@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
Why wouldn't we consider it an investment? Unless you're referring to dental gold we're not buying it to consume or use up. It doesn't deteriorate or go bad or become obsolete. It's an asset that can always be resold and have value. Sounds like an investment to me.
Any purchase you hope/expect to profit from upon resale is an investment. All else is purchased for consumption.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
@ProofCollection said:
Why wouldn't we consider it an investment? Unless you're referring to dental gold we're not buying it to consume or use up. It doesn't deteriorate or go bad or become obsolete. It's an asset that can always be resold and have value. Sounds like an investment to me.
PF, I consider it more of a SPECULATION. An investment to me has the ability to generate real growth in unit value OR pay dividends/interest. PM's like gold can't do that. They're at the mercy of future demand for a commodity product that can't differentiate itself or participate in real GDP growth under all conditions like a stock can.
It's a matter of semantics, I agree PF. But I never called gold an "investment" when dealing with clients because I didn't think that one could count on long-term growth and certainly no dividends/interest. To me it was always disaster insurance.
With coins...at least you can appreciate them like art, even if they don't appreciate.
@GoldFinger1969 said:
An investment to me has the ability to generate real growth in unit value OR pay dividends/interest. PM's like gold can't do that. They're at the mercy of future demand for a commodity product that can't differentiate itself or participate in real GDP growth under all conditions like a stock can.
Do Treasury bonds participate in real GDP growth?
I believe gold does provide real growth in unit value:
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
I consider gold to be insurance against an ever-weakening dollar. Check the second line in my sig-line.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@derryb said:
Do Treasury bonds participate in real GDP growth?
Treasuries marginally so...corporate bonds more so.
If you go back to 1928 and go through 2023 -- but you can pick other starting points or better yet, rolling time periods -- stocks are up 7000-fold.....T-Bills up 20-fold.....T-Bonds up 70-fold....Corp Bonds up 500-fold...Real Estate up 50-fold....Gold Up 100-fold.
Gold looks better than it does because the price was controlled at the starting point and suppressed for many years before rising in the 1970's to the present. Using rolling time periods, it would do very poorly as a long-term investment (better than MMFs but not better than T-Bonds+Corp Bonds in a blended bond fund).
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
Why wouldn't we consider it an investment? Unless you're referring to dental gold we're not buying it to consume or use up. It doesn't deteriorate or go bad or become obsolete. It's an asset that can always be resold and have value. Sounds like an investment to me.
Any purchase you hope/expect to profit from upon resale is an investment. All else is purchased for consumption.
Profit? In terms of what, USD? You need to change your paradigm. All you have is long and short positions because they are all relative to each other, even USD. If you have no assets but a big pile of cash, you have a 100% long US Dollar position. You could say you are invested in USD if you want because relative to any asset the value increases or decreases every day. If gold is $1000/oz and you have a $1M long USD position and gold goes down 10% to 900 USD per oz, your USD position gained 11.1% relative to gold even though you have the same number of USD in the bank and did nothing with it. So even holding USD is an investment because presumably by holding cash you are expecting the conversion rate (prices) of other assets to go down. If you don't expect prices to go down, then you should be out of cash and into assets that you expect to gain relative to USD. But unless its food, consumer good, or clothing or something that depreciates with time, it's all a long position when you buy it. Today I went long an 1893-S Morgan dollar.
@cohodk said:
So gold is a speculative insurance investment?
.
There are four basic avenues upon which to deploy the money that isn't used for lifestyle/living expenses.
Which category a specific activity goes into can depend on the original intent.
INVESTING:
This is not buying a stock in the hope that you can sell it for more later on (see next). If you buy a company with the intent of actively restructuring it and/or managing it, that is "investing". If you buy equipment for your business, that is "investing". College expenses could also be considered a form of investing (in yourself), or it could be considered a "lifestyle" thing.
SPECULATING:
Buying a commodity, physical object, or anything for the sole purpose of (hopefully) selling it for more in the future, is pure speculation. Precious metals could be considered a "speculation", but also a hedge (see below).
FINANCE:
Loaning money for the purpose of earning interest, including buying bonds, money market deposits, etc. Stocks that reliably pay dividends can also fit this category in addition to those above.
