Seamajor
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At one time the US dollar was backed up with gold. President Nixon did away with it. The dumbes move on earth. I buy my metals from a few different vendors along with coin shops and individuals.
Warren Buffett issued warning about US Dollar & the Trump Economy
- Thread starter Joe
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Maybe the Euro is just over inflated.
Maybe Trump's an asshole.
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No no we get oil money here in Ohio!!
The Prowler
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I know.
And we all have been told since we could talk that gold is valuable.
But stop and think for a minute. They are mining over 2600 tonnes more gold every year than they require for manufacturing...
How can anyone be sure that this is not just a Pump and Dump scheme?
With such an over-supply, how can you be so confident that they will not be a correction?
Do you know what it costs to mine an ounce of gold? AISC is usually under $1500. Obviously that will depend on many factors....but given that it can be mined for $1500 an ounce....given that there are enough reserves to supply manufacturing for decades....are you following?!??
Why do you trust that it is worth $4,500 an ounce? I mean, I know that is what it is trading/selling for...but....
Anyways, I feel that my efforts are wasted here. Fuckin' Senile Joe talks about stocks but does not have the first clue. And you guys both talk like precious metals are a sure thing. Hopefully the ride continues....but what is happening is kinda crazy and it sure as heck is not a sure thing.
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Joe
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Gold is collateral. Banks need it if there's a run on them Lex @The Prowler.
I'm sure you're familiar with Silicon Valley Bank & First Republic, right?
They went under. That's the sort of thing that happens to a bank when they don't have enough collateral or capital to cover shortfalls or runs. And don't forget all the US government/corporate debt which is coming due in 2026. Moving forward, even stable coin will be backed increasingly by Gold and its holders are buying up a lot of it lately. Just do a google search on them.
Someone is getting nervous & scared of an eventual financial reset. So when there's a fallout, they wanna be protected, eh. Plus there are all these wars going on and they have to be paid for somehow. Where's there's War, Gold becomes very popular. Was the same in World War I and II.
It's quite possible. And many economists and investors have raised that possibility that large holders of gold like China, India or Russia could dump their reserves on the market to control the price. That's why I mostly stopped buying gold when it reached $2500 US per ounce because I'm always aware of what you've mentioned - a possible pullback or sharp decline in price. so - if Gold hits $5000 or $6000 or even $7000 per ounce, and there's a correction, fall up to 40%. In which case, if an investor bought too high, like $5 or $6 k and it falls they're SOL. So either way I didn't pay too much Lex. If it falls, I still don't lose because I bought most of it LOW at $2000 or less. At very worst, I'll roughly break even.
Anyways Prowler, that's why I got outta silver for the reasons you mentioned. Silver is like the 'bitcoin of the metals'. Not very stable or reliable, eh? If gold gets whacked in a correction, Silver will get hit twice as hard. Sometimes it's gone down 80-90% from its peak. I decided to sell the silver now rather than later, take the risk of a sharp pullback and put it into Gold. Tho also vulnerable, it's not nearly as volatile and subject to as a high a potential price drop as Silver.
That's why according industry insiders, mining engineers I've spoken to, major Gold mining stocks are doing well right now. Like Agnico or Barrick. Because the higher the price goes, the greater the profit for them. So if it Gold hits $5000 in 2026, which looks very likely, Gold mining shares will shoot up.
Mind you....word of caution here...gold, silver, anything miners are time sensitive investments. Kind of thing where a person sells when the price shoots really high, cash in , eh? Cuz just like physical gold, the miners can really pull back in price.
As a rule, try to avoid putting more than 10% of your capital into Gold or other mining stocks. I'm a bit heavy in some atm and I'd like to trim or get rid of some over the holidays.
War, Geopolitical conflict. Political re-alignment. The New COLD WAR is between the USA vs China. Everything, including the AI boom and the metals, minerals, gas it needs to fuel is tied to it right now.
