Posted on 02/11/2016 2:18:03 AM PST by expat_panama
The stock market is having a horrible time so far in 2016, with the S&P 500 down more than 9%. Gold, on the other hand, is up nearly 10% year-to-date and hit a four-month high of just under $1200 per ounce on Monday before dipping 0.7% Tuesday to $1189.30. It's a bit of a cliche to say that people turn to gold in times of uncertainty: Sometimes that works, sometimes it doesn't. Gold did phenomenally well from 2000-2011 but really suffered after hitting nearly $2000 per ounce in 2011. From 2011 to 2015, the yellow metal pretty much fell in a straight line amid the European financial crisis (remember Greece?), ISIS's rise, Russia's annexation of Crimea and quasi-invasion of Ukraine, among many other moments of 'uncertainty.'
So why is gold rallying?
Historically, gold tends to do best when people are worried about inflation...
Meanwhile, China's foreign currency reserves are at a three-year low...
So what should investors do?
In the past few years, a number of people, including The Blaze founder and conservative icon Glenn Beck, have been touting the virtues of gold. You're probably seen the commercials on late-night TV -- usually moderated by someone with a British accent -- and heard the predictions of Gold $3000! Gold $5000! Gold $10,000!!
If you're one of those people who has believed THE WORLD IS ENDING -- BUY GOLD! -- I recommend you use this recent rally to lighten up, meaning SELL some of your gold.
On the other hand...
Depending on your level of risk tolerance, gold should be anywhere between 2% and 10% of your portfolio, but not much more than that -- because the world is only going to end once, and how are you going to collect on your bets if it does?
(Excerpt) Read more at fortune.com ...
You're right on mark! My guess is that oil will stay at this current level in the low 30's - to low 40's all this year.
Spot silver now at 15.70 per oz @ 6:35 cst.
So they say. They also say Cruz wants to close the Internal Revenue Service so we won't have any more internal revenue for the U.S. gov't. Of course we don't even want to talk about what "they" say that Trump says...
I never thought I would live in a world where the United States was 19 trillion in debt. Or where we had a president who favored marxism and islam. Or a world where homosexual marriage was promoted. Or a world where Muslim invaders were being welcomed into Europe to pillage and rape the citizens.
The decline of the dollar is inevitable. Gold will preserve its value, as it always has.
If you think Ag is going higher, you should have no compunction against the silly premia asked for AEs, because allegedly the high premia will come back on sale. But that's only if Ag rises. I don't happen to have that view and I don't think the premia come back on sale.
The metal I believe is on sale now with REAL WORLD fundamentals behind it is Palladium because Volkswagen has an appointment to become the world's largest Pd buyer to fix their smog snafu. Possibly Pt. But Pd is rather illiquid and Pt is atrocious. By "illiquid" I mean the buy/sell spreads are punitive. Can buy Cana Pd/Pt Maples. Quite frankly, I have been as neutral on metals as its possible to be for about 5 years and have not bot nor sold any other than random handfuls of coins I come across at bargain prices. Now I am leaning bearish.
The idea that Pt is $950 while gold is $1234 (+$40!) is utterly stupid. Pt is easily 10x as rare as gold.
Sorting through it all, it seems we have a manipulated global and national economy, and following historic trend lines doesn't always apply. And gold and silver? They defy logic. How can they be so low when folks don't have a safe place to put money?
So I'm thinking. If gold and silver actually do take off, is it an indication that the puppet masters have lost control of the economy? My guess is yes.
Your reference to price volatility is based on price in dollars, not gold. Think about how foolish your statement is before you call Cruz incompetent.
Well he is a lawyer.
I make good money on gold. I mine it.
Yes, how *horrible* it would be to return to Constitutional limits instead of the fiat currency they can just print/create from nothing.