HEDGING:
To offset or neutralize your position in a market, and/or to lock in current prices for future production. A mining company might sell future production to lock in the price (which allows for accurate and easier financial planning). Or suppose you need silver to make batteries next year. You could buy now (at the current market price) and take delivery in the future without having to pay the full cost up front. Buying physical gold can also be considered a "hedge" or "insurance" against an economic failure or catastrophe of some sort.
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
I use it as a hedge against inflation.
Okay.. to each his own.
I like NVDA and 350% ROI per year ..lololol
Still may buy a few ounces of gold to "fondle" ...if things get that bad in the market.
@Goldminers said:
gold has gone up too fast. correction time.
It's already dropped about $40 so far today so I think this may the beginning of a correction.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
I use it as a hedge against inflation.
Okay.. to each his own.
I like NVDA and 350% ROI per year ..lololol
Still may buy a few ounces of gold to "fondle" ...if things get that bad in the market.
I own shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little. @GoldFinger1969 Take a look at JPM today.
I flipped my PLTR in Micron it was a good move.
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
I use it as a hedge against inflation.
Okay.. to each his own.
I like NVDA and 350% ROI per year ..lololol
Still may buy a few ounces of gold to "fondle" ...if things get that bad in the market.
I own 20000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
@FredJRI said:
I don't usually invest in gold.... perhaps a few ounces and less NVDA is in order?
Most of us don't consider gold an "investment"...it's a speculation....doesn't pay interest or dividends.....buy coins or bars you like and you can at least enjoy them if they don't make you money.
I use it as a hedge against inflation.
Okay.. to each his own.
I like NVDA and 350% ROI per year ..lololol
Still may buy a few ounces of gold to "fondle" ...if things get that bad in the market.
I own 20000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
@ProofCollection said:
Or US Dollar index headwinds. When you're measuring value in dollars, you cant ignore the fact that the dollar >index is up roughly 1.5 points.
We'll know lots more tomorrow after the FOMC decision and Q&A.
@ProofCollection said:
Or US Dollar index headwinds. When you're measuring value in dollars, you cant ignore the fact that the dollar >index is up roughly 1.5 points.
We'll know lots more tomorrow after the FOMC decision and Q&A.
The only question is if they're cutting .25 or .5.
They will do .25 because they have already signaled it. There is no need at this point, but Powell painted himself into a corner. .50 would be extremely inflationary and the market would have another day similar to yesterday. (It was $1.5 trillion gain yesterday)
I own 20,000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
Yeah baby!! Now we're talkin!! We'll done.lolol not bad for a novice.
lololol , not bad for a novice.
NVDA has gone up nearly $8.50 per share in two days 11/05-11/07
That is a 170K gain not including dividends.
It's better than liquid gold and will continue to rise ... especially under our new POTUS, Senate & House.** weeeeeeeeeeeeee
In recent months, Mr. Trump has said he would not fire the Fed chair during a second presidency. Even so,** he will have a chance to replace the central bank chief before long, because Mr. Powell’s leadership term ends in May 2026**.
Anyone have an idea of what the price of gold is expected to rise in the next 6 - 12 months ?
Is 15 % realistic?
Also lets assume that the Russia’s - Ukraine war will end in the next 3 months (I feel it will) what will the reaction of central banks be (no more buying gold at a brisk pace)?
@FredJRI said:
Anyone have an idea of what the price of gold is expected to rise in the next 6 - 12 months ?
Is 15 % realistic?
Also lets assume that the Russia’s - Ukraine war will end in the next 3 months (I feel it will) what will the reaction of central banks be (no more buying gold at a brisk pace)?
It's difficult to predict really. Lots of things would normally be bullish but a strong dollar will keep gold from going up (as priced in USD). It's going to be interesting because to some degree there are competing priorities. Trump will probably want low interest rates to boost the economy which is generally bullish for gold, but at the same time Trump's policies will like result in overall USD strength. I'm not real sure what to expect here as a net result.
I own 20,000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
Yeah baby!! Now we're talkin!! We'll done.lolol not bad for a novice.
lololol , not bad for a novice.
NVDA has gone up nearly $8.50 per share in two days 11/05-11/07
That is a 170K gain not including dividends.
