Precious Metals

UFHealthGator

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I guess the question you have to ask yourself is if you are alright with longer, slower down cycles. Using the last10 years as a time range could be sorta skewed as we have been in a record breaking bull cycle in the SM....what kind of cycles do you predict for the rest of your timeline? or until you cash out your Roth? Remember gold reached it's all time highs in 2011 and recaptured that in 2020 DESPITE coming out of a 15 year period of moderate to no inflation and an equity/bond bull markets which are normally adverse to increases in golds price....Should we expect those patterns to hold?

Another factor to keep in mind also is that gold is getting harder and harder to mine(we've found the easy stuff) and more and more regulations will increase the mining and production cost, or perhaps it causes people to lose interest and causes downward pressure on golds price?

Conversely if governments around the world continue to put pressure on crypto what do you think happens to the price of gold? Look back at both charts for the last 2 weeks to see something interesting. BTC jumped what about 8-10K while gold took a major nose dive...My theory is traders may have sold off some gold and put it in BC which just broke a support level? Could gold become what bonds are to stocks, flight to safety from BTC during downturns ?

Like I said before I don't believe in putting a huge amount into precious metals because they don't produce income like RE, or bonds(used to anyway)or value stock, but I also think they are worth a long term speculative stash of maybe 3-5% of my total wealth. Worst
case scenario is it sits around doing nothing almost like a art piece or collector car to be sold off if you really need the cash...best case scenario is it sits for a long time and does what it has done over the last 50 years which is to far out pace the US dollar in value.
Again if you want to make quick money off precious metals stick to selling paper shares and mining stocks.

Great post. I totally get that looking at 10 year return is not representative necessarily of a bigger picture, but just wanted to demonstrate that returns can be changed depending on whaterver point in time you chose in the past.

I am also interested in the relationship between bitcoin and gold. There is definitely a shift happening towards bitcoin and people are actually starting to believe the whole "store of value" narrative.

I agree Gold sounds like a great hedge, not against inflation, but against crypto.
 

Concrete Helmet

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I am also interested in the relationship between bitcoin and gold. There is definitely a shift happening towards bitcoin and people are actually starting to believe the whole "store of value" narrative.

I agree Gold sounds like a great hedge, not against inflation, but against crypto.
How interesting would it be to see a typical allotment of say 70/30 or 60/40 crypto to precious metals in a mutual fund...management would change out crypto coins to whatever was performing at the time and could also use different percentages of gold, silver, platinum on the other side of the fund based on best performing metal....I'd throw a few grand at it...
 

Concrete Helmet

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Interesting take here. Big Tech start up Palantir buying $50m in gold....hmmm. Sometimes smart people go against the grain...that's when I pay attention.
BTW this youtuber is really good at cutting through the BS clickbait and personnel leanings. Gives the clearest and quickest definition of terms and workings in the financial system while keeping his videos fairly short.
 

UFHealthGator

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Just bought a good sized position of "physical gold" inside my Roth IRA. I just can't handle having cash sitting around. And yes I realize if it is not in my possession it is not "really" physical. But they do allow physical distribution of gold from my Roth IRA, and I have no interest in having that much gold sitting around my house.

They charged $50 above spot price, so ouch. If crypto crashes and Gold holds on to its value or goes up in value, then I will convert it back to crypto with no tax implications. Basically my hedge against Bitcoin going to zero. I still fully expect it to be my worst preforming asset in 10 years.

Now I can say I am invested in Stocks, Bonds, Real Estate, Crypto and Precious metals. Any other non correlated assets I need to buy?
 
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Concrete Helmet

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Just bought a good sized position of "physical gold" inside my Roth IRA. I just can't handle having cash sitting around. And yes I realize if it is not in my possession it is not "really" physical. But they do allow physical distribution of gold from my Roth IRA, and I have no interest in having that much gold sitting around my house.

They charged $50 above spot price, so ouch. If crypto crashes and Gold holds on to its value or goes up in value, then I will convert it back to crypto with no tax implications. Basically my hedge against Bitcoin going to zero. I still fully expect it to be my worst preforming asset in 10 years.

Now I can say I am invested in Stocks, Bonds, Real Estate, Crypto and Precious metals. Any other non correlated assets I need to buy?
Oh no Dude....the dollar spike is going crash gold back down to 1K next week....:lol2: j/k.

I think it was a good move unless you took too big of a position. Since you call the shots on the changing up assets within the Roth you shouldn't get too many surprises. Gold typically doesn't make hyper rises and falls like crypto, it's more like the mature guy in the room giving you time to make corrections.

As a side note regarding the video I posted about Palantir buying gold I didn't realize the information(data) that Palantir has access too until AFTER I watched the video. I knew they handled data for the government but didn't realize it's across a good amount of it's agencies like the CIA/FBI and they have inside access to supply chain and other government data....Makes me think they may know something most people don't when you wonder about them deleveraging as a tech company and buying gold... :scratchhead:....maybe currency or crypto related but who knows.
 

UFHealthGator

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Oh no Dude....the dollar spike is going crash gold back down to 1K next week....:lol2: j/k.

I think it was a good move unless you took too big of a position. Since you call the shots on the changing up assets within the Roth you shouldn't get too many surprises. Gold typically doesn't make hyper rises and falls like crypto, it's more like the mature guy in the room giving you time to make corrections.

As a side note regarding the video I posted about Palantir buying gold I didn't realize the information(data) that Palantir has access too until AFTER I watched the video. I knew they handled data for the government but didn't realize it's across a good amount of it's agencies like the CIA/FBI and they have inside access to supply chain and other government data....Makes me think they may know something most people don't when you wonder about them deleveraging as a tech company and buying gold... :scratchhead:....maybe currency or crypto related but who knows.


