Hitting $30 tonight?

Lol. My father in law just sold his 14 baht necklace to cash in on the gold price. 14 baht is just shy of 7 ounces. Put that on a tiny man and it looks the same.

Back to silver. I just brought up gold jewelry to put in context why the GSR has skewed horribly in the past few decades. Westerners valued both, which is why the GSR remained about where actual rarity is, about 16 to 1. Put a ton of demand on ONLY gold, it will skew this. However, what will change this? The only scenarios I see is either somehow these cultures start increasing tremendously their purchases of silver, (unlikely), or you have a slowdown in this part of the world and westerners start buying pm. A slowdown would do 2 things, lower gold demand and lower copper demand, which would lower silver production.

 

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It was a surprise in the beginning of the crisis tha tPM didn't go up more. I think now that we're looking at a longer than anticipated fight and recovery, people went for the PMs. Recent correction was probably some profit taking, or a response to a bill almost getting passed or something, then return to pessimism. Market is like a toddler on crack, very reactive.

 

Not too much of a surprise. Everyone was wondering what to do, people selling pm to raise cash, etc. Look back at the last crisis, it did not move immediately, gold and silver went down in 2008. It went up after the worst of the crisis was over, peaking in 2011.

 

My point was that rising disposable incomes will lead to more gold buying and that's been true in recent years.

You had many poor people who couldn't afford to buy gold who will have that ability in the future.

There is lots of potential gold buyers among RURAL residents of these countries, not the big city or foreign workers.

I'm not saying that gold is going to the moon because foreign poor people will suddenly start buying gold. But unlike in the U.S. and other countries, these countries DO have a culture of buying gold (as you quite accurately noted) and I believe that with 3 billion people between China and India that there's alot more pent-up demand for it.

I also think that other regions and countries will hope on the train, too.

If gold is going to $15,000 -- not a prediction, just a thought -- then you won't care if you bought it at $2K or $3K an ounce.

 

Well, that's silly. If I put $6K into gold, and then it goes to $15K/ounce, I'll still care very much whether I have 3 ounces or 2 ounces.

I put a certain amount into Apple stock when it was a lot cheaper than it is now. I'm glad I did, but I still wish I'd spent that certain amount when the stock was a lot cheaper.

With stocks, in general, buying earlier is better. With PMs, I think the jury is still out -- unless you're talking really long term, in which case you're still almost certainly further ahead in equities.

 

Hmm. Silver and toilet paper. 2020 has been interesting.

Anybody remember back in March when all of the online metals dealers ran out of silver?

 

Of course they did! That's what always happens when there's a big sale!

 

I was being somewhat facetious. Of course price matters, but you'd be up so much the difference is neglible.

I'm assuming you have all the ounces you want and just price varied.

You should have read my SeekingAlpha article extolling Apple at the 2013 bottom !

To me, PM's are for fun and disaster insurance.

 

It was drowned out at the time by the sea of "Apple is DOOMED" pieces, no doubt.

Fortunately I got mine a lot earlier than that. Of course, there are any number of other investments I wish I'd swapped for Apple in 2013.

But never mind all that, what should we be buying now?

 

I think cyclicals make sense...a vaccine for C-19 is coming and tech stocks are way overpriced. Plus, CTO's are saying they are going to cut back on spending -- all they did was pull forward $$$ the last few months.

I have some pieces from Morgan Stanley, I'll post them in a Stock Thread or here over the weekend. I also think energy stocks look OK, now that the dividends have been cut.

Look OK....not great.

 

....and on Q...the 1950's power grid is out for a few days so the reports will have to wait.....