People have money, and the money has to go somewhere. Either it sits in cash (in some currency), or it goes into gold, shares, bonds, or property.
Why is that so ? Because when there is a recession, I believe people will buy or stock up some food rather than precious metals which is already getting expensive.
No I'm not. I'm just a subscriber of Jim Rickard's premium subscription service, hence I'm trying to bounce the idea if it is make sense to the Gold investor in this forum or not.
Please buy some Gold Pete it needs to go down bit more. When you look in this website: https://www.dailyfx.com/gold-price as at today, the majority of the analyst mention it is bearish. So far Gold is fluctuating this year but not yet reaching the peak as in Year 2011 & 2012
Just spitballing, but if there is a crash then: 1. Gold and silver will increase in price. 2. Silver will increase faster than gold. 3. The GSR will drop. 4. Stackers will sell silver to the FOMO. 5. Stackers will buy gold.
I dont fully agree with that. out of 1000 million ounces available only 200 million ounces are for Jewellery and Investors. A whooping 800m is industrial uses. Silver and Platinum would tank with less demand, ie less solar panels demand and less catalytic convertors etc However as other metal prices drop like copper and zinc and if those mines cut or shut production over the year or years than silver prices will start to increase. If Armageddon ie dark ages literally no electricity these two metals will drop like a stone in water.
GSR did indeed drop after the last GFC: https://www.kitco.com/hist_charts/3650d_sm_gold_silver_ratio.gif Whether or not it will repeat that again, no one knows.
Probably not seeing as silver crashed $21 down to $9. Rocketed up 2.5yrs later but gradually declined as the years went by. Didn't hear of any FOMO sales. The average person was in no way concerned about PM's during the crash and despite all that has happened in the last five decades, they still aren't.
I did buy some silver on the weekend and there was a nice fall today :| At the moment, I need to save some money so no gold purchases, sorry
