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Once a gold bug, (not) always a gold bug
Before I discovered Bitcoin I was a bit of a gold bug. Not a hardcore gold bug, but I used to occasionally stack physical gold and silver when I had some excess cash. I continued stacking gold and silver in my early years of stacking sats but stopped around 5 years ago.
Until yesterday, I had never sold an ounce of gold or silver. However, the recent fiat price increase had me thinking about it for some months now. Especially silver. I get the thesis for gold as central banks and large entities want to get away from holding treasuries and are looking for a neutral reserve asset they can buy in size. I have always subscribed to the notion that they will try gold first and then eventually move to Bitcoin. Silver is essentially a shitcoin at this point, it has a bit of industrial utility but much of its value derives from hanging on gold's coattails (sound familiar). So, while I didn't want to part with all of my gold and silver stack, I was content to sell some of my gold and a good chunk of my silver. Now seemed like as good a time as any considering the recent price surge. Also, I had some recent unexpected expenses with my dog and car that some extra cash would cover and of course Bitcoin is relatively cheap (and getting cheaper) these days so I can use some of the proceeds to stack more sats.
Pawn Stars it was not
I have been in pawn shops before but usually just to browse. I have only ever sold something to a pawn shop once- some jewelry from my first marriage. In that instance the pawn shop owner, who was well known from his local tv commercials was highly skeptical of my story that the jewelry was returned to me but it was true and in the end he was perfectly happy to buy it from me for a steep discount to "intrinsic value". Years later I saw on the news that one of his shops had gotten robbed and he was beat up and pistol whipped. I felt bad for him and thought back to our interaction. He probably took me for a ride on the sale and maybe he thought I had stolen the jewelry yet he bought it anyways but overall after meeting him I had a more positive impression of him than I did from his commercials.
Anyways, back on track. I decided to go to the local pawn shop because it was the only place I knew of in town that buys gold and silver. I had wandered past the shop around 6 weeks ago while I was waiting for my car to be serviced and noted the sign on the door that indicated they bought gold and silver. Later that day I checked their website and learned it was part of a small chain of pawn shops in southern Ontario and they post their daily rates for gold and silver on the site. The rates were very good for a pawn shop, only 4% under spot. So, I decided I would give it a shot and sell some of my gold and silver.
I called them in advance to see if I had to have an appointment and they said no come in any time during operating hours. So, yesterday afternoon while my daughter was visiting with my parents I ventured off to the pawn shop. I had done a rough estimate beforehand and knew I was bringing around 10k (CAD) based on their current rates posted.
The shop was small and kind of junky. They had all the regular things you expect of a pawn shop electronics, tools, musical instruments, jewelry but none of it really looked of high quality. While I was waiting for the guy at the counter to finish up with the customer in front of me I browsed some of the merchandise. I noted they had a few decent guitars and some switch games my kids would like but otherwise nothing I found particularly interesting. It was perfectly fine for a pawn shop but Silver and Gold Pawn from the TV show Pawn Stars it definitely was not.
The Normies still have no clue
Now on to the ulterior motive of my post. I was there for about 1 hour and ended up dealing with and chatting with all 3 employees in the store that day. The manager, a supervisor and another employee. They were all very nice and helpful as they verified the authenticity of the coins I brought in and went through all the hoops they had to jump through to get authorization to give me over 10k.
My takeaway from our chat: None of them seemed to have any clue why gold and silver have been rising in price. They understood consumer price inflation from their experience but didn't have any sense of the fact money supply has been exploding for the last 15 years in Canada or that global government debt levels are over 100T. One did complain about some of Carney's current pet projects but quite honestly they all came across as quite clueless to what is going on at least from a monetary/fiscal perspective. I am not sure what they thought of me when in our conversation I said "devaluing the currency is the only option at this point". One of them seemed to half nod acknowledging my observation made sense but the other two looked at me oddly as if to say, "that can't be right" in their minds.
And finally when I mentioned to them that I don't stack gold and silver anymore and hadn't bought any in years because I got into Bitcoin instead their collective response was kind of surprising to me because there wasn't really one. It was as if I had said something as perfectly normal as "good game last night". No "oh that's interesting" or "that sounds risky" or "what do you think of xyz coin". No surprise, strange, critical, or enthusiastic looks. I didn't really pursue discussing Bitcoin further from there as it didn't seem to elicit any positive or negative response from them. I don't know if this is good, bad or neither. I do however, feel it is an indication that Bitcoin has definitely crossed into the mainstream conscious but do the people who need it the most even care?
Thanks for reading.
Sats for all, GR
You don't have places that buy gold for bitcoin up there?
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No I have never seen that before.
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I haven't looked into them, but they seem pretty common in the states.
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That’s pretty cool. I would definitely do that. Maybe not with all my gold but some. Sounds fun.
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I've been thinking about checking it out for my small stash of silver coins. Maybe this weekend would be a good time, considering the huge price spread.
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I would be curious to see what kind of spread those gold from Bitcoin places have. 4% was pretty good. Guy told me they only mark it up 4% on the sale as well. That’s not bad at all. I wonder if that’s how they stay in business because they didn’t really seem to have anything else interesting going on.