I look at my downside risk with Gold as the cost to mine gold, which is about $600-$1000. I doubt miners will sell at a loss. The position I took in Gold is about 1.2% of my current net worth, so a 40-50% is not going to hurt much. Besides after being in crypto these kinds of drops don't phase me .

It's probably going to be a short to mid term hedge. I still think it will be my worst performing asset, but a hedge is there to make me pleasantly surprised.
 

Gatormac2112

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$50 above spot price is less than 3% premium, thats not bad at all if its gold you can take physical delivery of
 

UFHealthGator

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$50 above spot price is less than 3% premium, thats not bad at all if its gold you can take physical delivery of

Yes they provide physical distributions per normal Roth IRA rules. I suppose it is a fair price.

Nice to see a 1.3% gain in Gold just after a fat purchase. I just need it to keep up with inflation. Funny how that excites me more than 13% 1 day gain in ADA.
 

Concrete Helmet

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UFHealthGator

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Great piece here....skip to about the 7 minute mark for the meat and potato's. I've thought this guy to be a little crazy before but this all makes great sense.... grab a few more oz of both physical and some paper today of the yellow metal....crypto will send it soaring at some point in the future and I view this as a benefit for silver too over the next 8-10 years.
Silver unlikely to track gold again, may ‘never go back as money’, here's why - Lobo Tiggre - YouTube

I am familiar with PAXG. They are actually the best stablecoin company out there. 90% of their crypto is backed by the actual asset. In fact that is how I track my Gold value inside personal capital for networth calculations.

He does have a good point. The problem is we still have to trust a custodian who issues the blockchain equivalent of Gold, which is a centralized risk. So gold on blockchain is more convenient for sure, but it is not decentralized. Honestly there is not a single crypto out there that is actually truly decentralized except for Bitcoin.

But the rise of Gold backed crypto is definitely interesting to me. I always wondered why this does not get more attention from Gold bugs.
 

Concrete Helmet

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But the rise of Gold backed crypto is definitely interesting to me. I always wondered why this does not get more attention from Gold bugs.
That was my first thought when I watched this but now I'm also thinking that if smaller(3rd world or economically instable countries which many of them are rich in mining resources like gold ) went to a national crypto currency based on gold.....well it seems like that could really shake up international currencies and make a historic bull run on the yellow metal....

China has dumped what looks like a lot of copper over the last 4 months although for them it is not a substantial amount but has slowed the market.....maybe the same thing has been going on in gold over the last 9-10 month's or so? Just kinda weird how the Central Banks agreed on the Basel3 deal a couple month's back....then again I've been known to follow the wrong Rabbit down a hole or 2....:lol:....oh well I better grab a couple more oz anyway.
 

Concrete Helmet

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BlackRock fund manager says they cut their Gold holdings to near zero.


Gold is just not in a tradable cycle right now.... which means I'm buying the dip....buy the nice dip now especially in silver...it will probably be in the $150-200 an ounce range within the next 2 years.
 

UFHealthGator

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Gold is just not in a tradable cycle right now.... which means I'm buying the dip....buy the nice dip now especially in silver...it will probably be in the $150-200 an ounce range within the next 2 years.

I almost always find doing the opposite what the hedge funds publicly say tends to do very well.

Not buying more just yet. But I will definitely hold on to what I got.
 

Concrete Helmet

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I almost always find doing the opposite what the hedge funds publicly say tends to do very well.

Not buying more just yet. But I will definitely hold on to what I got.
Keep in mind Basel 3 kicks in on January 1, 2022. That means the Black Rock's of the world won't be able to short the comex as easily. I think they are doing what China does to copper which is to poor mouth it and make a big stink about selling a little bit to cause a dip....then they buy more of it up knowing that the price is going up.:lol:

I don't blame anyone for not buying gold especially after yesterday and today and when I say I'm buying the dip I'm only buying 1oz each of physical and 1oz of paper gold and 25oz each of silver. I accumulate in small amounts(2-5k) whenever I buy metals.
 

Detroitgator

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Keep in mind Basel 3 kicks in on January 1, 2022. That means the Black Rock's of the world won't be able to short the comex as easily. I think they are doing what China does to copper which is to poor mouth it and make a big stink about selling a little bit to cause a dip....then they buy more of it up knowing that the price is going up.:lol:

I don't blame anyone for not buying gold especially after yesterday and today and when I say I'm buying the dip I'm only buying 1oz each of physical and 1oz of paper gold and 25oz each of silver. I accumulate in small amounts(2-5k) whenever I buy metals.
:lmao2:

I'll believe it when i see it!
 

Concrete Helmet

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Looks like old man gold finally woke up a few weeks back.....miners been creeping up too. I think if it throws a leg over $1900 we might see some good gains by summer....Silver is giving it a go too, anyone think this is another head fake or another giant leap?

I'm thinking Gold will get to 2100-2200 and maybe Silver 30-32 this year but I've been wrong about it for over a year now...lol

Anyone care to take a guess?
 

Detroitgator

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Looks like old man gold finally woke up a few weeks back.....miners been creeping up too. I think if it throws a leg over $1900 we might see some good gains by summer....Silver is giving it a go too, anyone think this is another head fake or another giant leap?

I'm thinking Gold will get to 2100-2200 and maybe Silver 30-32 this year but I've been wrong about it for over a year now...lol

Anyone care to take a guess?
No.
 

Concrete Helmet

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That went nowhere fast.....hmmmm where's 78 when you need him...
R.ad54d5376ff1be3733ae070a9501904d
 

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