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re: Gold hits all time high, $2500/oz, this AM
Posted on 8/17/24 at 6:27 am to Big Scrub TX
Posted on 8/17/24 at 6:27 am to Big Scrub TX
quote:
quote:
Unlike the dollar gold will hold its value?
Everybody bitches about the dollar "not holding its value", but is that even relevant? It's not like wages over time have not kept pace with (most) inflation.
For most people, including the millions who shop at Costco and buy $2 billion in gold per year, it’s EXACTLY like wages over time have not kept pace with inflation.
2
Posted on 8/17/24 at 6:36 am to OccamsStubble
quote:
including the millions who shop at Costco and buy $2 billion in gold per year,
which is impressive considering that Costco has a strict quantity limit of 6 items per membership.
This post was edited on 8/17/24 at 6:40 am
Posted on 8/17/24 at 7:28 am to OccamsStubble
quote:
I can make one phone call and have $2 Million in gold delivered to my door by Monday. I can carry that to my bank and put it in a safe deposit box that cost $40/year. That weighs 50 pounds Not really difficult
Orders of magnitude more difficult than many other asset classes, including asset classes that perform vastly better than simply outpacing inflation. While I appreciate the detail of your response, it bolstered my position more than it undermined it.
Posted on 8/17/24 at 7:33 am to OccamsStubble
quote:
The more dollars we print, the less value dollars hold.
Which is a great argument against hoarding cash but not a particularly good argument in favor of any particular asset class as an alternative.
Posted on 8/17/24 at 8:20 am to Joshjrn
And I could pick thousands of stocks that have either halved in value or fallen to zero, while gold never has and never will.
I’m not advocating for owning only gold, PM is about 5% of what I’ve accumulated. But I know that there is severe downside risk to stock/bonds given the current climate of $35,000,000,000,000 trillion in debt, which will climb to $50,000,000,000,000 before 2030, and there is no downside risk in owning gold. Clearly the trend is gold gaining against a rapidly diluted dollar.
I’m not advocating for owning only gold, PM is about 5% of what I’ve accumulated. But I know that there is severe downside risk to stock/bonds given the current climate of $35,000,000,000,000 trillion in debt, which will climb to $50,000,000,000,000 before 2030, and there is no downside risk in owning gold. Clearly the trend is gold gaining against a rapidly diluted dollar.
Posted on 8/17/24 at 8:34 am to OccamsStubble
quote:
And I could pick thousands of stocks that have either halved in value or fallen to zero, while gold never has and never will. I’m not advocating for owning only gold, PM is about 5% of what I’ve accumulated. But I know that there is severe downside risk to stock/bonds given the current climate of $35,000,000,000,000 trillion in debt, which will climb to $50,000,000,000,000 before 2030, and there is no downside risk in owning gold. Clearly the trend is gold gaining against a rapidly diluted dollar.
And just like the argument isn’t gold vs cash, it’s also not gold vs (individual stock). It’s gold vs VTSAX (as just one example) vs real estate vs vs vs.
Again, not necessarily knocking gold. I’m simply pointing out that “well, gold beats holding cash” is about the most useless metric possible in the context of investing.
Posted on 8/17/24 at 8:46 am to Joshjrn
And yet millions hold cash in the form of paper, not realizing that they could hold cash in the form of gold, which is increasing in value against that trash paper. Most people don’t see gold as money, but, it is.
.gov isn’t minting $3.5T in gold per year and throwing it out of helicopters at people who didn’t earn it. Paper is another story.
.gov isn’t minting $3.5T in gold per year and throwing it out of helicopters at people who didn’t earn it. Paper is another story.
Posted on 8/17/24 at 8:58 am to OccamsStubble
It’s not money, unfortunately. As a libertarian, I wish it was, and I agree from a philosophical perspective. But as long as it is subject to capital gains taxes, it unfortunately is not as a factual matter.
As to the rest,
As to the rest,
Posted on 8/17/24 at 9:14 pm to Joshjrn
quote:
Considering the aggravation involved in buying, storing, and selling gold, I would argue that it needs to do vastly better than beat inflation to be worth holding.
I am FINALLY winning on Gold. Oddly enough, Palladium was the superstar for a while. Platinum has had a pull back. I haven't looked at Silver in a while.
I have some of all of it in a safety deposit box. It's a diversification play. As a percentage it's a very small part of my investments.
It took a very long time to get in the green, considering acquisition costs. And who do I sell to? That'll probably cut into "gains" even further.
I lost the appetite for holding precious metals. I'll probably just gift them to the kids at some point. On some level it's kind of cool.
Posted on 8/17/24 at 11:14 pm to OccamsStubble
quote:
History ….from the Song Dynasty in China … to the Weimar Republic in Germany, when paper dies we return to hard money.
Because backing the dollar with hard money like gold -- and eventually Bitcoin -- is the only way to finally kill the money printer.
Posted on 8/18/24 at 2:44 am to Joshjrn
There has been an aggresive push on many media outlets to get old people to put their retirement accounts into gold and silver. They are telling people that whatever Democrat is holding office is going to abandon the dollar system for an unproven and dangerous crypto currency. Hanity and Levin are both spokespersons for some of these companies. They are extremely effective with their pitch. These geisers watching Fox News or some other conservative media are selling stocks and puting their IRA or Roth IRA's in a commodity account. My parents almost fell for that. Both gold and silver are in danger of being over bought IMO.
Posted on 8/18/24 at 2:45 am to rocksteady
quote:
I can’t think of many things less enticing to me than investing in gold. Id rather take that money to the casino
Agree.
Posted on 8/18/24 at 6:14 am to Motownsix
When Nixon announced that the USA was no longer redeeming gold for dollars on 15 August, 1971, the government had been exchanging gold for dollars at $35.00 an ounce and the LBMA price of gold was approximately $43.00. As of August 18, 2024, the current market price of gold is approximately $2,508 an ounce.
Over this period using the LBMA price of gold, it has compounded annually at a rate of :
(2,508/43.00)^(1÷53) = 1.1 or compounded at approximately 10% per annum for approximately 53 years as of 18 August 2024.
A compounded annual rate of approximately 10% for approximately 53 years is not too bad for a pet rock or a barbarous relic.
Over this period using the LBMA price of gold, it has compounded annually at a rate of :
(2,508/43.00)^(1÷53) = 1.1 or compounded at approximately 10% per annum for approximately 53 years as of 18 August 2024.
A compounded annual rate of approximately 10% for approximately 53 years is not too bad for a pet rock or a barbarous relic.
Posted on 8/18/24 at 6:34 am to OccamsStubble
You're not really selling this whole invest in gold thing. You do you, though
Posted on 8/18/24 at 10:05 am to TheOcean
I’m not trying to sell anything other than the reality that gold is historically a 10% gain annually against the trash dollar, and .gov isn’t printing gold and throwing it at people to get their vote. I have far more in the market than in PM.
Posted on 8/18/24 at 10:52 am to OccamsStubble
Your math is wrong. It's about 7.7% compounded, not 10%.
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