Gold and silver prices are down

Varmint said:
That's certainly true in a general sense but you can periods of time where PMs are way over or under their intrinsic value.

Someone posted the example of a car costing $3200 worth of silver in 1963. Silver was way undervalued at that time, since the same amount of silver today would buy 5 times that.

So silver could easily hit $50 and a gallon of milk is still $4.
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Absolutely correct. My post was a bit more metaphorical...
 
Varmint said:
Someone posted the example of a car costing $3200 worth of silver in 1963. Silver was way undervalued at that time, since the same amount of silver today would buy 5 times that.
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That was me and it was silver dollars picked up at the bank for 1$ each. They are getting $5 per 25 cent coin today so, multiply your 5 times to 20 times. I am giggling because when silver was $8 I bought a s(^T load of quarters.
 
smokey-seven said:
That was me and it was silver dollars picked up at the bank for 1$ each. They are getting $5 per 25 cent coin today so, multiply your 5 times to 20 times. I am giggling because when silver was $8 I bought a s(^T load of quarters.
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Awesome. I had a few silver dollars I inherited from somewhere as a kid, not even sure where they are. Probably one of my brothers absconded them lol. I have a bunch of junk silver quarters I got for about $3/ea in 2016-2018 off EBay.

plus the roll of silver quarters I got from Citizensbank for $10 a couple years ago. [laugh]
 
smokey-seven said:
That was me and it was silver dollars picked up at the bank for 1$ each. They are getting $5 per 25 cent coin today so, multiply your 5 times to 20 times. I am giggling because when silver was $8 I bought a s(^T load of quarters.
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Probably 3X+ your investment on that load of quarters!!! There are some smart guys on here that I have taken advice from. I appreciate the differing opinions/approaches.

My attitude has always been that some of my PM's are for insurance/protection, and some are for investment. If I'm trying to achieve some profit success as PM prices go up, I have to be willing to sell some stuff along the way. It makes no sense to watch your PM's multiply in value as prices go up, then watch the values go down as prices weaken (sometimes significantly). I am speaking just to my investment allocation, not the "hold forever" portion of my stack. That is why I occasionally sell some stuff and take money off the table for reinvestment into something else (or to blow the profits on something I want or one of my family members wants).

I have a good friend that loaded up on gold & silver in the 2000's and watched the value of his holdings increase into almost $700K at the high in 2011. He was so excited with his gains and made sure to tell you about it every chance he had. He then proceeded to watch the bottom fall out over the next year or so, not wanting to sell anything until he achieved that high value again. He is still holding those exact PM's to this day. Don't be that guy.

Recently, I've made some good profits selling some silver over the last few months, but I still believe things are looking positive for continued increases. I thought I was taking advantage of someone when I sold him a monster box of ASE's for $12K ($24/per coin) a couple of months ago, but now it looks like he is in the money on his investment. I was lucky enough to use that cash on 7 1oz AGE's and a new laptop for my son, so I am ahead also. My free advice to everyone (you get what you pay for), is don't forget to enjoy the fact that you made good investment decisions, and spend some dough on yourself or your family.

Have you noticed that I only share my successful investment decisions............
 
Good rule of thumb is something is likely to lose 50% of its gains from the peak of the bubble.

Gold went from $250 to $1900 in the last bull market, half of that is $825 which is exactly what gold lost at the bottom of the bear market in 2016.

I plan to sell my gold & silver investments (not insurance physical) when we hit $5000 gold.
 
It’s not off topic, but tangentially related to this thread is an item of news that doesn’t get much coverage. Namely, the race toward obtaining natural resources by geo-political powers. With fiat currencies facing an imminent demise, what’s in the ground or underwater is what matters now. We have entered a new stage.
www.wsj.com

China’s Move to Buy Arctic Gold Mine Draws Fire in Canada

As world powers seek dominance in the Arctic Circle, opponents of a Chinese company’s purchase of a Canadian gold mine say blocking the deal is in Canada’s national interest.
www.wsj.com www.wsj.com
 
samandglove1 said:
I have to be willing to sell some stuff along the way. It makes no sense to watch your PM's multiply in value as prices go up, then watch the values go down as prices weaken
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I am all for buying and selling. I am not a hold forever person. I just failed miserably the last big high in 2011, just because, A. I did not need it and B. I had no idea what the top would be. I bailed on the Hunt brothers rise at $40 and did very well.

