Gold at all-time high

[Brunolem]

2 hours ago, bkk6060 said:

Over the past 30 years, the price of gold has increased by around 280%.2 Over the same period, the Dow Jones Industrial Average (DJIA) has gained 839%.1

Haha.

How far you want to go back?

And you keep quoting the articles you read and post you seem to have bought into the kool aid.

Go back 50 years if you want but my portfolio is diversified for the future and modern age of technology and technological advances. Companies that produce something have billions of dollars in revenue and have ideas for now and in the future.  But it does take some research, education and comprehension to understand it.

 

PS:  if you insist on historical performance a $10,000 investment in Apple 40 years ago would be worth 6.7 million dollars today.  Cherry pick that..  ????

 

I am sorry to say that you have little understanding of gold and its role.

 

By comparing gold "performance" with the Dow, you are not comparing apples with oranges, but apples with cotton or cement.

 

Gold is money, not an investment.

 

Gold appreciates when currencies depreciate, as is the case these days.

 

It keeps its purchasing power constant while paper money inflates, hence your "profits" on the stock markets, most of which are the result of inflation, and not of the concerned companies' performances.

 

People don't own gold to make money, but rather to preserve the purchasing power of their money.

 

Consider it as an insurance.

 

Many people are not inclined on gambling in the stock market casino, because this is what it is, a rigged casino.

 

Regarding the US stock market, you may notice that almost all the (inflationary) gains are made by overbought shares in a handful of companies.

 

Outside the US, many stock markets have gone nowhere since the collapse of the bubble in 2000, or earlier in the case of Japan.

[nauseus]

2 hours ago, bkk6060 said:

Over the past 30 years, the price of gold has increased by around 280%.2 Over the same period, the Dow Jones Industrial Average (DJIA) has gained 839%.1

Haha.

How far you want to go back?

And you keep quoting the articles you read and post you seem to have bought into the kool aid.

Go back 50 years if you want but my portfolio is diversified for the future and modern age of technology and technological advances. Companies that produce something have billions of dollars in revenue and have ideas for now and in the future.  But it does take some research, education and comprehension to understand it.

 

PS:  if you insist on historical performance a $10,000 investment in Apple 40 years ago would be worth 6.7 million dollars today.  Cherry pick that..  ????

 

As you seem keen on cherry picking take a look at this.

Over the past 49 years, the price of gold is up 5500%. 

Over the same period, the Dow has gained 3150%.

And he was comparing to currencies anyway, not stocks.

 

[Brunolem]

2 hours ago, bkk6060 said:

Over the past 30 years, the price of gold has increased by around 280%.2 Over the same period, the Dow Jones Industrial Average (DJIA) has gained 839%.1

Haha.

How far you want to go back?

And you keep quoting the articles you read and post you seem to have bought into the kool aid.

Go back 50 years if you want but my portfolio is diversified for the future and modern age of technology and technological advances. Companies that produce something have billions of dollars in revenue and have ideas for now and in the future.  But it does take some research, education and comprehension to understand it.

 

PS:  if you insist on historical performance a $10,000 investment in Apple 40 years ago would be worth 6.7 million dollars today.  Cherry pick that..  ????

 

Here is a little present to put stocks performance in perspective (I am a subscriber to this weekly newsletter):

 

https://www.davidstockmanscontracorner.com/rotten-at-the-core/

 

[nauseus]

2 hours ago, Brunolem said:

Here is a little present to put stocks performance in perspective (I am a subscriber to this weekly newsletter):

 

https://www.davidstockmanscontracorner.com/rotten-at-the-core/

 

Looks like we all need to be subscribers to read it matey.

[Brunolem]

1 hour ago, nauseus said:

Looks like we all need to be subscribers to read it matey.

Sorry for that... can't copy and paste... the letter is too long... 

 

Here is another interesting article, no subscription required... 

 

https://mises.org/wire/gold-prices-show-theres-big-short-going-official-currencies

 

Edited August 14, 2020 by Brunolem

[Captain Monday]

On 8/13/2020 at 6:54 PM, Brunolem said:

Yes you should...

 

https://goldswitzerland.com/buyer-beware-gold-etfs-like-gld-own-no-gold/

When  go to Bucks to purchase an Ice Koffie with my "gold coins" how do I pay?

Scratch off a filling from the side with a knife? Will they staff weigh it on a gram scale? What is the exchange rate?As I understand Starbuckss only accepts so-called fiat currency.

