Why most people buy PMs for the wrong reasons...

I got in GE at $12. Wish I had had the guts to pull the trigger at $5. Financial crisis, or not, they weren't going anywhere.

 

Log in or Sign up to hide this ad.

Really cool General Electric TV ad buy currently running. The moron little brother is actually a silver stacker, I think.

 

Like most investment analysts you're making blanket statements. You're assuming that the only reason is to buy a hedge - when in fact, just like any other commodity - they have soft and strong potential given the overall economic climate.

And like most, you're just parroting someone else's incorrect statements.

Gold beat the dow 9 out of 12 months this year. Do a YTD chart of GLD vs DOW today and you'll find that it took until October for gold to drop back enough to come close to par. For most of the year, gold was beating the dow quite handily.

In fact, PM's were the place to invest last summer. Rock bottom prices through November of 2015, they were oversold and due for a rebound - which they made.

Silver of all things jumped from 12 an ounce to over 20 an ounce.

I leveraged big profit of simply buying scrap sterling silverware last summer. Since people hated silver, I was buying at 80% of melt. I unloaded about 20lb of it in June and August for full melt at $19~$20/ozt.

Some of it I got a big premium on by assembling complete pattern matched sets.

I over doubled my money.

The dow is in the 18k range where it's been now for 18 months. That means most stocks went sideways, except Aug. 2015 where the market tanked and people lost - I was already out of the market sitting in money market in May 2015, and was able to buy back in when the Dow tanked to ~15k. and ride it back to par.

In summary, it's not about what you invest in - it's HOW you play it. Learn to read the tea leaves so to speak, set your strategies and pull the trigger when the time is right.

Whether it's gold, oil, stock, real estate, or even my personal favorite - the Alpaca Farm - it's all in how you play it.

If you're a sidelines person and just sit and watch passively, mutual funds are a safe bet. If you have strong nerves, a bit of time, and some forethought, you can win with any investment at the right time.

 

Yeah, but if they didn't get the bailout, they were bankrupt. Even if the company reorganized, the stock pre-bankruptcy would have been worthless.

 

True story and GE isn't still around because it earned it or deserves to be, it's around because it won the "SIFI" award, (systemically important financial institution). Better known as "Too Big To Fail" and a direct result of unbacked fiat currency and Keynesian "Price Fixing Mania".

 

Interest rates are prices and prices are signals. We've been led (signaled) to an economic dead end IMO. That's why the markets are tracking sideways, again IMO.

At some point our economy (we) will experience what's known as a "Crack-Up Boom". Minus social issues + time, bullion should shine brightly and eventually function as money once again. Time line? No idea...

"A crack-up boom is the crash of the credit and monetary system due to continual credit expansion and price increases that cannot be sustained long-term. Often, banks will attempt to prevent a crack-up boom by halting credit expansion, which ends up backfiring and yielding the same results that the boom would have caused. Both scenarios result in an economic depression when the bubble finally bursts and the economic system crashes."



Read more: Crack-Up Boom Definition | Investopedia http://www.investopedia.com/terms/c/crackup-boom.asp#ixzz4MDncOGfJ

 

Ha ha ha ha ha! You gloom and doom "true believers" are a hoot! I couldn't read the sites you do - I'd pee myself from laughing so hard. That's what enough formal economics education, too much age, and one stroke too many does to a person.

 

Blah, blah, blah a blah blah........print, print, print....blah, blah, blah, blah a blaaaahh? Blah! Print, print, print, print. Blah, ran out of paper. Blah it!

 

A wonderful summary of all pro-stacking intellect.

So, ... what delusional garbage are we using to explain away the dollar's latest move up?

 

And that is the unwarranted arrogance a "formal (Keynesian) economics education" produces. (lol)

"There are men regarded today as brilliant economists (Kurt considers himself one, you don't even have to ask, he'll tell you. (lol), who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: “In the long run we are all dead.” And such shallow wisecracks pass as devastating epigrams and the ripest wisdom." http://steshaw.org/economics-in-one-lesson/chap01p1.html

Oh and by the way, we're already knee deep in the consequences of this terrible ideology. We experience life as individuals not an aggregate (group) so just glance at the new normal and imagine where we'll (you'll) be in another decade or two.

 

It's the ECBs fault .... what they said, or maybe what they said they didn't say.

I'm waiting for ECB related banks buying all these bonds and negative interest rates to start going belly up. And when is the ECB going to run out of capital to buy all these bonds that they've been gobbling up for years ?

 

And there it is... the classic sign of an Austrian Fool believer - deny that macroeconomics even exists. That should be enough right there to dismiss anything else he has to say. Data? Econometrics? Bah, they don't need no stinking data? They just make stuff up. (Referring to Dan.)

C'mon Dan, even YOU have to know Hazlitt is no economist. He's an ultra-right hack ideology icon.

"There is an underlying reason why Austrians seek to deny the validity of statistics: if they accepted them, their positions would prove untenable."

 

So current economic conditions are a success by your measure Kurt? And who's denying "macroeconomics even exists"? I've told you before I don't deny it, I participate in it. Jeez.

 

Current economic conditions are far from ideal. There is an abundance of good paying jobs that can't be filled because people are not trained/qualified for them. We are in a historic reworking of the economy much like the Industrial Revolution was. In fact we've been into it for more than 20 years. That fact is just starting to sink home.

 

In other words, to ride on Santinidollar's shoulders, this just may be the best it gets from now on, IF you aren't prepared for the new economy. Maybe the song had it right - "These are the good old days." Rightly or wrongly, the economy seems to have decided one can no longer expect to make a living with a strong back and a good work ethic; you need advanced knowledge. Ignore that, and become the new poor.

 

Who's denying it? The entirety of the Austrian School of Economics, of which von Mises is their [false] god, and Hazlitt is a prophet.

 

And trying to avoid that painful fact through ideology isn't going to cut it. Sorry.

 

I won't argue that but I could, it doesn't cover the reality of a monetary system based on debt (has to be borrowed into existence), a population up to their eyeballs in it and a generation +, dependent on it being paid back (in inflation adjusted "real wealth" terms).

There aren't enough good jobs in the world to satisfy all of the fiat promises made during previous (false signal) "booms".

This ends two ways, either an outright deflationary depression or eventually everyone gets a job (or a check outright) working for the man and "We pretend to work, They pretend to pay us." As we eat what remains of our seed corn (temporary but kicks the can further).

 

Ok, I will (argue this (lol).

What are some of those jobs "that can't be filled because people are not trained/qualified for them" (In the "new economy" -Kurt) that you speak of? What is keeping people from getting the training to qualify?

 

The key factor is that every day that goes by there are fewer and fewer "good jobs" and they will continue to be fewer and fewer, faster and faster. The benefits of displacing those jobs is going to the engineers and managers who have bamboozled society into believing that their present share of those benefits is justified. It's not. The new economy requires an entirely new distribution paradigm, no less so than the transition from an agrarian to an industrial economy did. No older economic paradigm will "fix" what the digital revolution has caused us to do to ourselves; not Keynesianism, and certainly not any Austrian School nonsense.

The only thing preventing us from rationally thinking about tomorrow's economic paradigm is our overly nostalgic and ill-informed retention of loyalties to yesterday's political ones.

Artificial Intelligence will much sooner than we realize have the ability, if not yet the right, to replace reporters, lawyers, judges, most engineers, coin graders, (come to think of it -maybe judges first of all).