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TexasAg1969

Gold as an Indicator

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It's anticipating the next round of multi-trillion $ stimulus and the inevitable inflation down the road as the $ plummets.

Gold hits record as investors opt for safe haven

Jul. 27, 2020 12:42 AM ET|About: SPDR Gold Trust ETF (GLD)|By: Gaurav Batavia, SA News Editor

Spot gold (XAUUSD:CUR) +1.7% to $1,934.05 per ounce extends its gains and zooms past its September 2011 high of $1920.30. Gold has been significantly outperforming all other major asset classes, as investors look for safe-haven asset.

Spot Silver (XAGUSD:CUR) +5.7% to $24.04 per ounce soars along with the gold at the start of the week.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

The weakening of the dollar against the euro is pushing gold higher, as precious metals are denominated in dollars. EUR/USD up 0.45% to 1.1708.

Last Monday, Citi predicted a gold record in the next 6-9 months, which took only a week to hit. It says there's a 30% change of $2K gold in next 3-5 months, but that could hit tomorrow at this pace.

Gold ETFs: GLD, IAU, PHYS, SGOL, UGLDF, BAR, UGL, AAAU, GLDM, GLDI, and DGP.

Silver ETFs: SLV, AGQ, PSLV, SIVR, ZSL, SLVO, DSLV, DBS, USV

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Gold is a shitty investment.

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Ive been sitting on 75lbs of silver quarters...might be a good time to sell for melt value.  Yes I have picked thru all of them for collectibles and quality coins.  These are all circulated coins.

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On 7/27/2020 at 11:57 AM, Canton Dawg said:

Gold is a shitty investment.

Maybe and maybe not. If you go the etf route it is easy to buy and sell like any commodity. Silver is the one that is far more iffy. Remember when the Hunt brothers tried 

to corner the market but failed to account that people would melt down their silverware when it got near $50/oz.? They got burned badly when that happened. But if it hits $2500

per oz on gold, I'm selling some of the collectibles I put away for a grandson's college education that will likely start 6 years from now.

https://www.newsmax.com/finance/markets/gold-price-bofa-citibank/2020/07/28/id/979343/?ns_mail_uid=6d52df85-236f-4a8f-8332-d84fdb5d6ebf&ns_mail_job=DM132954_07282020&s=acs&dkt_nbr=010502buw7s8

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Gold is more an indicator of consumer panic and fluidity in the market. People tend to freak out other people tend to advertise it on news stations. The market is probably rightly concerned about a Biden win as should we all be who have money invested.

WSS

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On 7/27/2020 at 1:02 PM, Kvoethe said:

Ive been sitting on 75lbs of silver quarters...might be a good time to sell for melt value.  Yes I have picked thru all of them for collectibles and quality coins.  These are all circulated coins.

I don't know if you know this but 5lbs of quarters is exactly $100

At present I have 14-25lb bags in a safe.

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1 hour ago, TexasAg1969 said:

Maybe and maybe not. If you go the etf route it is easy to buy and sell like any commodity. Silver is the one that is far more iffy. Remember when the Hunt brothers tried 

to corner the market but failed to account that people would melt down their silverware when it got near $50/oz.? They got burned badly when that happened. But if it hits $2500

per oz on gold, I'm selling some of the collectibles I put away for a grandson's college education that will likely start 6 years from now.

https://www.newsmax.com/finance/markets/gold-price-bofa-citibank/2020/07/28/id/979343/?ns_mail_uid=6d52df85-236f-4a8f-8332-d84fdb5d6ebf&ns_mail_job=DM132954_07282020&s=acs&dkt_nbr=010502buw7s8

Silver is up 80% for the year, the bad thing is how long someone must hold on to precious metals before they can capitalize on it?

History has shown that stocks typically perform better over time.

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1 hour ago, Axe said:

I don't know if you know this but 5lbs of quarters is exactly $100

At present I have 14-25lb bags in a safe.

How pure are the quarters?

WSS

 

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6 hours ago, Canton Dawg said:

Silver is up 80% for the year, the bad thing is how long someone must hold on to precious metals before they can capitalize on it?

History has shown that stocks typically perform better over time.

Very true. What made it a good investment this year was the long term inflationary affects of the economic stimulus packages into the trillions of $. But an etf is something that you can buy & sell quickly making gold/silver easier to jump in and back out. I bought a few NGC rated gold coins when the market was well down from the previous high. There was no reason to sell them with $1tril / year deficits that I knew would eventually drive it back up. I of course did not anticipate the many more trillions added this year which is fueling this now. I originally intended to sell around $1750/oz for a nice 50% profit. Now I'm getting greedy awaiting $2300-2500 range. I'll sell through a broker if it looks like it is about to fizzle out though. Right now that does not seem to be the case.

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On 7/27/2020 at 12:57 PM, Canton Dawg said:

Gold is a shitty investment.

Um, should we go into a hyper inflation spiral- and don't count that out- printing a few trillion dollars we don't have. Gold will never be (relatively) worth less than what it is, along with silver, (and diamonds- the Jewish WWII inflation hedge). Platinum has plenty of value- not only in coins- but the commercial industrial value is there too....   Ergo, if you have 1,000% inflation, an ounce of gold will still be worth $20,000 in inflated dollars.  

Keeping say 10% of your portfolio in precious metals or outright numismatic collectibles is wise- IMHO....  

7 hours ago, TexasAg1969 said:

Very true. What made it a good investment this year was the long term inflationary affects of the economic stimulus packages into the trillions of $. But an etf is something that you can buy & sell quickly making gold/silver easier to jump in and back out. I bought a few NGC rated gold coins when the market was well down from the previous high. There was no reason to sell them with $1tril / year deficits that I knew would eventually drive it back up. I of course did not anticipate the many more trillions added this year which is fueling this now. I originally intended to sell around $1750/oz for a nice 50% profit. Now I'm getting greedy awaiting $2300-2500 range. I'll sell through a broker if it looks like it is about to fizzle out though. Right now that does not seem to be the case.

I don''t look at it that way Ag- my gold and silver are my last lines of defense if things go totally haywire....  

PS- I do have minor positions in both gold and silver ETFs besides....  

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1 hour ago, hoorta said:

Ergo, if you have 1,000% inflation, an ounce of gold will still be worth $20,000 in inflated dollars.

Um, just let me know when the U.S. hits a 1000% inflation rate.

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