Gold continues to soar!

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000
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Joined: Thu Jul 23, 2020 12:04 am

Re: Gold continues to soar!

Post by 000 »

jabberwockOG wrote: Sat Sep 19, 2020 10:55 pm Respectfully I think it also very hard to see any realistic situation where the USD fails to the extent that somehow a bright shiny bit of metal gold becomes the new medium for purchasing goods and services. I much prefer to have ownership shares in a large number of diversified revenue generating businesses as a currency hedge.
Ok. Good luck on your investing journey.
Topic Author
000
Posts: 2818
Joined: Thu Jul 23, 2020 12:04 am

Re: Gold continues to soar!

Post by 000 »

NoRegret wrote: Sat Sep 19, 2020 11:03 pm While I’m as bullish on precious metals as any over the medium-long term, there is still too much optimism over the short term. Btw, Friday saw the PM complex closing below its trend line support.

I trade around a core position to manage volatility and my own psychology of having a larger-than-portfolio-theory-called-for PM allocation. YMMV.
If you don't mind sharing: What other metals do you hold? How much are you frequently trading versus core holding?
NoRegret
Posts: 128
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Location: California

Re: Gold continues to soar!

Post by NoRegret »

000 wrote: Sun Sep 20, 2020 12:18 am
NoRegret wrote: Sat Sep 19, 2020 11:03 pm While I’m as bullish on precious metals as any over the medium-long term, there is still too much optimism over the short term. Btw, Friday saw the PM complex closing below its trend line support.

I trade around a core position to manage volatility and my own psychology of having a larger-than-portfolio-theory-called-for PM allocation. YMMV.
If you don't mind sharing: What other metals do you hold? How much are you frequently trading versus core holding?
I have both gold and silver, bullion and miners. Current target allocation is 20% which I was at prior to the recent high. I'm down to about 15% net.
Market timer targeting long term cycles -- aiming for several key decisions per asset class per decade
qwertyjazz
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Re: Gold continues to soar!

Post by qwertyjazz »

000 wrote: Sat Sep 19, 2020 4:52 pm
qwertyjazz wrote: Sat Sep 19, 2020 4:08 am Then why not just alternative currencies (Euro, yen etc) I get currency risk but gold and dollar drift (either up or down) is also a risk.
Adding a hard currency to a portfolio already holding fiat currency offers more diversification than other fiat currencies:
  • The supply of mined metals is not controlled by any one entity; the fiat supply is a monopoly of some entity.
  • The integrity of a specimen of metal can be verified by atomic analysis; physical cash cannot be verified by mere inspection.
  • Gold has retained purchasing power over the long run; every extant fiat currency has lost most of its purchasing power since inception.
  • Gold was historically the global reserve currency and is still hoarded by central banks; USD and GBP were the only fiats to ever fill this role.
Moreover, my portfolio contains unhedged international stocks, offering some exposure to foreign fiat.

Finally, it is hard to see a situation where the USD fails but EUR and JPY do well. I don't see either becoming the global reserve currency if USD fails because it does not seem that Russia, China, and other powers non-aligned to the US would be much happier needing to use EUR or JPY than USD.
Thank you
G.E. Box "All models are wrong, but some are useful."
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nedsaid
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Re: Gold continues to soar!

Post by nedsaid »

arcticpineapplecorp. wrote: Tue Aug 04, 2020 7:52 pm you should change your post title to "Gold has soared." Saying it "continues" is unknown and unknowable.
Personally, I think we need a "Gold in free fall" thread except that it will be changed to "Gold in freefall." :wink:
A fool and his money are good for business.
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nedsaid
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Re: Gold continues to soar!

Post by nedsaid »

In all seriousness, if you want to hedge against a potential currency crisis, a small holding in Gold, maybe 5% of the portfolio wouldn't be a bad idea. I have thought about this myself but have settled upon a 0% commitment to gold. I sold what little gold I had in the late 1980's if I remember correctly. I will say that those Maple Leaf coins, both gold and silver were beautiful.
A fool and his money are good for business.
Robot Monster
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Re: Gold continues to soar!

Post by Robot Monster »

000 wrote: Tue Aug 04, 2020 7:36 pm Why do people keep posting Gold Bear sentiments with the market at all time highs AGAIN!
More of us are becoming Gold Bulls everyday.
I continue to adjust my AA - moving Gold to stocks - but it appears there is no stopping this Bull!
Revisiting this initial post that gave birth to this thread the day gold topped $2,000 (vs right now, where it sank below $1,900.)
"Happiness comes from being connected in the right ways to: other people, your work, something larger than yourself."
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