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Fsbirdhouse

The trend of gold

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That's a new record, and a reflection of just how weak the dollar has become. Given all of the chaos and uncertainty in the world today, I think that it will go much higher as people seek a safe haven with intrinsic value. If the Fed (the real govt.) raises rates soon as expected, it will go higher still.

I hope the Prescott boys haven't got all of the gold out of Lynx Creek yet, I'm going to try to find some crumbs there this Friday.

Rick

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I hope the Prescott boys haven't got all of the gold out of Lynx Creek yet, I'm going to try to find some crumbs there this Friday.

Rick

I think your safe! found a few crumbs myself, back in November. I took the new GF there to do some panning, and she was hooked(now she wants a drysuit so she can dredge with me!)oh Lord! :inocent:

On the other topic, speculation going around up here is, that we're seeing the inflation of a gold bubble. I hope their wrong, because the prices are helping me(and i'd like to see the current prices hang around for awhile)I have a small dredging operation and my profit is thin, even with gold as high as it is now. I sincerely hope this is a market adjustment based on solid demand, not just panic buying. If panic induced, then prices can tank very quickly when conditions change a little. That being said, a lot of smart people are predicting a bull gold market for the near future.So... get it and sell it, while you can :twocents:

Dave

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I hope the Prescott boys haven't got all of the gold out of Lynx Creek yet, I'm going to try to find some crumbs there this Friday.

Rick

I think your safe! found a few crumbs myself, back in November. I took the new GF there to do some panning, and she was hooked(now she wants a drysuit so she can dredge with me!)oh Lord! :inocent:

On the other topic, speculation going around up here is, that we're seeing the inflation of a gold bubble. I hope their wrong, because the prices are helping me(and i'd like to see the current prices hang around for awhile)I have a small dredging operation and my profit is thin, even with gold as high as it is now. I sincerely hope this is a market adjustment based on solid demand, not just panic buying. If panic induced, then prices can tank very quickly when conditions change a little. That being said, a lot of smart people are predicting a bull gold market for the near future.So... get it and sell it, while you can :twocents:

Dave

All the talking heads, as well as the rumors on the street (Internet) are talking a scarcity of the metal vs demand worldwide.

Dump your paper, buy/find the real McCoy.

Metal rules.

Remember the golden rule- "He who has the gold........."

The times...they are uncertain!

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All the talking heads, as well as the rumors on the street (Internet) are talking a scarcity of the metal vs demand worldwide.

Dump your paper, buy/find the real McCoy.

Metal rules.

Remember the golden rule- "He who has the gold........."

The times...they are uncertain!

Gold like real estate has only 1 trend....Up.

Even the collapse in real estate was only due to it being inflated...

But from what it was 20 years before it(real estate) is still well above what is was then.

SO while I wish I had more gold or more dollars.. I wish the price will continue to rise so I can continue to make a profit on what I find...

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The talking heads say all kinds of things about this, UP down,Sell. Buy,

I personaly would like to see it go up, even knowing what that means if it does.Aint a pretty picture for everyone here.

As the fear of paper money value turns to facts, and the lack of other stable realeastate arrise, Add in inflation witch is not happening :*&$*(: It seems it has only one way to go,UP. But when everyone has it What can you sell it for dollars?/chickens/water :???: What a mess.

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In the simplest of terms the price of gold is tied to the value of the dollar, as the dollar has declined the price of the shiny yellow stuff has risen. If the present administration would do those things neccessary to give stength and confidence to the currency the price eould either stablize or possibly go down a bit.

Gramps

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In the simplest of terms the price of gold is tied to the value of the dollar, as the dollar has declined the price of the shiny yellow stuff has risen. If the present administration would do those things neccessary to give stength and confidence to the currency the price eould either stablize or possibly go down a bit.

Gramps

That second sentence is sort of the problem isn't it ;-/

Nice thing about being a recreational prospector is holding unto finds because it really was never about making dough. When I got started gold was really hitting the roof at about $238 bucks an once!!!

When it hit $300 I figured it was time to do it for a livin' Marriage changed that a bit---but sure is nice knowing that something I pulled 15-20 years ago is worth quite a bit more.

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In addition to the dollar's decline in value, other factors also are at work fueling the rising prices of gold and silver. 1. Of substantial significance are the red hot Chinese and Indian economies. There are a lot of folks over in them thar parts, newly enabled to afford traditional gold jewelry items -- often in 22 or 23 karat purity -- as well as silver wedding gifts and such. Once these items are purchased they are not soon re-circulated, often remaining in families for generations. That adds up to a lot of the yellow and silver metal simply being taken out of the market and held in long term storage. 2. On the production side, environmental protection costs and labor expenses have risen worldwide, adding to the continuous upward cost of doing business trend. 3. In every economy in the world people, rich and poor alike, are hoarding [especially] silver coins. With lots of willing buyers and not so many willing sellers, the prices of these particular silver items go up at a skyrocketing rate. 4. The national treasuries of China and India [especially] are acquiring gold bullion to bolster their reserves. The silver-to-gold ratio closed around 36 to 1 today with silver just shy of $31 per Troy Ounce. Around a year ago it was 65 to 1 and around two years ago it dropped [briefly] below $9 per oz. I'm puzzled as to what is driving silver so hard, but I'm sure glad I've held onto mine.

