greenlizard0 said:Erm, I sort of understand nations buying lots of metals, and billionaires hoarding some to stroke and play with, but why do people buy gold and silver? I mean my parents have a nugget at home but nothing more. I've never quite figured it out?
I mean jewellary perhaps, it could eventually have some sentiment attached to it but I don't understand the buying of bars and stuff.
Visage said:Its like any commodity speculation. You buy a kilo of gold for x pounds and then 6 months later its worth y pounds.
If y > x, you've done well (after taking into account brokerage), otherwise you've done...poorly.
greenlizard0 said:Ok. But I get the impression that people never really sell their metals back? Would I be right in that?
Also, who on earth do you sell it back to?
Now i'm really confused...Visage said:You dont actually physically get the metal you buy - its all done electronically, so buyers are automnatically matched with sellers etc....
The gold never moves, physically, just the ownership (I suspect that actually, even that is not the case, and that the whole e-Gold thing is backed by synthetic (financial) derivatives, so that there is no (financial) exposure to the physical product).greenlizard0 said:Now i'm really confused...
greenlizard0 said:Now i'm really confused...
And herein lies the danger of places like e-gold if the price of gold suddenly goes up five-fold.Borris said:The gold never moves, physically, just the ownership (I suspect that actually, even that is not the case, and that the whole e-Gold thing is backed by synthetic (financial) derivatives, so that there is no (financial) exposure to the physical product).
Do you really think that in Trading Places, Eddie Murphy's character was ever going to take deliver of 10,000 tonnes of pork bellies?
Bar said:bit like dogging,
you say you are available at place x and time y
Thats adveritised and computers look for people who would like to meet up and "transact"
if anyone else will be at place x and time y then wham-bam-thank-you-maam.
Gold is fungible and liquid too (or, rather, gold futures are).Visage said:
There is no gold to confiscate.Bes said:And herein lies the danger of places like e-gold if the price of gold suddenly goes up five-fold.
Also what happens if the government confiscates citzen's gold and silver holdings like they did in the US in the (thirties?).
Bar said:sorry - could not resist the analogy
hangs head in shame and stands in the corner