samandglove1 said:
I have a good friend that loaded up on gold & silver in the 2000's and watched the value of his holdings increase
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I knew people that mortgaged their house on the Hunt brothers and put it in futures. They sold correctly and own silver dealerships AKA coin stores today, along with some very nice property.

samandglove1 said:
He then proceeded to watch the bottom fall out over the next year or so,
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Yea, In on 2008 and still holding. I am looking at a partial sell off on this run up. I am not repeating 2011!

samandglove1 said:
I sold him a monster box of ASE's for $12K ($24/per coin)
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I bought a bunch at $22 a coin not too long ago. I gave 1/2 to my son and told him to buy more. He did not and bought property that he flipped for a 40% gain since then. Silver needs to break $30 for him to be wrong. He's still flipping so his rollover is probably correct. Again, I ask, "When you step out of silver and take your profit, are you investing in something else, or just holding for the drop?" <--= Inquiring minds want to know.
 
smokey-seven said:
I am all for buying and selling. I am not a hold forever person. I just failed miserably the last big high in 2011, just because, A. I did not need it and B. I had no idea what the top would be. I bailed on the Hunt brothers rise at $40 and did very well.



I knew people that mortgaged their house on the Hunt brothers and put it in futures. They sold correctly and own silver dealerships AKA coin stores today, along with some very nice property.



Yea, In on 2008 and still holding. I am looking at a partial sell off on this run up. I am not repeating 2011!



I bought a bunch at $22 a coin not too long ago. I gave 1/2 to my son and told him to buy more. He did not and bought property that he flipped for a 40% gain since then. Silver needs to break $30 for him to be wrong. He's still flipping so his rollover is probably correct. Again, I ask, "When you step out of silver and take your profit, are you investing in something else, or just holding for the drop?" <--= Inquiring minds want to know.
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Physical Silver is not an investment for me, that's where silver miners come in. If silver goes to $50, even crappy silver miner stocks will be 10 baggers.

AXU
USAS
BCEKF
DSVMF
VIZSF
 
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smokey-seven said:
Again, I ask, "When you step out of silver and take your profit, are you investing in something else, or just holding for the drop?" <--= Inquiring minds want to know.
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Other than a fixed cash allocation, I very rarely hold additional cash if a PM investment is sold/liquidated at a profit. A re-investment has been many things, some tech or financial stocks (my comfort zone), assorted hedge instruments, or a different metal that I hope will perform in the future. It also depends on tax considerations or if the transaction was "on or off book".
 
djbradles said:
Stimulus coming just means one thing. A higher price for PM’s. Your securities will do well right alongside this stim talk for now but not forever. 50 million out of work? Crazy.
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Yeah and this Treasury stimulus should drive gold even more than Fed stimulus since its pumping money directly into consumer pockets, rather than into Wall St, although there's plenty of that too in the packages.
 
I agree. Stimulus, and the Trillions lost because of the Chinese Flu compounded with the Floydian Attacks on America and loss of many small businesses means
djbradles said:
That’s still a lotta gold in this market!
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It's funny looking at something that you bought years ago that physically and chemically hasn't changed... but its value has... greatly.
Hasn't worked that way with everything I've bought...
I'll bet hope I've broke even. [rofl2]
 
Varmint said:
Yeah and this Treasury stimulus should drive gold even more than Fed stimulus since its pumping money directly into consumer pockets, rather than into Wall St, although there's plenty of that too in the packages.
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I’m stunned this is still going on. As much as I like seeing us thumb our noses to the Keynesians I hate to see our purchasing power diminish and the US falter on the global stage. There is no mantle to pick up anymore. We are the last global power. We have failed over the last 50 years.
 
richc said:
Forbes: Stay The Hell Away From Gold.

www.forbes.com

Stay The Hell Away From Gold

The precious metal has a lousy long-term record both as a store of value and an inflation hedge.
www.forbes.com www.forbes.com
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Lol! Coming from a guy that has built his legacy off brand marketing. Conflict of interests much? Think Mcd’s decided against gold flecks in the double cheeseburgers. GoldSchlager otoh. Good stuff.
 

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