It's better than liquid gold and will continue to rise ... especially under our new POTUS, Senate & House.** weeeeeeeeeeeeee
**
My move in NVDA was years ago becasue I was trying to buy a GFX card for my son and I could not get one new, I had to pay extra on the secondary market. They could not make enough. That, to me was a clear indication that company was going to do well, crypto and then AI just ejected it into space. TSLA has been really good as well. I wish I had all my original position still. I think this is the next big move to a multi $T company, Elon is going to AI the federal government and has a mandate to do so. Really liking T-Mobile, SpaceX is launching their satellites with the starlink satellites. The play here is THE global cell market.
I own 20,000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
Yeah baby!! Now we're talkin!! We'll done.lolol not bad for a novice.
lololol , not bad for a novice.
NVDA has gone up nearly $8.50 per share in two days 11/05-11/07
That is a 170K gain not including dividends.
It's better than liquid gold and will continue to rise ... especially under our new POTUS, Senate & House.** weeeeeeeeeeeeee
**
TSLA has been really good as well. I wish I had all my original position still. I think this is the next big move to a multi $T company, Elon is going to AI the federal government and has a mandate to do so. Really liking T-Mobile, SpaceX is launching their satellites with the starlink satellites. The play here is THE global cell market.
Yes, very well could be, I also like Elon Musk a very brilliant man who knows how to run company with lots of foresight. I had Tesla when I retired about 4 years ago at ~ $40 / share but sold most of it about $220 before it tanked down to ~$160, very happy with about 140% /. year. Fool (me) who was to know it would go from $240 - $320 (up~135% in 5 days) ? lololol
I' m thinking of getting back into it soon , (better later than never) Despite that fact, that my very close relative. MBA from Wharton dual finance & accounting (~1963) told me yesterday. He likes NVDA because it will be replacing Intel. Never steered me wrong, APPL, NVDA, NKE couple others in very settle ways LOLOLOLOL
When he drops hints I listen, so a good portion of my eggs will remain with NVDA.
You do bring up a good point with TSLA it will be interesting to look back 3-6 months from now and compare performance.
@GoldFinger1969 said: Fred, is that TSLA position you have inclusive of the 7-for-1 split ?
????
NVDA split 10:1 from $1200 -> $120 and CMG 50:1 ~ $3300 -> $65..
I'm not aware of any upcoming TSLA split, last I know of was either 2 or 3 :1 about 2 years ago? $900 - $300
@Goldminers said:
Congratulations to Gold - $2,625.
A lot of momentum speculators are now selling gold to buy bitcoin and stocks.
This will be the buying opportunity before we move up towards $3,000. Fundamentals are still bullish, even though as AEP said in his column the economic stats/metrics would point to gold below $2,000 (i.e., rising 10-year Treasury, lower oil prices, etc.).
Supply and demand are ruling, GM. You being in the industry probably know that.
Any thoughts on the industry-related comments in the AEP Telegraph column ?
@FredJRI said:
NVDA split 10:1 from $1200 -> $120 and CMG 50:1 ~ $3300 -> $65..
I'm not aware of any upcoming TSLA split, last I know of was either 2 or 3 :1 about 2 years ago? $900 - $300
Tell me more about this 7:1?
I thought there was a 7:1 in 2020 ? Maybe my memory fails me.
@FredJRI said:
NVDA split 10:1 from $1200 -> $120 and CMG 50:1 ~ $3300 -> $65..
I'm not aware of any upcoming TSLA split, last I know of was either 2 or 3 :1 about 2 years ago? $900 - $300
Tell me more about this 7:1?
I thought there was a 7:1 in 2020 ? Maybe my memory fails me.
There was a 5:1 in 2020, that may be what you are remembering.
There have been some large unexplained undocumented purchases of gold this year, most likely China or other BRICS applicants or members involved. Those purchases were strategic, and ultimately ran the price up from March to October too high, too fast.
On a tactical level the graph below explains a lot of the price drop in USD in November. Strong dollar is a factor due to the higher long term interest rates.
Several foreign countries want a larger share of gold mining company profits and are also causing mining share prices to fall in addition to rising costs.
