[mattduke]

Austrailian Mint Suspends Gold Orders Repeat after me, there is no run on gold.

theaustrailian

[IslandCrow]

There is no run on gold.

[cipi604]

There is... no... run on gold!!!

[pedalling_faster]

Repeat after me, there is no run on gold.

just a WHOLE BUNCH of people walking VERY VERY FAST.

[Chuckmak]

Repeat after me, there is no run on gold.

just a WHOLE BUNCH of people walking VERY VERY FAST.

[mrobert]

It's all fine

[Micki]

Don 't know if you noticed but I brought this up in the "jump on board" thread quite some time ago.
PM issued a brand new 10oz silver bullion coin and I ordered just a hand full back in first week of October and I was informed delivery was being made within 2 weeks. 2 weeks nealr up I contacted the outlet for staus and was told ALL orders were on hold until January. (Does that mean they are meanwhile delivering to foreigners but not aussie? Or does it mean they won't have any stock until Jan?)
Now I was informed that because I placed my order before the cut-off date I may get preferencial treatment and with a bit of luck receive coins before Christmas. Whopeee. Do I dare to order from them anymore? If not, where can I get cheap coins? It's a tricky one.

As mentioned in a separate thread;
ASX is opening up ETF's for silver, palladium, platinum and a metals basket in Dec.
Run by same people who run ASX:GOLD
I am not totally on the clear with if ASX:GOLD can lease out metal or not. Wouldn't like that.

[CrudeAwakening]

I don't know much about this, but to what extent is this a product of PM ETFs, and the creation of paper claims to gold that are in excess of the physical?

Is this just the result of another scam, along the lines of the goldsmiths and their fabrications?

[Micki]

If you read the ASX:GOLD prospectus, each ounce invested exists.
To me it therefore doesn't look like a paper play.
I am however concerned that they got greedy and worked around the rules by leasing out metal. By doing that they may still claim they own the gold but suddenly there is a huge counterparty risk.

One could sif through all statements and releases to see if there has been an audit of physical and if that can be matched up to total invested. Anyone got more time on their hands than me?

[Denny]

Run by same people who run ASX:GOLD
I am not totally on the clear with if ASX:GOLD can lease out metal or not. Wouldn't like that.

I understand there are some funds, like the GLD on New York which can lease out gold, but I don't understand the ocncept. What use is a chunk of gold or silver, unless its converted into a useful object?

I can understand even leasing out jewelry, but not bullion, the concept makes no sense. No more than leasing out a bushel of wheat.

What makes it a bit scary if the issue of possession. Just like if I lend somebody money, if they take possession of the money, then there is the risk it is not repaid.

[Micki]

Run by same people who run ASX:GOLD
I am not totally on the clear with if ASX:GOLD can lease out metal or not. Wouldn't like that.

I understand there are some funds, like the GLD on New York which can lease out gold, but I don't understand the ocncept. What use is a chunk of gold or silver, unless its converted into a useful object?

I can understand even leasing out jewelry, but not bullion, the concept makes no sense. No more than leasing out a bushel of wheat.

What makes it a bit scary if the issue of possession. Just like if I lend somebody money, if they take possession of the money, then there is the risk it is not repaid.

It becomes clearer if you think of gold as money.
What good is money just sitting in your wallet?
Well we shouldn't spend everything we have as we in that case don't have any money in case of emergency etc....
What makes gold different from other currencies is that it can't be inflated with a press of a button.
It is also a currency that isn't equal to debt, it isn't someones liability, it doesn't carry counterparty risk etc.
So in short it is a very stable currency.
But because it isn't legal tender etc. you don't get interest. In fact you need to pay interest to keep is stored.

Next you start to look at the relation of gold VS. other currencies.
Take USD for instance. If you think USD may appreciate against Gold, you may want to take a postion where you short gold.
i.e. you sell gold you have or you borrow (lease) gold to sell, with the intent of buying it back later at a lower price and by that pocketing a difference.

Given that gold etc is sold in USD in the international exchanges, it becomes a clear signal on the performance of USD or inflation.
It is therefore particularly in the Fed and treasury's interest to keep down gold price. (strong dollar policy).
Secondly, then you have big enities like big investment banks that have been working with the Gov. in shorting the market for well over a decade, these people are interested in doing what they can to keep prices down.
This is where you need to read up on what GATA analysists have discovered regarding manipulation of price of gold.