Goldtent TA Paradise

PM Stocks

1. Alex33 says:

   February 24, 2020 - 11:10 am at 11:10 am

   I tried to explain that to a friend of mine that he better invest larger amount in physical and will have same return over 5-8 year period as he would invest 50% of that amount in miners with far less risk in physical gold. He did not believe me of course.

2. Plunger says:

   February 24, 2020 - 11:13 am at 11:13 am

   Non-Fools play the long ball game. Don’t need to be concerned for the daily flopping around. Align oneself with the trend and be patient

   • Steins1 says:

     February 24, 2020 - 11:22 am at 11:22 am

     Thanks Plunger, we’ve done great so far!

3. Patrick says:

   February 24, 2020 - 11:23 am at 11:23 am

   Yep. I rather 1% a day over next 3 weeks. Let that MA keep within acceptable distance.

4. Karl says:

   February 24, 2020 - 11:39 am at 11:39 am

   In a generalized economic contraction gold prices are likely to do well (other than perhaps extremely transiently). I’m not necessarily predicting a certain contraction, but one seems possible.

   Ag, Pt, Pd, which have industrial uses, are at best dicier than Au in a contraction, especially the current one where there may be some question of integrity of supply. While industrial producers may decisively buy at first in order to have some basic supply on hand, they may not want to buy much, fearing that their own product may not be in demand. Ag and the others may rise with a demand for Au because of their precious metal aspect, but those who have cash and are worried will go for the Au.

   The gold stocks are stocks after all. They may go down with the others, at least for a while. They are a diverse lot. A well known solid royalty stock may hold up better than stocks of more tenuous companies, for example. On the other hand, stocks of companies heavily leveraged to the price of gold could do extraordinarily well (if they don’t happen to go bankrupt not making loan payments on time etc etc). Also to be noted is that if prices other than gold’s price stay down, and if employees stay healthy and can work, mining gold is cheap to do and more profitable. There are no hard and fast rules for gold stocks.

   This scenario gets more complicated when the clever idiots in control of things create money and throw it around. There will also be episodes of those manipulations whose names are not to be named or even allowed into one’s mind.

   Thus if there is contraction — especially with problems such that temporarily mines stop producing or there is problem with transport — Au itself should do rather well. With the others it is dicier.

   That is how I see things. I get many things wrong. I am thinking things out by writing things out.

   • Northstar says:

     February 24, 2020 - 11:49 am at 11:49 am

     For this reason (it’s complicated), just follow the chart evidence. That’s my advice anyway 🙂

     • Steins1 says:

       February 24, 2020 - 12:03 pm at 12:03 pm

       Affirmative! 🙂
       You’ve been a great help!

       • Karl says:

         February 24, 2020 - 2:50 pm at 2:50 pm

         I agree about following charts. However I think that interpreting some ratio charts such as gold to silver or gold stocks to gold might be treacherous during certain types of crises, such as during acute contractions.

5. Alfa8 says:

   February 24, 2020 - 11:41 am at 11:41 am

   Money favors even paper gold over miners

   Net Assets:
   GLD — $46B

   GDX — $13B
   GDXJ — $5B

   …even though GLD is just risky paper (like all stocks and ETFs).

6. Northstar says:

   February 24, 2020 - 11:48 am at 11:48 am

   It’s a fools game – until it isn’t.