Gold is not an investment. It is an anti-investment... a way of avoiding the risk of investing. It is to be used episodically. And generally, not when it is making ‘a new all-time high.’
It seems the world’s central banks are trying to put a band-aide on a bleeding artery. As in our past history, the only way out of world wide depression is war, dramatic reduction in our population and keeping the survivor's busy supplying the war machine. This world war will be a little different as our grids are shut down for a few months, creating a much simpler solution other than wasting weapons and destroying property, by using the mass herd to do the work for them and destroy themselves. Simple solutions for a complex world 🤔. Still have time to prepare as our elite have already done. Most can’t leave to safe areas of the world, but you can move to more rural areas with a more conservative population. Conservatives historically help each other, as liberals enjoy eating themselves…
This grid shutdown you mentioned, Steve…I’ve heard rumblings of this before, but nothing concrete. Did you have a source or some way to learn more of that plan?
Agree. The standard advice not to buy gold at all time highs is due to the fact that historically gold did not not have long upward runs. It has always been, with few exceptions, a ‘spiky’ investment. That meant that it made new highs quickly, in a relatively short period of time, and then came crashing down just as quickly. So buying at the new highs meant you were buying on a precipice, generally not a good investing strategy. Ok I’ll say it: “But this time could be different”. There are indeed reasons to believe this time could be different. To your point, we could be early in a sustained run-up in the price of gold. This time it may not look like the historical spike. If not investors could be missing out by not buying at the all time highs, at least for a while. Time will tell.
I took myself out of the game voluntarily in the late 90s, and I have never regretted my departure. I was in the game from the mid-60s until my departure, and Stanley Kubrick may have learned to love the Bomb, but I learned to hate capital gains taxes, income taxes, property taxes, ad valorem taxes, alternative minimum taxes, and the best one yet to come: unrealized gains taxes. As I often say, y'all go on ahead without me; I'll be fine. Best always. PM
As Bill clearly says....Gold is a LONG TERM anti- investment (insurance)
I bought in at the top of the market in 2011 @ around $ 1650/oz and have never sold.
I bought more. Am I disappointed? No. Gold prices have been manipulated by the big banks,
who paper trade on the CBOE futures market. Did I know that in 2011...yes. SO...I don't think one would be paying too much to buy gold at these higher levels. Just my 2 cents worth.
It seems like I might be older than many of you. I am one of a couple guys o. BPR who never understood the gold thing. I owned Copper silver even lead.. in the eighties. They didn't do a damn thing for thirty years. I bought a gold at 389.00 an Oz. It's been a long time but I think I paid 5.17 for silver I'll never forget the later headlines. "The not so precious metals." I understand that people think it's a store of value.. They were not for over thirty years. Many people lost their "store" completely." Anti Investment." No kidding!Ancient rome was the place where gold was used as a real currency. And they watered it down eventually by adding tin and lead...etc to each coin. I do not have an answer here. I think real property is the way to go. Food and lead might be a good investment. We have 0 dead and invest in real property. Strange times what do I know, Good luck to all!
As an older guy myself, and as far as silver being the anti-investment. I remember buying a gallon of gasoline for my college transportation vehicle in the sixties, for a quarter at my Westchester Co. NY gas station. No matter what is said about its investment implications, my 90% silver quarter is worth $2 more than the current price of gas at the same station. That tells me it is doing its job as an inflation hedge. I'm glad I got more and definitely glad that I hung on to a bunch of those old quarters instead of a bunch of old paper dollars.
The last 3 years has been good for the Midas Metal and I also reflect on previous experience. In Oz , the property prices/ market are in a ‘Melt Up’ and over stoked.
Old. Seen it 4 times. When it happens, conventional appraisal conventions disappear. All the best.
Hey brother, long time no hear! I hope you’re doing OK with this crazy storm! Don’t think it went that far north but it created hell down here. My neighbor said my home and the others up were we are had no problem, but the lower poor people have severe flooding. Hope all is going well with you and keep in touch 🙏
I must admit, all this now is becoming pretty worrisome for a retiree. Bill is right on this: for SURE The Big Loss™️ must be avoided at ALL costs now, as the retirement account is needed for income…which feeds into the dilemma. While I do believe gold isn’t done with going higher for reasons well known here, it pays no interest. The Fed is now killing T-bill rates. Stocks will probably melt up, but due to the need of avoiding The Big Loss™️, the sky-high valuations just make “the market” too risky. So what’s a retiree to do? Talk about the proverbial rock-and-a-hard place. Man.
I agree with much of what you said about trading and investing. But more than luck is involved.
If you consistently follow a proven system, limit your losses, keep your emotions in check, wait patiently for the right setups and market conditions, and follow global liquidity, your odds of success improve dramatically.
And many of the most successful traders buy high and sell higher, with stocks at elevated P/E ratios. Imagine if you sat out the market after 2008, late 2015 or 2018, early 2020, or late 2022. And this is not about FOMO, but objective analysis.
