Gold: Past, Present, and Future

Melissa Sanchez17 said:And what about the folks who jumped in when gold hit $1,900? 😉 Though, if you look at the gold-to-dollar ratio, they didn't really lose out on the precious metal itself.
In my book, gold isn't some magic hedge against inflation—though you can certainly make money on it if the timing is right. If you want a real inflation hedge, go buy luxury watches or fine art (just ask any crooked politician)😂

Sure, gold might crawl back up to $1,900, but I wouldn't bet my life that something like ExxonMobil stock is ever going back to its old highs $127 (you should probably check with Bakić on that one) 😍

To be honest, the dollar value of zlato doesn't really matter to me since I don't live in a place where the dollar is the primary currency. Both gold and silver have had their corrections, and it looks like they're mostly finished. You ask what happens to people who bought at $1,900? It's the same situation I faced when I was buying at much higher rates. At the time of purchase, it felt like the absolute peak. Then, suddenly, it wasn't. Metals aren't assets you buy for a one or two-month flip; they are investments held over years. In about two years, those who bought at $1,900 will probably be wondering why they didn't buy even more.

As for art being a hedge, imagine if heaven forbid there’s a fire and a painting gets destroyed. Your hedge is gone. Can your zlato burn?

Casey Price2 said:To be honest, the dollar value of zlato doesn't really matter to me since I don't live in a place where the dollar is the primary currency. Both gold and silver have had their corrections, and it looks like they're mostly finished. You ask what happens to people who bought at $1,900? It's the same situation I faced when I was buying at much higher rates. At the time of purchase, it felt like the absolute peak. Then, suddenly, it wasn't. Metals aren't assets you buy for a one or two-month flip; they are investments held over years. In about two years, those who bought at $1,900 will probably be wondering why they didn't buy even more.

As for art being a hedge, imagine if heaven forbid there’s a fire and a painting gets destroyed. Your hedge is gone. Can your zlato burn?

Take the stretch from 1982 to 2000, for instance. Is that enough years for you?
Gold is in a bull market, people!

Or maybe from 1974 through 2012.☕

Melissa Sanchez17 said:Take the stretch from 1982 to 2000, for instance. Is that enough years for you?
Gold is in a bull market, people!

Just like anything else, especially with metals: I suppose timing is everything.

Anthony Evans78 said:Look, gold is a thousand times more proven as a hedge against inflation than anything else, my friend 😉

Honestly, zlato was easily one of the smartest plays of the last decade—and if you ask me, it’s looking like it’ll carry that same energy through this one too.😍 😉

Casey Price2 said:Just like anything else, especially with metals: I suppose timing is everything.

Spot on. Honestly, if there's one thing that actually matters for this bull market, it's that.

Anthony Evans78 said:Or maybe from 1974 through 2012.☕

Yeah, but we're talking about a 37-year stretch here. That's basically an entire lifetime of working for most people. If you hit rock bottom right when everything starts cratering, you're screwed—but if you happen to land on top of a parabola while things are tanking, well, you just got lucky as hell.

If you actually think we're in a bull market 🙂
Not this again... 😉

Patrick Moore3 said:Fair enough 🙂
Financing that consumption is exactly why we're stuck. Those debts have to be paid back now... While money flows toward debt repayment instead of the actual economy, we'll just be spinning in this endless loop.

It's garbage. Politicians were basically buying GDP growth on credit... It helped them win elections while they kept spending, but now that GDP has to be paid back with interest!

But how? That money doesn't actually exist; it has to be printed. This entire fine system is built upon a foundation of debt, and frankly, that is a pretty shaky foundation to build anything on.

So, what’s everyone’s take on using debt as an inflation hedge?

Fighting fire with gasoline, I suppose... 🙂

Andrew Barrett4 said:So, what’s everyone’s take on using debt as an inflation hedge?

Fighting fire with gasoline, I suppose... 🙂

That hasn't worked since the days of the Roman Empire. There’s been this long-standing dogma that debt must be repaid at any cost, and when you factor in the big Wall Street players manipulating interest rates—which can easily hit 30%—it's hard to see how the average person is supposed to come out ahead. I just don't buy it.

I don't buy it. History shows plenty of times where debt just doesn't come back to haunt you.
Look at right now. In the US, you can grab a 30-year fixed mortgage at around 3.5%. Most people in here are claiming inflation is already higher than that. Fine. Maybe real estate prices are dipping or stalling for a bit, but that won't last long.

With banks sitting on at least four million properties in their shadow inventories, why wouldn't we expect prices to keep sliding for a while longer? 🙂

Anthony Evans78 said:With banks sitting on at least four million properties in their shadow inventories, why wouldn't we expect prices to keep sliding for a while longer? 🙂

I would add that when the costs of absolute essentials—like food and energy—start climbing sharply, it seems unlikely that real estate prices will rise while people are struggling just to cover their basic needs.

Casey Price2 said:I would add that when the costs of absolute essentials—like food and energy—start climbing sharply, it seems unlikely that real estate prices will rise while people are struggling just to cover their basic needs.

Without access to mortgages—combined with the potential for a new property tax—prices have nowhere to go but down.

Unless, of course, half a million retirees from Florida decide to move in and buy up two houses apiece.🤣

Anthony Evans78 said:If you actually think we're in a bull market 🙂
Not this again... 😉

So you see it as money, a currency. And currencies don't have bull or bear markets?

I still remember—not even that long ago—when everyone was preaching about grabbing up land out in the mountains of Montana because once the tourists from overseas finally discover how beautiful it is, you have to wonder if there’ll be anything left to sell 😂

Looks like the feed’s been dead since Friday. Not sure if you guys caught that interview yet—it wasn't with Zeroheg nor KWN 😍

http://www.youtube.com/watch?feature...&v=SFaRazMpxcM

Seriously, just pay attention to the host chewing her gum while she talks 😂. It's distracting as hell
.

dustyheron5 said:Without access to mortgages—combined with the potential for a new property tax—prices have nowhere to go but down.

Unless, of course, half a million retirees from Florida decide to move in and buy up two houses apiece.🤣

Now I see why you get under people's skin sometimes. 😁 You clearly aren't even reading what you're replying to. I was talking about the USA.
@silver
Facts. Nobody actually knows how much shadow inventory is out there. A huge chunk of it might just be total junk that isn't worth a dime.
Or maybe the banks will pull some moves to make sure it stays worthless. 😍
http://www.time.com/time/video/playe...090492,00.html
Anyway, since we're drifting off-topic, let's kill this debate here. We can pick it up in another thread.

Andrew Barrett4 said:So, what’s everyone’s take on using debt as an inflation hedge?

Fighting fire with gasoline, I suppose... 🙂

That was actually my first thought—buy a house, put down 50% of my own cash, take out a loan for the other half, and keep a solid reserve on hand. Imagine locking in a fixed rate around 2-2.5% for 10 years.
If inflation actually hits, I win because the real value of that debt just evaporates.

The part I'm not crazy about is being in debt, plain and simple. Besides, I’m honestly not convinced we’re heading for massive hyperinflation—if things went that south, this whole economy wouldn't even be able to function. We might see 5%, maybe 7%, maybe 10%... but it’s hard to imagine anything significantly higher than that. The big banks have way too much sway over policy to let inflation spiral completely out of control.

And look, prices in Germany have already been pushed to historic highs. Buying something that’s already massively overpriced doesn't feel like a winning play to me.

Also, I don't buy into those doomsday scenarios about running out of groceries or electricity. If everything really does go to hell like that, you aren't going to need a backyard garden and a flashlight—you're going to need an AK74 or an MP5.