Gold Sold From Vending Machines In Germany
There are fewer hassles for an adventurer or business traveler bigger than lugging around bags of silver and copper pieces. Luckily TG-Gold-Super-Markt has installed gold vending machines in 500 locations including train stations and airports all across Germany. The machines charge about 30% more than the current trading price for gold, and are updated every few minutes. All are closely monitored by cameras, and like 3rd and 4th edition, electrum pieces are not accepted.
If this isn't a "sell" signal, I don't know what is.
This is certainly an interesting concept but I have a handful of concerns -
1. Why as an investor would I pay a 30% premium to purchase physical gold?
2. Assuming I would I then have to worry about keeping the gold physically secure once I take possession of it.
3. I run into issues when trying to sell the gold after I've taken possession because how can anyone be sure that I haven't tampered with the gold? How do they know that 1oz is still 1oz? What if I drilled and filled it?
There are many other ways to purchase gold as an investment that eliminate the above issues. Gold ETF's are one. They are easy to trade and move in and out of. There are services that will let me purchase gold and store it at their locations, and will certify the amounts as to avoid purity issues as well as security issues.
If you truly believe that the world economies are going to collapse why bother to buy gold at all? You should be buying guns. Believe me, you'll need them to protect more important things like your family and your home.
Interesting idea but only suckers will buy from them. :-)
If gold is selling for $1K per ounce, a 30 percent increase is $300!!
We be in the wrong business!
Maybe Gold foil hats would be better.
In my other life, I eat cats.
We are at the beginning/middle/end of a gold bubble, just like we had a .com stock bubble in 1999/2000 and a real estate bubble from 2001-2007.
Well, which is it?
<Complete your profile by adding a signature!>
Insightful??? At that time frame gold when from round $400/oz. to around $800/oz.
Trouble there is, nobody would be selling gold at +30% in exchange for a paper currency that will be worth half as much tomorrow.
If you want to buy gold at any reasonable rate, you pretty much have to do it well before you actually need it(or you have to be buying in some other apocalypse currency, like dog food or ammunition).
It's a panic sparked by a fear of a coming currency collapse - quite a reasonable fear given the current rate of US government spending, but still a very low probability event. However, while hedging against the chance of the dollar collapsing (and taking the Euro with it) makes sense, it only makes sense to pay a very small premium to hedge against this unlikely event.
Some see this hedging going on by central banks and other who buy and sell gold by the ton, and overreact. Physical gold coins are a total ripoff right now (and entire industry has emerged to exploit the panic), and, seriously, if society collapses to the point that legitimate "intangible" gold (such as GLD shares) become worthless, you don't want gold coins, you want *guns*.
Socialism: a lie told by totalitarians and believed by fools.
Gold at 30% extra is swell deal if you are faced with possibility that your cash would be worth 50% less tomorrow.
No it isn't, because one of your other options is gold without the 30% premium. If you don't like fiat currency, fine, invest in whatever you like. But why you'd pay a premium over the market value is beyond me.
Vending machines work for candy bars. I'm willing to pay a markup because I want my snack in my hand right now. What could possibly be the urgency with gold?
(Yeah, yeah, hyperinflation in post-WWI Germany or late '80s Argentina or current Zimbabwe. You think what Zimbabwe needs are vending machines for gold?)
Am I missing something? Is there really such a demand for bottled water on the street that the convenience of being able to purchase it from a vending machine warrants a 10000000% markup?
In all seriousness, this will be a boon for privacy nuts, the very rich, money launderers, and anyone else too lazy to buy direct for cheaper. Keep in mind that tax evasion is something of a national pastime in Germany.
http://cltracker.net -- powerful craigslist multi-city search
This isn't a rational thing. It is to get the people who are doing the "OMG the economy is going to collapse!" thing and don't know what to do. They see this and go "Ahh I can buy gold, gold is always safe!" It isn't targeted at rational investors, or even rational survivalists for that matter. It is targeted at alarmist doomsdayers.
The term "market value" for gold is idiotic to begin with. Market value for what? Gold smelted into 1000oz bars? Gold minted into pretty 1g wafers with a fancy design on the face and fluted edges to prevent dishonest vendors shaving some off? Gold in the form of a promissory note from a bank that holds the equivalent in metal in their vaults? Gold in the form of a promissory note from an institution that holds only a fraction of your gold but claims they are "good for the rest?"
Each of the above will command a different premium over the spot price you see quoted in your newspaper ... and some of those premiums might even be 30% or more depending where you buy.
If libertarians are so opposed to effective government, why don't they all move to Somalia?
If you want to buy gold at any reasonable rate, you pretty much have to do it well before you actually need it(or you have to be buying in some other apocalypse currency, like dog food or ammunition).
See. I don't understand the gold bugs. Most of their hyper-inflation apocalypse scenarios they state that gold will be the new currency, but time and time again nations that have went through hyper-inflation have reverted to bartering instead.
When people are in times to need, they look to commodities with utility rather than value.
So in the wastelands in the future people will value gas, water, canned food, guns and ammo and not a pretty metal.
