Smooth sailing? No. But when is it ever?
Hillariously, the next step is the popping of the oil and gold bubbles. As much as I hate to say it, I’m going to enjoy watching the goldbugs here get what’s coming to them.
Smooth sailing? No. But when is it ever?
1950 to 1973 — a span of time that people oddly and naively believe was “normal.”
They'll all claim to have sold at the top.
yitbos
and that will be gold = 2000$. (see my posting above why)
“””I’m going to enjoy watching the goldbugs here get what’s coming to them.”””
I guess you are one of the ones that is sorry he (she) did not buy gold at $300 or $400 or $600 or even $800. I’m am sitting on massive gains from physical gold and silver that I bought in 2002 & 2003. My cost basis on silver is just a hair over $4.00 per oz and on gold $440. I just sold 10% of my silver over the last several weeks for a 500% gain. Gold I have not parted with any yet, because we are going to see a minimum of $1,500 before this runs it’s course.
Commodity supercycles typically last for 15 years or so, we’re maybe halfway into this one. Gold held it’s own yesterday, staying in the +, while other commodities sold off. In turbulent times, when margin calls are being dished out to hedge funds and retail investors alike, people will sell that which they have the most profit in, i.e. commodities.
I am fully invested in commodity miners of all varities, gold, silver, platinum, iron, coal, aluminum, copper, etc. I’m also invested in the companies that make the equipment to get the goods out of the ground, companies like BUCY and JOYG.
IMO, this trend stays in place for another 5 years or more. We have not even hit the mania stage yet, that’s when I’ll be selling, when magazine covers and the talking heads on CNBC start touting commodities, that will be the time for exit. The fact that so many, including yourself, are so skeptical, leaves plenty more room to run.
A one day profit taking move amidst global turmoil does not change a powerful trend.
All my opinion, of course. We’ll see how it pans out. There’s no way the Fed can keep showering funny money created out of thin air, without inflating commodities.
Ignoring your silly emotion of envy, I would be greatly relieved if my 10% (now more like 15%) of my portfolio in gold went poof because that would be a very positive development for the currency and the economy. Unfortunately the Fed is showing no signs of learning from past mistakes with too-low interest rates.