stocks vs physical gold
KUCH
Posts: 1,186
Some believe another round of QE is just around the corner. Gold prices will rise and stock prices will rise. I wonder when it will be time to sell stocks and put everything into physical gold/silver?
Who's got that crystal ball?
Who's got that crystal ball?
0
Comments
There are specific stocks that that will probably outperform gold and silver by a wide margin over the next couple of years.
I do not think it is now or ever time to "sell stocks and put everything into physical gold/silver" but instead, to diversify among asset classes
Liberty: Parent of Science & Industry
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Who's got that crystal ball?
It was 2008. If I had to do it again, I probably still would.
For the record, I'm not anti-stocks or anti-investment. I just think that it's not the best time to be placing much trust in the government, Wall Street or the politicians. Contrary to what we've been told, none of them really, actually care about you, or me.
I knew it would happen.
<< <i>I just think that it's not the best time to be placing much trust in the government, Wall Street or the politicians. Contrary to what we've been told, none of them really, actually care about you, or me.
very true
one of these, either government or banksters will keep squeezing our collective you know whats. i am leaning on the gov, even though i know the banks are pushing the buttons for the gov right now.
<< <i>Don't put all your eggs in one basket. Having some Gold and Silver is nice but they don't pay a quarterly dividend. >>
The bullion doesn't pay a quarterly dividend.....but the 15% appreciation per year over 10 yrs has been nice. GDXJ paid a nice dividend last year.
roadrunner
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses)
It doesn't evenprovide service or entertainment to anyone, except to midases like us who clink and heft the coins and bars in our covetous hands and chuckle and sip our aged whiskey and twirl our handlebar moustaches..
Oh, I loves me some gold, in good measure, just like you do, pieces of gold are a beautiful thing. But it's glitter can't begin to compare to human enterprise and ingenuity, science and technology, patience and diligence and teamwork and spirit of advancement represented by American companies whose stock trades on the national exchanges
jmho
Liberty: Parent of Science & Industry
<< <i>Gold bullion doesn't DO anything except store human effort. (and change value depending on market sentiment)
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses)
It doesn't evenprovide service or entertainment to anyone, except to midases like us who clink and heft the coins and bars in our covetous hands and chuckle and sip our aged whiskey and twirl our handlebar moustaches..
Oh, I loves me some gold, in good measure, just like you do, pieces of gold are a beautiful thing. But it's glitter can't begin to compare to human enterprise and ingenuity, science and technology, patience and diligence and teamwork and spirit of advancement represented by American companies whose stock trades on the national exchanges
jmho >>
Thank you for the reminder!
I could hear the rise and fall of the orchestra as I read, fade to black. Image: large stack of gold.
I don't understand why anyone asks these "all-in" kind of questions. The odds of being correct are small, and the risks far out weigh any reward for going all in, vs. 50% in, or 80% in. Yes, a very few smart or lucky people get these timing calls mostly right, but they ain't asking these kinds of questions. They ain't answering either. Those that tend to answer have about the same odds of getting it mostly right as a roulette wheel.
As for Baley and his extreme stock picking skills, don't fall into the belief, that you the average reader, have much chance of duplicating that success. You have about the same odds of doing that, as duplicating the razor sharp short term trading that Cohodk does with success. They are both outliers most likely with extreme talent in their areas. They both sometimes advise others to try and follow them, thinking that with a little common sense, anyone can do similar with a little time and study. This advice ignores their own huge natural talents, because they don't see themselves that way. Unfortunately, for the vast majority of readers, attempts to do so, will tend to result in financial ruin.
As always, I tend to write about the experience of the average person, because for the most part, that is what I experience. It is also what 80%+ of those reading this post will experience.
