Gold Investment Thread

NoMoreTO

Ostrich
Gold has always been a stable object for investment. Its price was growing dynamically without any serious jumps. However, recently, compared with cryptocurrency and real estate, you can notice these advantages even more clearly.
That is why I began to be actively interested in investing in gold. One site with very detailed information on this topic helps to understand all the details much better. I advise you to read it.
And if you believe my calculations, I may even be able to buy something for myself with the money I earned in a couple of years.
Gold has held strong, while silver has tumbled.

What is this website you speak of?
 

MRAll134

Pelican
Gold has held strong, while silver has tumbled.

What is this website you speak of?
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 tractor1630727344488.png :


 

Parmesan

Woodpecker
I was a gold bug over 10 years ago. After a full decade to reflect I now know that gold is a bad investment. At best it could beat out inflation slightly or be used as currency in a scorched earth scenario. The worst case is it doesn't do its one job and doesn't keep up with inflation and you've payed the opportunity cost (You could have made profit or gotten rich doing something else with your money).

Why I now think gold is a hopeless case. It's a commodity. With every commodity that shoots up people mine or produce more it. Price goes down. Whenever gold goes up people just mine more of it, creating an oversupply. Another example is Peak Oil. Everyone thought we were 10years away from running out. It never happened because as oil became scarce and expensive people were motivated to produce more it. That's why we have too much oil now.

I won't even get into the fact that there's more paper gold than physical and institutions have endless tools at their disposal to bring down the price. Just look at the last 10 years and ask yourself whether you would have invested in gold all over again and the rational answer is its was a huge opportunity cost. Land was better, property did better, s&p 500 did better. Gold couldn't even keep pace with inflation better than the ones I just described.

You are better off investing your money in the NASDAQ or Bitcoin since mining it harder doesn't produce more. Based on the evidence it looks like Bitcoin has eaten gold's lunch. I liked both but now I think gold's time is behind it. Sure, it might go to $3k in the near future but I think everything else will go up higher.
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.
 

BURNΞR

Pelican
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.
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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.
 

NoMoreTO

Ostrich
....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.
 

typtre

Woodpecker
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.
 

cosine

Robin
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.
View attachment 33364

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.
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.
 

BURNΞR

Pelican
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.
 

zoom

Kingfisher
Gold Member
Show me a way to buy actual physical gold without losing a huge percentage of the investment, and I'm in.

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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Parmesan

Woodpecker
Are you referring to premiums? Right now the premiums for gold are around 5% for bars and 7% for 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.
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.
 

zoom

Kingfisher
Gold Member
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.
 

cosine

Robin
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.
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.
 

username

Ostrich
Gold Member
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.

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.
 

NoMoreTO

Ostrich
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.

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.
 
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