financial collapse? Your life? A meal?
[/quote]

It could buy your or your family’s life. [/quote]

Or it could get you killed for having it, if the dire scenario you’re envisioning comes to pass. The only thing that will be of real value will be in demand skill sets in that scenario.
[/quote]

Or a revolver.[/quote]

True dat.

[quote]LIFTICVSMAXIMVS wrote:
If I could get killed for having gold then I could also get killed for having any other barter item.[/quote]

Also correct. Hence my assertion that wanted and needed skill sets are the most valuable and likely to keep you and yours alive. since you cant do shit when you’re dead…

[quote]LIFTICVSMAXIMVS wrote:

[quote]SexMachine wrote:
Gold is no longer a bull market. That’s why lots of people are selling at or below spot price. And investors will really be up shit creek if China decides to dump their reserves on the market - something they do periodically anyway. The funniest thing will be the gold bugs who bought at >$300 an ounce ten years or more ago and who will possibly end up with nothing for their trouble.[/quote]

And yet Asian central banks are buying gold.

http://www.digitaljournal.com/pr/789564

[/quote]

And all the countries which are buying have inflationary problems and/or worried about the devaluation of their dollar/euro based foreign reserves.

Some even say that China wants to weaken the US Dollar by buying up massive quantities of gold.

If this is all true, why isn’t gold at 1800 bucks an oz. again?