<< <i>Gold bullion doesn't DO anything except store human effort. (and change value depending on market sentiment)
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses) >>
Wow, where to start? If we listed all the "frivolous" companies in the US that don't produce food or energy, and don't contribute to improving society and the overall health and well
being of society, we'd probably have to cut 80-90% or more out of the S&P. Most of our current US Food and Pharmaceutical industry probably does more to harm human health that it
does to enhance our well being. Our current health care system and the companies that make it up spend 95% towards treating disease caused by our lack of foresight in consuming
hazardous prescriptions and cancer-causing food. The other 5% might actually do something beneficial in reducing the symptoms of disease that otherwise would be debilitating. The
amount of disease and death caused by our own HC system is staggering and not something the AMA likes to see published...but the stats are out there. Imo the medical community is
chasing after the wrong issue with cholesteral. But they chose that nag to ride decades ago and are now compelled to stay onboard until the horse collapses. Fwiw, my doctor doesn't do
much in diagnosing disease but he's great at prescribing meds to try and counter symptoms....which will then lead to new side effects. If it's about healthy and practical lifestyle
choices then we need to immediately get rid of about 80-90% of our GDP and start over (ie govt spending, military spending, financial money laundering, health care, packaged and
fast food food industry, etc.). Let's take 90% of the budgets currently being spent on heart disease and cancer (most of it to find miracle cures and fund drug research) and use that
to educate the consumer about wise food choices and restocking our supermarkets with healthy food choices. Within 5 yrs the educated consumer by themselves will reduce heart
disease and cancer at astounding rates compared to drugs. Frankly, the answer has been in front of our noses for 20-30 yrs and natural medicine practioners have had the answers. We
keep on focusing on "new research" and our major diseases continue escalating to the point that they are nearly an epidemic. A 5th grader knows the answer to this question while the
adults apparently don't. Just like we left the safety of a backed currency in 1971, we also left natural medicine in the dust then as well. Yet another 40 yr experiment that will end badly.
There is certainly a lot of economic activity going on in various industries, but little of it actually benefiting society as a whole. Picking on the gold industry (which is after all just sound
alternative money in a financial debt-money-casino system gone haywire) as a source of our ills is quite a stretch. Frankly, a sound money standard is right up there with sound food,
good shelter, plentiful and safe energy, and effective healthcare. Right now we're batting 2 for 5 with our $14.6 TRILL USEconomy. Without a sound money standard those other goals
are that much harder to achieve. At least the gold mining industry doesn't purport to be anything else but what it is.
Ironically, the market value of the entire gold and silver mining industry make up a tiny 0-2% of world stock markets (or about 2 months worth of USA QE). Hardly a huge diversion of key resources that could be put to better use around the world. These mines produce jobs for local communities, support tax bases, and in some nations like Chile and Peru drive their economies which otherwise might be lacking. And for what it's worth, most gold is mined along with other base metals such as copper, zinc, lead, silver, heavy metals, etc. And all of those do have major uses in the world's economy. Standalone gold mines with no other by-products in the mining business are actually in the minority. Gold could be used extensively in industry but it is fairly expensive. But it is a good substitute for other metals that currently serve in those roles. There is also some rather interesting research on the medical side that is suggesting that gold might play a much bigger role in our "nano-lives" down the road. The technology being developed in the mining industry certainly has uses in other industries as well. Saying it doesn't is akin to stating that going to the moon in the 1960's was just a big waste of resources....all we got was a flag on the moon and a lot of machinery we couldn't reuse. When Central Bankers stop storing gold in their vaults and replace it with GMO corn, Fruity Pebbles, or piles of Viagara and Lipitor, then I'll get concerned.
roadrunner
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses) >>
You are missing the point in many different ways. I already "contribute my efforts and my energy to food production & energy production". I already "train and educate other human beings, provide shelter and nourishment, protecting them from harm and promoting a positive lifestyle" for those around me. I already *pay* for healthcare services from the fruits of my labors, as trade for my productivity.
If I divert my own capital into gold savings for my own purposes, now or later - it is of *no* concern to anyone who wasn't involved in the effort. So I will divert, and divert, and divert - as much as I possibly can without feeling the need to do anything with it that would limit my options at another time when I might need it more than now.
Specifically to your point - storing my human efforts is exactly what I want to accomplish in buying gold. The purpose in accumulating gold is to allow the saver to do exactly what he wants to do without becoming a slave to debt. There are alot of slaves to debt in our society, and I would argue strongly that debt accumulation is not for the benefit of anyone except the large banks. I would also argue that, in contrast - a gold accumulator who owes no one is less a drag on society than is an indebted consumer of goods.
Until we become a monolithic totalitarian socialist state, I get to decide what to do with my capital, and when to spend it. Society gets the benefit of my productivity and my human capital, but society has no claim on my savings, what form it takes, or what I do with it. Being a careful saver reduces the burden on the rest of society, it doesn't increase it.
I knew it would happen.
