Discussion in 'Bullion Investing' started by CoinBlazer, Sep 26, 2019.
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Likewise, there are plenty of examples of periods of time when both PM and overall US stock market do fantastic. 2019 would be an example of that, both are up considerably AND to boot, inflation if quite low at 2%.
I think what you are really asking for is what the correlation between the two is and how do people use this correlation to make money. Since I am a "passive" investor, I have no advice to give. But I would suggest holding anything beyond 10% in PM is to your peril.
You could also use something like this site, to crunch your own numbers and draw your own conclusions. Both PM and Gold are listed, along with many other sectors. I use this site all the time: https://www.portfoliovisualizer.com/historical-asset-class-returns
Edited event for a few months. Same with some food stores. Its not a serious investment plan.
was a time when everything was high, so made a few bucks on the deal
and that always good news
Silver dimes and quarters will do you well in the post apocalyptic wasteland.
PM's are SPECULATIONS......stocks and bonds are INVESTMENTS.
The 2 are NOT the same.
Never forget that.
Realistic! Wishful thinking also applies.
PM's are notoriously manipulated (although some disagree). We're in the last days anyway, just sayin'.
Although for the last few years and decades, gold has not tracked or inversely tracked stocks or bonds.
The hedge to stock prices is being long U.S. Treasury bonds. Maximum duration.
Maybe, but maybe not. And maybe PM's would be lower too with higher (real) interest rates, no ?
Besides, as Jim Cramer says, when you cash in your gains at the bank they don't ask if they came from QE, a bubble, or inflated financial assets.
“$15 trillion in buybacks, nearly $17 trillion in central bank intervention. No reasonable person can state with a straight face that this has not had an artificial inflationary impact on asset prices.”
Not long ago if you had written that here on CT many would be calling you a conspiracy theorist.
Buybacks are a capital allocation program, has nothing to do with central banks directly.
I don't know who Sven Henrich is, but he isn't a bond trader.
You would be missing out on portfolio allocations like the Golden Butterfly (20% gold) and the Permanent Portfolio (25% gold). Gold as part of an overall asset allocation is a great tool for reducing volatility.
Gold is an investment, as are all commodities.
Commodities are not investments in the sense that they can grow their capital stock organically. All commodity production is of a depleting asset. Hence, they cannot generate free cash flow to pay a dividend or interest.
Commodities may reduce volatility or they may increase it.
Even if your scenario comes to pass, you won't be around to see it even if you are 10 years old.
It took 3 decades for Greece, a minor piss-poor 3rd rate socialist economy, to hit the skids. You'll be waiting a long time for a global financial reserve currency superpower to get into trouble.
True. A bar of gold or a barrel of oil doesn't increase in value because it starts offering new products, for example.
Not true. Gold is not a depleting asset in the sense that it's ever "used up." All the gold in the world is recoverable and able to be reused. Commodities like soybeans are also not depleting assets, because there will always be another crop next year.
True, as far as it goes, but not relevant. Many stocks pay no dividends. They are still a fine addition to a portfolio.
True. When I was talking about reducing volatility, I was speaking specifically about gold.
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