Enough gold to cover the Earth 13 feet deep!!

cohodkcohodk Posts: 14,005 ✭✭✭
edited May 19, 2017 11:27AM in Precious Metals

http://www.geologypage.com/2011/09/where-does-all-earths-gold-come-from.html

This article came out when gold peaked. Is it the reason for the ensuing bear market?

Its time....12/16/15

Comments

  • OPAOPA Posts: 14,195 ✭✭✭

    Did not know that. Interesting article, but I seriously doubt it had any thing to do with the ensuing PM bear market.

    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 23,432 ✭✭✭✭
    edited May 19, 2017 2:11PM

    Bear market?

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • VanHalenVanHalen Posts: 2,416 ✭✭✭

    "...the Earth was hit by about 20 billion billion tonnes of asteroidal material.”

    How did it all manage to land on Washington, DC?

  • element159element159 Posts: 264 ✭✭✭

    The history of where all the gold came from is pretty interesting. I think the beginning, how the gold was made in the first place, is still not completely understood. It was formed in supernovae, but the details are still unclear, I think.

    image
  • cohodkcohodk Posts: 14,005 ✭✭✭

    @VanHalen said:
    "...the Earth was hit by about 20 billion billion tonnes of asteroidal material.”

    How did it all manage to land on Washington, DC?

    Haha.

    Its time....12/16/15
  • cohodkcohodk Posts: 14,005 ✭✭✭

    @derryb said:
    Bear market?

    If that was a chart of the stock market you would say it was a bear market.

    Its time....12/16/15
  • carew4mecarew4me Posts: 3,557 ✭✭✭

    @cohodk said:

    @derryb said:
    Bear market?

    If that was a chart of the stock market you would say it was a bear market.

    No, I would not.


    Loves me some shiny!
  • derrybderryb Posts: 23,432 ✭✭✭✭
    edited May 19, 2017 5:28PM

    @cohodk said:

    @derryb said:
    Bear market?

    If that was a chart of the stock market you would say it was a bear market.

    Couldn't find this chart for gold but am quite sure it would tell the same story:

    While PM prices have declined from peaking in reaction to the great economic "paper over" they are not in a bear market. Their decline is due to the perception that the dollar bill wallpaper was a cure. Once perceived as the band aid it is, new highs will return. One only has to consider what made them peak in the first place.

    Speaking of the stock market, the DJIA is currently trading at over five times its book value. What does that tell you? Tells me that the dollar bill wall paper fueled stock buybacks have grossly inflated stock prices. Bubble? you bet. Also, note that the stock buybacks effectively changed the perception that drove PMs to new highs. How long you think that scam will last?

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • cohodkcohodk Posts: 14,005 ✭✭✭

    @carew4me said:

    @cohodk said:

    @derryb said:
    Bear market?

    If that was a chart of the stock market you would say it was a bear market.

    No, I would not.

    You guys were screaming death of stocks when the sp500 dropped 35% from its high. Sounds kinda hypocritical.

    Its time....12/16/15
  • cohodkcohodk Posts: 14,005 ✭✭✭
    edited May 19, 2017 5:44PM

    Speaking of the stock market, the DJIA is currently trading at over five times its book value. What does that tell you?

    Well, if it was 5x book, I would say its over priced, but since it's only about 3.3x, sp500 about 3x and Wilshire 5000 about 2.5x, I would say youre wrong "again".

    And...you should create a chart of stocks since 1927....unless you want to embarrassed.

    Its time....12/16/15
  • 3stars3stars Posts: 313 ✭✭✭

    Do you have a silver chart that shows values based on inflation? I bet it would be rather flat.

    Previous transactions: Wondercoin
  • Geckster109Geckster109 Posts: 168 ✭✭✭

    @cohodk said:
    Speaking of the stock market, the DJIA is currently trading at over five times its book value. What does that tell you?

    Well, if it was 5x book, I would say its over priced, but since it's only about 3.3x, sp500 about 3x and Wilshire 5000 about 2.5x, I would say youre wrong "again".

    And...you should create a chart of stocks since 1927....unless you want to embarrassed.

    Can we include every defunct company as well, or just the "winners" like the DJIA likes to do? How many of the 30 companies in the DOW even existed prior to 1927?

  • cohodkcohodk Posts: 14,005 ✭✭✭

    @Geckster109 said:

    @cohodk said:
    Speaking of the stock market, the DJIA is currently trading at over five times its book value. What does that tell you?

    Well, if it was 5x book, I would say its over priced, but since it's only about 3.3x, sp500 about 3x and Wilshire 5000 about 2.5x, I would say youre wrong "again".