Edited August 15, 2020 by Captain Monday

[Bill97]

30 minutes ago, Captain Monday said:

When  go to Bucks to purchase an Ice Koffie with my "gold coins" how do I pay?

Scratch off a filling from the side with a knife? Will they staff weigh it on a gram scale? What is the exchange rate?As I understand Starbuckss only accepts so-called fiat currency.

You may just win the contest for making the stupidest post of the month.  Congratulations.

[Captain Monday]

6 minutes ago, Bill97 said:

You may just win the contest for making the stupidest post of the month.  Congratulations.

No really. If so called fiat currency is so bad why is it  the only thing accepted via cash or credit cards? Why won't anybody accept gold coins or shavings thereof for daily commerce? Pretend i'm a complete idiot and explain it clearly. No more thinly veiled insults please.

Edited August 15, 2020 by Captain Monday

[Bill97]

15 minutes ago, Captain Monday said:

No really. If so called fiat currency is so bad why is it  the only thing accepted via cash or credit cards? Why won't anybody accept gold coins or shavings thereof for daily commerce? Pretend i'm a complete idiot and explain it clearly. No more thinly veiled insults please.

Sorry I do not deal with complete idiots. See a psychologist.  
 

In the meantime consider convenience.

[4MyEgo]

Never sell when the media tells you to sell, and of you don't need to sell, don't sell, it means it's gonna go up more. Watch this space.

[Brunolem]

45 minutes ago, Captain Monday said:

No really. If so called fiat currency is so bad why is it  the only thing accepted via cash or credit cards? Why won't anybody accept gold coins or shavings thereof for daily commerce? 

Do some research... 

 

Paper currencies are not "bad", but they are always abused by their masters, and thus lose value/purchasing value. 

 

Think of gold as the money of reference, against which the value of currencies is measured, and regularly adjusted. 

 

And by the way, I will gladly accept gold coins if you can't get rid of them at your local Starbuck... 

[farangkinok]

5 hours ago, Captain Monday said:

No really. If so called fiat currency is so bad why is it  the only thing accepted via cash or credit cards? Why won't anybody accept gold coins or shavings thereof for daily commerce? Pretend i'm a complete idiot and explain it clearly. No more thinly veiled insults please.

Why do most stores only accept cash or credit cards? It's easier for them. The average business doesn't want to have to hedge against movement in the gold price versus local currency. However, from time to time we have seen some U.S. businesses accept payment in pre-1964 (90%) silver coins at melt value. In 2011, Donald Trump accepted gold instead of dollars for a lease payment from one of his tenants. There are many other examples.   https://www.foxbusiness.com/markets/trump-accepts-gold-instead-of-dollars-from-tenant 

[Heppinger]

On 8/9/2020 at 2:04 PM, Brunolem said:

In the early 70s Henry Kissinger went to Saudi Arabia and made a deal: in exchange for US protection, Saudi Arabia, and by extension all its oil cartel neighbors, would sell their oil only in dollars.

 

It has worked quite well for both sides, since the Gulf feudal regimes are still in place, and the dollar is still the currency of reference.

 

Those who tried to sell their oil in other currencies are either not here anymore, Saddam and Gaddafi, or under tremendous pressure, like Iran or Venezuela.

 

The US is acting exactly like the mafia, on a much larger scale, using protection racket to keep under its control vast areas of the world.

 

The dollar is the world reserve currency because, beyond oil, many other commodities, starting with gold, are bought and sold using dollars.

 

Think that even Alibaba, a Chinese corporation selling Chinese products, charges its customers in USD, not in Yuans.

 

Wrong, the US produces more oil then it consumes, Iraq war was for the purpose of re-establishing ancient borders,  why would you invade Iraq when you can just seize their oil shipments?  Gaddafi was removed to establish the trafficking route of sh%t tins of Africans into Europe.  Do you also think Afghanistan is about saving the Afghan people?

Edited August 15, 2020 by Heppinger

[Sheryl]

Moved to the appropriate forum

[Brunolem]

14 hours ago, Heppinger said:

Wrong, the US produces more oil then it consumes, Iraq war was for the purpose of re-establishing ancient borders,  why would you invade Iraq when you can just seize their oil shipments?  Gaddafi was removed to establish the trafficking route of sh%t tins of Africans into Europe.  Do you also think Afghanistan is about saving the Afghan people?

Not wrong, these are well documented facts.

 

In 2003, the US was not producing that much oil, and anyway I didn't write that oil was the purpose of the invasion, but the dollar, or rather the petrodollar.

