It worked beautifully as a hedge during the February 2020 crash. You can't argue with that. Should an investor have switched from gold to the S&P500 in April to take advantage of the Fed-fueled run-up in stocks? Sure, or they could have speculated on BTC or a meme stock. That doesn't mean that Gold is dysfunctional. Besides, we haven't seen a collapse of the dollar-based monetary system yet. A lot of gold holders are actually hedging that. It does, afterall, seem inevitable. The problem is that holding gold and waiting for it casts you as a doomsday prophet like Peter Schiff. He's not irrational, but his rhetoric can easily be dismissed by those seeking shorter term profits.
Now consider this. If Gold has sucked so much lately, doesn't that make it a bargain right now in a market where almost nothing else is? I mean, what else can you buy? More TSLA? Some Zillow houses? or whatever Cathy Wood likes? It's all ridiculously overpriced. Gold has never been overpriced, but you can pay too much in premiums or fees.
Watch gold vs the various FX currencies, it makes more sense. A lot of $$ is also going into crypto. My guess is when gold runs it’s going to when everything else crashes and the run will be big.
So far the dollar is holding it’s own against other currencies, but I have my doubts on how long that lasts under slow Joe.
"Life is tough, even tougher if your stupid" John Wayne
Since the state understands that high PM prices are viewed by the public as an indication of a weak economy, they take every measure in their power to hold their prices down. Even still, prices are up some 10% from their lows for the year.
An ounce of gold is worth a tailored suit or a Colt pistol. This has remained a constant for a long damn time.
Funny. I was just watching a Hickok45 video on his original Colt Model 1849, and he made the same remark, i.e., he had a $10.00 US gold piece on the table next to it and remarked that when this revolver was made (1852), it could have been purchased with that coin, and that's still true today.
In fact, I'll go ahead and post the video below for anyone who's interested.
Gold mostly follows the money supply of the world. I should go up but is close to it's 52 week low. I dont hold physical gold but have a 1.25% of gold interest in my portfolio and I am up about 5% or so in 7 months. I bought 2 gold trusts. I also bought Newmount , Kirkland, and Kinross and a gold miners ETF. The reason gold should go up is the United States printed enough money to buy 1/3 of the worlds gold reserves. This is why I think it will do very well. However , 5% is not very good . I was up 13 % cause it went up right when I bought it but came way down. The last week it did very good.
But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
That puts a damper on the gold bugs that suppose gold will go to the moon and they'll be rich! Gold may very well be worth $50,000 an ounce some day, but if you've got 50 ounces, don't think you'll become a "millionaire" by some previous era's conception. Your millions will buy 50 suits or 50 colt revolvers. Even so, in the long-term, it's beaten every fiat currency ever.
That puts a damper on the gold bugs that suppose gold will go to the moon and they'll be rich! Gold may very well be worth $50,000 an ounce some day, but if you've got 50 ounces, don't think you'll become a "millionaire" by some previous era's conception. Your millions will buy 50 suits or 50 colt revolvers. Even so, in the long-term, it's beaten every fiat currency ever.
Actually, when gold goes to the moon, there is always an overshoot. In other words, gold can fluctuate from way undervalued to way overvalued. 1980 was an example of the latter. If you had purchased 50 ounces in 1973 for $100.00 an ounce (a $5,000.00 investment) and sold them for $800.00 an ounce in 1980, your purchasing power increased quite a lot in real terms, since you'd be in possession of $40,000.00, i.e., a gain of $35,000 over a seven year period.
Similarly, if you had purchased 50 ounce in 2001 for $270.00 per ounce, and sold them in 2011 for $1,896.00 an ounce, you would have turned $13,500.00 into $94,800.00. That's a significant increase in real purchasing power, i.e., wealth, despite dollar price inflation. That's a gain of $81,300 over a ten year period.
That puts a damper on the gold bugs that suppose gold will go to the moon and they'll be rich! Gold may very well be worth $50,000 an ounce some day, but if you've got 50 ounces, don't think you'll become a "millionaire" by some previous era's conception. Your millions will buy 50 suits or 50 colt revolvers. Even so, in the long-term, it's beaten every fiat currency ever.
