Gyroscopic Investing

Ad Orientem wrote: ↑Wed Aug 05, 2020 11:08 am Gold just hit a fresh record high — but some say silver is set to outperform gold

https://www.cnbc.com/2020/08/05/investi ... rices.html

Good Morning Ad Orientum et al,

Do you think its the USD actually taking a dive??
As an aside, down here in "The Peoples Paradise", the NON-BANK vaulting services have been closed by State Government decree.
Didn't see that coming

The banks remain open however....
https://www.macrobusiness.com.au/2020/0 ... -lockdown/

Hal,

What is a non-bank vaulting service? Are you saying that people's safe deposit boxes are unavailable? Does this affect eg the Perth Mint?

Hal wrote: ↑Wed Aug 05, 2020 11:20 am

Ad Orientem wrote: ↑Wed Aug 05, 2020 11:08 am Gold just hit a fresh record high — but some say silver is set to outperform gold

https://www.cnbc.com/2020/08/05/investi ... rices.html

Good Morning Ad Orientum et al,

Do you think its the USD actually taking a dive??
As an aside, down here in "The Peoples Paradise", the NON-BANK vaulting services have been closed by State Government decree.
Didn't see that coming

The banks remain open however....
https://www.macrobusiness.com.au/2020/0 ... -lockdown/

I think dollar weakness is part of the equation. (cf this https://www.cnbc.com/2020/08/04/the-fe ... -soon.html) But in the case of silver there are other factors at work. Silver tends to be more volatile than gold. So when gold is hot, silver is often smoking. And the reverse is true. During the multi-year lag after 2011 where PMs retreated and then tread water for long period, silver got killed. The silver/gold price ratio has been climbing for years to the point where it recently topped 100:1. That was nuts. So for the last few years silver has been dirt cheap compared to gold. In addition to being undervalued as a PM, many analysts see a likely increase in industrial demand. Unlike gold, where once you get past jewelry and the occasional odd dental work, there are relatively few practical uses; silver is also an industrial metal. Techy stuff in particular consumes a lot of silver and the demand is forecast to grow. Also analysts are predicting a gradual decline in production for a variety of reasons. So in the near term, silver might well have some room to run and outperform gold.

Xan wrote: ↑Wed Aug 05, 2020 11:27 am Hal,

What is a non-bank vaulting service? Are you saying that people's safe deposit boxes are unavailable? Does this affect eg the Perth Mint?

Hi Xan,
A non-bank vaulting service is a private vault full of safety deposit boxes, and you are correct. No access for the next six weeks!
This law affects Victoria only at the moment, so the Perth Mint in Western Australia is unaffected.

Here is an example of a private vaulting service

https://guardianvaults.com.au

ps: Any government, anywhere could enact a law like this. We also have a curfew.... its like being under occupation.
https://www.youtube.com/watch?v=s6NPpO4gbeU

I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??

MangoMan wrote: ↑Wed Aug 05, 2020 12:28 pm

Xan wrote: ↑Wed Aug 05, 2020 12:19 pm I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??

To intentionally create panic? Not that I believe in conspiracy theories, but there is no other logic available to some of these edicts.

If nothing else, it proves HB's advice to have your assets in different jurisdictions.
Honestly, I thought that PP advice was extreme, but it is actually very sound.

btw, only one visitor was allowed in the vault at a time, so its hardly a "social distancing" matter.

Maybe the federales shut it down when they caught Mike Ehrmantraut passing a few million in gold to his granddaughter.

Smith1776 wrote: ↑Wed Aug 05, 2020 1:24 pm Maybe the federales shut it down when they caught Mike Ehrmantraut passing a few million in gold to his granddaughter.

It was just one coin....
https://www.perthmint.com/1-tonne-gold-coin.aspx

Mike must have been over to Perth as well

Hal wrote: ↑Wed Aug 05, 2020 12:56 pm

MangoMan wrote: ↑Wed Aug 05, 2020 12:28 pm

Xan wrote: ↑Wed Aug 05, 2020 12:19 pm I'm befuddled. What could be the virus-related rationale to shutting people out of their safe deposit boxes??