No, I for one don't think that metals are a sure thing Prowler. They are time-sensitive investments. Make yer money while you can if you're invested. But get out or at least sell some of it while it is up and lock in your gains.
And yes, altho I'm up 10% since I started investing, I'm essentially a novice investor. I've just chosen as many stocks over as many sectors as I can to diversify the portfolio. But I also plan to get into ETFs later on to provide more of a cushion for the portfolio.
I am highly aware that a stock portfolio can drop significantly in value on a dime. I'll try to avoid getting to smug or complacent in this business, that's fer sure.
Seamajor
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Why would this be of importance to you? Looks like you have neither
The Prowler
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Can you explain how this works, @Joe? Collateral is used by a borrower to guarantee repayment of a loan.
Are you suggesting that the banks are borrowing money and using gold as collateral?
You are missing the point, Senile @Joe.
When there is an excess of gold, why do you think the price is going so high?
I thought you said you bought more gold just a week or two ago.
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Joe
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Here’s an insightful analysis from a former banker & wealthy investor about what’s coming Lex @The Prowler:
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Joe
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Here’s another short video fer you Lex @The Prowler about monetary reset & the repricing of gold:
Edward Dowd is a Right Wing staunch pro Trump Maga conservative just like you Prowler
You should listen to him cuz hes yer kind
Edward Dowd is a Right Wing staunch pro Trump Maga conservative just like you Prowler
You should listen to him cuz hes yer kind
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The Prowler
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Joe
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You should because you get extremely jealous when @Seamajor & I make gains on Gold n Silver but you don’t, Lex @The Prowler. A bit of education could go a long way for you Lex
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The Prowler
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Do you fellas drop your gold over your heads and say you're having a golden shower?
The Prowler
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Not me, but I would not doubt that Senile @Joe sleeps, showers, and does some anal activities with his gold trinkets.
The Prowler
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People should have their investments diversified and have enough money in liquid assets to make it through rough periods in any of their investments.
As an example, my wife and I have over $600K invested in short term, guaranteed investments. We are good for several years if, in the nearly impossible scenario, *all* of our investments tank.
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Joe
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Yes, I'm currently in the process of re-balancing the portfolio, allocating more to cash/money market, utiliy/staple type stocks Lex @The Prowler. And the better Canadian Bank stocks, eh. Trying to lower the risk as much as possible as I'm not sure what 2026 has in store for everyone. Sold some riskier gold mining stocks. Will probably sell s'more but it into gic's or a safe ETF.
Yeah I intend to do the same, Lex.
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Joe
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All that 'New Gold' I acquired lately were just trade-ins Lex @The Prowler.
I just traded a bunch of 'Old Gold' I paid 1/3 to 1/2 of the current price for and traded into for 'New Gold'
I also took advantage of the rising silver price and lower Gold to Silver ratio and traded it into too for more Gold and Platinum.
I didn't actually buy anything, eh.
I just let inflation do its work by taking advantage of the rising Silver prices.
That being said, I think I'm pretty much done buying any more Gold Prowler.
Possibly.....FOREVER. It's too expensive now. $5000 is a certainty, but even $10,000 Gold by 2030 is no longer out of the question. It's become simply WAY Too Expensive to buy now, Prowler.
I might be convinced to buy again if the price crashed. Any event, I still wouldn't lose if the price fell from its current levels because I bought LOW.
Very worst, I'd break even.
It'd be crazy to buy Gold now. Silver for that matter too.
May as well collect something much more affordable such as vintage hockey cards from now on.
But it was fun while it lasted!
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The Prowler
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Joe
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Here's an interesting article about how Fed Jerome Powell's departure will shake up the economy & the markets Lex @The Prowler
Obviously this has implications for everyone not just the US
Article is neither biased for or against Trump.
Just provides a summary of what comes next. then the reader can decide for themselves
The Prowler
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Or read any articles that you post...