    And...you should create a chart of stocks since 1927....unless you want to embarrassed.

    Can we include every defunct company as well, or just the "winners" like the DJIA likes to do? How many of the 30 companies in the DOW even existed prior to 1927?

    Sure...as long as we can include everyone who had a gold coin lost, stolen, mutilated, ect. Why is a loss in a stock different from losing a coin?

    Its time....12/16/15
  • derrybderryb Posts: 23,432 ✭✭✭✭

    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • derrybderryb Posts: 23,432 ✭✭✭✭

    @3stars said:
    Do you have a silver chart that shows values based on inflation? I bet it would be rather flat.

    silver values are based on inflation.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • Geckster109Geckster109 Posts: 168 ✭✭✭

    @cohodk said:

    Sure...as long as we can include everyone who had a gold coin lost, stolen, mutilated, ect. Why is a loss in a stock different from losing a coin?

    It is the SUBSTITUTION of stocks that is in question. Again, of the current 30 companies represented by the DOW, how many were there in 1927? 1957? 1987? Even 1997??? The DOW is an artificial measurement at best because it continuously dumps the dogs and adds new, hot companies. It would be like adding up all the gains of gold in strong years while completely ignoring the losing years. And you cannot see the scam huh?

  • derrybderryb Posts: 23,432 ✭✭✭✭

    @Geckster109 said:
    And you cannot see the scam huh?

    vision is distorted.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • Geckster109Geckster109 Posts: 168 ✭✭✭

    Too bad the DOW ignores all the losers......can you imagine what the average might look like if they had kept the original 12 companies in it? Tell you what Cohodk....you park $10k evenly distributed among those 12 stocks in 1896, and I park the same $10k in gold. Who wins? See how obtuse you are yet, or need more help?

  • Geckster109Geckster109 Posts: 168 ✭✭✭

    Anyone remember what happened to that giant firm AIG? Oh, that's right, was booted off the DOW as soon as it became a dog. Lets ignore the price decrease of gold for a few choice years and add that amount back into the total price today for a fair comparison! :D

  • derrybderryb Posts: 23,432 ✭✭✭✭

    @cohodk said:
    http://www.geologypage.com/2011/09/where-does-all-earths-gold-come-from.html

    This article came out when gold peaked. Is it the reason for the ensuing bear market?

    not likely. anyone with clear glasses can see that all that gold at the earth's core will never make its way to the surface.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • Geckster109Geckster109 Posts: 168 ✭✭✭

    @derryb said:

    @cohodk said:
    http://www.geologypage.com/2011/09/where-does-all-earths-gold-come-from.html

    This article came out when gold peaked. Is it the reason for the ensuing bear market?

    not likely. anyone with clear glasses can see that all that gold at the earth's core will never make its way to the surface.

    Its almost like saying there are enough resources on earth to make a pile of $100 notes to the moon. Who cares if its true or not? Shouldn't affect the value of the dollar anymore than the linked article affected gold prices.

  • element159element159 Posts: 264 ✭✭✭

    @derryb said:
    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    Book value has little, if anything, to do with the value of the stock market. Book value is basically a measure of how much money has been put INTO the business. (I.e. value of equipment, cash, other assets). But the value is based on the money that will COME OUT of the business, which is completely different.

    image
  • cohodkcohodk Posts: 14,005 ✭✭✭
    edited May 19, 2017 10:44PM

    @derryb said:
    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    You trying to prove your ignorance again?

    Hint...productive asset.

    Its time....12/16/15
  • cohodkcohodk Posts: 14,005 ✭✭✭

    @derryb said:
    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    Or....to use your ignorance....I suppose it's ok to pay $18 for an ASE that has a book value of $1,

    Its time....12/16/15
  • cohodkcohodk Posts: 14,005 ✭✭✭
    edited May 19, 2017 10:42PM

    @Geckster109 said:

    @cohodk said:

    Sure...as long as we can include everyone who had a gold coin lost, stolen, mutilated, ect. Why is a loss in a stock different from losing a coin?

    It is the SUBSTITUTION of stocks that is in question. Again, of the current 30 companies represented by the DOW, how many were there in 1927? 1957? 1987? Even 1997??? The DOW is an artificial measurement at best because it continuously dumps the dogs and adds new, hot companies. It would be like adding up all the gains of gold in strong years while completely ignoring the losing years. And you cannot see the scam huh?

    Which "hot, new" companies are in the DOW 30?

    Or you can substitute the Wilshire 5000 for the DOW....the chart looks the same.

