Goldtent TA Paradise

With gold and silver at these levels, I think PM stocks are undervalued.

1. silverboom says:

   July 28, 2020 - 10:32 am at 10:32 am

   Of course you are off your rocker, North. You are “investing” in gold!!! 🙂

   • North says:

     July 28, 2020 - 10:33 am at 10:33 am

     Hmm. I never thought of it that way, silverboom, but you could be right. 🙂

     • Gold Learner says:

       July 28, 2020 - 10:58 am at 10:58 am

       Maybe, North.
       But not as much “off my rocker” as me.

       I live in the Silicon Valley, spent most of my career working with manufacturers of networking switches and routers and wireless access points and VPN devices.

       But since 2007, believed in Gold and Silver and Jim Sinclair and Richard Russell and Bob Moriarty. (that complete list will take many pages)

       You folks cannot imagine, how much “criticism due to contrarianism” I had to handle in every social and work setting.
       Hence I sought this forum.

       Now, I ask myself again, am I really off my rocker?

       GL

       • North says:

         July 28, 2020 - 11:06 am at 11:06 am

         Know what you mean. I avoided talking about it a lot in public. 🙂

         • silverboom says:

           July 28, 2020 - 12:03 pm at 12:03 pm

           Wasted breathe, talking to the “public.” In all of my decades of being a gold bug, I have converted TWO people. Two. And one of those only came on board because a higher authority than me told him what I had been telling him for a YEAR. The other got on board because I convinced him to get out of debt in 2008 and it changed his life completely. He figured I must know what I am talking about. I won’t call him a fool for thinking that, but I would come close 🙂

         • Gold Learner says:

           July 28, 2020 - 1:12 pm at 1:12 pm

           Sir Silverboom,
           You are infinitely more successful than me. Two divided by zero is infinity.

           But as far as getting out of debt is concerned, I owe it to one Dave Ramsey. https://www.daveramsey.com/
           Yes, he’s the best teacher on the planet in advocating a zero-debt life, and even better, he teaches giving, that greatest Christian virtue.
           But, the day he said that he does not believe in gold, I told myself: I mean no disrespect, Sir, but I disagree with you.

2. Noman says:

   July 28, 2020 - 10:56 am at 10:56 am

   If you divide the XAU by gold you get .082 It has averaged over .30 over many decades. Gold stocks would have to rise 3.65 times to get back to that level. We have been in a secular bear market for decades even while having some minor bull markets within that period.

3. Noman says:

   July 28, 2020 - 10:58 am at 10:58 am

   Throw a dart. Pick any gold stock or better yet buy an index. Come back in three years and buy a fleet of Ferrari’s…

   • North says:

     July 28, 2020 - 11:08 am at 11:08 am

     Noman, thank you for that data on XAU divided by GOLD. That is interesting and informative. They are indeed undervalued.

   • Gold Learner says:

     July 28, 2020 - 11:38 am at 11:38 am

     Respected Sir Noman (do you live in no-man’s land ? 🙂 ),
     Can I buy a Ferrari or its equivalent with fiat generated out of PM stocks and ETFs?
     Or, as the classic “gold bugs” advise, buy physical gold and silver?
     If one were to do buy physical now,
     (i) one would be buying gold at all time highs in USD
     (ii) silver physical needs lot of storage space. I will have to buy fire-proof and tamper-proof safes.
     (iii) what ratio of the wealth should be allocated in physical versus PM stocks/ETFs versus cash in the bank?

     Of course, I just want to know your perspective (and every other member of the forum’s perspective). After that it is to each their own!

     GL

     • Silverhawk says:

       July 28, 2020 - 12:02 pm at 12:02 pm

       right, if you want to go with physical silver & say you had 250K to invest, you would have to store 520 lbs of metal if you took delivery. Gold more portable if you had to get out of dodge. TPTB are not stupid, they know a % of the peons are feeling to the metals

       • Gold Learner says:

         July 28, 2020 - 12:57 pm at 12:57 pm

         Great points, Sir Silverhawk.
         I’m not posting here for confirmation bias, but still tend to think that hiding $100k worth of gold is much easier, and the portability.
         At the same time, I’m not yet convinced of this confiscation scare-mongering.
         TPTB are using a lot of fear tactics recently.
         There’s no point living if you’re in so much fear.
         One would never drive if they were afraid of accidents.