I mean, look how STABLE the Fed. Reserve has made the $$ /s
https://www.tedcruz.org/tax_plan_summary/
"Imagine 4.9 million new jobs. Instead of Obama’s income stagnation, imagine average wages rising 12.2 percent over the next decade. Capital investment rising 43.9 percent. And every income-level seeing double-digit increases in after-tax income. Imagine exports and manufacturing jobs booming. Our trade deficit falling as the tax bias against American made goods is eliminated. Imagine a 10 percent income tax, with every American filling out his or her taxes on a postcard or iPhone app. And abolishing the IRS as we know it." Ted Cruz
There is nothing unconstitutional about the way the FED prints money.
The dollar is significantly more stable since we went to fiat. Before the Fed we had wild swings in the dollars value often in excess of 20% a year.
We now have mild inflation and it’s consistent inflation without alternating bouts of deflation. Deflation is horrible for the economy and causes depressions. Other than the Great Depression, we’ve not really had a depression since the Fed.
Consistent Inflation might make a scary chart over 100 years but unless you are storing cash in a mattress for 100 years, it doesn’t matter. What matters is that the value of cash is reasonably stable year to year for business decisions. And the Federal Reserve has actually excelled at making that happen.
The claim that we are certain to have inflation because of the Fed liquidity programs since 2008 is false. The FED can “unprint” that money just as easily as they printed it, by selling their treasury holdings into the open market to soak up the excess cash.
How high will this go today? This is absolutely EPIC!
that’s a GOOD GUESS!!
all of the printing of money in the world and all of the stimulus packages dont matter because they are a weak band aid on a terrible recession/depression that should have been allowed to run its course 8 years ago.
China is not playing by the rules and its buying of gold is up 800 percent.
i’m making money against the USD again today. I dont like making money off of bad US policy, but it is what it is.
also, even with the four year gold “bear” market, you still made between 300 and 400 percent from 2000.
not bad!!
I NEVER thought so either. It kills me. It would have broken my father, God rest his soul.
Only God can get us out of this mess we are in, and not too many people are interested in what He has to say lately in America
In the meantime, I’ll short the USD even if the profits might be worthless one day.
the eight year dollar run, i think is over. Until the next president rebuilds us.
AND if he does it right, then we will suffer a few years to get the pain over with. That’s fine, as along as there’s a light at the end of the tunnel!!!
“There is nothing unconstitutional about the way the FED prints money.”??
Congress has the authority to delegate to a new govt entity one of its sole roles? I don’t recall any Amendment giving approval.
What’s next? The gold confiscation of the 30’s was legal as well? Maybe the Trading With the Enemy Act?
Plus, there’s a WHOLE lot ‘o difference between a U.S. Note and a F.R. Note. One of the former = one silver dollar. The latter = full faith...At least, that’s what the former WAS, before it was made ‘obsolete’. Lovely theft by law, no?
For all its ‘faults’, our previous $$ was Constitutional and had value. Unless anyone finds QE XYZ, inflation/deflation bubbles, negative interest, unaccountability, $120T+ in unfunded liabilities, etc. ‘GOOD’.
Well then sue Congress. You can write a book about it when you win and get rich.
abolishing the IRS as we know it." Ted Cruz
Right. What Cruz bashers call "abolishing the IRS" is nothing more than changing tax brackets. Just like Hillary, Bernie, and Trump. Personally, I like Cruz' plan best...
Right. As if govt, especially the Fed, 2x the last 100+ yrs. gave/gives a rat’s @ss RE: Constitution.
Sure, some appointed judge, paid from taxpayers, through the Treasury, is going to buck the system and jeopardize their ‘upward mobility’.
SCotUS couldn’t even legislate the plain English of O’Care, nor the 2nd, nor....to undo 100+ yrs. of ‘precedent’, case law and all/most/alot/some laws along the way. R-I-G-H-T.
Better chances of Clinton going to jail or, better odds here, being the single winner to the next $XB Power-Ball.
So your complaint is that Congress delegates coining money, as if they were going to set up a machine on the congressional floor and print up coins for the whole nation.
And you say that delegation is unconstitutional but you will not sue because you know the judicial branch won’t agree with you.
The only thing is, the last time I check, the founding fathers left the interpretation of the constitution up to the court system and not you.
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