I have some GLD in my retirement fund. I was going to dump it all at 3k but I forgot. I think this is a bubble. Thanks for the reminder. I probably let it go tomorrow or rotate little at a time. Nothing goes up like this with out the subsequent crash. Remember there is NO profit until you cash out. Does not matter what it is. There is no absolute value. Dot com. Re estate. Tulip bulbs. Nothing is real. It is all perception. Gold or dollars. Guns and ammo.

I dont know you, but just as a for instance, if you have a mortgage you could sell 1/2 your gold and pay that down or zero the debt. I am totally not impressed unless you do something with it. At least rebalance the asset.

 

S&P 500 in blue, Gold in Orange. I think I'll just stay in the markets.

 

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S&P 500 in blue, Gold in Orange. I think I'll just stay in the markets.

Minus fee's, taxes, and the fact it's like cryto....vapor only with no physical presence, the return is substantially less than the chart shows. If stocks had serious value, the majority company owners would buy it all back. Effectively, stocks are a free loan that companies never pay back and eventually every stock goes to zero. We no longer participate in fiat stocks and gambling since irrational people and crooks manipulate the values. We've gone into physical things that exist in the real world. Just bought some gold art a few weeks back. It's art, which is pleasant to look at, and made of gold....never worthless like some other art forms. Guns, real estate, direct company ownership, and other objects have gotten me better returns overall than stocks ever did. We bought and held index funds for 30 years starting in 87' and it didn't do that well net profit.

Time to cash out of a few things, but then you have cash, and that for sure is only going in one direction. I suppose I could call an "investment advisor", but when I ask the 30 somethings their net worth and debt load, why would I take advice from upside down zero net worth sales people? "Because that's what most people do" is a place I never want to be. LOL

Gold broke $4000 yesterday.

 

That is a sell signal, if I ever saw one.

 

Wait a minute you guys: You're talking as if gold were a temporary holding used to "play the market."

Three words for that plan: Fuh-get about it.

Instead, buy small amounts every year or few years, ideally when prices have fallen of course, and hang on to it forever the same way you slowly accumulate a stock-and-bond portfolio in your 401-k.

Relatively painless, and you'll be glad you did.

 

So a person lives there whole life and just pass it on to their children? Never sell? What is the point?

 

I work in precious metals & it astonishes me that people pay this much for it.

So a person lives their whole life and just pass it on to their children? Never sell? What is the point?

Is that what you said when gold crossed $1,000, $2,000, $3,000?

Is that what you say about stocks and bonds kept for the long-term in a tax-deferred 401-K account? "Accumulate it for decades and just pass it on?"

Do that if you'd like, but most middle-class investors accumulate IRA stock-and-bond portfolios mainly to pay for their retirement. Nothing prohibits looking at gold in the same way.

Alongside that is holding gold as "disaster insurance" against various forms of social and economic collapse.

I just described food storage in the same terms in another survivalist conversation, in this thread: No POSTS since July 24? | Gunboards Forums "

 

I work in precious metals & it astonishes me that people pay this much for it.

 

I know I'll need NOMEX undies for this, but I can say much the same for folks buying crypto currency.
At least after the bottom falls out, One can still swap a bit of gold dust for a loaf of bread...
And, at $3900+/- for physical gold, it is way past time to buy in. That ship has sailed.

 

Two and a half bucks for a candy bar. Will the price crash or pull back with gold?

 

A Chevelle 454 Super Sport was $3500.

 

Gold ,houses and land,markets .....up by about the same amount ........does this tell you something about the value of your money when the presses work overtime?

 

And that, ladies and gentlemen, is the crux of the matter. When the chickens come home to roost, we will need wheelbarrows to haul enough cash to buy a loaf of bread. Gonna be a lot sad singing and long faces...

 

Physical gold is simply insurance on fiat currency. Might never need it but when you do, it will have value. And gold has never been worth $0.

And unlike other insurance, it can be passed to family, friends, etc.

The above said, if you have made a healthy profit, sell some (not all!) gold, take some profit, and buy that milsurp you have always wanted!☺

 

The BRICS countries are buying gold as fast as they can afford it, which is helping drive up the price. China and India already have some of the largest reserves in the world. They are attempting to create a new currency backed by gold and kill the USD as the world’s currency. Many of these countries realized that their funds are not safe in the current banking system when the U.S. and EU froze Russian accounts after they invaded Ukraine. Before this ‘freeze’ happened, nations trusted that their assets were safe, but now believe they are only safe as long as they don’t anger the US or EU.
If they succeed, the dollar may collapse. If they fail, they will have to dump all their accumulated gold to pay off their debts. If that happens, the gold price will collapse.
I’m not giving BRICS a large chance to succeed. A lot of countries are supporting the system, but most are poor African and Asian nations. Even though trust in the current banking system may have diminished a little, I trust it way more than having countries like China, Russia, and India controlling it. Most BRICS nations are more broke than Western nations. Then again, having a currency backed by gold has its advantages.

Grab some popcorn, sit back and watch. It’s going to be an interesting show.
Tom

 

If you bought Buffalos from the mint in 07-08 time frame for sub $800 each and turn them now for 4k each easy......

Throw the mulah in a good Bond and get 4-5 percent easy and sleep well at night........

 

And here in lies one of the oldest quandaries of our time. If a man with a pocket full of gold but no food approaches a man with food but no gold, they can make a trade that will benefit both of them. However if a man with a pocket full of gold but no food approaches a man with a gun, the man with the gun now has a pocket full of gold.

The moral of the story is don't put all your eggs in one basket.