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Silver is up because global demand for silver is about 890 million ounces a year, while global mine production is about 720 million ounces a year. We're actually consuming scrap to make up the difference. Apparently the rate of cunsumption in industrial uses is up, and people are buying it worldwide as a hedge.

http://seekingalpha.com/ is where I got the above. Interesting site, if your into that sort of thing.

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:thumbsupanim Silver is replacing gold in many industrial application and plated nickel conducts electricity really good also and cheaper than all. Industry drives silver where as greed and jewelry drives gold prices in Mumbai(world largest dealers)india,china and elsewhere as a hedge against inflation. Me I prefer a few 100 oz of silver,few more pounds a gold and 2/3 cash in I bonds and cds thank you very much--tons a au 2 u 2-John

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My typo error in the post above should read $41 per oz for silver [not $31]. Also, two other relevant factors: 1. The world's raw silver reserves have been steadily depleted over the centuries [at least the easily accessible loads]. The remaining silver telluride and chloride reserves are much more difficult to reduce, requiring high energy consumption to heat, oxygen to smelt and toxic waste products to clean or otherwise deal with. This drives costs of silver production higher. 2. Traditional lead solder is being phased out in some countries, using some silver content in the replacement solders. All in all, I'd say silver still is a very, very good investment even at the current incredibly high prices and may finally settle somewhere in the 16 or 24 to 1 range.

In regard to East Indians and their love of pure gold jewelry items, I had a case recently in which an East Indian immigrant was caught speeding at over 100mph and had a bottle of whiskey in his car, then he passed out during the field sobriety tests, and was tested positive for an opiate overdose upon arrival of the EMTs. As a result he was dispatched to a hospital instead of jail and his Mercedes was towed to an impound lot. A year later, just before the statute of limitations ran, he sued, claiming his 24K gold jewelry had been stolen by my client. He listed the value at over $23,000. During the court proceedings I pointed out that even at $1200 per oz the ring, bracelet and necklace he vaguely identified would have to weigh nearly TWO POUNDS, but when allegedly purchased years earlier, when gold was trading at much less, would have weighed closer to EIGHT or TEN POUNDS. Also, the impound inventory listed gold and silver jewelry as part of his personal property [along with wallet, cell phone, gps, etc] that was bagged, tagged and left locked inside the car [he didn't claim any of these items to be missing]. The judge didn't buy his story. During the trial his attorney attempted to offer a faxed copy of an appraisal from a shop in Mumbai which purported to list the Rupee value of several items of "23 ct" gold. It was rejected as hearsay. Nonetheless, this indicates that East Indians do, indeed, have a passion for possessing the purest of gold jewelry. It also shows that some folks will stretch the truth a bit.

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Gold's knockin' on 15's door. ;)

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According to the World Gold Council, mine supply increased only 3% in the second quarter of 2010 while total gold demand rose 36%. The more gold a company produces, the more replacement gold it has to find, and organic growth on a big scale is hard to come by. It can also take 10 years to discover a mine and take it into production, so for a quick fix large companies have to turn to acquisitions.

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According to the World Gold Council, mine supply increased only 3% in the second quarter of 2010 while total gold demand rose 36%. The more gold a company produces, the more replacement gold it has to find, and organic growth on a big scale is hard to come by. It can also take 10 years to discover a mine and take it into production, so for a quick fix large companies have to turn to acquisitions.

Hello Lisa,

Besides the relatively pure gold that I seek from the ground, I have a box full of broken 14k and 18k jewelry that my wife managed to mangle over the years. What percentage of spot does your company pay for the gold content of old jewelry? Like the rest here, I know how to compute the gold content exactly, so all that I need to know is what your company is willing to pay as a percentage of spot. What I've found so far is that the companies that buy old jewelry will not disclose what they pay as a percentage of spot, and they seem to believe that sellers are incapable of knowing how much gold their scrap contains. Is "Gold Buyers of USA" any different?

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Hello Lisa,

Besides the relatively pure gold that I seek from the ground, I have a box full of broken 14k and 18k jewelry that my wife managed to mangle over the years. What percentage of spot does your company pay for the gold content of old jewelry? Like the rest here, I know how to compute the gold content exactly, so all that I need to know is what your company is willing to pay as a percentage of spot. What I've found so far is that the companies that buy old jewelry will not disclose what they pay as a percentage of spot, and they seem to believe that sellers are incapable of knowing how much gold their scrap contains. Is "Gold Buyers of USA" any different?