Gold is now sitting on the first support level I mentioned in a prior post, but should it fail, then stronger support is at $2,500, where more strategic buying should resume.
Miners have destroyed shareholder value for the better part of 2 decades. If these countries think they can play "Heads We Win, Tails You Lose" like the OPEC countries did right after the 1973 Oil Embargo, they are mistaken.
The gold can sit in the ground, their stock prices will do better cutting production and doing buybacks and dividends.
The gold accumulation make sense on an individual level even for HNW investors, but it's a pittance for a CB or nation to have. You simply can't use a small amount of an immobile, illiquid, asset clas as a substitute for the money markets or bond markets where you can move billions or tens of billions in seconds.
For those of us here, we have a HUGE advantage over big accumulators of gold: we can dump all or a good portion of our holdings without really moving the market. Not so institutional holders.
The USD index has gone from around 100 to 105.5 since Sep 30 with 1.5 of that coming in the last week. These are strong headwinds for gold price in USD.
BTC has other market dynamics going on causing it to run. And it's going to keep going. This is a great time to get into crypto if you're not already.
Edited to add a reference for the future: BTC just broke $90k, ETH @ $3270, SOL @$210
Comments
Any purchase you hope/expect to profit from upon resale is an investment. All else is purchased for consumption.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Most of us don't consider gold an "investment".
You certainly don't speak for me.
Comsidering an investment between a stock and gold is fool's gold (no pun intended).
They shouldn't even be a consideration in your asset allocation decision.
That is your opinion................and nothing more.
I knew it would happen.
PF, I consider it more of a SPECULATION. An investment to me has the ability to generate real growth in unit value OR pay dividends/interest. PM's like gold can't do that. They're at the mercy of future demand for a commodity product that can't differentiate itself or participate in real GDP growth under all conditions like a stock can.
It's a matter of semantics, I agree PF. But I never called gold an "investment" when dealing with clients because I didn't think that one could count on long-term growth and certainly no dividends/interest. To me it was always disaster insurance.
With coins...at least you can appreciate them like art, even if they don't appreciate.
Do Treasury bonds participate in real GDP growth?
I believe gold does provide real growth in unit value:
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
I consider gold to be insurance against an ever-weakening dollar. Check the second line in my sig-line.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Treasuries marginally so...corporate bonds more so.
If you go back to 1928 and go through 2023 -- but you can pick other starting points or better yet, rolling time periods -- stocks are up 7000-fold.....T-Bills up 20-fold.....T-Bonds up 70-fold....Corp Bonds up 500-fold...Real Estate up 50-fold....Gold Up 100-fold.
Gold looks better than it does because the price was controlled at the starting point and suppressed for many years before rising in the 1970's to the present. Using rolling time periods, it would do very poorly as a long-term investment (better than MMFs but not better than T-Bonds+Corp Bonds in a blended bond fund).
Profit? In terms of what, USD? You need to change your paradigm. All you have is long and short positions because they are all relative to each other, even USD. If you have no assets but a big pile of cash, you have a 100% long US Dollar position. You could say you are invested in USD if you want because relative to any asset the value increases or decreases every day. If gold is $1000/oz and you have a $1M long USD position and gold goes down 10% to 900 USD per oz, your USD position gained 11.1% relative to gold even though you have the same number of USD in the bank and did nothing with it. So even holding USD is an investment because presumably by holding cash you are expecting the conversion rate (prices) of other assets to go down. If you don't expect prices to go down, then you should be out of cash and into assets that you expect to gain relative to USD. But unless its food, consumer good, or clothing or something that depreciates with time, it's all a long position when you buy it. Today I went long an 1893-S Morgan dollar.
So gold is a speculative insurance investment?
Knowledge is the enemy of fear
.
There are four basic avenues upon which to deploy the money that isn't used for lifestyle/living expenses.
Which category a specific activity goes into can depend on the original intent.
INVESTING:
This is not buying a stock in the hope that you can sell it for more later on (see next). If you buy a company with the intent of actively restructuring it and/or managing it, that is "investing". If you buy equipment for your business, that is "investing". College expenses could also be considered a form of investing (in yourself), or it could be considered a "lifestyle" thing.
