Gold Investment Thread
- Thread starter NoMoreTO
- Start date
MRAll134
Pelican
Copper is tumbling too.
For the Gold Bugs out there, Peter Schiff is someone to add into your listening queue. He has a gold investment co', so he has some bias. But, he is still interesting to listen to, even if he is a tractor
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Summer Data Swoon Puts Fall Taper in Doubt - Ep 728 - The Peter Schiff Show
Get your new wireless plan for just $15 a month. https://mintmobile.com/gold
schiffradio.com
Property has gone up thanks to the ability of Americans and others to continuously recklessly borrow to purchase it. QE has inflated both the stock and property markets. Most of your examples have been beneficiaries of the massive fed money printing bubble we have been living in for 10+ years now, but I suppose how it all ends remains to be seen. I’m very pro crypto but it’s still dependent on the internet. Gold is a good way to store value outside of the banking system if you so please. Gold is a poor “investment” when you compare it to everything else in this monopoly money economy, but I personally don’t think we have been living in reality for a while now.
Everything you said is accurate. The way they got to me with gold - they said it would gain with QE. Well, that doesnt look like it's panning out anymore. It's not doing its job anymore like it used to in recent years.
It's circumstancial evidence but it looks like money is flowing out of gold and into bitcoin. It may be that gold does not continue to act as a hedge against inflation like it used to anymore.
It was explained to me once that gold is a "so-so" hedge during inflation cycles and an unbelievable hedge in "hyperinflation" cycles. But time will tell, the world is changing, but the history of gold is a loong one.
In a sane world gold would be valuable and used in trade.
In clown world - it will never become valuable because while central banks all buy and store it they love the slave enabling fiat and will die before they let go of the printing press.
That said, you should own some gold because they hate that you do.
In clown world - it will never become valuable because while central banks all buy and store it they love the slave enabling fiat and will die before they let go of the printing press.
That said, you should own some gold because they hate that you do.
Inflation-Wary Germans Are Loading Up on Gold
Many gold investors might be fretting over the prospect of the Federal Reserve curbing monetary stimulus, but Germans are still loading up.
www.bloomberg.com
Inflation-Wary Germans Are Loading Up on Gold - Bloomberg.com
26/08/2021 — Germany's love of gold has its origins in the hyperinflation seen under the Weimar Republic a century ago, which saw consumers' buying power.
My personal guess - the flow of money from gold to bitcoin will slow, but the flow from bonds and securities will dramatically increase.
So, the $10T gold market will not fall much from $10T, and could still even increase, but the crypto market will expand from $2T to somewhere much higher than gold.
That's a good point, I never thought of money flowing from bonds/securities to gold. I also agree with the prediction. Dying boomers and their boomer portfolio managers are more likely to stay in a mix of bonds & gold than do bitcoin. I think more % is being allocated to BTC as it starting to appear on mainstream TV. I saw Fox talk about money printer go brrr a lot recently.
Are you referring to premiums? Right now the premiums for gold are around 5% for 1 oz. bars and 7% for 1 oz. coins. A 5-7% premium isn't terrible as long as you plan to hold for a long time.
If you don't want to pay that high of a premium then I would consider the Sprott Physical Gold Trust (PHYS). It's a fully allocated trust that has a direct impact on the price of gold. Whenever the fund trades at a premium above its net asset value the trust goes out and buys 1,000 oz gold bars.
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The problem I see is all the companies that sell physical gold often have poor reviews and kinda shady vibes about them. Clunky websites, little information on the location and history of the company, lot’s of “Don’t be left out, call for a quote today!” type of cheesiness. I always feel like I’m dealing with a company that’s trying to scam scared old people.
I would definitely stay away from companies that advertise on TV. If they can afford to pay for commercials then it's likely that their premiums are high.
For gold bullion I would consider buying from companies such as Apmex, Money Metals Exchange, SD Bullion, and the Scottsdale Mint. There are also reputable dealers on ebay.