         • Aurum Maximus says:

           July 28, 2020 - 2:44 pm at 2:44 pm

           I personally don’t think they will confiscate. We have willingly given it up for so long. The logistics are mind boggling not to mention you can’t bring up the C word without entertaining the G&A words, (guns and ammo). Not that gold bugs are rednecks or gun nuts but if you love freedom you probably have a gun, maybe in a safe, maybe over a fireplace, but you have one. The best way they could do confiscation would be voluntary, just as it was in 1933. Well maybe it wasn’t voluntary but it you held it outside the banking system nobody came around to ask. I know my grandfather didn’t give up his gold or so he said. I imagine it would be done through taxation. But I suppose the best way would be to play the old game of show me yours and I’ll show you mine. And since I can’t audit Fort Knox the government can’t audit me 🙂 We just walk past each other and tip our hats, ” and a very good day to you sir.”

     • silverboom says:

       July 28, 2020 - 12:12 pm at 12:12 pm

       I bought my physical back in the day. Accumulated starting at $10 a silver dollar, and stopped at $20 a silver dollar. Bought gold coins back in late 1900’s. My dad convinced me to start with the fizz, then move to stocks. That fizz has done me well and will be doing me better IF I convert it to US$. What a rotten game is played – the purchasing power of the dollar keeps eroding, and soon it will pick up pace once again. That means if you convert the precious back to paper it buys less. Only reason to convert is to buy something or pay off debt. Otherwise, sit tight. might come in handy bribing the border guards in Canada to let you in.

       The time for leverage is now. Use paper to get more paper and do what you will. Buy a small farm, load up and get prepped, arm yourself, have an escape plan, get the second passport. If the riots in the U.S. cities (minor right now) haven’t sent you an alert signal, you are not paying attention. We are making a permanent move to a climate where I can raise two crops a year. Will I need to? Who cares, the point is I can IF I need to. That’s why it’s called prepping.

       Everyone has to have their own plan, make their own decisions. Have heard and said that ad infinitum. But it is true. NO ONE IS COMING TO SAVE YOU. They are coming to do you in. So get ready, while ready is still possible. There will be a time when that is no longer possible.

       • Gold Learner says:

         July 28, 2020 - 1:03 pm at 1:03 pm

         Again, great post!
         A “younger” person such as myself, has learnt the hard way. Lived through one of the most volatile periods in PM history, 2007 to date.
         Diligently reduced debt to zero.
         But, while I was still in a mountain of debt, I allocated all my savings to PM stock investment. I lived in fear of getting wiped out totally, for one who is in debt, has no right to invest/gamble. Lost a ton. Was on the verge of giving up all PM just for break even.

         But remembered that a real (huge) bull (market) shakes of 90% to 95% of its riders.
         Never lost faith.

         Prepping is an art.
         Just like you cannot talk PM investing to people who are eyeballs-deep into tech investing (FAANG, TSLA), you cannot explain prepping to YOLO (you only live once) mentality.

         • Aurum Maximus says:

           July 28, 2020 - 1:29 pm at 1:29 pm

           I did the exact same thing SB. Physical first then play.

   • silverboom says:

     July 28, 2020 - 12:04 pm at 12:04 pm

     Good stuff, Noman. And good advice, to boot. What a guy!!

4. Noman says:

   July 28, 2020 - 11:47 am at 11:47 am

   I like silver. Its easy to store. You can use good delivery bars as car stops. Or borders for gardens. The price you pay now is cheap. If you put something in a safe it tells people its valuable. Hide it in plain site and it goes unnoticed. After you buy physical then buy gold and silver miners. I am anticipating a confiscation of some sorts either by crudely seizing it or by a windfall profits tax as was done on oil in the 70’s. Silver may escape confiscation, it did in 1933. Also Numismatics were not affected.

   • Gold Learner says:

     July 28, 2020 - 12:43 pm at 12:43 pm

     Noman, thank you so much for your perspective.

     I think I’ll need to buy a new home with a decent sized garden etc first before I can put into practice your precious advice. Will store your golden (silver, if you will) words, in an email and mail it to myself.

     Best regards,
     GL

5. Noman says:

   July 28, 2020 - 1:03 pm at 1:03 pm

   If you buy gold buy foreign gold like Mexican 50 pesos coins. Not US gold. Do not store at a bank. Use a commercial storage facility. I do.

6. Aurum Maximus says:

   July 28, 2020 - 1:24 pm at 1:24 pm

   We started to discuss this yesterday. I am chalking it up to a lag. Like I said yesterday I bet we could tell when things move as to when the letter writers see upticks in subscription. I know Bill Murphy I all over this with GATA. I will send him an email and check and report back.