Ironic that in our current Keynesian + Socialism experiment that it is considered unpatriotic to be a saver rather than a 100% consumer who adds to the total debt.
roadrunner
Well said RedTiger; aim for "average" and that's what you'll hit: get an average education, make average earnings, marry an average-looking wife, live in an average house and drive an average car and have average investment returns, have average kids, collect average coins, get average sicknesses and die an average death..
Aspiring higher is what makes individuals special and moving the average continually up is what makes America great. Punctuated setbacks to progrerss are normal, but I think it is a mistake to underestimate American resillence and ingenuity... and I think many will be surprised at the pent-up energy that is collectings in American businesses while they wait for the politicians and regulators and radicals to make up their minds what the playing field will be like in the next decade or so..... particularly in the health care industry
demographics is a tide that is very tough to swim against
Liberty: Parent of Science & Industry
how have stocks done versus physical gold?
Gold down 4.36% in the past 30 days
my largest stock position up 11.64%
Liberty: Parent of Science & Industry
I can cash in and get a few less paper dollars with it now, apparently. But, since I'm not cashing in now and I am more focused on making sure that my business is throwing off cashflow in order for me to get into a position to buy more metals over time, the plan is still intact.
And since gold and silver are slightly less expensive now, I might be able to get a better price when I make my next buy.
I knew it would happen.
<< <i>well, it's been a month since the last post
how have stocks done versus physical gold?
Gold down 4.36% in the past 30 days
my largest stock position up 11.64% >>
Baley, nice move up on your stock position.
<< <i>As always, I tend to write about the experience of the average person, because for the most part, that is what I experience. It is also what 80%+ of those reading this post will experience.
Well said RedTiger; aim for "average" and that's what you'll hit: get an average education, make average earnings, marry an average-looking wife, live in an average house and drive an average car and have average investment returns, have average kids, collect average coins, get average sicknesses and die an average death..
Aspiring higher is what makes individuals special and moving the average continually up is what makes America great. Punctuated setbacks to progrerss are normal, but I think it is a mistake to underestimate American resillence and ingenuity... and I think many will be surprised at the pent-up energy that is collectings in American businesses while they wait for the politicians and regulators and radicals to make up their minds what the playing field will be like in the next decade or so..... particularly in the health care industry
demographics is a tide that is very tough to swim against
You are missing my main point. Aspiring higher is fine and good. There is a time and place for that. If you at your age aspired higher in certain areas it would be fine and good. In other areas it would be an extremely foolish pipe dream, in terms of reaching top levels of achievement. For example: if a middle age person aspired to become a scratch golfer, that is a high and lofty goal, and perhaps achievable with enough talent, practice and commitment. If that same person aspired to play on the PGA tour, it stops being a high and lofty goal, and has moved into the realm of pipe dreams and fantasy.
The reality is that most folks fail at market timing, that most fail badly at stock picking. That's the cold hard truth. Those that seek financial advice from strangers on the Internet have worse odds than average, a lot worse. Nothing you or anyone else writes about aspirations or affirmations can change those facts. That you and Cohodk have some exceptional talents are facts that you both like to ignore, probably because you don't believe that. You believe that you started with the same tools as everyone else, but that is a lie. You were given an exceptional gift, probably top 3%, perhaps top 1%. To advise others to follow you is folly. Those at the same level of talent, that can do what you, don't need advice. They don't need a little common sense and some pep talk about psych and a few hours of study. It doesn't happen that way. Same with the short term trading that Cohodk does.
/edit to add: I've recently spent some time mentoring two young people on investments. My first and perhaps most important nugget, is to find your own style. What works for me, may or may not work for you. I think the majority of readers, especially the younger ones, or the young at heart, would do well to focus on that, instead of trying to follow someone else.
Neither of us is advising anything, much less saying to sell all your gold and put it all into any specific stocks or short term futures. . . "aim higher" doesn't mean "shoot for the stars"
And all I answered in this thread was the OP question, should one sell all their stocks (one presumes they already have some) and put all of the money into gold? I opine "no" (and tried to kind of explain why, much as you caution in other contexts not to ride the metals bull too hard this late in it's run, not to expect a % repeat of the past decade even though, sure, it could happen)
I generally favor asset allocation models that have roughly equal exposure to stocks, bonds, real estate, precious metals, and cash, or at least divided (not necessarily equally) among 2 or 3 of them
you're absolutely right that such an approach is not for everyone, any more than having 100% of your dough in gold bullion is for everyone.
most are probably better off dollar cost averaging into 2 or more offsetting asset classes and slowly saving up in each over time, rebalancing periodically
Liberty: Parent of Science & Industry
<< <i>Such a crystal ball does not exist...but Baley's advice is sound. Cheers, RickO >>
Fred, Las Vegas, NV
<< <i> I just think that it's not the best time to be placing much trust in the government, Wall Street or the politicians. Contrary to what we've been told, none of them really, actually care about you, or me.