This analogy made me even more bullish on BTC:
With stocks, particularly IPO's, the Warren Buffetts of the world get to simply purchase before the little guy can. Buffett bought a pile of Snowflake stock before it IPO'd, but after it was announced. That isn't some investor-genius trade, that's an obvious trade and not available to the general population. If you try to follow his purchases of Apple, Goldman Sachs, Snowflake, etc, you will always get worse terms than he does. With Apple, they gave him preferred shares. With GS, they gave him amazing terms.
Cryptocurrencies are flipped. Joe Nobody can buy cryptocurrencies before financial institutions -- it is taking Wall Street forever to get past the regulations. The financial institutions have to buy in after the little guy has a chance.
Those companies spend big money on advertising to hook in poorly informed buyers. I remember seeing one advertise $1,000 or $2,000 in free gold or silver. That will easily hook in poorly informed buyers. The catch was you had to buy $10,000+ of their "premium" coins that were 2x or 3x over spot. Pretty gross if you ask me but I guess the money they collect from their marks help them sleep at night.
I've bought 5 figures worth of gold and silver online and never got scammed or ripped off. Like zoom said above, there are many reliable companies that are good to deal with. I've bought from Apmex, SD Bullion, JM Bullion, Scottsdale Silver, SilverGoldBull, ModernCoinMart, and others. I never bought from anyone advertising on TV or the radio.
MRAll134
Pelican
The Coin Shoppe is reliable, if you are in Canada:
thecoinshoppe.ca
The Coin Shoppe
The Coin Shoppe is your source for buying and selling Modern Numismatics. Our supply includes rare and hard-to-find coins. Worldwide delivery
thecoinshoppe.ca
The irony of it all is that when the elites aren't buying capital assets, corporations, they are buying gold. With that big FIAT money system.
Agree totally, it's a middle finger to the system. When I realized I hated these guys, I realized around the same time that most of my assets were being used by them to roll out their agenda. So around that time (Q1 2020), I sold all my equities. I had been buying about 3 stock positions a year for almost 10 years. Feel happier with my gold tucked away and my farm equipment out in the shed.
Alamos Gold (AGI) had a small drop in production this quarter, and as a result their stock price has dropped about 50 cents, to $7.44. Their 52-week low is around 7.
This medium-sized gold mining company currently has three mines in operation, and hope to bring a fourth into full production in 2025. They expect to make a production decision on it next year. One of their other mines is starting an expansion project. According to their corporate presentation, if they're projections come true, their annual gold oz production will increase from the current 455,000 to 750,000 by 2025, a 60% increase if I understand correctly. If the price of gold stays steady and assuming their stock price would also increase in value by 60%, then their shares should be valued at around $13-15 after 2025. Their quarterly dividend is currently 2.5 cents a share.
However, I'm not sure if stock price is always reliably tied to gold oz production. For example, Yamana Gold produced 200,000 gold oz this past quarter, but their stock price is half of Alamos, at 3.95, but Yamana has three times as many outstanding shares as Alamos, so stock dilution may be a factor.
This medium-sized gold mining company currently has three mines in operation, and hope to bring a fourth into full production in 2025. They expect to make a production decision on it next year. One of their other mines is starting an expansion project. According to their corporate presentation, if they're projections come true, their annual gold oz production will increase from the current 455,000 to 750,000 by 2025, a 60% increase if I understand correctly. If the price of gold stays steady and assuming their stock price would also increase in value by 60%, then their shares should be valued at around $13-15 after 2025. Their quarterly dividend is currently 2.5 cents a share.
However, I'm not sure if stock price is always reliably tied to gold oz production. For example, Yamana Gold produced 200,000 gold oz this past quarter, but their stock price is half of Alamos, at 3.95, but Yamana has three times as many outstanding shares as Alamos, so stock dilution may be a factor.
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Peter Schiff talked about gold mining companies at the start of his most recent podcast. He basically says that it isn't a huge deal if mining companies miss production estimates because they will mine the gold later.
https://schiffradio.com/shiba-inu-highlights-bitcoins-lack-of-scarcity/
https://schiffradio.com/shiba-inu-highlights-bitcoins-lack-of-scarcity/
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