China’s been dumping treasuries, from what I understand. They gotta buy something with the money.
There is a chance that the official price of gold is very different from the price on the street. There is also a chance that there will be another Executive Order 6102 which will make gold illegal.
illegal in the US. Which is precisely not here.
At the time the price of gold was fixed at $35 per troy ounce.
The elephant in the room is the question of at what point does the price of gold become an actual problem?
I haven’t seen this discussed in the press a lot (it was a subject a couple of years ago) - and that tells me it’s gonna be a very big problem.
There’s no backup plan for when the value of the USD tanks.
I think the obvious answer is thag gold will be traded in francs which would bring stability to both.
Silly. Gold is traded in many currencies already so it is perfectly feasible to disentangle its value from the dollar value.
Things can massively change once there is a gold-backed currency - think BRICS.
Been there, done that, got the T-shirt. 1944 Bretton Woods Agreement until 1971 Nixon shock ended it.
You seem to forget Gold hit $800 an ounce in 1980 & dropped below $300 over the next 20 years. Adjusted for inflation that would have been $9000 in 2015 dollars. It puts in perspective the long term risk of buying Gold at a multi year high.
2 Likes
Oh, it’s a perfectly reasonable point.
But I think we can agree that it really is different this time around.
We’re definitely not in Kansas anymore.
Yes, it is a dangerous spot to be in. I sold a large chunk of my gold holdings on Friday, but kept the miners.
Great timing. How were the spreads on a bank holiday?
That is about the most dangerous phrase people come out with when investing.
2 Likes
The credo of every respectable asset bubble.
1 Like
It was Thursday. It just felt like Friday to me.
2 Likes
Why sell? Gold is your insurance policy, just keep no more than 5-10% of your portfolio.
If your only prepared to hold 5-10%, your conviction level is poor so probably better not to own any.
1 Like
I was quite overweight gold and it did its job the last year or so, so now I trimmed it as the risk/reward is less attractive. I don’t discount that gold could go a lot higher though.
Or drop like a gold brick.