    Its time....12/16/15
  • piecesofmepiecesofme Posts: 6,476 ✭✭✭

    @derryb said:
    Bear market?

    That's ALOT of years of dead money lol, but if a person had the patience it paid off nicely. Kind of looks like a once in a lifetime thing though, maybe twice.

    To forgive is to free a prisoner, and to discover that prisoner was you.
  • derrybderryb Posts: 23,432 ✭✭✭✭

    @cohodk said:

    @derryb said:
    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    Or....to use your ignorance....I suppose it's ok to pay $18 for an ASE that has a book value of $1,

    BV on an ounce of silver is its industrial value. BV on a stock is its value for your piece of the company's assets. everything above BV is speculation (hope) at work.

    3.3 X BV is a stock and a hope bubble.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • ShadyDaveShadyDave Posts: 723 ✭✭✭

    I like assets that appreciate.

    Many do at different times. I like a bit of gold, silver, owning land, equities, guns, collectibles, bitcoin and other made up crypto-currencies, a good job, a side-gig and a hot fiancée to keep me warm at night when the rest screw me. You're all right and wrong.

    While you guys are bitching about physical assets, made up assets like Bitcoin are over 1,900 right now...40%+ up in 2017 and gaining a billion in market value a week. Haha.

    The wind will always blow, make sure to pick the headwinds. There a reason, TRADERS are known to make big bucks, they are always looking for the next gust or headwind and always take a piece of it...

  • cohodkcohodk Posts: 14,005 ✭✭✭
    edited May 20, 2017 12:10PM

    @derryb said:

    @cohodk said:

    @derryb said:
    So if a stock (or an index) is selling for even 3.3 X it's book value it is not overpriced?

    Or....to use your ignorance....I suppose it's ok to pay $18 for an ASE that has a book value of $1,

    BV on an ounce of silver is its industrial value. BV on a stock is its value for your piece of the company's assets. everything above BV is speculation (hope) at work.

    3.3 X BV is a stock and a hope bubble.

    Lol...you truly don't know anything about business or financial markets. I've been giving you too much credit all this time.

    It's a darn good thing silver doesn't spin off a few grams very year and replicate itself. Then you'd hate that too.

    Its time....12/16/15
  • VanHalenVanHalen Posts: 2,416 ✭✭✭

    @element159 said:

    Book value has little, if anything, to do with the value of the stock market. Book value is basically a measure of how much money has been put INTO the business. (I.e. value of equipment, cash, other assets). But the value is based on the money that will COME OUT of the business, which is completely different.

    But the value is based on the money that is expected to COME OUT of the business, which is completely different.

    What "will come out" vs "what is expected to come out" is completely different. Today people are willing to pay 25x earnings, which is high and based heavily on low interest rates and the hope of a perfect future.

  • BaleyBaley Posts: 19,433 ✭✭✭✭
    edited May 21, 2017 3:24AM

    It's fun to think about returns if one had done what they said they would have done, but what matters is the returns they did have because they did what they did.

    Liberty: Parent of Science & Industry

  • CoinstartledCoinstartled Posts: 1,100 ✭✭✭✭

    BS on this thread would provide a much deeper layer than the PM's

  • TwoSides2aCoinTwoSides2aCoin Posts: 37,382 ✭✭✭✭

    I lost a fortune in silver and gold. At least I still have some.

  • cohodkcohodk Posts: 14,005 ✭✭✭

    So derryb, et al, how far do the markets drop? The Naz 100, as measured by its corresponding ETF --QQQ-- is up 9 straight years, and surely must have a down year, so how much does it drop?

    Its time....12/16/15
  • derrybderryb Posts: 23,432 ✭✭✭✭

    at least 20% will get my attention and a long on TVIX

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • cohodkcohodk Posts: 14,005 ✭✭✭

    @derryb said:
    at least 20% will get my attention and a long on TVIX

    So basically just erasing the Trump bump? Would that be a considered a bear market?

    FWIW---there is usually a 20% drop every 4 years or so. Although, not once has the world ended.

    Its time....12/16/15
  • derrybderryb Posts: 23,432 ✭✭✭✭
    edited May 23, 2017 1:14AM

    you asked how much does it drop. you did not ask how much does it drop to be considered a bear market. I answered at 20% I will be long TVIX.

    It could drop 30% one week and then gain it all back the next. That would not be a bear market. Dat would be da big dipper.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ...he who doesn't ... pays it.” - Albert Einstein

  • cohodkcohodk Posts: 14,005 ✭✭✭

    I would hope you would be short TVIX at a 20% drop.

    Its time....12/16/15
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