Gold hits another all time high, now over $3.400.

[Carolinian]

Gold is up over 30% year to date, and hit another all time high this morning, shooting up a hundred dollars to get well above $3,400.

Year to Date changes:
Gold UP 30.09%
Silver UP 13.83%
Bitcoin DOWN 10.07%
S&P DOWN 9.98%
DOW DOWN 7.67%

 

[PigsDad]

More Year to Date changes:

CVS stock is up 46%
Newmont Corp (NEM) is up 49%
Philip Morris (PM) is up 35%
(and they all pay a dividend)

There are gems to be found in many investment types.

Kurt

 

[billymach4]

Gold is up over 30% year to date, and hit another all time high this morning, shooting up a hundred dollars to get well above $3,400.

Year to Date changes:
Gold UP 30.09%
Silver UP 13.83%
Bitcoin DOWN 10.07%
S&P DOWN 9.98%
DOW DOWN 7.67%

Incredible... that's all I have to say.

 

[dioxide45]

More Year to Date changes:

CVS stock is up 46%
Newmont Corp (NEM) is up 49%
Philip Morris (PM) is up 35%
(and they all pay a dividend)

There are gems to be found in many investment types.

Kurt

Wouldn't it make more sense to buy the stocks that are down vs. the ones that are up? For those on your list I would have to pay 50% more to get the same dividend as last year. Gems aren't necessarily stocks that are high.

 

[Carolinian]

More Year to Date changes:

CVS stock is up 46%
Newmont Corp (NEM) is up 49%
Philip Morris (PM) is up 35%
(and they all pay a dividend)

There are gems to be found in many investment types.

Kurt

Maybe you are not aware of the business that Newmont is in. They are the biggest gold miner in the world and also mine silver. Buying Newmont stock is an indirect way to invest in precious metals. It may not be the best managed gold miner, but it is the biggest.

 

[Brett]

Gold is up over 30% year to date, and hit another all time high this morning, shooting up a hundred dollars to get well above $3,400.

Year to Date changes:
Gold UP 30.09%
Silver UP 13.83%
Bitcoin DOWN 10.07%
S&P DOWN 9.98%
DOW DOWN 7.67%

More Year to Date changes:

CVS stock is up 46%
Newmont Corp (NEM) is up 49%
Philip Morris (PM) is up 35%
(and they all pay a dividend)

There are gems to be found in many investment types.

Kurt

yes, gold looks good during crazy times but as a long term investment ... not so much
.
.

https://www.macrotrends.net/2608/gold-price-vs-stock-market-100-year-chart

 

[easyrider]

Gold is up over 30% year to date, and hit another all time high this morning, shooting up a hundred dollars to get well above $3,400.

Kitco news has suggested that gold could easily hit $4000 this year. Goldman Sachs has said to expect $3700 - $4500 gold pricing by the end of the year. Gold may even go higher should a major trade war escalate.

What seems odd is the disconnect between the gold and silver price ratio. It's over 108 to 1.

Bill

 

[TUGBrian]

someone mentioned the cost is skyrocketing due to china buying so much lately?

 

[WaikikiFirst]

someone mentioned the cost is skyrocketing due to china buying so much lately

there are 6 ... 7 .... N reasons. #1 reason is that the US$ is falling and you are pricing gold in US$s.
Price it in Euros, and it is a much less interesting story, barely an all-time high I think. Price it in Swissies & it isn't even an all-time I'll bet

 

[1Kflyerguy]

Wouldn't it make more sense to buy the stocks that are down vs. the ones that are up? For those on your list I would have to pay 50% more to get the same dividend as last year. Gems aren't necessarily stocks that are high.

If you are buying individual stocks or something like gold, you really have to decide what you think the prospects are going forward. If you are just chasing the stocks that are way, you are correct that you might be overpaying, but buying something that has fallen, it could be a bargain or something that is facing a long-term headwind..

 

[TUGBrian]

there are 6 ... 7 .... N reasons. #1 reason is that the US$ is falling and you are pricing gold in US$s.
Price it in Euros, and it is a much less interesting story, barely an all-time high I think. Price it in Swissies & it isn't even an all-time I'll bet

oh i have no desire to go into all the possibilities that impact the price of gold on a global scale, but seeing an exponential increase in buying from a global power has to have a larger impact than most!

 

[WaikikiFirst]

cost is skyrocketing due to china buying

I have bought some gold & J-Yen almost every day for the last 6 or 7 weeks. I looked it up. Since Jan 1, rough #s,
gold is up 30% vs the US$
J-Yen is up 20% vs the US$
so, gold priced in J-Yen is up about 10% (slightly more)
We're going to Europe later this year. 6 or 7 wks ago, I told my wife to buy enough euros to completely cover the trip and then buy another 50%. Euro is up 10% in 6 - 7 wks

 

[WaikikiFirst]

but seeing an exponential increase in buying from a global power has to have a larger impact than most

not #1 impact. Noooooooooooooooooooooooooop. If it were, you could assume they are buying almost as many J-Yen, b/c that has risen 2/3 as much.
The US$ is falling. You're pricing gold in US$s. If you were in Japan, you'd be talking about "WHO IS BUYING ALL THE YEN!?!??!?!?!"
Who? #1 is prob the carry-traders?

 

[Carolinian]

someone mentioned the cost is skyrocketing due to china buying so much lately?

The Chinese central bank is one of the big buyers, along with such diverse countries as Saudi Arabia, Poland, Turkey, and India.