Secondly, if anarchy does set in, you can always use your gun to take someone else's gold if you wanna bother lugging that around.
"I am the king of the Romans, and am superior to rules of grammar!"
-Sigismund, Holy Roman Emperor (1368-1437)
Yeah, and guess what? If you bought in the late 70's, you STILL haven't recouped your investment. ~$750/oz in 1980 equates to ~$2100/oz adjusted for inflation. Gold reached its all time high a year or two ago at... ~$1000/oz. Oops.
So yeah, in the short term it's possible to make money with gold. But again, talk to the people who bought and held 30 years ago how their investment is doing.
Meanwhile, back in reality, paper money is gaining in value as prices fall.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aE9AA32hx8ek
So go ahead and buy your vending-machine gold (instantly losing 30%) and keep talking about hyperinflation as the recession eventually ends and gold crashes back to pre-recession prices.
A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
What's so special about gold? There's a whole lot of things you can buy bulk and sell at a considerable markup.
Some of my favorite places to visit do this with books: they buy large quantities, and sell individual copies to me at a markup.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
I think you'll notice though that much like the gold mentioned in the article, people are stocking like CRAZY on ammunition right now. Prices have doubled (or more) in the last 6 months. You have about a snowball's chance in hell of finding any common pistol ammunition on the shelves right now (9mm, .45acp, .40s&w, etc) - people are literally waiting at stores as the boxes are unloaded and buying it all up immediately. All the local stores have had to put a per item limit on customers just to try and keep the speculators from buying it all.
Even if you reload your own it's tough times. To load a round of ammo you pretty much need a case, a primer, powder, and a bullet. Cases are reuseable. For slower rounds bullets can be cast at home out of scrap lead (I've got about 400 lbs melted into lead bars if needed). Powder and primers usually must be purchased (you can make black powder at home, but it's usually poor quality and most loaded rounds use smokeless powder rather than black powder anyways). Like the loaded rounds though, the primers have become rarer than hens teeth. When they become available people are buying them 10,000 or more at a time.
I think overall, be it gold or ammo or canned goods, a lot of people are dumping a lot of money into supplies that they feel will see them through some tough times.
"People who think they know everything are very annoying to those of us who do."-Mark Twain
Relative to what? Suppose I was in London with ten sov'reigns bright in my pocket in the year 1709. What could I buy with them? Suppose now I am in London with ten sovereigns in 2009. What can I buy?
One thing hasn't changed: London was and is a colossal trading centre, so if it exists and I have the money I can buy it. But everything else is completely different. What if I want a passage to Boston, in the colonies - and back again? Well, in 1709, my sovereigns might buy my passage, several weeks on a sailing ship in dubious conditions. Just. The cost of such a trip was many months' pay for a labourer - people would indenture themselves for years in exchange for their passage. What if I want the same in 2009? Why, I can get from London to Boston and back again the next day if I wish it, and I'll have ample change left over for shopping while I'm there.
The same goes for almost everything I might seek to buy. What if I desire personal transport? How many horsepower can I get for ten sovereigns in 2009? A hundred or so? How many horsepower can I get in 1709? One or two? Or contrariwise: what if I would hire myself a servant? Ten sovereigns will get me a labourer for six months or so in 1709. In 2009, ten sovereigns for even two months' work would be a low wage.
Economy and society and technology have changed so much: how do you compare the value of those sovereigns across the centuries?
Oh, of course: some things don't change so much. Always there is demand for beer, and beer changes little enough. When I go into an alehouse, and order whiskeys and wines of the best, what can I have? Well, a pint of London porter was 3d a quart, or a penny and a half for a pint, or 160 pints for a sovereign (this being back when a sovereign really was worth a pound, not just having that nominal face value). Nowadays, a sovereign sells from the Royal Mint for £200, and a pint of porter - Dublin porter more likely nowadays - is something like £3. That's 67 pints for a sovereign.
So to my mind, where it really counts, on a London street buying beer, the value of that sovereign has fallen substantially in the three centuries gone by.
Real Daleks don't climb stairs - they level the building.
Out of curiosity: Is the manufacturing process for ammunition particularly trick, or are there other reasons that supply hasn't expanded to meet demand(or at least lag demand a bit less)?
You mean like the US fighting two foreign wars at once taking up most of the supply capacity of the ammo factories?
Right - because someone who reads a site on tech news because they're interested in tech has to also play Dungeons and Dragons? Are the two groups synonymous? If I see a group of people rolling dice can I go over and ask them to design the schema for my database?
Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
Nuff said.
What bullshit Libertarian gold standard propaganda. Gold absolutely does not in any way "hold its value like nothing else." Gold is much more variable, up and down, than many possible investments.
Your political diatribe didn't actually answer the question asked. (Plus [citation needed].) One other answer, currently score 0 troll, did say without citation that 2 wars were using up a lot of the bullet supply, which might be true.. maybe the supply is truly more fixed than us non-gun owners know.
