The GOLD scream room

[boglerdude]

"Homestake Mining Company was one of the largest gold mining businesses in the United States and the owner of the Homestake Mine in Lead, South Dakota. Founded in 1877, it was acquired by Barrick Gold in December 2001.
Homestake was the longest-listed stock in the history of the New York Stock Exchange.
On April 9, 1876 Moses and Fred Manuel established the Homestake Mine near Bobtail Gultch in South Dakota in the Black Hills.
George Hearst (father of William Randolph Hearst), Lloyd Tevis, and his brother-in-law James Ben Ali Haggin bought the 10-acre Homestake Mine from its discoverer, Moses Manuel, for $70,000"

Gold doesnt seem to think rates are going higher. How do we tell if Feds are influencing the 30 year rate. Just their balance sheet/QE? What about Fannie and Freddie buying(subsidizing) mortgages

[dualstow]

2487-88 spot price on Fri Aug 16, 930EST

and 2500 per ounce in the afternoon!

[seajay]

2487-88 spot price on Fri Aug 16, 930EST

and 2500 per ounce in the afternoon!

A Friday (weekend) safe park spike? Given the risk/possibility of a Israel/Iran weekend kick off.

[dualstow]

That guess is as good as anyone’s.
I still miss the days when it moved completely differently from stocks, though.

[seajay]

That guess is as good as anyone’s.
I still miss the days when it moved completely differently from stocks, though.

Just indicative of the dollar debasement, decline relative to everything else. Could persist for yet further years to come as globally dollars are dumped, no longer the 'safe' thing they previously were perceived as being. Similarly gold in now being tier one may continue to see its price continuing to rise.

[whatchamacallit]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

[seajay]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

At recent levels a ounce of gold buys around 85 ounces of silver, a relatively high ratio https://www.macrotrends.net/1441/gold-to-silver-ratio

Swap some gold out for silver and potentially buy back gold with silver when the ratio is at 50 (50 ounces of silver to buy a ounce of gold) and you'll be holding 70% more ounces of gold (17 one ounce gold coins instead of 10).

Gold could continue on up, see the ratio widen even further, or gold might dip whilst silver remains much the same, perhaps down to that 50 (or whatever you might prefer) gold silver ratio. A reasonable stance might be to 50/50 the two (gold and silver) rather than totally abandoning gold.

A factor to bear in mind is that many central banks are progressively lightening up on USD for other assets - including gold (a tier 1 asset). So the up-run on gold may have a good way to go yet. The positive correlation of stocks and gold over recent years is a indication of a relatively declining USD. Central Banks couldn't dump all of their USD quickly, have to print to buy more in order to avoid otherwise inflation being exported onto them. Rather its a progressive reduction, more inclined to take years rather than days.

[yankees60]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

At recent levels a ounce of gold buys around 85 ounces of silver, a relatively high ratio https://www.macrotrends.net/1441/gold-to-silver-ratio

Swap some gold out for silver and potentially buy back gold with silver when the ratio is at 50 (50 ounces of silver to buy a ounce of gold) and you'll be holding 70% more ounces of gold (17 one ounce gold coins instead of 10).

Gold could continue on up, see the ratio widen even further, or gold might dip whilst silver remains much the same, perhaps down to that 50 (or whatever you might prefer) gold silver ratio. A reasonable stance might be to 50/50 the two (gold and silver) rather than totally abandoning gold.

A factor to bear in mind is that many central banks are progressively lightening up on USD for other assets - including gold (a tier 1 asset). So the up-run on gold may have a good way to go yet. The positive correlation of stocks and gold over recent years is a indication of a relatively declining USD. Central Banks couldn't dump all of their USD quickly, have to print to buy more in order to avoid otherwise inflation being exported onto them. Rather its a progressive reduction, more inclined to take years rather than days.

You, of all people here, is probably able to quickly provide the historic prices of gold on an inflation adjusted basis to see where today's prices really compare to the past?

Thanks!

[dualstow]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

UBS says it’s going to 2600. Of course, no one really knows, but if I had a full allocation of gold in a proper pp I’d go with the bands. Stocks went crazy, too, and I am comfortable continuing to accumulate gold, slowly. It’s possible I’ll never sell unless stocks go down while gold continues to rise, and I can do a real rebalance.

Yes, now that I said that, it’s sure to crater to 1200.

