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So you quote a Goldman article predicting the steep decline of gold?
Really? Come on breh, they have obvious reasons to predict such garbage.
Gold price collapse is the worst for 30 years
- Thread starter 88m3
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So you quote a Goldman article predicting the steep decline of gold?
Really? Come on breh, they have obvious reasons to predict such garbage.
Brown_Pride
All Star
Question: Are you guys investing in ACTUAL GOLD, as in physical gold coins, phat chains, etc, etc or GLD, GDX, GDXJ?
Julius Skrrvin
I be winkin' through the scope
ill
Superstar
Buying gold coins etc is a joke. They mark the premium up really high because its a "custom" gold piece. The markup will usually put you in the negative ROI category instantly. I think I read somewhere that its usually 30-40% markup on the gold coins because its a "collectors" item. Complete bullshyt and a rip off.
88m3
Fast Money & Foreign Objects
Domingo Halliburton
Handmade in USA
So you quote a Goldman article predicting the steep decline of gold?
gold prices usually do the inverse of the US dollar. If they stop QE and subsequently stop increasing the supply of US dollars, gold is fukked.
edit: and to your point Goldman is probably playing both sides of this whether it goes up or down.
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Domingo Halliburton
Handmade in USA
physical gold: you run into the problem of actually buying and selling physical gold at the spot price.
gold stocks: the drawback to those stocks is if things actually do get really fukked and the economy collapses those gold stocks are just contracts for gold. there are more contracts out there than physical gold. so you may get fukked there as well. edit: I didn't realize you were giving ticker symbols of miner indexes. so you'd probably be good there. But GLD has more contracts out on it than actual physical gold. but again this isn't a problem unless there's a complete economic collapse.
so you're probably better with the stocks (and I wouldn't want to be long gold anyways) and hope we don't have a melt down (we won't).
gold longs better hope the chinese and indians keep buying gold and the indian rupee keeps going into the dumps.
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feelosofer
#ninergang
Well now is as good a time as any to buy but it also is the sign of a solid market. Diversify your investments brehs.
make a legitimate argument against gold
I have to disagree.
Gold is a sound investment regardless of what the dollar is doing; the reason you see gold prices moving with dollar is purely behavioral investing rather than any correlation between the two. With that said, there have been several years where gold and the USD have moved in conjunction. Gold is a resource and is governed by supply and demand, China's utilization of gold is going to cause a demand for gold especially after a lackluster mining year. You're going to see lower supply and higher demand, which means ....
this is a good problem - this ensures the scarcity of gold and supports the price of gold IMO. there's downsides and opposing thoughts to this though.
Domingo Halliburton
Handmade in USA
I would argue if the USD is weaker then it makes gold cheaper to purchase by other countries (since it is primarily priced in USD) causing gold to be bid up and causing the inverse relationship.
obviously this is simplifying things there's a million things that could influence the price of gold. also I'm not implying it's a 1 to 1 lockstep negative correlation.
yeah your last sentence is basically my belief...end of the day it's really supply and demand.