PM Daily Market Commentary – 07/23/2020

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  • Fri, Jul 24, 2020 - 06:49pm

    #12
    wotthecurtains

    wotthecurtains

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    PM Daily Market Commentary – 07/23/2020

“I assume they will incorporate loopholes that allow them to turn their gold and silver into new fortunes in the new system. If so, I’ll use the same loopholes to get rich right along with them.”

 

That might only work if you are baller enough to have London Good Delivery Bars.   I always imagined a special 90% windfall profit tax that somehow doesn’t apply to gold held in the forms the elites tend to hold it in.

I figure us little people will have to protect our wealth illegally (but certainly morally) when the time comes.

One of the really fascinating aspects of this for me is how the western intelligentsia  react as gold  “moves towards the system”.   Can you imagine being a graduate level economist (with the student debt to prove it) finding out some high school dropout on the internet knew more than you did about the nature of money?

 

I used to argue back in the day (2009-2014) on public forums and I could see how personally invested a lot of the “educated” types were when they informed me that I lacked basic knowledge for saying such things as “The elites will rebalance their books by raising the price of gold for the simple reason that gold is what they have”

 

Their responses were like a window into what it would be like to have a mentally abusive parent or spouse.

 

I often wonder how these people will react when the USD falls off the face of the earth.   The bitcoin runs give me some hope that the tiny minority of western gold bugs will just be ignored.   But as I mentioned above, no one was educated to hate bitcoin so its a different dynamic

  • Fri, Jul 24, 2020 - 07:15pm

    #13
    DennisC

    DennisC

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    How about an IOU or some rehypothecated thingamajig?

On a more serious note, it could play out like this:

  • Fri, Jul 24, 2020 - 08:00pm

    #14
    dreinmund

    dreinmund

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    PM Daily Market Commentary – 07/23/2020

Hey folks,

What would a Comex default do to GLD or SLV options ?
Is there any way to place leveraged bets on Gold and Silver if physical price decouples from paper ?

Thanks,

Dominik

  • Fri, Jul 24, 2020 - 11:42pm

    #15

    davefairtex

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    great stuff

Really interesting stuff guys.

dreinmund-

Leverage for me are the mining shares.  “Gold not yet mined from the ground” is, in effect, leverage.  You could also do long-dated calls on miners as well, which is leverage on leverage.

wotthecurtains-

I always imagined a special 90% windfall profit tax that somehow doesn’t apply to gold held in the forms the elites tend to hold it in.

Like the windfall profits on oil Carter did back in the 70s.  I agree.  Tax rates on “collectibles” is just exactly that.  I’m guessing those will go up.

How does that actually play out though? Is there a premium that gets higher and higher then suddenly you get cashed out at par? Or do you somehow get that premium?

Well I think most holders won’t be able to take delivery, so I suspect the fund won’t be wound down.  Same with bullionvault.  Price discovery will just take place there, and in PSLV/PHYS – places where you can actually get the metal.   Nobody will pay attention to the COMEX price anymore.  I’m guessing, of course.

People who really want to own metal themselves – and can’t get it elsewhere – will bid up the price of BV gold & silver, and then take delivery.  That’s how it will work.  People will quickly see that “metal in BV” is a lot more valuable than “metal in GLD”.

  • Sun, Jul 26, 2020 - 01:21am

    #16
    Hans

    Hans

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    digital currency

Hello,

In this thread the topic of digital currency was mentioned. I understand what a cryptocurrency is, but regarding “the gouvernments having power over you”; what is the difference between a crypto and the current digital bankaccounts?

If they want, they already can block my accounts and bankcards. I understand that gouvernments have complete power in a cashless society. But does that have to be a crypto?

This is a genuin question. Is there something that I overlook?

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