IMO , probably not gold. It's back to where it was pricewise before virus fears. Back to being a steadily rising hedge against the US economy and stock markets. Silver for all intents and purposes is unrelated to gold, priced on industry rather than hedge, and its industries aren't looking so hot! FWIW I bought some gold earlier this week pricing in that the virus price spike was only a temporary blip
It had been a wild ride. In less than 2 weeks, gold shot up more than $100 and then back down again. The price is now back to where I bought my last batch on the 18th Feb. It came down too quickly, I think I'll wait to see where it will go next couple of days.
I too am interested in what happens next week. I believe it will forecast the rest of the year. I will continue buying gram by gram as often as I can though.
It had to drop at some point-is it big drop?-I don't think so. Gold had increase it's value over $600 over a few month,so drop even $200 per oz is normal and healthy....
The best time to buy PMs is after you are out of debt, living consistently below your means and have at least 6 months living expenses saved.
It is a shame that there is so little activity in the Wealth Creation & Management forum. Wealth creation is the key to a big stack of silver and gold
Mike Maloney recently bought a bunch of silver and has very convincing videos telling us why now it's really undervalued. I think eventually silver will rise. Maybe within the next 5 years. My silver bought in 2011 has done nothing for me though.
Time will tell. All the popular silver guys were wrong years ago, including David Morgan. Silver is overdue for a break-out I reckon. Mike Maloney seems to buy & sell between gold and silver, if what he tells us is true. The gold/silver ratio is pretty high now.
I've been glancing at MM and his YouTube announcements for most of 12 years now and I don't think I've ever heard him say that silver is correctly valued, or overvalued. As minimilled points out, MM never says "sell" And as Tennessee says, in a most succinct way: The best time to buy PMs is after you are out of debt, living consistently below your means and have at least 6 months living expenses saved.
The silver gold/silver ratio is super-high now. He believes in what he is selling and has heaps of daily living money to wait. I'm not here to defend him or anyone. Nobody really knows when it'll happen but I think it will. Despite making losses on buying silver. I assume Mike Maloney is a billionaire if not multi-millionaire. He has mentioned selling silver for gold at certain points (and vice-versa). Anyway, I'm not here to defend him. He probably has a million other investments (miners, etc.) just like David Morgan. All these people can easily sit on their stack for decades knowing that the sysatem as it is today is totally broken and it's only a matter of time that real assets get priced sanely. I think silver will see some serious movement in the next five years. We'll see.
I would second this. If you are young, every dollar spent on metals is a dollar that you are going to be paying interest on for the next 20-30 years of your mortgage. When interest rates are low maybe gold will increase in price greater than that, but who knows what interest rates will do for next 20 years? Plus you have to pay tax on capital gains, so the hurdle return for gold has to be you mortgage rate + your marginal tax rate less CGT discount.
FWIW, I just converted half my unallocated silver position to gold. I just see it as a better bet going forward in the short to medium term in the current climate.
Interest rates are inversely related to government bond prices. If people start dumping government bonds, interest will rise.
True, but everyone needs a rainy day fund for unforeseen circumstances. Better off stacking a bit of gold away longer term than loaning your $'s to a bank!
Even if you do have 6 months of cash, at this moment look elsewhere or keep it in cash and buy when economic/covid-19 news have leveled out Of course this all depends on your job too. If you work in hospitality 6 months cash should be a goal, if you work for solid large enterprise and maybe 3 months cash could suffice. Certain jobs will take 6 months or more to recover, if you lose it Buying than selling metals within 6 month timeframe is waste of effort, if you "might" need to convert metal to cash. You will after premiums (and the urgency you need to liquidate) maybe break even, be ahead 10% or lose 10% on premiums Gold and silver will go up in the short term, but once the virus fear subside with avaialibility of either therapeutics, vaccine or people just get used to it..... it will come back down Eventually Gold and Silver will come back down to long term averages, and starting a stack at historical highs to me doesnt seem like a good idea. What ever advice you take on board, make sure they are in the same economic situation as you, done well with metals and have similar outlook to you. Someone out of debt, owns their own home outright, have a good super balance would not have the same strategy as someone in debt and living pay check to pay check, and remember unless the person discloses it is very hard to ascertain where the advice is coming from in the forum.