Actually, when gold goes to the moon, there is always an overshoot. In other words, gold can fluctuate from way undervalued to way overvalued. 1980 was an example of the latter. If you had purchased 50 ounces in 1973 for $100.00 an ounce (a $5,000.00 investment) and sold them for $800.00 an ounce in 1980, your purchasing power increased quite a lot in real terms, since you'd be in possession of $40,000.00, i.e., a gain of $35,000 over a seven year period.
Similarly, if you had purchased 50 ounce in 2001 for $270.00 per ounce, and sold them in 2011 for $1,896.00 an ounce, you would have turned $13,500.00 into $94,800.00. That's a significant increase in real purchasing power, i.e., wealth, despite dollar price inflation. That's a gain of $81,300 over a ten year period.
Both examples beat inflation by quite a lot.
All hypothetical buying low and selling high. The same can be said for Wall Street of which I have done well without hoping for buy low and sell high...
That puts a damper on the gold bugs that suppose gold will go to the moon and they'll be rich! Gold may very well be worth $50,000 an ounce some day, but if you've got 50 ounces, don't think you'll become a "millionaire" by some previous era's conception. Your millions will buy 50 suits or 50 colt revolvers. Even so, in the long-term, it's beaten every fiat currency ever.
Actually, when gold goes to the moon, there is always an overshoot. In other words, gold can fluctuate from way undervalued to way overvalued. 1980 was an example of the latter. If you had purchased 50 ounces in 1973 for $100.00 an ounce (a $5,000.00 investment) and sold them for $800.00 an ounce in 1980, your purchasing power increased quite a lot in real terms, since you'd be in possession of $40,000.00, i.e., a gain of $35,000 over a seven year period.
Similarly, if you had purchased 50 ounce in 2001 for $270.00 per ounce, and sold them in 2011 for $1,896.00 an ounce, you would have turned $13,500.00 into $94,800.00. That's a significant increase in real purchasing power, i.e., wealth, despite dollar price inflation. That's a gain of $81,300 over a ten year period.
Both examples beat inflation by quite a lot.
Good call Captain Hindsight! Could you give us some future examples?
Silver is a hedge in real purchasing power, useful for the purchase of smaller items needed in daily life.
Gold is a store of wealth medium. A belt of Krugerrands can be carried across oceans and buy a farm when you arrive. Or a boat to get there. Or... Gold has always been the one to have to make large sums portable and concealable. Silver was the common man’s money for daily living.
I've bought another 10 or 12 ounces of mostly fractional the past few months because I didn't trust anything else. I like having tubes of 50 tenth ounce eagles. Smaller than a roll of dimes and worth 10k. Might make good trade material in the future.
I always liked silver but it gets heavy after a while. I still want to add a few more bags of mercury dimes if the premiums come down.
I prefer to barter or use cash and neither is as popular these days as it used to be. When cash goes away I'll still be trading metals.
That puts a damper on the gold bugs that suppose gold will go to the moon and they'll be rich! Gold may very well be worth $50,000 an ounce some day, but if you've got 50 ounces, don't think you'll become a "millionaire" by some previous era's conception. Your millions will buy 50 suits or 50 colt revolvers. Even so, in the long-term, it's beaten every fiat currency ever.
Actually, when gold goes to the moon, there is always an overshoot. In other words, gold can fluctuate from way undervalued to way overvalued. 1980 was an example of the latter. If you had purchased 50 ounces in 1973 for $100.00 an ounce (a $5,000.00 investment) and sold them for $800.00 an ounce in 1980, your purchasing power increased quite a lot in real terms, since you'd be in possession of $40,000.00, i.e., a gain of $35,000 over a seven year period.
Similarly, if you had purchased 50 ounce in 2001 for $270.00 per ounce, and sold them in 2011 for $1,896.00 an ounce, you would have turned $13,500.00 into $94,800.00. That's a significant increase in real purchasing power, i.e., wealth, despite dollar price inflation. That's a gain of $81,300 over a ten year period.
Both examples beat inflation by quite a lot.
All hypothetical buying low and selling high. The same can be said for Wall Street of which I have done well without hoping for buy low and sell high...
I was responding to Juniper who implied that the best you could hope for with metals was to keep up with inflation. I demonstrated that this is not actually the case.
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