Gold spot below $4000!

[shinnosuke]

You responded exactly how I thought you would. You were the first to mention crypto in this thread, but you have already graciously forgiven yourself for trolling here.

[Cu Penny Hoarder]

You responded exactly how I thought you would. You were the first to mention crypto in this thread, but you have already graciously forgiven yourself for trolling here.

You're trolling me @sswipe.

Your parents have any kids that lived?

Dry up and blow away.

[shinnosuke]

Meanwhile back at the thread, Tanaka Kikinzoku is selling gold at US$4,445.76/toz.

[thecrazyone]

We hit 4177 today already..

[thecrazyone]

Now at 4183

[Lemon Thrower]

$4200

[68Camaro]

Yep, hit 4219.2 before the london open knock down began.

[thecrazyone]

God help us

[thecrazyone]

Went up to 4238 this AM. Hard to believe that this time last year we were tracking it at 2700!!

[thecrazyone]

4252!!

[pmbug]

Here's some gold fun. I made a ~2min video. Enjoy:

https://x.com/pmbug/status/1978830821575340507

[68Camaro]

That was fun, well done!

[Lemon Thrower]

closing in on $54

[pmbug]

That was fun, well done!

Thanks! I just started learning how to use these video editing tools.

[thecrazyone]

4294!!!

[68Camaro]

4294!!!

Yeah it hit $4299.2 before falling back. We may have to wait until tonight to see $4300 gold at the same time as $54 silver.

[TXSTARFIRE]

You must mean $4299.2?

[68Camaro]

You must mean $4299.2?

Ha! Yeah, fatfingered that, but fixed it.

Gold passes $4300 now, for sure.

[thecrazyone]

Omg

[shinnosuke]

Checked in again on one of Japan's largest PM businesses, Tanaka Kikinzoku, to see this:
Selling for $4,694.57
Buying for $4,654.87
Not a bad spread, eh?

[shinnosuke]

Isn't it about time for some politicians to start with the "fairness" whining?

It's not fair that you (sacrificed and saved and) bought gold when it was cheap. You must pay a fairness tax of 50% of profits when you sell or convert or trade your precious metals. That new revenue stream will support those who didn't have the opportunity to buy gold.

[68Camaro]

$4361 it jumped straight out of the gate...what is going on?

[thecrazyone]

We're on the verge of war, imo

[68Camaro]

We're on the verge of war, imo

Well, I don't think we're on the verge of war, but this could be one of the very early canary events that is part of a planned conflict, for China to take as much physical gold and silver as possible prior to a big conflict.

We know, absolutely, that China wants to take Taiwan, and has been preparing to do that. And that will be a big conflict. Until this year there have been suggestions that they were preparing to do that by next year. I think they have decided they aren't ready to deal with a transformed US military under Trump that has (like WW2) had a couple of years now to put its industry on a semi war footing and ramp up production to wartime levels (helped in part with specific munitions by needing to supply Ukraine and an amped up Europe). But the longer they wait, the more prepared the non Chinese get. Now we have Australia with F35s and JASSM missiles, and nuclear ballistic and hunter killer subs in the works. Japan is gearing up. Other Allies are gearing up. So they will have a tough decision to make on when they go. If they go too soon they won't be ready. If they go too late they will face a reared and ready multinational force, led by a US with new and renewed weapons.

Russia didn't do China any favors there. We need still more production, but if we were at the same state we were in 2022, and China attacked, we would have been out of munitions in weeks. That's much less true now. (For those that deride the military industrial base, you are too stupid to bother arguing with. Our troops are the best, but with nothing to fight with, they will be shredded in any war of more than a few weeks. Big wars are wars of logistics first, before they are wars of talent or training.

[shinnosuke]

I asked Grok to remind me of incidents of the COMEX settling contracts in cash and learned that it happens almost all the time. Sometimes though a large premium is required to help the other party accept the fiat.

<begin quote>
While COMEX (the primary U.S. futures exchange for precious metals like gold and silver) operates on a system where most contracts—over 99% historically—are settled in cash or rolled over rather than via physical delivery, there have indeed been instances where claims were settled in cash amid concerns over potential physical shortages. This isn't a full "default" in the sense of the exchange failing to honor contracts (COMEX rules allow for cash settlement as a standard option, often invoked to avoid delivery strains), but it does reflect situations where physical metal availability was tight enough to push parties toward cash resolution.
<end quote>

Grok then gave me several examples such as during the Covid Plandemic and after the last presidential election and especially now. There's been no official default at the COMEX or LBMA because the rules allow for cash settlement, but the general lack of metal would certainly erode confidence (as it should) in these institutions. Look for premiums to become an increasingly larger feature of higher prices.