SPECULATING:
Buying a commodity, physical object, or anything for the sole purpose of (hopefully) selling it for more in the future, is pure speculation. Precious metals could be considered a "speculation", but also a hedge (see below).
FINANCE:
Loaning money for the purpose of earning interest, including buying bonds, money market deposits, etc. Stocks that reliably pay dividends can also fit this category in addition to those above.
HEDGING:
To offset or neutralize your position in a market, and/or to lock in current prices for future production. A mining company might sell future production to lock in the price (which allows for accurate and easier financial planning). Or suppose you need silver to make batteries next year. You could buy now (at the current market price) and take delivery in the future without having to pay the full cost up front. Buying physical gold can also be considered a "hedge" or "insurance" against an economic failure or catastrophe of some sort.
.
I use it as a hedge against inflation.
Okay.. to each his own.
I like NVDA and 350% ROI per year ..lololol
Still may buy a few ounces of gold to "fondle" ...if things get that bad in the market.
There are much better hedges against inflation. Gold should do OK but it's not the 1970's anymore.
I think gold moves up even IF inflation stays low. It's a supply/demand issue and it's going higher.
Lots higher.
gold has gone up too fast. correction time.
My US Mint Commemorative Medal Set
It's already dropped about $40 so far today so I think this may the beginning of a correction.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
It's folks raising cash who need liquidity. I see non-tech blue-chips getting sold off, too.
Gold has a bid underneath. It will likely bounce back very quickly.
I own shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
@GoldFinger1969 Take a look at JPM today.
I flipped my PLTR in Micron it was a good move.
Yeah baby!! Now we're talkin!! We'll done.
Knowledge is the enemy of fear
PM's taking a hit today. Post election influence?
Profit-taking.....as GoldMiner posted.....watch the 10-year yield and also the 5 and 10 year swap yields and the break-even for TIPs.
Consolidation in a bull market uptrend.
I knew it would happen.
Holey Cow🐂 I guess we’ll done
Martin
Or US Dollar index headwinds. When you're measuring value in dollars, you cant ignore the fact that the dollar index is up roughly 1.5 points.
We'll know lots more tomorrow after the FOMC decision and Q&A.
The only question is if they're cutting .25 or .5.
They will do .25 because they have already signaled it. There is no need at this point, but Powell painted himself into a corner. .50 would be extremely inflationary and the market would have another day similar to yesterday. (It was $1.5 trillion gain yesterday)
@cohodk said:
I own 20,000 shares of NVDA @ a DCA of around $6.35 I can afford to hedge a little.
Yeah baby!! Now we're talkin!! We'll done.lolol not bad for a novice.
lololol , not bad for a novice.
NVDA has gone up nearly $8.50 per share in two days 11/05-11/07
That is a 170K gain not including dividends.
It's better than liquid gold and will continue to rise ... especially under our new POTUS, Senate & House.** weeeeeeeeeeeeee
**
Federal Reserve officials voted to cut their influential federal funds rate by a quarter of a point to a range of 4.50%-4.75%.
You realize that Chair Jerome Powell may be on his way OUT!!!!
In recent months, Mr. Trump has said he would not fire the Fed chair during a second presidency. Even so,** he will have a chance to replace the central bank chief before long, because Mr. Powell’s leadership term ends in May 2026**.
LOLOLOLOL
I 've been living by the AAPL, NVDA and one or two others the past year or two.
Time to buy a few bars of gold to fondle and play with !! lololololol
Anyone have an idea of what the price of gold is expected to rise in the next 6 - 12 months ?
Is 15 % realistic?
Also lets assume that the Russia’s - Ukraine war will end in the next 3 months (I feel it will) what will the reaction of central banks be (no more buying gold at a brisk pace)?
It's difficult to predict really. Lots of things would normally be bullish but a strong dollar will keep gold from going up (as priced in USD). It's going to be interesting because to some degree there are competing priorities. Trump will probably want low interest rates to boost the economy which is generally bullish for gold, but at the same time Trump's policies will like result in overall USD strength. I'm not real sure what to expect here as a net result.
Sounds reasonable ,..a wait and see game.