The Dow/Gold strategy is a good long-term investment strategy and hedge against inflation. But people like me don't have decades or substantial capital and need to generate short-term profits to counter inflation and survive.
Nothing is guaranteed but ‘inflation’ while this current crop of MMT elitists are running the world. And when they’re done with their destruction … Gold will be there to pick up the pieces and the assets. It will prove to be the best investment of our life time.
I can trade my gold today for much more than I paid for it … but you’re probably right I won’t use it and certainly hope not to have to use it. That said, I wouldn’t be ‘long’ on our current master’s ability to avoid blowing up the system.
Why is it different this time? $35,000,000,000,000, debt. Now, can any of you "young" whippersnappers tell me how low gold is going? Obviously, Tom is basing his decision to return to stocks on the Dow/Gold ratio. However, with $35,000,000,000,000 to eliminate or greatly reduce, how low does gold go before "all hell breaks loose"? The Dow/Gold ratio may become meaningless. as many other "ratios" for quite some time before there is a "low" in Gold again. I'm old and miss a lot, so some of you youngsters probably have a simple solutions to this debt problem. Please enlighten me.
So since everything begins at home… one must ask. Since you demand reduced Government Spending, may we assume you will be giving up your social security payments and Medicare?
Scott, these are not the only areas of Government spending.
The Bureaucracy is a major contender and in Oz over payment of GST revenue to the States is endemic as they carry high debt levels as well. It compounds any problem.
My comment is in relation to what individuals can do. I do my best but constant deficit spending by Governments world wide is not sustainable now or in the future, as it wasn’t in the past.
Long term prosperity is about saving and measured expenditure and not balancing expenditure to buy votes. All the best.
Bill, sounds like the stock market you paint, is like Las Vegas, the odds are with the house and against you. We pay in our taxes to keep a roof on the house with salaries, benefits, pensions and they bet against us. And now you say the bulk of our food is imported, and a dock strike. As an American, born and bred, and retired, I feel pretty stupid. I've enjoyed the line"you can't fix stupid". Now it applies to me. Thanks
It seems the world’s central banks are trying to put a band-aide on a bleeding artery. As in our past history, the only way out of world wide depression is war, dramatic reduction in our population and keeping the survivor's busy supplying the war machine. This world war will be a little different as our grids are shut down for a few months, creating a much simpler solution other than wasting weapons and destroying property, by using the mass herd to do the work for them and destroy themselves. Simple solutions for a complex world 🤔. Still have time to prepare as our elite have already done. Most can’t leave to safe areas of the world, but you can move to more rural areas with a more conservative population. Conservatives historically help each other, as liberals enjoy eating themselves…
This grid shutdown you mentioned, Steve…I’ve heard rumblings of this before, but nothing concrete. Did you have a source or some way to learn more of that plan?
The problem is with the Fed devaluing the dollar, gold will keep on rising so you will miss out on the opportunity even at these all time highs.
Agree. The standard advice not to buy gold at all time highs is due to the fact that historically gold did not not have long upward runs. It has always been, with few exceptions, a ‘spiky’ investment. That meant that it made new highs quickly, in a relatively short period of time, and then came crashing down just as quickly. So buying at the new highs meant you were buying on a precipice, generally not a good investing strategy. Ok I’ll say it: “But this time could be different”. There are indeed reasons to believe this time could be different. To your point, we could be early in a sustained run-up in the price of gold. This time it may not look like the historical spike. If not investors could be missing out by not buying at the all time highs, at least for a while. Time will tell.
Thanks BRIEN. Another way to look at it is if you accumulate Gold over recent years is to average the price buy. Not new at all.
Entering now as a ‘ newby’ needs consideration after recent gains.
I’m averaging. Congratulations to those in the big 5 early.
Missed that. But was in the Midas metal early from advice in our subscription.
"Getting knocked out of the game forever"
I took myself out of the game voluntarily in the late 90s, and I have never regretted my departure. I was in the game from the mid-60s until my departure, and Stanley Kubrick may have learned to love the Bomb, but I learned to hate capital gains taxes, income taxes, property taxes, ad valorem taxes, alternative minimum taxes, and the best one yet to come: unrealized gains taxes. As I often say, y'all go on ahead without me; I'll be fine. Best always. PM
As Bill clearly says....Gold is a LONG TERM anti- investment (insurance)
I bought in at the top of the market in 2011 @ around $ 1650/oz and have never sold.
I bought more. Am I disappointed? No. Gold prices have been manipulated by the big banks,
who paper trade on the CBOE futures market. Did I know that in 2011...yes. SO...I don't think one would be paying too much to buy gold at these higher levels. Just my 2 cents worth.
Now do Silver...