I agree!
BSTs with: Coll3ctor, gsa1fan, mkman123, ajbauman, tydye, piecesofme, pursuitofliberty
Travelog - 20in20travels.com
Liberty: Parent of Science & Industry
I generally favor asset allocation models that have roughly equal exposure to stocks, bonds, real estate, precious metals, and cash, or at least divided (not necessarily equally) among 2 or 3 of them
Stuart Varney just on Fox with advice for winner of tonight's Mega Lotto:
Blow 5 million on living like a rock star, invest the remainder in.... stocks, bonds, land, and gold
not just one of those
derryb said earlier in the thread:
<< <i>now is a good time to convert stocks to PM's. If the stocks are not PM mining stocks you should also consider converting to the miners. If the stocks are mining stocks, hold them. ETF GDXJ is a good paper play on the junior miners. >>
Here's how that advice (given early Nov. 2011) has played out since, versus the nasdaq, for example:
Gold and Junior Minor ETF vs. Nasdaq stock index
Liberty: Parent of Science & Industry
<< <i>
I generally favor asset allocation models that have roughly equal exposure to stocks, bonds, real estate, precious metals, and cash, or at least divided (not necessarily equally) among 2 or 3 of them
Stuart Varney just on Fox with advice for winner of tonight's Mega Lotto:
Blow 5 million on living like a rock star, invest the remainder in.... stocks, bonds, land, and gold
not just one of those
derryb said earlier in the thread:
<< <i>now is a good time to convert stocks to PM's. If the stocks are not PM mining stocks you should also consider converting to the miners. If the stocks are mining stocks, hold them. ETF GDXJ is a good paper play on the junior miners. >>
Here's how that advice (given early Nov. 2011) has played out since, versus the nasdaq, for example:
Gold and Junior Minor ETF vs. Nasdaq stock index >>
Good call, so far, on your part. Lets revisit this thread in November and review it again.
They even mentioned "a correction" phrase today.. I know what happens after I hear that.
Don't spend it. Spread it out modestly, dedicate some to pms (buy % silver via averaging or dips, check out pallidium charts long term).
Gold they say is a good hedge, if you need a % of that. Hold the money short term, w/o spending it, cost averaging on the gold.
I'm not buying investment gold in my profit mentality, until it dips.
<< <i>Gold they say is a good hedge,...... until it dips. >>
Sorry to paraphrase, but no truer words have ever been written on this forum.
Knowledge is the enemy of fear
Sometimes, not being in the stock market makes good sense. Sometimes, the risk can be rewarding. Now could be one of those times, like in 1982 when Iaccoca took over Chrysler. I'm still kicking myself over that one.
However, if you have your government hijacked by, for instance - a bunch of big government academics intent on destroying the economy - then it might make sense not to be heavily exposed to anything but hard money for the duration. You just never can tell.
I knew it would happen.
<< <i>Gold bullion doesn't DO anything except store human effort. (and change value depending on market sentiment)
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses) >>
Sounds like gold is nothing more than. . . . money.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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
<< <i>
<< <i>Gold bullion doesn't DO anything except store human effort. (and change value depending on market sentiment)
Gold doesn't produce food or energy, rather the production of gold consumes machine and human effort, and the fuel and materials for mining, refining and shipping the stuff.
Gold doesn't educate human beings, or provide shelter or nourishment or protection from harm, nor employ anyone, except in the production and distribution of more bullion
Gold doesn't prevent, diagnose, or treat disease, nor does it influence human behavior to make positive lifestyle or consumption choices (except to divert capital that could be put to such uses) >>
Sounds like gold is nothing more than. . . . money. >>
Pretty much so derryb.