To intentionally create panic? Not that I believe in conspiracy theories, but there is no other logic available to some of these edicts.

If nothing else, it proves HB's advice to have your assets in different jurisdictions.
Honestly, I thought that PP advice was extreme, but it is actually very sound.

btw, only one visitor was allowed in the vault at a time, so its hardly a "social distancing" matter.

Apparently they can get away with almost anything if they say it's because of covid.
Yes, jurisdictional diversity is valuable.

Damn, when silver gets going, it sure can go quick!

Silver gold price ratio now down to 73:1.

Almost 30. Man, this keeps up, I will blow some money on some puts.

My big concern with the metals run up is that this could be the aftermath of the 2008/2009 banking crisis all over again.

It seems to me that the last time there was this kind price action it was due to a fear of inflation stemming from all the QE and stimulus. When consumer price levels didn't surge as some expected metals became less appealing and prices tanked. We'll see what happens this time...

Smith1776 wrote: ↑Thu Aug 06, 2020 7:24 pm My big concern with the metals run up is that this could be the aftermath of the 2008/2009 banking crisis all over again.

It seems to me that the last time there was this kind price action it was due to a fear of inflation stemming from all the QE and stimulus. When consumer price levels didn't surge as some expected metals became less appealing and prices tanked. We'll see what happens this time...

Great. I would love the chance to sell my silver at $55/oz again!

Smith1776 wrote: ↑Thu Aug 06, 2020 7:24 pm My big concern with the metals run up is that this could be the aftermath of the 2008/2009 banking crisis all over again.

It seems to me that the last time there was this kind price action it was due to a fear of inflation stemming from all the QE and stimulus. When consumer price levels didn't surge as some expected metals became less appealing and prices tanked. We'll see what happens this time...

I agree. I can understand PMs moving up a bit given monetary policy and where the economy is. But inflation is currently negligible. Silver is also an industrial metal and is used in a lot of techy stuff. But this is getting crazy. I would not be surprised to see a moderate correction in the near future.

Silver meets the ugly stick.

What’s going on with silver? A lot.

maybe Ad O isn’t here, but he must be watching what reddit is doing to silver today.

I am not complaining!

I have always felt that I don't want to see hot money come into the PM market. For long term holders, I think it's more likely to be a bad thing. I don't want gold to fluctuate like Bitcoin, for example. Steady as she goes.

I Shrugged wrote: ↑Mon Feb 01, 2021 8:45 am I have always felt that I don't want to see hot money come into the PM market. For long term holders, I think it's more likely to be a bad thing. I don't want gold to fluctuate like Bitcoin, for example. Steady as she goes.

Same. (Of course, gold does fluctuate like crazy, but as long as there’s an upward trend).

Silver holding its ground better than gold and stocks today.

Everything from bonds, stocks, bitcoin and gold getting sold to cover silver shorts?

Edit:
Yeah nevermind. Silver dropping quicker than anything now.

Silver, at least in Canadian Dollars, has gone up by about 50% in the past year. I've sold half my silver position to lock in some gains. I've since reallocated that gain into gold, since that particular metal hasn't been as generous in the past 12 months.

For some reason one of my local dealers won't take Silver Kruggerands, but all the others will. Strange.

I don’t know if it’s a glitch or what, but ‘Empire of Silver’ by Jin Xu is under US$3 at amazon right now. Not just the kindle, but even the hardcover.
https://smile.amazon.com/Empire-Silver- ... 300250045/

dualstow wrote: ↑Tue Jan 18, 2022 6:50 am
I don’t know if it’s a glitch or what, but ‘Empire of Silver’ by Jin Xu is under US$3 at amazon right now. Not just the kindle, but even the hardcover.
https://smile.amazon.com/Empire-Silver- ... 300250045/

Probably part of some strategy. I get a daily email of many books that are FREE on Amazon but that day only. That email usually arrives later in the evening. If I don't get to that email until the next day many of those books are no longer free.

Thanks for bringing this to our attention. Both the Kindle and Hardcover versions were the same price. I had to think which one to purchases. But after spending HUGE amounts of time the last three months (with much time still needed) on handling and moving around paper-based books in my house .... I ended up purchasing the Kindle version.