The case for gold

[scaredyclassic]

cef is 70 perc gold 30 perc silver i think

[The-Shoveler]

Hmmm CEF is one I will keep an eye on as well.

I kind of like Silver a bit more than Gold to tell the truth IMO more upside potential and relatively stable/safe below 15 IMO.

[pinkflamingo]

Silver is definitely cheaper. In fact, silver/gold ratio is at all time highs. And if you look back at the 08 recession w/e to QE, silver did just as well in terms of percent gains if not better. We own about 50/50 split between CEF/PSLV

We would like to positioned our portfolio at 20% metals by end of next year. Waiting for the market to dip to get the other 10% in hopes that metals will also dip due to margin calls again as in Mar. When will this mania end? Then again, if every thing dips, buy gold or just buy snp?

Why 20%? Because Golden butterfly, Dragon portfolio and the likes of them recommend 20% Gold. Are these portfolios hyped? Probably. But this year so far we are at 9 trillion, between fed and gov. Some predict we will need another 10 before this is over. I can’t imagine gold/silver going down with the current fed/gov policy.

I would like to look into mining. Gold and silver maybe even uranium. But so far I have not determined what I should be looking for. And I am hesitant to buy into something that I do not understand.

[scaredyclassic]

[quote=pinkflamingo]Silver is definitely cheaper. In fact, silver/gold ratio is at all time highs. And if you look back at the 08 recession w/e to QE, silver did just as well in terms of percent gains if not better. We own about 50/50 split between CEF/PSLV

We would like to positioned our portfolio at 20% metals by end of next year. Waiting for the market to dip to get the other 10% in hopes that metals will also dip due to margin calls again as in Mar. When will this mania end? Then again, if every thing dips, buy gold or just buy snp?

Why 20%? Because Golden butterfly, Dragon portfolio and the likes of them recommend 20% Gold. Are these portfolios hyped? Probably. But this year so far we are at 9 trillion, between fed and gov. Some predict we will need another 10 before this is over. I can’t imagine gold/silver going down with the current fed/gov policy.

I would like to look into mining. Gold and silver maybe even uranium. But so far I have not determined what I should be looking for. And I am hesitant to buy into something that I do not understand.[/quote]

GDX is a diversified miner etf. Risky. Also gdxj for junior miners. Pretty ez way to lose money. Or maybe make some?

[scaredyclassic]

[quote=gzz]Problems with gold stocks:

Labor troubles, nationalization risk, they are really bad for the environment and risk divestment and drastically increased costs because of stronger regs.

Canadian miners are often stock scams more than actual companies.

Alternatively, you can own one of these:

https://www.jmbullion.com/2020-1-oz-british-gold-queens-beast-white-horse-coin/

https://www.jmbullion.com/20-saint-gauden-gold-double-eagle-almost-uncirculated/%5B/quote%5D

Many believe any form of paper gold, including gld, cef and so on, ultimately is a leveraged scam and believe if you dont own a real su b stance u have nothing. Which seems possible to me. But jeez…its a little extreme

[gzz]

We call these people goldbugs. They’ve been saying 5000, 10,000, 50,000 gold for decades. They missed out on a generational bull market, gaining 50% from the bottom while stocks and real estate greatly outperformed that.

My view is there chance that GLD etc don’t have the real gold they claim is low, but not zero. After Enron, Worldcom, AIG, Wirecard, and many other financial scams, why trust Wall Street more than you have to?

You have to weigh this against the risk of physical ownership: lost, stolen, forgotten, etc.

There’s also management fees, though they are not as bad as they used to be. Still, when the market interest rate is under 1%, a 0.4% management fee is pretty bad. CEF I believe is even higher, which is why it has a consistent discount.

[zk]

[quote=gzz]

You have to weigh this against the risk of physical ownership: lost, stolen, forgotten, etc.

[/quote]

I used to work with a gold bug. He told me he had a decent percentage of his assets in physical gold, and that it was in a safe in his basement.

If I owned that much physical gold, I wouldn’t tell anyone that I had it, let alone where it was stored. I wouldn’t tell my mother where it was stored, let alone some guy from work.

When I asked if he was afraid of it being stolen, he said, “aren’t you afraid to have your wealth in ones and zeroes on somebody’s computer?”

Which is an interesting point. Unless I’m mistaken, all (at least most) bank accounts, stocks, brokerage accounts, etc (and some bonds, too?) are ones and zeroes on somebody’s computer. Sure, you get monthly statements and all. But it’s still vulnerable to e-theft just like physical gold is subject to theft.

Other than stupid mistakes on the part of the holder of the electronically-kept asset (e.g. falling for phishing), though, I don’t think I’ve ever heard of such theft.

I imagine they’re backed up in lots of different computers in different locations. So even if your the city where your bank is headquartered is nuked, your account should survive.

I would be more worried about a major hacking event than anything else, I guess.

Not making a point, I guess. Random thoughts on theft or other loss of assets. I’m kind of making guesses, and I’d be interested to hear from people with more knowledge about it.

[scaredyclassic]

The bible seems to indicate that all stored wealth will pass away.

Your gold and your silver are rusted; and their rust shall be for a testimony against you, and shall eat your flesh as fire. Ye have laid up your treasure in the last days.

So in addition to theft, theres also spiritual risk. Im willing to accept that tho. So the risk of holding paper assets seems lower than the risk to my soul.

[svelte]

[pinkflamingo]

I do remember reading somewhere that the amount gld is leveraged. To what degree? idk. I’ve read that CEF hold at least 97% of total net assets in physical gold and silver at the Canadian Mint. Tax savings is also great.

CEF also allows shareholders to redeem actual bullion on a monthly basis, though the fees to conduct such redemptions are quite steep and an investor must own 100,000 units to qualify.

If you are worried about redemption there is also the equivalent of CEF for Australia. AAAU. Like cef, it’s backed by the aus mint. It doesn’t have the tax savings, but you can redeem it for lesser quantity, gold coins.

[scaredyclassic]

Gold does seem silly if u think about it too much, but then again so do mortgage backed securities

[Coronita]

Gold at 1840/ounce. Silver at $21.

My bullion is 30% above what I bought them at starting in 2016. Not great return, but I’ll take it.

[The-Shoveler]

I find Silver is actually quite volatile, I have traded it probably 7 or 8 time since 2016 or so for good gains.

IMO contrary to most who hold these commodities they are better traded than held long term.

Just my opinion

[scaredyclassic]

Yep. The up and down is very steep.

Im very bad at buying, and selling.

Im good at paralyzed holding. Thats my specialty in fact.

I’d probably be holding at $55 silver

[The-Shoveler]

LOL then you will win !!

I still have a few shares of SLV, I am going to put a trailing stop $1 tomorrow.

We will see.

[Author]

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