Gold, Silver, Real Estate and Crypto

[easyrider]

Do you really think Gold Reserves will be the determining factor in the reset

Maybe. Gold values haven't been reset by the Federal Reserve since 1973 and are still at $42.22 per ounce. Market value for gold is around $3,337.00. The spot price needed to pay the National Debt is around $36,000 per ounce.

Bill

 

[emeryjre]

Here is a different view of gold from Forbes

A person has access to 4 free articles a month
This article should not be behind a paywall unless you are an avid Forbes reader
The statistics will probably surprise you in some ways
It certainly got my attention

Stocks Versus Gold: Which Is A Better Investment? The Answer May Surprise You

Gold bugs like to point out that gold has outperformed the S&P 500 over the last 40 years. Not so fast.

www.forbes.com

 

[Brett]

Here is a different view of gold from Forbes

A person has access to 4 free articles a month
This article should not be behind a paywall unless you are an avid Forbes reader
The statistics will probably surprise you in some ways
It certainly got my attention

Stocks Versus Gold: Which Is A Better Investment? The Answer May Surprise You

Gold bugs like to point out that gold has outperformed the S&P 500 over the last 40 years. Not so fast.

www.forbes.com

I don't think "gold bugs" will want to read that article.

The power of dividends and compounding !

Gold vs Stocks -

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

 

[Carolinian]

In 1929 gold did not lose value. It did not crash and burn like stocks. In 1933, it was actually revalued higher by government.

In 1923 Germany, those holding gold kept all of their value, not those holding stocks, or worse, paper money or bonds.

Are we facing something like that again? I look at our debt to GDP ratio and that of many other countries and the number of major zombie banks out there and keep my fingers crossed we aren't, but I am not going to bet the ranch on it.

I prefer hard assets with no or minimal counterparty risk, and that is residential rental real estate and precious metals, with the lions shar eof our portfolio in the former. We have a nice flow of rental income from our properties and they have gone way up in value since we bought them.

 

[emeryjre]

Who manages your Residential Real Estate Holdings??

 

[Brett]

In 1929 gold did not lose value. It did not crash and burn like stocks. In 1933, it was actually revalued higher by government.

In 1923 Germany, those holding gold kept all of their value, not those holding stocks, or worse, paper money or bonds.

Are we facing something like that again? I look at our debt to GDP ratio and that of many other countries and the number of major zombie banks out there and keep my fingers crossed we aren't, but I am not going to bet the ranch on it.

I prefer hard assets with no or minimal counterparty risk, and that is residential rental real estate and precious metals, with the lions shar eof our portfolio in the former. We have a nice flow of rental income from our properties and they have gone way up in value since we bought them.

If one believes the tariff created "GREAT" depression is now upon us then hoarding gold in the basement safe will make you feel good but .........
Maybe in about 3 years (and a few months) there won't be the CRAZY tariffs and the DOW and S&P will continue their GREAT trajectory

.
https://www.jwealth.co/blog/not-everything-that-glitters-is-gold-100-years-of-gold-vs-stocks

 

[Carolinian]

What is threatening the financial market is the same thing that almost got Greece, Portugal, Italy, and Ireland a few years ago. It is high government debt relative to GDP. A secondary problem is the thing that triggered 1929, zombier banks. In 1929, it was the crash of a bank in Austria that set off a chain reaction around the world. Will the tariffs add some degree of stress to the systemic problems that were already there? Probably so for a few months until they get negotiated and resolved. When major banks in places like Germany and Switzerland where you expect well managed banks, there is real cause for concern. Deutsche Bank, Germany's largest has been a zombie bank for years, and the German government has officially said that if they go under the government does not have the resources to bail them out. Of particular concern is that Deutsche Bank is by far the biggest player in the credit default swaps market. If it goes, so does that market which some have called a "weapon of mass financial destruction". One of the two long dominant Swiss banks, Credit Suisse, already failed, leading the Swiss National Bank to strongarm the other one,, the Union Bank of Switzerland, which was well managed, to take it over. I have read an article or two that have suggested that forced marriage has now weakened UBS Or then you could look at Asia where virtually all of Japan's banks are zombies.

