Gold. GOLD!!!!! Gooooollllllllllddddddd!!!!!!!!

Balzac89 said:
This morning was proof. What if it goes lower than 1200? I feel like that would really mess up production
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Yes, it would force more of the "bleeding edge" producers to shut down. But that is still not enough of an impetus to drive prices back up. The PoG can stay in that equilibrium a lot longer than one's patience can endure.
And there lies the risk.
Consider, as well, most of the miners getting knocked-off are tiny relative to the aggregate production (it is an oligopoly, after all), so that only bolsters the probability of remaining in a steady-state. Without crisis, gold has little reason to move... and in the event of crisis, one will have plenty of time to hop on the train, as demonstrated post-GFC.

I see no reason to start "stacking" even if the median is hit. There are better vehicles to invest in if the goal is to garner ROI. Even holding cash (i.e. keeping your powder dry) is better, since it will allow one the opportunity to capitalize on such moments. What little one loses through inflation can quickly be regained (if not surpassed) through a few simple trades at the right time.
But I suppose that's the rub; WHEN is the right time? That can only be learned with experience and discipline...
Before I learned to ride a bicycle, I had to learn about falling from a tricycle (I still have the scar on my chin to prove it) ;)

The same goes for investing/trading. I see a lot of people just learning to how to keep their asses on the seats. I was talking with someone yesterday who is $130k UNDERWATER on silver, because they had little discipline and a deluded, emotional rationale regarding the PoS. I've also had friends who blew out their accounts because they were addicted to the daily trade and pressed their luck by opening up margin accounts (BAD BAD BAD idea). One of the fundamental rules of equities is "Cut your losses short, Never marry a stock". That wisdom needs to be applied to commodities as well. If you had a reason to get into a trade, reassess it in light of fact. If the hypothesis is falsified, then readjust and move on to something else or try again with more discipline. Set hard rules for entry and exit, then STICK TO IT.

As KRS-One so eloquently put it in a rap, "Get what you need. Put aside all the things you want. It's 'wants' that get you into trouble"
If you are content with a double-bagger, then don't gamble on the triple. Take the money and run... to which, I think I should get my sell order ready for one of my investments :D
 
heckler73 said:
As KRS-One so eloquently put it in a rap, "Get what you need. Put aside all the things you want. It's 'wants' that get you into trouble"
If you are content with a double-bagger, then don't gamble on the triple. Take the money and run... to which, I think I should get my sell order ready for one of my investments :D
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What are you going to be selling?

Did your associate dump alot of money on silver when it was in its high or mid? I always wait for the dips. I have been waiting months to buy.

I bought a chunk at around $32 when the market was on the way down. I thought maybe it was going to stay at that support level. It kept falling so I have been watching it ever since setting aside more cash.

I prefer the safety of precious metals.
 
Balzac89 said:
It is still dropping.
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You've had people buying into gold over the last few years being told that the only way was up, and now they're underwater in the same period they could have earned a 50-100% return or better on stocks. Investors are understandably disheartened.
 
i bet rawn pawl is feeling about as great about his portfolio as he is about his chances in 2016 :lol:

he just lost 7% of his worth overnight, nearly 20% in the last year, and still has to contend with inflation to boot.

gold is a good hedge against inflation, but nothing to build your entire portfolio on.
 
tokeprep said:
You've had people buying into gold over the last few years being told that the only way was up, and now they're underwater in the same period they could have earned a 50-100% return or better on stocks. Investors are understandably disheartened.
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I don't buy Gold. I buy silver and I haven't lost anything?

I still have the same amount of silver I have had.
 
even if you want to go really long term and point to gold's rise in price over the last 30 years, let's examine:

gold was a little over $400 30 years ago, and just closed at 1286. so you more than tripled your money, right?

wrong!

$400 in 1983 is now $907 in 2012 with inflation. so $379 over 30 years per ounce of gold. i could make better money investing in soiled women's panties and secondhand golf balls.

austrians and gold bugs are funny people.
 
UncleBuck said:
even if you want to go really long term and point to gold's rise in price over the last 30 years, let's examine:

gold was a little over $400 30 years ago, and just closed at 1286. so you more than tripled your money, right?

wrong!

$400 in 1983 is now $907 in 2012 with inflation. so $379 over 30 years per ounce of gold. i could make better money investing in soiled women's panties and secondhand golf balls.

austrians and gold bugs are funny people.
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I like shiny stuff
 
Balzac89 said:
I don't buy Gold. I buy silver and I haven't lost anything?

I still have the same amount of silver I have had.
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Depending on when you bought it, since silver's been down too. You have the same amount of silver just as I would have the same number of shares of a stock, but it doesn't matter if the market value is less than what you paid. Obviously you haven't really "lost" anything unless you sell, but the same is true for stocks.
 
I'm just glad I bought that long position in tear gas. It is really paying off.

[video=youtube;M5JhwFI_yqo]https://www.youtube.com/watch?v=M5JhwFI_yqo[/video]
 
tokeprep said:
Depending on when you bought it, since silver's been down too. You have the same amount of silver just as I would have the same number of shares of a stock, but it doesn't matter if the market value is less than what you paid. Obviously you haven't really "lost" anything unless you sell, but the same is true for stocks.
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Companies declare bankruptcy gold and silver do not.
 
Do you see things getting better from here? The market sharts itself when Bernake says taper. Even before the taper is put into effect.
 
Balzac89 said:
Companies declare bankruptcy gold and silver do not.
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Bankruptcy need not be relevant. The average gold price was $424 an ounce in 1983. That would be worth about $1,280 now, giving you a compound annual growth rate of less than 3.7%.

Now, let's say you spent $424 to buy into an index fund that tracked the S&P 500 in 1983. Assuming you bought when the S&P 500 was at 165, your compound annual growth rate would be about 7.7%.

30 year return on gold: about 202%. 30 year return on stocks: about 834%. $424 in gold is worth $1,280 today while $424 in the S&P 500 is worth about $3,961.
 
tokeprep said:
Bankruptcy need not be relevant. The average gold price was $424 an ounce in 1983. That would be worth about $1,280 now, giving you a compound annual growth rate of less than 3.7%.

Now, let's say you spent $424 to buy into an index fund that tracked the S&P 500 in 1983. Assuming you bought when the S&P 500 was at 165, your compound annual growth rate would be about 7.7%.

30 year return on gold: about 202%. 30 year return on stocks: about 834%. $424 in gold is worth $1,280 today while $424 in the S&P 500 is worth about $3,961.
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I understand what you're saying with no doubt.

I feel that we are in such uncertain times financially.

Do you feel like the economy is stable? Do you have confidence in the U.S. Dollar moving ahead 30 years?
 
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