One current problem with gold is the lid at $980/oz. Every time the market touches that trigger someone big is coming in and sell sell selling until they drive it back to near $880. Don't know who, but they must have a pretty good pile of the stuff at the moment to have kept this up this long.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Demand is through the roof as some of us--the ones who believe that the government is answerable to its people--are stocking up in case of future interruptions in supply.
I'm sorry... Maybe it's cause I'm from Europe, but what does guns have to do with government being answerable to the people?
If they don't answer, you'll shoot them? Hell, in Norway we got 1.5 million weapons with a population of 4.7 million. Yet we don't go around having wet dreams of a future where the government becomes totalitarian so we can shoot people we don't like in an excuse of a revolution.
We got the 11th lowest murder rate in the world. I think you guys just need to stop being so angry at the world.
- These characters were randomly selected.
I think it's because the war of independence -- where the citizens of North America took up arms against the then government and won their independence -- is a significant part of the identity of many North American citizens. Also don't forget that the founding fathers made it very clear that all citizens must have the right to possess arms, for the explicit reason of being able to overthrow a future corrupt government. While one hopes that would never come to pass, it's still an important part of the very identity of US citizens.
Or to put the question back to you: if your government ignores the apparent will of the majority of the people, how will you react? If they start imposing martial law to keep the peace and outlaw protests against their clearly unpopular policies, what can the ordinary citizen do?
Armed revolution is most definitely a last resort, but if you don't have an unpalatable last resort then what's stopping those in power from abusing that power in the extreme?
That's why I invest in gold _and_ lead.
Tiller's Rule: Never use a word in written form that you've only heard and never read. You will end up looking foolish.
Speaking as a USian, I think it is overstating the case to assert that "fear of [our] countrymen is the norm" (if that is indeed your implication). Although I can certainly see where you would get that idea from all of the wingnut apocalyptic talk around here. I think that the primary motivation for preserving and exercising the right to keep and bear arms is to keep those in power just a little off-balance. At least, that was the original idea. Whether that is a realistic expectation given the federal government's access to modern military weaponry is another question.
Anyway, it is definitely not the case that most people walk down most streets in the US worried about getting their caps peeled by Their Fellow Americans. Some people, and some streets, yes, but not the vast majority.
Yeah, I know, Off Topic, No True Scotsman, Citation Needed, blah blah blah . . .
Journey onward.
Whenever a group of people wishes to control another group, the first thing they do is prohibit that group from having weapons.
You are sounding rather limited in your own grasp of world history - many enlightened countries of the modern world prohibit weapons, and none of of them have totalitarian governments. There is simply no need for anyone to possess powerful weapons if nobody else does either. And why does your government want to "control" you (hint: that's a big part of what they're for)?
First of all, it's totally disrespectful and hypocritical to imply that someone else is unable to handle weapons responsibly, while claiming you are able to do so.
Who says anyone has to have them? Here in the UK, gun ownership is illegal, and the police do not carry guns either. Nobody feels they need a gun, criminals rarely use them, and nobody is upset by the army having them. Over here, the hysteria is about pen knives instead.
If people have weapons, there is only so far you can push then before they fight back ... if people lack weapons they will only fight back once they've literally decided it is not worthwhile to live.
Or in other words, "black is not white, therefore it must be red". Are you mental? Why would people not express their opinion just because they don't have a gun?? Shooting people isn't the only (or even a likely, or indeed effective) way to fight back, surely you can't think it is? In your vision of the future, are rednecks going hand to hand with robotic agents of the government in the streets, heroically winning through their wise stockpiling of assault weaponry? And then the government says "OK, we give up" and everything is hunky dory again? Methinks you've missed about a million steps in between (probably involving an election). I hear this time and time again, and it's always from people who secretly fantasise about an apocalypse in which they get to shoot a looter/robot/zombie/graboid in the face.
There is simply no good reason for a benevolent government to ban weapons. That means that any government that wishes to do so must be malevolent
Err, reasons to ban weapons:
1. weapons are dangerous
2. people with weapons are dangerous
3. without weapons, weapons are unnecessary
4. the government is there to make life good for people (which includes keeping them alive)
What reason exactly are you suggesting for your malevolent government's wish to "control" you? I could just as easily turn your statement around and suggest that a benevolent government has no reason to allow ordinary citizens to take up arms.
Dude, you should not even dignify him with a response, he so just wanted to take a shot at how US is so crap, and his nation is so great because they don't use their weapons, they also sit on the side lines, when dictators are busy using the new genocide weapons they bought on their own population.
He forgets his nation went through a transition with the similar problem back in the dark ages, seeing as his nation is 1000s of years old, and ours hundreds.... I would say we did pretty good for ourselves so far, considering we have 60 times the population they do....and 60 times the possibility for crime, chaos, and gov. related disasters.
When a gov of 20 people find out they were tricked by one amongst them who is leader...not much happens other then ...guess we wont be doing that again...when a gov. of 1200 people
find out they were tricked, they will surely act more like a lynch mob then the 20 people..why...because of the numbers.
Many studies prove the bigger the number, the bigger the differences in a government. You can not apply to a government like the US, policies that would work in Okinawa!
Anyways...lame comment on his part if you ask me..... raise that US flag bud!