Still, there are few mines that just produce gold. The majority have a large % going to copper or other base metals. So in mining for gold or copper, the other is quite often a by-product
of the operation. And certainly copper is a key component in building economies. If gold (ie money) comes along with it, what's the harm? Freeport McMo is one of the largest copper
and base metal miners in the world. They also produce a crap load of gold each year. It's not clear yet of gold's properties within the human body. It certainly plays some roles that
are not yet fully understood. There has some been some research showing it as a key component in DNA that might have huge ramifications down the road. Silver is know to have
numerous properties used in electronics, labs, hospitals, etc. It does treat disease. Silver also happens to come as a by-product of other gold, copper, and other base metal mining.
And gold, it too does treat disease, along with other useful properties:
Gold Uses
Gold is an ancient metal of wealth, commerce and beauty, but it also has a number of unique properties that make it invaluable to industy. These properties include:
Resistance to corrosion
Electrical conductivity
Ductility and malleability
Infrared (heat) reflectivity
Thermal conductivity
Gold’s superior electrical conductivity, malleability, and resistance to corrosion have made it vital in components used in a wide range of electronic products and equipment, including computers, telephones, cellular phones, and home appliances.
Gold has extraordinarily high reflective powers that are relied upon in the shielding that protects spacecrafts and satellites from solar radiation and in industrial and medical lasers that use gold-coated reflectors to focus light energy. And because gold is biologically inactive, it has become a vital tool for medical research and is even used in the direct treatment of arthritis and other intractable diseases.
More interesting uses for gold, including powered wheelchairs, space craft, and eye lid surgery. And they make ice cream sundaes with it too.
"intent on destroying the economy"
Really?
I saw the writing on the wall in 2006 and loaded up on gold and silver despite all the "The economy is sound" talk that that previous "bunch" was continuously insisting. I warned my friends to buy gold. silver. beans and bullets. Few did.
Then we got this "bunch" and I told my friends to buy Ford. None did. I bought 10,000 shares of F for $1.44 on 11/21/08, up 766.33% as of today. Bought 5000 more at $2.20 on 11/23/08, up 464.51% as of today. The Dow was at 8047. Today it's closed at 13,212. The Nasdaq was around 1,580 and today it's 3,091.
I suppose it wasn't the intent of that previous "bunch" to destroy the economy but it certainly the result they attained.
<< <i>However, if you have your government hijacked by, for instance - a bunch of big government academics intent on destroying the economy - then it might make sense not to be heavily exposed to anything but hard money for the duration. You just never can tell.
"intent on destroying the economy"
Really?
I saw the writing on the wall in 2006 and loaded up on gold and silver despite all the "The economy is sound" talk that that previous "bunch" was continuously insisting. I warned my friends to buy gold. silver. beans and bullets. Few did.
Then we got this "bunch" and I told my friends to buy Ford. None did. I bought 10,000 shares of F for $1.44 on 11/21/08, up 766.33% as of today. Bought 5000 more at $2.20 on 11/23/08, up 464.51% as of today. The Dow was at 8047. Today it's closed at 13,212. The Nasdaq was around 1,580 and today it's 3,091.
I suppose it wasn't the intent of that previous "bunch" to destroy the economy but it certainly the result they attained. >>
So what does your gut tell you what's in-store for us now?
I knew it would happen.
I think the same "bunch" will hold the top slot and and senate and gain in the house. Gold and silver will be flat.
I like bio-tech and the possibity of another amgen... took a flyer on snta.. bought a little some @4.40 a share... just a flyer.. I like what they have going in clinical trials. ...
<< <i>Nice pick on Ford. I note that the stock market isn't the same thing as the economy. Yes, they are intent on destroying the economy. >>
Well they are doing an awfull job at destroying the economy... It just keeps getting better.
Gold to the 1700-2100 range.
stocks continue to move higher
gas prices will move higher and continue to place a drag on recovery
unemployment will remain high until we fix the real estate market
unemployment will remain high until we get a handle on corporate taxes.
Last five months..... bought some gold and silver. Totally cashed out of stocks, holding cash. Cashed out on CD,holding cash.
Moving forward....... started looking at real estate: residential rental property, farm land and commercial property all on the list to consider. Game changers are healthcare law and election.
PM Libertarian anyone?
<< <i>
<< <i>Nice pick on Ford. I note that the stock market isn't the same thing as the economy. Yes, they are intent on destroying the economy. >>
Well they are doing an awfull job at destroying the economy... It just keeps getting better. >>
btw. The stock market has been a fairly accurate forecast on the economy in the past & I believe, will be in the future.