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40 sats \ 1 reply \ @Signal312 6h
Do you know - do you have to pay sales tax in your jurisdiction, when buying gold?
There's been a recent change in Washington State in this area. Gold sales now being taxed in Washington State
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No investment grade gold is tax exempt.
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40 sats \ 6 replies \ @freetx 22h
Silver is essentially a shitcoin at this point
Very true. Its funny but its performed basically like a shitcoin to gold (bleeding oz's). Throughout history mints have always minted silver/gold coins in certain value ratios (ie 10 silver coins for a gold, etc). Over the centuries it basically looks like an ETH-BTC chart:
  • Babylon 5:1
  • Rome: 10:1
  • Middle Ages: 15:1
  • US Founding 15:1
  • Post-1860 US: 25:1
  • Post 1939 US: 35:1
  • Current US Coinage: 50:1
  • Current Actual Spot Price: 77:1
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78 sats \ 0 replies \ @spiderman 7h
All those ratios were set by the governments themselves, but traded on the market, they regularly diverged from the legally mandated ratio depending on demand-supply.
In old enough times, silver was not too bad as money, for relatively low value transactions. I mean, you would carry gold to buy a house, but carry a silver brick to buy a goat.
Of course, as we moved to the banking era, people stopped actually carrying physical metals, replacing them with IOU notes issued by...first banks, then the government. Hence, silver lost its monetary usage as the pain-point of carrying out low value transactions was solved by fractional IOUs on gold.
Hence, most of the silver kept in vaults found their way to the market for industrial usage, part of the price that was inflated by the hoarding of the material was deflated.
So it is somewhere between copper and gold now, in terms of industrial usage and store-of-value, but in terms of the later, it diminished a lot in past century or so. It will never reach the previous high (in terms of ratio against gold), but given its crazy importance industrially, after reaching a bottom it would keep pace with (or beat) inflation very well.
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40 sats \ 4 replies \ @optimism 22h
The big difference between ETH and silver is that the latter was actually once upon a time money. So if I were silver you were now on the shitlist, together with ETH
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102 sats \ 1 reply \ @grayruby OP 22h
I don't think silver is as shitty as shitcoins but I thought it was a reasonable analogy.
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61 sats \ 0 replies \ @optimism 22h
No worries I'm just being a dick to @freetx
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40 sats \ 1 reply \ @freetx 21h
Yeh, I have a hundred or so oz of silver that I bought back in the day. In that time since I bought it (2006?) silver was about $12 and gold was about $700. So flash forward to today silver is now 50 (4x) and gold is $4000 (5.7x).
On the message boards at the time the big "moon talk" was "$200 silver incoming!!" - but what they never mention is that when silver hits 200, gold will be at 30k....its amazing how similar the silver/gold - eth/btc communities are.....
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100oz of silver is not too shabby.
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40 sats \ 2 replies \ @Scoresby 22h
You should have tried to buy something with the gold first (coffee, hamburgers, gas). It would have made for a great story.
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I still have some gold. Not much silver left but a bit. Maybe one day I will go on an adventure and try to buy something with it.
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142 sats \ 0 replies \ @Signal312 6h
The only place I know where this works is in Venezuela.
Literally, I read an article (years ago) that said there were illegal gold mining towns in Venezuela where you could use gold dust to buy things.
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Excellent post, but to me, Gold and Bitcoin both stand tall, and together they make up most of my portfolio. Timely rotation between them based on fundamentals can really add up a lot. The current gold/bitcoin ratio was breached (from upside) more than 4 years back. Since then there have been lots of swing, but it is where it was in February 2021.
Do you know about BullionStar, a precious metal dealer that can store (for a fee) or deliver your bars and coins?
They actually accept Bitcoin (for buying and selling), i.e. makes them great for rotating.
No affiliation whatsoever, I am just a happy, long-term customer!
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I agree. I didn’t sell all my gold. Still plan to hold what I have left.
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20 sats \ 1 reply \ @spiderman 15h
Yeah, I am adding. I am not buying any more BTC until Saylor liquidates his stash, that will be the mother of all Buy-the-Dip opportunities
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That’s probably not going to happen any time soon.
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Sell bitcoin at pawn shop for gold
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I will not.
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4% is still quite a large margin. Its similar or worse here in New Zealand with only one or two places in the whole country that buy and sell gold and they charge at least 5% margin. In Asia it is very different with Thailands gold shops trading within a 1-2% margin range. Recently swapped some sats for Thai gold bars as I had never held gold before and I see it in the near term are rising while sats follow the 4 year cycle down fr the next few years- still, mostly still hodling sats! I actually feel a lot more comfortable holding sats in terms of security- still getting used to the idea of stashing physical gold securely. I guess in terms or markets and margins its a question of scale and us in the Anglosphere where fiat money has not been as bad as perhaps Asian historically we have had more trust in the fiat. Times change and the petrodollars hegemony is declining and its subsidiary tribute states like NZ and Canada will be affected- they already are. Peoples perceptions of money are deeply ingrained and change slowly- most people are not really aware of let alone understand the fiat debt slavery they live under!
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4% is not bad at all in Canada. Some places are 10%.
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