Gold

[Steve Johnson]

#13860

Gold has had a big run up so I am expecting it to pull back since it is so far away from the 200 day moving average. But it doesn’t have to as it could continue sideways for a while. Am I reading the chart correctly? I’m still trying to learn. Thank you Sean for the great education for such a reasonable price!

[Sean Hyman]

#13870

Thanks. You’re welcome.

Metals can spend quite a bit of time away from their moving averages, unlike how stocks typically do. See this long-term chart of gold as an example of that. So, while gold “can” pull back to its moving averages it certainly doesn’t “have to”. Metals tend to get very directional and a lot of momentum behind them at certain stages and they can act very differently than how stocks trade relative to moving averages. Hope this helps.

I’m glad you’re getting so much out of the newsletter service and feel its a great value. That’s what I want. Awesome!

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[Thankful]

#13891

100% agree! And gold is up an additional .7% ($11) today.

[Sean Hyman]

#13892

Yeah with gold hitting a 52-week high with stocks near 52-week highs and the dollar near 52-week highs…that says a ton for gold’s strength. And it’s also a big warning sign to the overall market, as a whole, too.

[Steve Johnson]

#13966

Thank you Sean!

[Anonymous]

#13967

I’ve bought some Bullion Gold for safekeeping now, Jim Rickards and Brent Johnson have been bullish on gold sometime back. I do find that Brent Johnson’s comments on the dollar milkshake theory, is now quite evident in both the DXY and Gold charts.

[Sean Hyman]

#14020

You’re welcome, Steven!

[Sean Hyman]

#14021

I’ll probably never hold physical gold since I can benefit from its gains via an ETF just as if I had gold itself but not have the wider spreads or storage fees involved and have it all within my brokerage accounts. Just a personal preference of mine for those reasons. Neither is right or wrong, just a preference really.

If you were buying though, I would have suggested it being when we bought metals in the LI service. That way, you’d already be up quite a bit on your physical gold.

[kenatech]

#14168

I’d have to agree about your comments on owning physical gold. Just before the gov’t stopped holding the price of silver at $1.29 / oz. back in the 60’s, I bought two silver bars. I sold them a few years later at a decent profit, but below the spot price, due to shipping and broker’s fees. They were the down payment on my first house. If I had kept them till silver went crazy (up to $50 / oz.) I might have made a lot more, but the price was so volatile that you probably couldn’t have sold them quickly enough before it crashed. Back then, there was no such thing as GLD or SLV, or computer trading, but now it makes so much more sense to use ETF’s, because you can buy or sell almost instantly.

[Sean Hyman]

#14191

That’s another good point that you bring up. You can sell GLD/SLV in seconds, not as quickly for physical. True. And sometimes metals shoot up very quickly to where time can be of the essence. Great point.

[Anonymous]

#14194

Hey everyone,

These are very valid point and I do agree with storage cost and shipping cost etc. Sharing my experience based in Singapore. Well, I’ve kept the bullion in a safe at home in a hidden place. Of course, you can do that due to the low crime rate. In Singapore, you have access to pawn shops that are located near to town centres which are around 2 to 3 km radius. Liquidation is not a problem here in Singapore.

Buying physical gold or silver is a form of insurance when you know the value it can bring. Remember the Vietnam war, no too long ago? Vietnamese refugees escaped the country using bullion.

That’s the only value, I see. But of course, I do have positions in GLD and SLV in my brokage accounts and holding it for long periods. Even Ray Dalio holds a 7.5% equal weightage position in both GLD and SLV.

Cheers for the valuable nuggets of wisdom shared here.

[Sean Hyman]

#14196

Both Gold and silver are up over 1% overnight as Dow futures are down 360 points so far, as China basically admits they’re having problems containing the Coronavirus. More details in the Members Forum.

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