 

The petrodollar is crucial for the US, whose currency otherwise would quickly become worthless.

 

As for Gaddafi, he was removed because he wanted to set a single currency for Africa, a dinar backed by gold.

 

Sarkozy was the first to react, since many African countries use the Franc, controlled by France.

 

He convinced Obama and Hillary, then NATO, to join him in his monetary fight.

[papa al]

Buffet just bought $1/2 billion 

 of stock in Barrack Gold/mining.

[Brunolem]

2 hours ago, papa al said:

Buffet just bought $1/2 billion 

 of stock in Barrack Gold/mining.

Right... and he is no gold bug... 

 

[Barnabe]

If you think the price of gold is going down, short it. If you think it's going up, buy into it. Put your money where your mouth is, aka, have skin in the game as the great Taleb says.

Otherwise you're just an anonymous talking head in an Internet forum.

 

I know where I am putting my money, have been buying gold, silver and bitcoin since their bottoms in March. But I'm not an idiot, I only invest the money I can afford to lose. The loss is limited, but the potential upside is huge, so totally worth the risk for me.

[Susco]

36 minutes ago, Brunolem said:

Right... and he is no gold bug... 

 

Buffett made a many bad bets in the past few years, lost more billions of dollars than we have Baht millions

[Heppinger]

5 hours ago, Brunolem said:

Not wrong, these are well documented facts.

 

In 2003, the US was not producing that much oil, and anyway I didn't write that oil was the purpose of the invasion, but the dollar, or rather the petrodollar.

 

The petrodollar is crucial for the US, whose currency otherwise would quickly become worthless.

 

As for Gaddafi, he was removed because he wanted to set a single currency for Africa, a dinar backed by gold.

 

Sarkozy was the first to react, since many African countries use the Franc, controlled by France.

 

He convinced Obama and Hillary, then NATO, to join him in his monetary fight.

well documented? the moon landing is well documented, doesn't mean it's real.  If you don't understand that the conflict for the middle east is thousands of years older than the discovery of oil then i can see why you think the reason is oil.  Again if the real reason was oil then it would have been much easier just to sieze Iraq's shipments as they were no military threat, unless you also believe in WMD's.  Yes i have heard the dinar excuse, but there is know evidence, there is however evidence of African migrant caravans making the journey into Europe from the shores of Libya.  I would love to hear your thoughts on Afghanistan, Osama? humanitarian reasons?

Edited August 16, 2020 by Heppinger

[Heppinger]

1 hour ago, Barnabe said:

If you think the price of gold is going down, short it. If you think it's going up, buy into it. Put your money where your mouth is, aka, have skin in the game as the great Taleb says.

Otherwise you're just an anonymous talking head in an Internet forum.

 

I know where I am putting my money, have been buying gold, silver and bitcoin since their bottoms in March. But I'm not an idiot, I only invest the money I can afford to lose. The loss is limited, but the potential upside is huge, so totally worth the risk for me.

Don't know about bitcoin, but agree with gold and silver, I have gone heavy into silver as it is used in the medical instrument industry and has been used as money for 5000 years (among many other things),  Also heavy into natural gas,  Uranium (as this is how china is going to transition out of coal) Also not as heavy into coffee, soybean oil and heating oil.  What i see from looking at the daily ASX releases is alot of "becoming a major shareholder" in mining not just gold but also cobalt, nickel, copper, uranium, lithium.  The people following MSM tips of "green" energy investments are going to get F&&jed in my opinion.  The belt and road and China's mega cities will not be powered by solar panels wind farms and hydrogen.

 

My reasoning in going heavy into commodities is that I'm expecting fiat currencies to inflate in relation to energy and soft commodities. 

Edited August 16, 2020 by Heppinger
edit

[Heppinger]

Another thing i find interesting is big money investors buying into private education providers  such as this one

https://www.redhilleducation.com/

[Heppinger]

Another thing to remember is that gold IS NOT at an all time high, and isn't even close to being at an all time high

Edited August 16, 2020 by Heppinger

[Barnabe]

For the doubters asking why buy gold:
https://www.zerohedge.com/markets/turkey-hit-bank-runs-currency-panic-locals-sell-their-cars-and-houses-buy-gold-while-lira

 

Not saying this will happen in Europe / US... but you never know, better safe than sorry, and have 10% of your net worth in gold and silver.