The Chinese have also opened the Shanghai Gold Exchange to allow and encourage their citizens to buy gold. Given what has happened to the overbuilt property market in China, that has become popular. China has also recently mandated that its insurance companies put one percent of their assets into gold.

 

[Carolinian]

I have bought some gold & J-Yen almost every day for the last 6 or 7 weeks. I looked it up. Since Jan 1, rough #s,
gold is up 30% vs the US$
J-Yen is up 20% vs the US$
so, gold priced in J-Yen is up about 10% (slightly more)
We're going to Europe later this year. 6 or 7 wks ago, I told my wife to buy enough euros to completely cover the trip and then buy another 50%. Euro is up 10% in 6 - 7 wks

Many sources of buying foreign currencies in the US hit you with high commissions and bad rates. If you are buying euros in the states, shop around.

 

[easyrider]

someone mentioned the cost is skyrocketing due to china buying so much lately?

It's many Central Banks in many countries that are buying up gold to reduce their exposure to the USD. China is one of those BRICS countries buying up gold mainly because of a new settlement agreement between the BRICS countries to use what they call a "unit" which is a 40% to 50% backed by gold and 60% to 50% by currency. The tariffs have thrown a wrench into this so my guess is it will be 40% gold and 60% currency.

Bill

 

[PigsDad]

Wouldn't it make more sense to buy the stocks that are down vs. the ones that are up? For those on your list I would have to pay 50% more to get the same dividend as last year. Gems aren't necessarily stocks that are high.

Who said I was recommending to buy? I was simply pointing out that there are other investments that have done well lately other than gold.

Kurt

 

[Ralph Sir Edward]

I merely point out that these are "crazy times" indeed. Because of that, true investing for the long term is now very difficult, as so many different long term possibilities are now in play, and not only do you have to select good ones, but there is no assurance that old rules will continue to apply.

I don't have an answer. . .

 

[easyrider]

@Carolinian What do you think about the gold to silver ratio these days ? It use to be that silver was a buy at 80 to 1. Now it's about 108 to 1 which seems like buying time for silver.

Bill

 

[Ralph Sir Edward]

Let me give some scenarios.

The dollar has a massive inflation burst. (There are various possibilities, that would take a separate post.) Bonds become a disaster in this scenario, losing most of their purchasing power. Stocks will go up in value, but not necessarily in external purchasing power. (I.e. foreign goods and services.) Fixed rate debt holders make out like bandits.

Trade reverts to some sort of gold standard. The US has another Great Depression, with the government having to way to stop the inevitable domestic purchasing power deflation. All speculative investment crash, only gold mining stock do well. (Example - Homestake Mining went from $3 in 1928 to $1000 in 1932 - in Gold Standard dollars .) Bonds may do well or poorly, as default rates soar. (To quote Will Rogers from 1934 - "I'm more interest on the return <of> my capital than return <on> my capital.")

Total trade collapse in a global supply chain economy. Simple - Welcome back to 1900, and global starvation - plus massive war. You tell me what wins in that sceanrio.

And there are many others. . .

 

[Ralph Sir Edward]

@Carolinian What do you think about the gold to silver ratio these days ? It use to be that silver was a buy at 80 to 1. Now it's about 108 to 1 which seems like buying time for silver.

Bill

The gold/platinum ratio is even further out of whack. Historically, platinum and gold were near values. You could play the spread, buying the cheaper metal and then selling it to buy the other when the more expensive one became the cheaper one.

Now one troy ounce of gold (31.1 grams) will buy 3.5 times the amount of platinum. Platinum hasn't been this cheap in several hundred years (at a minimum).

 

[WaikikiFirst]

What do you think about the gold to silver ratio these days ? It use to be that silver was a buy at 80 to 1

Gold:Silver ratio is an artifact of people believing in such a thing as a Gold:Silver ratio. Either that or maybe you know about some offshoot of ALCHEMY that can turn silver into gold at some specific ratio, perhaps based on molecular weight or the phase of the moon.
The fact that gold has left the ratio behind tells you who dominates the market now ... and that it is NOT people who believe in a short-cut G:S ratio.

Define a market structure where a tight G:S ratio makes sense. Define it. So, what we have now fails to meet that definition. One day, the market will most likely revert to a structure similar to my view of that definition, and the G:S ratio will, once again, someday, but whoknowwhen?, come near or hit 80:1.

or, maybe the supply of silver is up because the economy is so bad (insert click-bait headline here) that people are yanking out the silver fillings from their teeth and selling them. Maybe?

 

[WaikikiFirst]

there is no assurance that old rules will continue to apply

Should we name some of the "old rules" from the 50s, 60s, 70s that haven't applied for the last 20 - 30 years?

 

[WaikikiFirst]

pointing out that there are other investments that have done well lately other than gold

There is an old quip about "Flight To Trash" for the prev losers doing well when things go bad and worse. Buying the BEST companies is a sign of optimism that things will continue to go well and the cream will continue to rise. When people lose faith in the future, they find it dangerous to buy things that have "Great Expectations", because when TSHTF those expectations will not be met. Why pay for something that looks unlikely to happen? Buy trash that has no real expectation priced-in.

did you mention CVS? That sure was "one man's trash" not so long ago.

 

[WaikikiFirst]

China has also recently mandated that its insurance companies put one percent of their assets into gold

I swear people TRY to get this stuff wrong. China recently ALLOWED its insurance companies to put one percent of their assets into gold. I have read that "ALLOWED" over & over & over again. Note the difference? Somebody is getting it wrong.