It seems like I might be older than many of you. I am one of a couple guys o. BPR who never understood the gold thing. I owned Copper silver even lead.. in the eighties. They didn't do a damn thing for thirty years. I bought a gold at 389.00 an Oz. It's been a long time but I think I paid 5.17 for silver I'll never forget the later headlines. "The not so precious metals." I understand that people think it's a store of value.. They were not for over thirty years. Many people lost their "store" completely." Anti Investment." No kidding!Ancient rome was the place where gold was used as a real currency. And they watered it down eventually by adding tin and lead...etc to each coin. I do not have an answer here. I think real property is the way to go. Food and lead might be a good investment. We have 0 dead and invest in real property. Strange times what do I know, Good luck to all!
As an older guy myself, and as far as silver being the anti-investment. I remember buying a gallon of gasoline for my college transportation vehicle in the sixties, for a quarter at my Westchester Co. NY gas station. No matter what is said about its investment implications, my 90% silver quarter is worth $2 more than the current price of gas at the same station. That tells me it is doing its job as an inflation hedge. I'm glad I got more and definitely glad that I hung on to a bunch of those old quarters instead of a bunch of old paper dollars.
Timing Bill.
The last 3 years has been good for the Midas Metal and I also reflect on previous experience. In Oz , the property prices/ market are in a ‘Melt Up’ and over stoked.
Old. Seen it 4 times. When it happens, conventional appraisal conventions disappear. All the best.
Agreed
Hey brother, long time no hear! I hope you’re doing OK with this crazy storm! Don’t think it went that far north but it created hell down here. My neighbor said my home and the others up were we are had no problem, but the lower poor people have severe flooding. Hope all is going well with you and keep in touch 🙏
I must admit, all this now is becoming pretty worrisome for a retiree. Bill is right on this: for SURE The Big Loss™️ must be avoided at ALL costs now, as the retirement account is needed for income…which feeds into the dilemma. While I do believe gold isn’t done with going higher for reasons well known here, it pays no interest. The Fed is now killing T-bill rates. Stocks will probably melt up, but due to the need of avoiding The Big Loss™️, the sky-high valuations just make “the market” too risky. So what’s a retiree to do? Talk about the proverbial rock-and-a-hard place. Man.
I agree with much of what you said about trading and investing. But more than luck is involved.
If you consistently follow a proven system, limit your losses, keep your emotions in check, wait patiently for the right setups and market conditions, and follow global liquidity, your odds of success improve dramatically.
And many of the most successful traders buy high and sell higher, with stocks at elevated P/E ratios. Imagine if you sat out the market after 2008, late 2015 or 2018, early 2020, or late 2022. And this is not about FOMO, but objective analysis.
The Dow/Gold strategy is a good long-term investment strategy and hedge against inflation. But people like me don't have decades or substantial capital and need to generate short-term profits to counter inflation and survive.
Nothing is guaranteed but ‘inflation’ while this current crop of MMT elitists are running the world. And when they’re done with their destruction … Gold will be there to pick up the pieces and the assets. It will prove to be the best investment of our life time.
You just won’t be around to use it🤔
I can trade my gold today for much more than I paid for it … but you’re probably right I won’t use it and certainly hope not to have to use it. That said, I wouldn’t be ‘long’ on our current master’s ability to avoid blowing up the system.
Why is it different this time? $35,000,000,000,000, debt. Now, can any of you "young" whippersnappers tell me how low gold is going? Obviously, Tom is basing his decision to return to stocks on the Dow/Gold ratio. However, with $35,000,000,000,000 to eliminate or greatly reduce, how low does gold go before "all hell breaks loose"? The Dow/Gold ratio may become meaningless. as many other "ratios" for quite some time before there is a "low" in Gold again. I'm old and miss a lot, so some of you youngsters probably have a simple solutions to this debt problem. Please enlighten me.
I’m old too.
Hold Gold.
Stop or at least reduce Government Spending.
No chance. We are just individuals and Kenneth, we live with it. Cheers
So since everything begins at home… one must ask. Since you demand reduced Government Spending, may we assume you will be giving up your social security payments and Medicare?
Scott, these are not the only areas of Government spending.
The Bureaucracy is a major contender and in Oz over payment of GST revenue to the States is endemic as they carry high debt levels as well. It compounds any problem.
My comment is in relation to what individuals can do. I do my best but constant deficit spending by Governments world wide is not sustainable now or in the future, as it wasn’t in the past.
Long term prosperity is about saving and measured expenditure and not balancing expenditure to buy votes. All the best.
I love the sound advice. Just in time, needed, at the time I start getting susceptible to all of the media hype. Thanks.
Ezekiel 7:19
Ha, ha. They must be running scared!
https://twitter.com/BossBlunts1/status/1838596570117230996?t=G3KXfLG1c4l8Jyvlaf843Q&s=19
Bill, sounds like the stock market you paint, is like Las Vegas, the odds are with the house and against you. We pay in our taxes to keep a roof on the house with salaries, benefits, pensions and they bet against us. And now you say the bulk of our food is imported, and a dock strike. As an American, born and bred, and retired, I feel pretty stupid. I've enjoyed the line"you can't fix stupid". Now it applies to me. Thanks
Gems of investing wisdom. Will be happy to have a collection of such articles of Bill (at one place).