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There are no stupid questions right? So about gold.....

Posted on 2/25/21 at 6:32 pm
Posted by Purple Spoon
Hoth
Member since Feb 2005
17811 posts
Posted on 2/25/21 at 6:32 pm
If the government is literally printing money and going deeper in debt wouldn’t something like gold bouillon be on a steady rise?

Why did gold prices peak around 2012 and have been on a downward trend since?

And of course the ultimate question is, is buying physical gold a good investment.

Thanks guys
Posted by slackster
Houston
Member since Mar 2009
84784 posts
Posted on 2/25/21 at 6:49 pm to
Gold is an awful inflation hedge.

It’s a fear hedge, at best.
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69902 posts
Posted on 2/25/21 at 7:03 pm to
No.

Gold sucks, silver sucks, platinum really sucks.

Posted by GREENHEAD22
Member since Nov 2009
19590 posts
Posted on 2/25/21 at 7:05 pm to
So what are some good inflation hedges?
Posted by TheDude854
Member since May 2019
291 posts
Posted on 2/25/21 at 7:06 pm to
The paper gold market has been manipulated since forever but especially since the ‘08 crash. The power brokers push the price down so central banks can buy physical gold hand over fist at a discount.

Look at what central banks do, not what they say. They discredit gold publicly while filling their coffers quietly.
Posted by wiltznucs
Apollo Beach, FL
Member since Sep 2005
8963 posts
Posted on 2/25/21 at 7:09 pm to
The time to buy gold is when the economy is kicking and recession/election fears are virtually nonexistent. Generally; that’s when it’s at its low point.

I bought physical when it was $1,200+ an ounce. That was only two years ago. I’ve committed myself to selling it all the minute it tops $2,000.

You cannot be emotionally invested in it. Don’t listen to the stackers. We aren’t returning to the gold standard due to some serious geopolitical reasons (the largest mines are in China and Russia). Buy it, wait until opportunity presents itself and sell it. Wait until it drops to rock bottom and then repeat.

As investments go; there is money to be made with gold. Buying bullion at or near spot price is key. Anything less than an ounce at a time makes recuperating your investment tough due to premiums from dealers.

That said, obligatory investor talk. Gold woefully underperforms the market as a whole. There are isolated periods when it outperforms the market. It should never represent the core of your portfolio.

This post was edited on 2/25/21 at 7:21 pm
Posted by When in Rome
Telegraph Road
Member since Jan 2011
35540 posts
Posted on 2/25/21 at 8:38 pm to
quote:

So what are some good inflation hedges?
In this thread because I'm wondering the same thing; I'm guessing the answer is crypto (besides direct investments)?
Posted by GREENHEAD22
Member since Nov 2009
19590 posts
Posted on 2/25/21 at 8:51 pm to
I have asked this question multiple times in the past couple weeks and never get an answer.
Posted by Honkus
Member since Aug 2005
51145 posts
Posted on 2/25/21 at 8:55 pm to
She's just not into you bro.


I'm looking at commodities, VCMDX for ex.
This post was edited on 2/25/21 at 8:56 pm
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 2/25/21 at 8:56 pm to
Get set up semi off grid and ride out the down times.
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69902 posts
Posted on 2/25/21 at 8:57 pm to
quote:

I have asked this question multiple times in the past couple weeks and never get an answer.




Real Estate is the best hedge against inflation.
Posted by GREENHEAD22
Member since Nov 2009
19590 posts
Posted on 2/25/21 at 8:58 pm to
Well yea, I mean we have that part down, did you not see my post about my weed stocks and your Bitcoin?
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 2/25/21 at 8:58 pm to
Posted by GREENHEAD22
Member since Nov 2009
19590 posts
Posted on 2/25/21 at 9:02 pm to
We have been looking at land and gotten close 3 times only to have a cash offer pull it out first. Market is crazy hot, this rate jump this week was a kick in the gut.
Posted by slackster
Houston
Member since Mar 2009
84784 posts
Posted on 2/25/21 at 9:04 pm to
quote:

have asked this question multiple times in the past couple weeks and never get an answer.


Stocks as a group are typically good enough, but you can look at products that use inflation swaps as a more pure inflation hedge.

TIPS sound good but have their own problems imo.
Posted by GREENHEAD22
Member since Nov 2009
19590 posts
Posted on 2/25/21 at 9:07 pm to
Russian is the guy I usually cue in on for market changes but he doesn't seem to post much anymore.

I would like someone to tell me that hyperinflation fears are not realistic.
Posted by wiltznucs
Apollo Beach, FL
Member since Sep 2005
8963 posts
Posted on 2/25/21 at 9:11 pm to
quote:

So what are some good inflation hedges?


The S&P, REITS, TIPS, shiny yellow metals, rental income.
Posted by rocket31
Member since Jan 2008
41819 posts
Posted on 2/25/21 at 9:18 pm to
the price of gold denominated in bitcoin

Posted by Great Plains Tiger
Member since Sep 2005
234 posts
Posted on 2/25/21 at 9:43 pm to
Read section 42 and 43

The Dying Of Money by Jens O Parsson

Posted by My2ndFavCivilNgineer
Member since Jun 2013
586 posts
Posted on 2/25/21 at 10:29 pm to
quote:

So what are some good inflation hedges?


GreenHead listen to the "Superinvestors and the Art of Wordly Wisdom" podcast. The most recent episode "James Davolos On Protecting Yourself Against a Paradigm Shift in Inflation"

it is an absolutely fantastic listen.

CAPEX light companies receiving revenues tied to commodities is key.

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