[yankees60]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

At recent levels a ounce of gold buys around 85 ounces of silver, a relatively high ratio https://www.macrotrends.net/1441/gold-to-silver-ratio

Swap some gold out for silver and potentially buy back gold with silver when the ratio is at 50 (50 ounces of silver to buy a ounce of gold) and you'll be holding 70% more ounces of gold (17 one ounce gold coins instead of 10).

Gold could continue on up, see the ratio widen even further, or gold might dip whilst silver remains much the same, perhaps down to that 50 (or whatever you might prefer) gold silver ratio. A reasonable stance might be to 50/50 the two (gold and silver) rather than totally abandoning gold.

A factor to bear in mind is that many central banks are progressively lightening up on USD for other assets - including gold (a tier 1 asset). So the up-run on gold may have a good way to go yet. The positive correlation of stocks and gold over recent years is a indication of a relatively declining USD. Central Banks couldn't dump all of their USD quickly, have to print to buy more in order to avoid otherwise inflation being exported onto them. Rather its a progressive reduction, more inclined to take years rather than days.

You, of all people here, is probably able to quickly provide the historic prices of gold on an inflation adjusted basis to see where today's prices really compare to the past?

Thanks!

So it's gone back up in price almost to where it was in 2011, 13 years ago:

https://www.gurufocus.com/economic_indi ... ays-dollar

Capture.JPG (64.05 KiB) Viewed 5374 times

[dualstow]

So it's gone back up in price almost to where it was in 2011, 13 years ago:

That caused me to look at what just the dollar has done since 2011.

[welderwannabe]

Yes, now that I said that, it’s sure to crater to 1200.

That happens, I'd load up.

[dualstow]

Me too!

[Smith1776]

My favourite local gold dealer has seen a large influx of people selling because of the high prices.

Still yet to find a Valcambi CombiBar retailing in my neck of the woods though.

[dualstow]

< Nagging Jewish mother voice> Would it kill you to buy a 1oz coin?

[Smith1776]

< Nagging Jewish mother voice> Would it kill you to buy a 1oz coin?

It would.

[dualstow]

I don’t believe you

I saw a letter in the newspaper which compared gold and bitcoin to the tortoise and hare characters in the fable. A guy from Chongqing.
https://en.wikipedia.org/wiki/The_Tortoise_and_the_Hare

[Smith1776]

I don’t believe you

I saw a letter in the newspaper which compared gold and bitcoin to the tortoise and hare characters in the fable. A guy from Chongqing.
https://en.wikipedia.org/wiki/The_Tortoise_and_the_Hare

Hehe

[seajay]

Is it just me or is anyone else scared of gold crashing from 2500?

I am having thoughts of abandoning gold at these prices.

At recent levels a ounce of gold buys around 85 ounces of silver, a relatively high ratio https://www.macrotrends.net/1441/gold-to-silver-ratio

Swap some gold out for silver and potentially buy back gold with silver when the ratio is at 50 (50 ounces of silver to buy a ounce of gold) and you'll be holding 70% more ounces of gold (17 one ounce gold coins instead of 10).

Gold could continue on up, see the ratio widen even further, or gold might dip whilst silver remains much the same, perhaps down to that 50 (or whatever you might prefer) gold silver ratio. A reasonable stance might be to 50/50 the two (gold and silver) rather than totally abandoning gold.

A factor to bear in mind is that many central banks are progressively lightening up on USD for other assets - including gold (a tier 1 asset). So the up-run on gold may have a good way to go yet. The positive correlation of stocks and gold over recent years is a indication of a relatively declining USD. Central Banks couldn't dump all of their USD quickly, have to print to buy more in order to avoid otherwise inflation being exported onto them. Rather its a progressive reduction, more inclined to take years rather than days.

You, of all people here, is probably able to quickly provide the historic prices of gold on an inflation adjusted basis to see where today's prices really compare to the past?

Thanks!

So it's gone back up in price almost to where it was in 2011, 13 years ago:

https://www.gurufocus.com/economic_indi ... ays-dollar

Capture.JPG

But 50/50 stock/gold starting with $300K in 2011, when gold was $1500/oz = 100 one ounce gold coins, recently holds 180 coins at £$2500/oz recent price. $900K portfolio value, $650K real of which half is in gold. 6.3% annualized real.

[Smith1776]

Over $2,600 today. Woah.