Gold dealers | Page 2 | General financial discussion | Discussion forum

Briguy said
I just looked up for fun if you can prebuy gas, and there is one place in USA where you can do that, but none in Canada. In my google research it mentioned UGA. United States Gasoline Fund, LP (UGA) is an ETF that invests in futures contracts for gasoline, other types of gasoline, crude oil, diesel-heating oil, natural gas and other petroleum-based fuels. It's gone down 30%in the last 5 days,50% in the last 5 years. Maybe @Doug or @Bud can comment on the ETF.  

@Doug UGA has gone up 24% in 10 days if you bought it when I mentioned it on March 24th . You could have funded a year's tuition 🙂

Briguy said
I wish I could prebuy about 1000 litres of gasoline right now and use them later over the next year. They should sell gas station gift cards in Litres instead of dollars.

One can through the futures market.

However, the gasoline future contract is quite large: 21,000 gallons for an e-mini contract and 42,000 gallons for the regular contract.

Doug said

Interesting, Norman. How do you actually take delivery on a futures contract, though? That I've never looked into. 🙂
…

According to the chapter 191 of the rulebook, for that NYMEX 42,000 US gallon (1,000 US barrel) standard gasoline contract, physical delivery involves a rendezvous in New York Harbour:

191105. DELIVERY
Delivery shall be made free-on-board (“F.O.B.”) sellers ex-shore facility in New York Harbor with all duties, entitlements, taxes, fees and other charges imposed prior to, or as a result of, delivery paid by the seller. Delivery shall be made in accordance with applicable Federal, State and local laws. Delivery shall comply with all State laws related to oxygen content. Buyer shall reimburse seller for any gasoline tax as had been or will be paid by the seller. At buyer’s option, such delivery shall be made by any of the following methods:

1. By delivery into buyer’s barge;
2. By delivery into buyer’s tanker, if buyer can take delivery in such manner at the facility used by seller;
2. By delivery into buyer’s pipeline, if buyer can take delivery in such manner at the facility used by seller;
3. By stock transfer of title to the buyer, if the facility used by seller allows such transfer;
4. By book transfer if the seller agrees to such transfer;
5. By intra-facility transfer ("pump-over"), if the facility used by seller allows such transfer; or
6. By inter-facility transfer ("pump-over"), if both facilities used by seller and buyer allow such transfer.
…
For the purpose of these rules, New York Harbor shall extend from the East River west of Hunts Point; Gowanus Bay west of the Hamilton Avenue Bridge; the Hudson River south of George Washington Bridge; the Upper Bay; the Narrows; the Lower Bay west of Norton Point; the Newark Bay; the Hackensack River south of the Witt-Penn Bridge; the Passaic River south of the Pulaski Skyway Bridge; the Kill Van Kull; the Arthur Kill and the Raritan River east of the Garden State Parkway Bridge.

Lots of contract buyers will cash settle the contract. They will sell the future contract before delivery date and then immediately buy the gasoline from a local source.

The resulting profit or loss on the contract will then offset the change in price from the local source, not including transportation costs from New York Habour to the local source.

The central banks already have lots of the gold in existence.

According to the World Gold Council: Central Bank Gold Agreements, the central banks have about 20% of the gold ever mined because of history:

Collectively, at the end of 2018, central banks held around 33,200 tonnes of gold, which is approximately one-fifth of all the gold ever mined. Moreover, these holdings are highly concentrated in the advanced economies of Western Europe and North America, a legacy of the days of the gold standard. This means that central banks have immense pricing power in the gold markets.

In the end, if things are really really bad, all that will matter is what you can trade your "investment" for in order to meet your costs of existing. It needs to be something that can be widely and readily recognized as having a certain trade value, at the least. This function is normally filled by hard currency.

Personally, if you offered me gold or silver, I wouldn't know how to assess it or what it was worth as an instrument of trade. I know they come with certain markings on them to indicate what they are but I, personally would not know if these were legitimate or not.

The IMF states on its website that it is one of the worlds "largest official holder of gold". I think that's the same organization that all the countries of the world are indebted to , while ironically being members at the same time.

https://www.imf.org/en/About

Bud, I only can say, what I know, seriously.

I don't know about Rick Rieder, BlackRock and don't want to look in Google, I don't want to learn about them.

The only thing I know, that for a few decades value of my gold increased around 10% per year each and every single year until now.

I didn't expected so much, and if gold value will drop sharply soon in favor of the digital currency, no problem at all.

I can be left without any increase and I can experience massive losses too.

It's life and it's unpredictable, as far as I understand that thing.

I never planned to invest in gold, I just collected gold, because I like that shiny metal.

Why? I can give you an answer, but it's so strange and unbelievable, so better not to do that here.

One can make a tooth filling out of gold. Can't with bitcoin.

I can transfer ownership and value of an ounce of gold to someone in a few seconds, without involving a third person, by just handing it to her. No public record. Can't do that with bitcoin.

Need to have a third party accept my request to transfer the bitcoin, from my wallet to and her wallet, and record it in the blockchain. Right now, that takes about 20 minutes at least. Transfer is then public.