7. Aurum Maximus says:

   July 28, 2020 - 1:32 pm at 1:32 pm

   What about silver under performing gold. It is also late to the party but on CNBC they are talking up Gold $3500 which is hilarious as the younger hosts can’t wrap their heads around anything that isn’t FAANG. But analysts are saying gold at $3500 and Silver could hit $30-35, what a joke! I smell a rat, somebody is trying to protect something.

8. Noman says:

   July 28, 2020 - 1:59 pm at 1:59 pm

   AM did you see my post to yours earlier? If it does not register, disregard.

9. Aurum Maximus says:

   July 28, 2020 - 2:35 pm at 2:35 pm

   Hi Noman, sorry I missed and am trying to locate which thread. I am tracking this thread, please restate. Thanks!

10. Noman says:

    July 28, 2020 - 2:56 pm at 2:56 pm

    I was talking about selling silver to DG vs Ebay

11. Noman says:

    July 28, 2020 - 2:57 pm at 2:57 pm

    I said I would get $23 at DG and $33 on Ebay. I think we are local.

12. Noman says:

    July 28, 2020 - 2:59 pm at 2:59 pm

    One more leap here. Are you EP

13. Aurum Maximus says:

    July 28, 2020 - 3:03 pm at 3:03 pm

    Hi Noman, Not tracking the DG, all I think about is disc golf when I see those initials 🙂 but assuming you are meaning a coin shop. But yes, places like that will just pay you the bid. I remember when it Texas if you spent $1000 you didn’t pay tax. Now any amount of gold or silver is tax free. But I would walk into my local shop. Silver was so unloved back then they sold 100oz bars without premium. So if silver was $7.49 I paid $749 for the bar. So I would have to buy two so I could avoid tax! The good ole days for sure 🙂

14. Aurum Maximus says:

    July 28, 2020 - 3:06 pm at 3:06 pm

    Also, what is EP? Talk to me like I am four. 🙂

15. Noman says:

    July 28, 2020 - 3:07 pm at 3:07 pm

    I remember when I could move/carry good delivery bars 84lbs. and carry 2 monster boxes, not any more!

16. Noman says:

    July 28, 2020 - 3:10 pm at 3:10 pm

    I have a 400 year old cannon ball that Henry Morgan the pirate fired into Ft. San Lorenzo Panama. Its 26lbs and now I just look at it.

17. Noman says:

    July 28, 2020 - 3:12 pm at 3:12 pm

    EP is Earnie Palms who worked at Dillion Gage back in the day.

    • Aurum Maximus says:

      July 28, 2020 - 3:15 pm at 3:15 pm

      Ah, thank you. I see DG is up in Dallas. I don’t know them, I am in Austin.

18. Aurum Maximus says:

    July 28, 2020 - 3:13 pm at 3:13 pm

    Paint that cannon ball gold and sell it to the Goldman Sachs!

19. YYZ says:

    July 28, 2020 - 3:22 pm at 3:22 pm

    Taking advantage of practically free (read worthless) currency rates.
    Currently paying under 3% (mortgage equity draw) to hold all physical. Currently physical holdings are far outstripping balance on mortgage. Why more people aren’t doing this I don’t know – as long as they are ‘comfortable’ servicing the debt. Clearly a failure to see winter coming.

    A friend of mine told me he paid down debt with the last stimulus ck, this time he’s buying silver bullion (at no prodding from me). He just woke up last week to what I’ve been telling him for years.

    I decided in 2016 I’d rather have my long term asset holdings in physical PM rather than real-estate. GLTA, and thanks to everyone for sharing there insights and experiences here!

    • Aurum Maximus says:

      July 28, 2020 - 3:38 pm at 3:38 pm

      It is quite amazing that over the years the people that don’t heed the advice. Not even for a small portion of their wealth. Suddenly they all
      “get it” and worse they claim they always knew. I just smile and say welcome. No point rubbing their nose in it now.

20. Noman says:

    July 28, 2020 - 3:28 pm at 3:28 pm

    Neil Davis posted a very interesting line chart on the site recently of SPY:SLV. He suggested that when the contracting triangle was broken out of to the downside that it indicated that the public was finally buying into the precious metals. At the time it had not. It decisively has now.

21. Noman says:

    July 28, 2020 - 3:30 pm at 3:30 pm

    weekly