It's prudent to say it's hard to predict the future, we should just .. wait and see
My move in NVDA was years ago becasue I was trying to buy a GFX card for my son and I could not get one new, I had to pay extra on the secondary market. They could not make enough. That, to me was a clear indication that company was going to do well, crypto and then AI just ejected it into space. TSLA has been really good as well. I wish I had all my original position still. I think this is the next big move to a multi $T company, Elon is going to AI the federal government and has a mandate to do so. Really liking T-Mobile, SpaceX is launching their satellites with the starlink satellites. The play here is THE global cell market.
Yes, very well could be, I also like Elon Musk a very brilliant man who knows how to run company with lots of foresight. I had Tesla when I retired about 4 years ago at ~ $40 / share but sold most of it about $220 before it tanked down to ~$160, very happy with about 140% /. year. Fool (me) who was to know it would go from $240 - $320 (up~135% in 5 days) ? lololol
I' m thinking of getting back into it soon , (better later than never) Despite that fact, that my very close relative. MBA from Wharton dual finance & accounting (~1963) told me yesterday. He likes NVDA because it will be replacing Intel. Never steered me wrong, APPL, NVDA, NKE couple others in very settle ways LOLOLOLOL
When he drops hints I listen, so a good portion of my eggs will remain with NVDA.
You do bring up a good point with TSLA it will be interesting to look back 3-6 months from now and compare performance.
Space X is worth about 1/4 $T alone, I'll jump all over that if I ever can !! hehehehehe
That is going to be one of the stocks your grandkids can live off of. True generational wealth.
Fred, is that TSLA position you have inclusive of the 7-for-1 split ?
Congratulations
to Gold - $2,625.
A lot of momentum speculators are now selling gold to buy bitcoin and stocks.
My US Mint Commemorative Medal Set
????
NVDA split 10:1 from $1200 -> $120 and CMG 50:1 ~ $3300 -> $65..
I'm not aware of any upcoming TSLA split, last I know of was either 2 or 3 :1 about 2 years ago? $900 - $300
Tell me more about this 7:1?
This will be the buying opportunity before we move up towards $3,000. Fundamentals are still bullish, even though as AEP said in his column the economic stats/metrics would point to gold below $2,000 (i.e., rising 10-year Treasury, lower oil prices, etc.).
Supply and demand are ruling, GM. You being in the industry probably know that.
Any thoughts on the industry-related comments in the AEP Telegraph column ?
I thought there was a 7:1 in 2020 ? Maybe my memory fails me.
There was a 5:1 in 2020, that may be what you are remembering.
There have been some large unexplained undocumented purchases of gold this year, most likely China or other BRICS applicants or members involved. Those purchases were strategic, and ultimately ran the price up from March to October too high, too fast.
On a tactical level the graph below explains a lot of the price drop in USD in November. Strong dollar is a factor due to the higher long term interest rates.
Several foreign countries want a larger share of gold mining company profits and are also causing mining share prices to fall in addition to rising costs.
Gold is now sitting on the first support level I mentioned in a prior post, but should it fail, then stronger support is at $2,500, where more strategic buying should resume.
My US Mint Commemorative Medal Set
Miners have destroyed shareholder value for the better part of 2 decades. If these countries think they can play "Heads We Win, Tails You Lose" like the OPEC countries did right after the 1973 Oil Embargo, they are mistaken.
The gold can sit in the ground, their stock prices will do better cutting production and doing buybacks and dividends.
The gold accumulation make sense on an individual level even for HNW investors, but it's a pittance for a CB or nation to have. You simply can't use a small amount of an immobile, illiquid, asset clas as a substitute for the money markets or bond markets where you can move billions or tens of billions in seconds.
For those of us here, we have a HUGE advantage over big accumulators of gold: we can dump all or a good portion of our holdings without really moving the market. Not so institutional holders.
The USD index has gone from around 100 to 105.5 since Sep 30 with 1.5 of that coming in the last week. These are strong headwinds for gold price in USD.
BTC has other market dynamics going on causing it to run. And it's going to keep going. This is a great time to get into crypto if you're not already.
Edited to add a reference for the future: BTC just broke $90k, ETH @ $3270, SOL @$210
You ever seen one?
Knowledge is the enemy of fear
All the world’s problems will be fixed. No need for gold over $35oz
Yes, right next to my SLV and GLD