[Brunolem]

7 hours ago, Heppinger said:

well documented? the moon landing is well documented, doesn't mean it's real.  If you don't understand that the conflict for the middle east is thousands of years older than the discovery of oil then i can see why you think the reason is oil.  Again if the real reason was oil then it would have been much easier just to sieze Iraq's shipments as they were no military threat, unless you also believe in WMD's.  Yes i have heard the dinar excuse, but there is know evidence, there is however evidence of African migrant caravans making the journey into Europe from the shores of Libya.  I would love to hear your thoughts on Afghanistan, Osama? humanitarian reasons?

I wonder if you bother to read my posts.

 

I have stated, twice, that Irak was not about oil, but about the PETRODOLLAR!

 

Regarding Libya, there were far more migrants crossing to Europe AFTER Gaddafi's demise than before.

 

As for Afghanistan, it's an entirely different issue, born in the aftermath of 9/11.

 

There were certainly no humanitarian reasons involved, it's just that a military response was required and Afghanistan was a convenient scapegoat...until it wasn't...

 

[Captain Monday]

Gold has no more intrinsic value than a bit of paper. It is psychological.

It has industrial utility. Gold has substitutes for its uses also.

There is no way for me to safely store  million dollars or so of gold coins.

Costs of exchange prohibitive, and always at the mercy of the lowest of the low.

The money - changers at the back of the temple.

 

Fools Gold - A bad investment for sheep following a trend.

 

[Brunolem]

3 hours ago, Captain Monday said:

Gold has no more intrinsic value than a bit of paper. It is psychological.

It has industrial utility. Gold has substitutes for its uses also.

There is no way for me to safely store  million dollars or so of gold coins.

Costs of exchange prohibitive, and always at the mercy of the lowest of the low.

The money - changers at the back of the temple.

 

Fools Gold - A bad investment for sheep following a trend.

 

Spoken like someone who has no understanding of money.

 

First, gold is NOT an investment...it is an insurance against the constant depreciation of currencies thanks to inflation.

 

Now if gold has no more intrinsic value than paper money, let's imagine that we found two crates, one full of centuries old gold coins, and one full of centuries old paper money, I know which one I would chose and I would gladly leave you the paper money, never mind the total amount written of the paper.

 

As Voltaire said: paper money ultimately returns to its intrinsic value, which is...zero.

 

[Peterphuket]

4 hours ago, Captain Monday said:

Gold has no more intrinsic value than a bit of paper. It is psychological.

It has industrial utility. Gold has substitutes for its uses also.

There is no way for me to safely store  million dollars or so of gold coins.

Costs of exchange prohibitive, and always at the mercy of the lowest of the low.

The money - changers at the back of the temple.

 

Fools Gold - A bad investment for sheep following a trend.

 

The first time I came to Thailand about 24 years ago,  1 Thai gold bath has a price of thb 5000.

And now? Do I have to tell you more?

[Barnabe]

8 hours ago, Captain Monday said:

Gold has no more intrinsic value than a bit of paper. It is psychological.

It has industrial utility. Gold has substitutes for its uses also.

There is no way for me to safely store  million dollars or so of gold coins.

Costs of exchange prohibitive, and always at the mercy of the lowest of the low.

The money - changers at the back of the temple.

 

Fools Gold - A bad investment for sheep following a trend.

 

I’ll just leave this here for you:

https://www.zerohedge.com/markets/us-dollar-devalues-99-vs-gold-100-years-gold-price-crosses-2067

[Captain Monday]

10 hours ago, Brunolem said:

Spoken like someone who has no understanding of money.

 

First, gold is NOT an investment...it is an insurance against the constant depreciation of currencies thanks to inflation.

 

Now if gold has no more intrinsic value than paper money, let's imagine that we found two crates, one full of centuries old gold coins, and one full of centuries old paper money, I know which one I would chose and I would gladly leave you the paper money, never mind the total amount written of the paper.

 

As Voltaire said: paper money ultimately returns to its intrinsic value, which is...zero.

 

Understand the exmple but ancient coins would be valued even if made from base metal. Would you trust the GLD etf? reportedly backed by bullion in secured vaults? But why follow the trend and dive into a skyrocketing speculative commodity while inflation remains low.

 

Would it not be more efficient to simply hold a basket of major currencies?

 

I think it is quite SAD that the herd is always being coerced towards expensive gold products while they have no ownership of residence, emergency fund, or even health insurance. Always behind the black curtain lurks a gold merchant, who takes his profits in CASH.