Gold - Is $1900.00 the New Normal?

Still dropping

 

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A couple months ago I was chatting with someone.
I did a spreadsheet for if I bought $20k in Gold vs just keeping $20k cash for the past 10 years.

For the $20k cash it included a $1k small C rated safe, so $19k in cash.
For the Gold it included approx premium for buying and selling plus annual SDB storage costs.

10 years ago, March 2012 gold was at a high of $1780 (or 11.24 oz). Oops .. arbitrary month/year.

But anyways after 10 years the cash was worth more after the bullion acquisition/liquidation costs by $800 and that was before selling the safe for an add'l $500.

Of course, it totally depends upon your buy/sell dates but for that example it was opposite what I was thinking. lol

polish up that crystal ball


of course I recall buying some gold in 1980 for about $800/oz
and again in 1985ish for about $350/oz if my memory serves me right.

 

Yep. Back in 2012, after gold started receding from its 2011 highs, I bought a burnished MS70 AGE at spot, on a "dip" to $1700. That "dip" lasted seven or eight years, and at its eventual bottom was something like $1100.

 

I wont even touch all the GOLD that I have boughten, the financial climate changes
all the time, my grand kids will make those decisions.

 

No Silver for you Mpcusa!! Don't be showing off your latest silver purchase..LOL Graded Silver Bullion won't let you sleep in the dessert.
2012 1oz American Silver Eagles
$325 per roll

 

Is boughten a real word?

 

eating too much gold does that to one's brain ...

 

GOLD, will always be there and have extreme value, just hold on for the wild ride...LOL

 

It had run up alot after the U.S./European debt crisis so it seemed logical that the price would drop bigtime once the crisis was over.

Could be coming back !

 

That's not good Jeff.. I kind of a see what's you all mean now 7 or 8 years no movement is quite a while then it only comes close to 2,000. not much upside. MS 70 Burnished AGE still nice purchase.

 

When gold moves up, it will move quick. A few hundred bucks in a week.

 

Let’s start moving up then…LOL

 

Yeah, through all the economic turbulence, the thing never has stopped being shiny.

 

Where did you get your crystal ball?

 

Just experience with past moves.

I saw that the Bitcoin ETFs have gotten in a few months 50% of the gold asset ETFs that took decades to accumulate.

We WILL see gold up $150 in the AM overnight when it makes it big moves, whether as it closes in on $3,000 or $5,000 or whatever. That will also be a danger sign.

 

I have always been clear on my feelings for gold as an "investment":

• It is NOT an investment. It is more of a SPECULATION.

• The returns on gold -- even if you are bullish like I am -- will be closer to bonds than stocks. In other words, it's not a competitive investment.

• It doesn't pay a dividend or throw off income so it's a bad investment.

• Gold tends to spend years or decades doing NOTHING and then it rises in a parabolic spike.

• Did I mention gold isn't a good investment ?

The fundamentals for gold are very good right now, many of the charts and graphs I have posted elsewhere on CT. Central banks, big sellers in the 1980's and 1990's, now net-neutral at worst and probably buyers in the aggregate even if you exclude China.

Chinese, Indians, and a billion other potential buyer now have the means to buy gold in small amounts whereas in the past they could only make 1 purchase and sit on it for years as they eaked out a subisstence level income. Per-capita incomes are doubling every 10-12 years. In this country, how many gold coins or bars are bought by people who make $40,000 a year -- vs. $80,000 or $120,000 ? The Power Of Compounding !!

Which makes this hobby both at the mercy of and the beneficiary of the coming gold price rise. If you already have all the gold you need or want or are done collecting gold coins, sit back and enjoy. If you just started or are behind the 8-ball.....get some NOW in the low-2's rather than chase closer to 3.

 

Does the silver recyclers site have a better crystal ball than others to tell the future?
Probably just a glitch?

 

time to sell everything.
of course, when I thought that of Bitcoin at $1900 ... it was way too soon.
Maybe i'll sell my toilet paper stash instead before it's value goes down the toilet.

 

That looks like the price per kilogram.