Gold Hits Record High
- Thread starter Alwayslit
- Start date
I started buying back in 2007 at under 700 an ounce. Silver was around 12 or so I think. I bought a lot of silver between 10 and 14 an oz. I did a post on this awhile back but deleted it when everyone thought I was crazy. LOL. Both metals are real money unlike the paper currency we carry around. Real money retains it's purchasing power over time and currency loses it's purchasing power over time from the tendency of governments to over spend. The metals are a great place to store excess capital
With the markets pulling back a bit gold is acting like a safe haven. Silver is kind of boring most of the time but when it gets going and plays catch up it's usually pretty exciting. I actually prefer it like this. slow and steady versus blasting off and coming right back down.
From what I have read there are hedge funds getting margin calls and having to liquidate their bond holdings. This is causing the yields to rise quickly. Good for gold price. Fed will probably step in to save the hedgies but who knows when. They are way over leveraged at around 50 to 1 so unless the fed does step in it will have devastating impacts on everything. The big banks like JPM lend the hedgies gazillions of dollars and allow them to trade with 50 to 1 ratios. The problem is at times like these, if the hedgies go so do the big banks that lent to them. So once again, to big to fail. Thus the fed will step in and probably pretty soon. Once they step in expect things to normalize somewhat and gold to head lower once the crisis is averted. Until that happens, 3500-4k is possible but it will be very short lived. Then a pullback to normal levels around 3k plus or minus 200.
I'm definitely not buying right now. In fact I haven't bought in a very long time. My last purchase was at 1290 an oz. I thought that was expensive. LOL.
I'm definitely not buying right now. In fact I haven't bought in a very long time. My last purchase was at 1290 an oz. I thought that was expensive. LOL.