 

[Ralph Sir Edward]

you[re both looking at the opposite side of the same coin.

Reserve currencies eventually fail as they cause the "hollowing out" of the reserve currency's economy. Look at Britain in the 19th century. Initially a great boost from being the reserve currency, followed by a steady erosion later.

 

[WaikikiFirst]

opposite side of the same coin

cuz everything that ever happened in the world was due to currencies!?!?!??!?!?!?!?

 

[WaikikiFirst]

When major banks in places like Germany and Switzerland where you expect well managed banks,

Whaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaat????????????????????????
You lost me on both the expectation and the reality.

 

[WaikikiFirst]

Here is a different view of gold from Forbes

Lord, if I had a week to kill, I'd read that, but somebody please teach that guy how to get to the point. It is finance (investing anyway), not a jr high essay.
A quick table with % gains over various time periods. 3 paras to explain. Wham. BAM!

 

[emeryjre]

Lord, if I had a week to kill, I'd read that, but somebody please teach that guy how to get to the point. It is finance (investing anyway), not a jr high essay.
A quick table with % gains over various time periods. 3 paras to explain. Wham. BAM!

There was no "elevator" version available
Forbes obviously needed a filler article
It was interesting in how different time periods could be used to either praise gold as an investment or belittle gold as an investment

 

[WaikikiFirst]

interesting in how different time periods could be used to either praise gold as an investment or belittle gold as an investment

True with everything. Beginning price matters. Ending price matters. Actually those are ALL that matter given the simple equation. People can write books about the history, the philosophy, whatever, but when you get down to measuring, it is just an equation ... and to do it in any absolute way, you have to incl inflation
When I find myself in times of trouble, Grannie Gold comes to me, speaking words of wisdom: "BUY ME BUY ME"

 

[Carolinian]

Who manages your Residential Real Estate Holdings??

The apartments I have had for decades in our home town, I handle myself, and always have. Six or seven years ago, we started buying single family houses in a small city and hour and a half away. They were a great market for rental property because there was very high demand for rentals and houses could be bought cheaply as there were a lot of foreclosures on the market there. We bought foreclosures and fixed them up. That part of the market has changed as the foreclosures have all dried up so the cheap houses are not to be found there any more. The first house we bought there we rented to the electrician we hired to do some work for us and he was a great tenant until he passed away. However, due to the hour and a half travel each way, we checked out the local rental agencies and chose one with low fees and a great ability to secure tenants. We have been pleased with them. The one downside is that their repair vendors other than HVAC are pricey, so other than something really urgent or HVAC, I provide my own repair people. We have our own list of competent and reasonably priced workers from when we fixed up the houses.

Given that market now is hard to buy in at a favorable price, we have one project underway around the corner from us in our local historic district, an 1890 house that was tied up in a contested estate for years and we bought at the courthouse door. When finished, it will be our priciest rental. We are talking to the owners of the adjacent house, who live out of state and have been debating whether to sell it or give it to their daughter. We would like to buy that one if they decide to sell. They have promised us first refusal. That house dates to 1850. It has been in their family for many years but they are not able to come down and spend a week or two in summer any more like they used to do. Like our other rentals in town, we will handle those directly.

 

[Carolinian]

Whaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaat????????????????????????
You lost me on both the expectation and the reality.

There may be others in Germany, but Deutsche Bank is the big zombie bank, and in Switzerland, Credit Suisse has already gone belly up, and it appears that Union Bank of Switzerland may be getting indigestion over the major pieces of it they were compelled to swallow. Credit Suisse avoided a total failure by the national bank strongarming UBS into a "merger" that seems to have at least somewhat weakened UBS.

Deutsche Bank is the elephant in the Credit Default Swap market room, and if it goes belly up, it will cause major chaos in that market, likely causing severe economic repercussions around the world. The US insurance company that was bailed out in the 2008 crisis was also a significant player in the Credit Default Swap market, and was bailed out due to fears of what its failure would do to that market. It was however, a much smaller fish in that market than Deutsche Bank.

 

[TUGBrian]

congrats on locking another one...