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 Replies: 45 / Views: 5,914 |
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Pillar of the Community
United States
570 Posts |
Quote:
I notice that on a day like today with nearly everything in the red
metals are green. They seem to have a non-correlation to stocks and bonds in uncertain
times. It's the dollar, it's down today... https://www.bloomberg.com/quote/DXY:CUR |
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Pillar of the Community
United States
570 Posts |
Quote:
If one considers it took over 30 years from the highs in '80 to the same highs in 2011, I suppose you could call that 'skyrocketing'. What is that, like a 3% increase considering inflation? But it didn't go up 3% every year. It 'skyrocketed' in the mid 70's to '80, and it 'skyrocketed' again from 2000 to 2011. So for someone to say it could never 'skyrocket' is just simply wrong. |
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Valued Member
United States
112 Posts |
Strong bounce today in gold and silver. Dollar is up, too...
I wonder if the falling prices last week were due to Comex
expiration?
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Pillar of the Community
United States
4333 Posts |
I didn't sell in 1980 when silver reached new highs close to $50/oz. Over 30 years later, it took off again to almost $50.
$hould have been $150. Double you tee eff.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Valued Member
United States
112 Posts |
fistfulladirt it was you that wrote one of the best quotes I have recently read.
You wrote, "paper looks good on paper." One thing about paper is that it is easier
to trade in and out of.
I agree when you get a double it is good to take some money off the table.
The thing that is more difficult is figuring out when to sell when something
is underwater.
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Valued Member
United States
112 Posts |
Reuters just reported, " Royal Mint bullion coin sales surge on wave of political turmoil." It seems people in the UK and elsewhere are buying bullion in the face of uncertainty. Fed minutes are released today. Will they hammer metals again to help keep their paper ponzi fraud markets elevated? All the while secretly buying metals and productive assets with their conjured up "money."  |
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Valued Member
United States
493 Posts |
Troy: Coin and bar silver demand went from around 50 million oz. /year back in 2008 to nearly 300 million oz./year in 2015, that's almost 1/3 of mined silver!, but I call it on average about 1/5th of mined silver is being hoarded up, it's a hard asset that is fairly easy to store from the perspective of getting rid of fiat. Metals kind of bottomed out here in the last year or two and are holding up pretty well. I think coin and bar demand is going to keep up nicely although it relaxed a bit last year, inflation is slowly heating, easy money policy leaves lots of dollars to be spent.
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Valued Member
United States
112 Posts |
everything you said, "Coin and bar silver demand went from around 50 million oz. /year back in 2008 to nearly 300 million oz./year in 2015."
That is a huge jump! I wonder if sales have increased as price has fallen?
Also, do you have the numbers for gold sales over time?
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Bedrock of the Community
United States
10982 Posts |
Remember most "sales" of precious metals don't involve any metal at all. They are "paper" trades on world commodity markets. Actual, physical metals comprise a small portion of the demand (or supply for that matter).
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Valued Member
United States
112 Posts |
I would love to know what percentage of those sales were physical.
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Pillar of the Community
United States
1450 Posts |
When you sell physical PM's what are the expenses and fees you face? If you buy a pound of gold for the going price and the price doubles how much profit can you make minus fees, transaction costs and even capital gains taxes?
If you just want the metal buy an ETF like GLD. I bought some of the gold miners and then got killed and sold them and then they came back. The lesson to me is be patient with investments. Trading the market or trying to time it is usually costly. Everything is in a market including coins, PM's, antiques, houses, stocks etc. If you have an old 1911 45 pistol that was in good shape that was handed down to you then you would have a nice profit if you sold it. We live in a market economy.
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Pillar of the Community
United States
570 Posts |
ETF's are fine for trading. Only a fool would use an ETF for long term holding. History is full of broken promises for gold.
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Valued Member
United States
112 Posts |
Quote:
ETF's are fine for trading. Only a fool would use an ETF for long term holding. History is full of broken promises for gold. I agree this is a key point that also applies to silver. When the paper price "fell" in the last crash I could not buy any physical at that paper price because premiums approached 100%! So when paper silver was $8 or $9 per oz. my LCS was charging $15 or $16 per oz.! |
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Pillar of the Community
Australia
7096 Posts |
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So when paper silver was $8 or $9 per oz. my LCS was charging $15 or $16 per oz.! That is a pretty good example that the Spot Paper prices do not accurately reflect the real worth of the physical metal. IF the paper traders ever have to actually produce the metal on demand the entire house of cards will collapse because far more metal is traded than what actually exists and it cannot possibly be claimed by the people that hold the paper for it. |
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Pillar of the Community
Australia
7096 Posts |
Quote:
You know you can buy preferred stock paying 8% dividend and it actually pays to own it. Owning PM's costs the owner to store and has zero interest or dividends. It is a horrible investment except as insurance. For many people buying physical PM's is Not an investment Per Se it is more of a savings strategy. Saving PM's is a better option to saving cash because inflation will erode the value of cash but not PM's. Saving PM's is also a better option to putting the money into a bank because the interest earned doesn't cover the value lost due to inflation, There is a risk that the bank can go broke as well. |
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Replies: 45 / Views: 5,914 |
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Posted 01/30/2017 2:21 pm