<< <i>Saying "stocks" is like saying "metals" (or even "commodities")
There are specific stocks that that will probably outperform gold and silver by a wide margin over the next couple of years.
I do not think it is now or ever time to "sell stocks and put everything into physical gold/silver" but instead, to diversify among asset classes >>
My mantra, "diversify, diversify, diversify"
<< <i>
<< <i>
I generally favor asset allocation models that have roughly equal exposure to stocks, bonds, real estate, precious metals, and cash, or at least divided (not necessarily equally) among 2 or 3 of them
Stuart Varney just on Fox with advice for winner of tonight's Mega Lotto:
Blow 5 million on living like a rock star, invest the remainder in.... stocks, bonds, land, and gold
not just one of those
derryb said earlier in the thread:
<< <i>now is a good time to convert stocks to PM's. If the stocks are not PM mining stocks you should also consider converting to the miners. If the stocks are mining stocks, hold them. ETF GDXJ is a good paper play on the junior miners. >>
Here's how that advice (given early Nov. 2011) has played out since, versus the nasdaq, for example:
Gold and Junior Minor ETF vs. Nasdaq stock index >>
Good call, so far, on your part. Lets revisit this thread in November and review it again.
Here's the chart for the past 3 months...
link to updated graph
And here's from Nov 7 2011 to present
(any time period can be specified using the tabs or the date field at the bottom of this chart
Liberty: Parent of Science & Industry
movements of GDX. All 3 have been basically dead money for 2-3 years. Interesting that at the present the DOW is at all time highs, while miners compared to stocks are
around 10 yr lows.
GDX/SPY comparison - 3 yrs
GDX/SPY comparison - 6 month
GLD/SPY - 6 months
<< <i>The past 5 months have been stable, right commrades? My crystal ball going forward.....
Gold to the 1700-2100 range.
stocks continue to move higher
gas prices will move higher and continue to place a drag on recovery
unemployment will remain high until we fix the real estate market
unemployment will remain high until we get a handle on corporate taxes.
Last five months..... bought some gold and silver. Totally cashed out of stocks, holding cash. Cashed out on CD,holding cash.
Moving forward....... started looking at real estate: residential rental property, farm land and commercial property all on the list to consider. Game changers are healthcare law and election.
PM Libertarian anyone? >>
Kuch...I see you were accurate in your prediction of 3/12, on one count...."stocks continue to move higher" .... but for how much longer.
Corporate stock buybacks to allow insider options excercises at records prices, so execs can immediately sell thereafter. That's the reason for record stock buyback programs and record insider selling.
QE benefits the big banks and cronies of the administration. Lather, Rinse, Repeat. On the other hand, even Jimmy Rogers is wary of what might happen to gold if India puts more controls and taxes on it.
They aren't making it any easier to keep ahold of your own money, these days. Precious metals' advantage is that it can be kept outside the system, and in some ways - I believe that is important.
I knew it would happen.
While I agree, there is nothing that protects this money from losing value. Lots of people bought silver at $40 to keep their money out of the system, yet today they find themselves still having less money.
Knowledge is the enemy of fear
If this were 1981 and if the conditions were comparable, I could agree with you. But the conditions are nowhere near being similar. This isn't the endpoint for silver, and I'm pretty sure about that. Even disregarding any talk of supply shortages or backwardation, silver is a key metal and it's well recognized as a monetary medium. Couple that with what the Fed is doing and silver's nominal price in dollars will rise beyond $40 again. Easily.
You may have less "money" at the moment, but you still have the same amount of silver. The question is, "who do you believe?" It's my understanding that most of the financial system is corrupt. Why play in that mess?
I knew it would happen.
Liberty: Parent of Science & Industry
<< <i>they pull silver out of the ground for net $8 oz. even if you double that to $15, how much more demand do you need to sustain $30 or higher silver? >>
You may find a company or two that averages $8/oz all-in, but the mining industry as a whole is at the $17-$22/oz. level. Cash costs maybe be reported at the $6-$12 level,
but those have little in common with net costs. Same issue with the gold miners where cash costs are stated at $600-$800, yet all-in costs are in the $1100-$1300/oz range.
Silver Wheaton, a silver royalty streamer (no mining), is probably in the $8-$10 all-in range. If silver miners truly averaged $8/oz, their current share prices would be much
higher than they currently are.