That's a darn good question Rick. I'm also sitting on a like box of assorted gold jewelry, and since I'm currently poor and spot price is good, now is a good time to sell it.

Lisa: I went to the "What we Pay" link on the site you're getting some free advertising for, and although the page loaded correctly it had no information about "What we Pay". Is Rick correct in that companies like yours don't disclose that information?

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Mike

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That's a darn good question Rick. I'm also sitting on a like box of assorted gold jewelry, and since I'm currently poor and spot price is good, now is a good time to sell it.

Lisa: I went to the "What we Pay" link on the site you're getting some free advertising for, and although the page loaded correctly it had no information about "What we Pay". Is Rick correct in that companies like yours don't disclose that information?

popc1.gif

Mike

Mike (and others) our very own Allen in Montana buys scrap gold and he will treat you way better than any company that fails to openly declare how much they pay!

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Scrap gold does not always contain what is marked. This year the Prospectors Club of Southern California did a purchase of scrap gold from its members [for the purpose of making our own high quality grand drawing prizes -- a range of decent sized nugget pendants on 14K necklace chains]. Some of the 18K barely tested out at 14K and some of the 14K was all over the charts. Surprisingly, the dental gold tests out consistently high even though it is not marked at all.

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As a school trained goldsmith, I was taught that underkarating gold is a federal offense(felony) and can actually mean jail time. However, I am sure anyone that buys scrap (is there really such a thing) always checks. I know I do by an acid test and electronically! I also very carefully check my alloys prior to and after casting to verify gold content. I like my freedom

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Hello Lisa,

Besides the relatively pure gold that I seek from the ground, I have a box full of broken 14k and 18k jewelry that my wife managed to mangle over the years. What percentage of spot does your company pay for the gold content of old jewelry? Like the rest here, I know how to compute the gold content exactly, so all that I need to know is what your company is willing to pay as a percentage of spot. What I've found so far is that the companies that buy old jewelry will not disclose what they pay as a percentage of spot, and they seem to believe that sellers are incapable of knowing how much gold their scrap contains. Is "Gold Buyers of USA" any different?

That's a darn good question Rick. I'm also sitting on a like box of assorted gold jewelry, and since I'm currently poor and spot price is good, now is a good time to sell it.

Lisa: I went to the "What we Pay" link on the site you're getting some free advertising for, and although the page loaded correctly it had no information about "What we Pay". Is Rick correct in that companies like yours don't disclose that information?

Thank you for pointing that out, we have received a lot of feedback on that issue the last 2 days... our web developers are working on the What We Pay table, and it should be working again in a day or two!

Anyway, in response to your question about GBU, we pay very competitively based on current spot prices. Percentage is usually around 75-80% of the spot price, because we have to pay refining fees. However, it depends on several factors, and we always give clients the option to reject our offer, and ask for return shipment. Feel free to call us during business hours, David can get you a pretty good idea of what our offer would look like. We are out of Albuquerque, New Mexico.

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Thank you for pointing that out, we have received a lot of feedback on that issue the last 2 days... our web developers are working on the What We Pay table, and it should be working again in a day or two!

Anyway, in response to your question about GBU, we pay very competitively based on current spot prices. Percentage is usually around 75-80% of the spot price, because we have to pay refining fees. However, it depends on several factors, and we always give clients the option to reject our offer, and ask for return shipment. Feel free to call us during business hours, David can get you a pretty good idea of what our offer would look like. We are out of Albuquerque, New Mexico.

Thanks for getting back to us Lisa, and 75-80% of spot sounds like a fair price to me.

Rick

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Thanks for getting back to us Lisa, and 75-80% of spot sounds like a fair price to me.

Rick

Agreed. Thanks for checking back, and also for filling in the blanks about the web site.

Mike

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Personally, I would rather deal with a well known trusted member of this forum than a newbie that comes along for the sole purpose of a commercial venture. This issue has come up before and none of those mail your gold to me places are trustworthy! I even buy scrap occasionally and will certainly beat 75-80% since my refiner only charges 5%.....

Don't be dumb with your gold

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El Dorado, I did not join for the "sole purpose of a commercial venture", please be fair. My post about GBU was solicited by other forum members. In regards to 5% refining fee, yes, there are refiners who claim 5% refining fees...however, you will experience that not every "95%" is the same. One refiner's 85% may actually be more than another refiner's 95%. It takes time to build relationships with trustworthy companies, which is why we recommend starting out with small shipments, and asking for a return if the price is not what you expect.

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