Unions

Chuckle!

One can not forget that which he never knew.

While it's true that emotions play a huge role in the gold market, it's not always that simple. There are times when a foreign government may flood the market, providing far more free gold than is required to keep the pipeline full. When that happens, strange things happen to the gold market, including a value that is less than the cost of production, what ever that may mean. The gold market, from what I've read over the years, places a fairly predictable demand on the supply. Only when it's short or long do things get far out of kilter.

One thing that I fear the most is that the current price is not as representative of emotions and demand as it is of the falling value of the dollar, which got me here in the first place. Only time will tell. If the price of gold never retreats, it's fairly safe to say that your dollar just took one hell of a bullet. I say it's tied to the price of oil----although my convoluted reasoning may leave a great deal to be desired. You've already noted that I base my opinions on things that others ignore.

We're in for some interesting times in the near future.

Harold

Pre-64 silver coins, dimes, quarters etc. All silver. All retain some face value.

Gunner

Political Correctness is a doctrine fostered by a delusional, illogical liberal minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.

We got into a discussion with our financial advisor regarding gold. His name is Al Whalen, and he has an AM radio show on Sundays where he gives financial advice.

He brought up that gold is very poor currency in times of woe. Very few merchants are capable of verifying the purity of the gold, and if you have a piece worth $500, and you buy $100 worth of groceries, what do you get in change? And then, everyone who is headed towards a retail establishment is assumed to be holding gold, and a target. In the gold rush days, there are tales of how gold was used as a medium of currency, but it wasn't until some standards were applied that it became practical, and then not very.

In todays trading markets, gold has performed very well, and those who invested in it have done well. But you can't eat gold, and if you trade it for currency, that can become worthless overnight. And if you hold gold, you need to hire people to protect it.

It's a vicious circle.

I'm glad I got in and out of the silver market at the right time in the early 70s when the Hunt brothers caused an artificial inflation in the market. Lots of people lost lots of money. I wasn't one of them.

hehe

Steve

The issue is how many children did you graduate and how many of them went to college. (never graduate college just go).

They are graded by the Federal Government on the level of school they will be and if various grants are sent or pulled. Very pushy towards the college route.

I hope we all start teaching our children how to change light bulbs. Hate to import people for that task.

Martin

Martin H. Eastburn @ home at Lions' Lair with our computer lionslair at consolidated dot net TSRA, Life; NRA LOH & Patron Member, Golden Eagle, Patriot's Medal. NRA Second Amendment Task Force Charter Founder IHMSA and NRA Metallic Silhouette maker & member.

Harold and Susan Vordos wrote:

That's correct. One's holdings need not be gold, nor gold bullion, for that matter. There are recognizable forms of gold that are readily available, with the one big problem being the large value of the items. Even 1/10 ounce bullion coins represent more than many may care to spend in one transaction. That's an excellent time to have what is commonly referenced as "junk silver" coins. Common date, pre- '64, as Gunner said. A dime is worth about $1.10 in silver today.

The fact remains, however, that it is very difficult to merchandise gold unless you are well connected. I've been away from refining for enough years that I now have no connections. I used to be able to move a few ounces of gold with nothing more that a phone call to the right people. The seller received spot price, which is pretty much unheard of unless you're a major refiner. There is usually a discount when selling, and a premium when buying.

Those days are gone. In spite of the fact that I produced gold that exceeded the industry standard (9995), no one, where we now reside, knows me, or my background, and would look upon gold I had refined with question. I'd likely have to sell at a reduced price----leaving room for not only re-refining, to assure quality, but for profit for those that handled the gold. That's unique to western civilizations. Other countries have systems that allow for gold to change hands easily. To them, it represents far more than a dinner ring.

Harold

I remember working for an outfit in AK back in th' early 1980's. We built about 12 miles of gravel road out near Central and Circle Hot Springs, AK. I soon found out that what we were building was an access road for many, many, gold miners.

Every Friday after work a gold buyer based out of Fairbanks would drive out to th' little bar/restaurant/store in Central and all of th' gold miners would line up to sell their nuggets. Th' buyer would set up his scale on th' pool table, weigh and pay cash, repeat as necessary. Those miners were bringing in some damned big nuggets too! I've never seen so much money and gold in one place before nor since.

I have no idea how th' buyer set his price, but I never heard any grumbling about that from th' miners. It appeared both parties were satisfied with th' transactions. I'm also assuming that th' quality of their gold was fairly consistant.

Is it a stretch to think that this still goes on? There's gotta be independent gold miners still who need to convert to cash somehow. My guess was that th' buyer was selling to jewelry makers, not refiners, as AK gold nugget jewelry was quite th' rage in those days.

Snarl

Hey Snarl,

Certainly, in the circumstances you've described, it would be easy enough to pay a reasonable price because you've introduced a variable that's difficult to dispute, and tends to elevate the value of the gold beyond market price per ounce.

Gold is not generally found in the pure state, although it has been found 3

9's fine on occasion. The value of nuggets is based on the fact that they're a natural phenomenon, and are quite desirable to collectors, and sought by folks that like nugget jewelry as well. As size increases, their value exceeds the price of gold, particularly when you consider that the nugget in question is unlikely to contain its weight in gold alone. Gold found in nature is typically alloyed with silver, often with copper as well. There are other elements that alloy, or form compounds with gold-----arsenic, tellurium, iron, and more.

Regions are known to produce gold of a relatively consistent fineness, so it would be easy enough to simply weigh anything presented and make an offer in keeping with value when gold is produced from a given area.

We used to have, in our country, systems similar to that which you described , as well as assay shops on many corners. Not any more. We've grown too sophisticated for such things, it seems. sigh.

Harold

Sorry to break in here but I had just asked a miner where he sells his "specimen" gold. I met him last Thursday morning in Caribou Corners. He said he travels down to Marysville (CA), a trip of about

100 miles. In the old days he would only have had to travel between one and 5 miles. Kind of tells you about the scarcity of this kind of gold, although the old 16 to 1 Mine still brings up plenty.

dennis in nca

although the old 16 to 1 Mine still brings up plenty.

Some years ago they did a demo at the Nevada County Fair, set up a furnace, melted a crucible full of gold, and poured a rather substantial ingot. That was fun to watch!

Could be interesting to see what happens if the the Idaho-Maryland in Grass Valley is allowed to reopen. I've talked to people that really knew the old timers. There's lots of reports of stashes of high grade ore and specimens of gold that workers didn't have time to smuggle out before it closed. Not to mention what remains to be mined.

Jon

Did you ever kiss your union's ass and thank them for the excellent brain washing job they did on you? Was it done by a union memeber?

Yeah. Just remember that 'WE' aren't related! ;-)

I always wanted one of those decommissioned missile silos for a retirement home. All underground, and no way that unwanted guests can't get in. :)+

Hurt while cleaning tables at the Mess Hall. .On my knees servicing the officers.That is where I learn the difference between an ass kisser and a brown noser. My knees are killing me.

Craw back on your knees so that you can service boss

But a small example of the intelligent things you learn when you're in the union.

Nice work, MW Ron. Thanks for helping confirm my suspicions. What skills you have would have been better left behind.

Harold

Yeah, thanks, Ron. I now have you in the proper file.

Bye. Hope you live long enough to curse unions.

With your attitude, I don't think you will, though. You'll smart off to the wrong person, and it will be lights out.

plonk

Once again proving that being in a union is hazardous to your mental health. I hear that you're not allowed to join a union if your IQ is above 70.

Yawn.