 

Exactly this^^^^ I’ve been a firm believer in investing in lead for that very reason. I owe nothing to anyone, except for the Boatman that is and I’ll pay in cash when the time comes. Recently traded a used Tacti-Cool Ruger 10-22 complete with a Chinese dot sight for just over a Ton of typeset grade linotype still in ingots. When everything hits the fan the gold devaluation will quickly cross paths with lead, in whatever form it will be in. BTW, the Ruger also cost me zero$.
Life is good. No worries here.

 

Classic "this time is different" argument, but if you look at the price of gold from the early 90s till now you can see where countries started selling off their gold to buy US treasuries to serve as their fiscal reserves when things were heading into the "end of history" era. These institutions are now not buying back these treasuries at the rate they used to and instead are buying gold again. Here are the reasons I think this is happening:

1. We passed the horrendous tax bill this year that shows we don't care at all about the debt. They don't want to buy an asset we can just inflate away by printing more dollars.
2. We are constantly going after our allies (whether economically through tariffs or threatening with actual invasion in the case of Greenland, Mexico, and Canada).
3. Countries saw the power of US sanctions that were put in place on Russia's US Dollar assets. Lots of countries want to preserve their sovereignty even if they don't have plans to do anything that might upset the US.
3a. We are vacating the stage as the world police and returning to a multi-polar Great Powers world order. These Great Powers will not want to be dependent on the US in any capacity since they will want the ability to act how they want in their spheres of influence.

Overall, the post WW2 US led world order is coming to an end at this point. We can't pretend to be the king of the world if we don't want to bear the responsibilities that come with it so everyone is searching for an asset they can hold in an uncertain world.

 

We passed the horrendous tax bill this year that shows we don't care at all about the debt.

The $37 Trillion in debt we had built up prior to that point probably did a lot more to show we don’t care, except if you’ve been living under a rock for 40 years or something.

 

How cash is trash:

"Over one-year periods, the average cost of holding cash has been roughly 8%. But over 30-year periods, this grows to more than 2,000%."

 

I sold my junkyard in 2020 for enough to buy six houses .......today ,its doubtful if I would get three for the same money......thats five years ,not a long time .

 

I doubt the young readers are following this and for certain the older readers are not going to change. FWIW? Probably zero. I set my 401k strategy for 50% US equity, 10% gold, 25% real estate fund and 15% misc (like international, etc). Now my GLD is probably nearing 20%. The disciplined investor would sell half and spread it out over the other funds. That is called rebalancing. I am not so smart, I am going to time the market and bail just in case the bubble burst. It might not, but if it does I easy my way back in.

Gold coins and bars are taxed on sale, unless one cheats. My 401k GLD sale is not. I can get out painlessly. Also gold was traditionally a hedge and that requires stability. Not even close to that today.

 

I doubt the young readers are following this and for certain the older readers are not going to change. FWIW?

Gold-bugs gonna bug. <shrug>

On a closely related investment, what do folks think of "better-date" US gold coins as an investment? $20 St. Gaudens and such. Specifically, at times like this of rapid price hikes in gold the commodity, do the numismatic coins tend to outpace bullion, follow it closely, or lag it?

So pretty...

 

This isn’t good news. Gold, land, homes, guns should be in everyone’s portfolio.
Every “financial advisor” for years has pushed against gold/homes as a non investment, now they’re silent.
Their value is as a inflation/disaster hedge.
Something is happening, either dollar collapse, or war fears is driving this.
Possibly China stocking up for a 2027 invasion of Taiwan, or the EU pushing for war against Russia.
This is bad juju, stock up, tell your neighbors and family, who will ignore you, and prepare for hard times. Our fat, lazy, self centered fantasy world might be meeting reality soon.

 

So are $50 gold eagles worth more than their weight ?

 

Yeah modern $50 eagles are worth one ounce of gold.

 

Mustn't forget Platinum has also show a 'quiet' increase in value.

 

Are we seeing the value of gold rising or the value of money falling?

 

Gold is rising 4 times faster than silver. And it is rising faster and faster. Time to celebrate but not buy. I put in my first sell order yesterday. I am thinking real estate/rental fund. Don't ask, I don't know yet. I would read any ideas offered here. I hate the study or changing course. Just a few degrees not 180 or even 90 degree. I dont see the rest of the world feeding off the USA teat for near future. Probably back off a tad or not add to Asian growth. I know you all hate tariffs. I read a bumper sticker again,,, "Freedom is Not Free"

 

That’s Economics and Geopolitics at work. This time next year, you have a 50/50 shot of seeing the value of gold falling and the value of money rising.

 

“Value of money rising” ? Please explain with 37T in debt, we’re still deficit spending, how the value of the dollar can increase? That would require a tight money supply and deflation. Neither will happen.

 

Value is always changing, and is relative to something else. If you have 5oz of gold now, and it drops back down to $1800 in 12 months like it was just two years ago, would you not wish you had traded it in for cash? In this case, the USD gained more value than gold. Gold is only worth what people are willing to pay/trade for it.

As for the debt, there is some debate on how critical that is for a country that has the GDP the USA has. I agree that it isn’t healthy, but I also don’t think we are going to turn into Venezuela if it hits $50T. Most Western countries have a higher debt/GDP ratio than the USA, and they haven’t collapsed - perhaps stagnated, but not on the verge of destruction. With the market at all-time highs, I will not be surprised if we see a 10-20% “correction” in the next few years. But I also would not be surprised if we see great gains. I’d be more worried about what AI is going to do to our economy in a few years versus the debt.

 

BRICS countries are swapping $ for gold ..........Some may recall the Eurodollar situation of the 1970s

 

I worked with a guy who said he started buying silver in the 1970's. When he got so much that he couldn't pick it up, he switched to buying gold. The last time that I saw him, he said that he had bought a Glock so I assume that now, he's buying lead.