The situation with gold and the Sarasota Coin Show

It's directly related. When currency becomes devalued, PMs become more valuable. PM's haven't as much made REAL gains as the $ has lost it's value. We had hyperinflation since supply chains got disrupted during the pandemic, it's just now recovering. The governments (all of them) were shoveling cash into the monetary system making it worth less.

 

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No, we haven't. Hyperinflation is inflation that exceeds 50% per month. We're nowhere near that, and never have been.

Grocery prices have gone up sharply over the past five years, and that's likely to continue in the face of policy decisions that we dare not discuss here. But I'm not seeing anybody pushing wheelbarrows of currency to the grocery store, and until someone offers three cents in store credit for each penny you bring in, I don't expect to.

 

True, we aren't Venezuela (yet).
The fact remains, the .Gov just kept the currency printing presses going whrrrrrrrrr since 2020. It is a tough hole to dig out of. And the interest clock doesn't quit ticking even if we had a balanced budget going forward. Real estate is another example. Other than places with depressed economies, prices have nearly doubled in the past 15 years, higher in more desirable states where people are flocking to. So have my property taxes. That needs to STOP, you never actually own your own property.

 

It's just a correlation. You can compare the price of anything to gold or food now. Everything has skyrocketed in price in one way or another. The common denominator is the amount of cash it takes to buy it all. The cash somebody stashed under the matress in 1980, 1990, 2000, 2010, the year doesn't matter, would have been far better off buying gold or something else with it while it still had the buying power of that time period. Does anyone not see this getting magnified as time goes on from here?
Whether people like it or not, if you offered $4100 cash for an ounce of gold today it will be turned down. It represents lost buying power more than people's desire to own the ounce of gold.

 

Unfortunately a lot of this gold nonsense is driven by the central banks. One would think that they would be innovative enough to invest their money in productive assets, like stocks, bonds and loans. But no. They buy gold, which pays no interest or cash dividends.

 

PM's historically have never been great investments. They are a hedge against the ish hitting the fan. It's like buying inexpensive puts to protect a long position in an equity when there is possibility of a market collapse. PMs should be part of portfolio diversification, not an "all in" strategy.

 

The key is you can’t let the cash sit. Invest it in something.