Gold: The Inflation Hedge
 

Once upon an afternoon dreary, I was pondering weak and weary…the price of gold. Yes, it's risen substantially, and yes I’ve benefited financially (No ravens here, just their aviary cousin, the crow, and a bunch of wild turkeys).

Since we last spoke, I have “jettisoned” my two "junior" silver-miners. I’m now concentrating on gold. I believe that the “yellow metal” offers more “bang for the buck.”

You ask, “Do I see gold going higher?” Yes, I do. It may not be as exponential as recent gains, but “slow and steady wins the race.”

I currently have about 5% of my total portfolio in gold: two stocks: a “major” and a “minor.” I’m thinking of adding to my gold-holdings with my “grubstake,” i.e,, cash. For now, I’m “keeping my powder dry.” I’m waiting for “dips.”

As I continue, gold loves “uncertainty.” Frankly, there’s lot of that to go-around. Internationally, you're talking about Ukraine, NATO, Putin, Taiwan, etc. Domestically, although inflation has eased, somewhat, as they say, “The old green piece-of-paper paper (fiat currency) ain’t worth what it used to be.” That has people, including many average Americans, looking for alternatives. Even (I’m not shilling) the Walmart’s and Costco’s of the world are “selling gold.” As I understand it, there’s a flourishing market.

In my opinion, it’s not too late to “jump in.” I personally believe that the gold market could get to $2,500 per-ounce by summer, if not sooner. Why? Because both the geopolitical and domestic world remain in a state of flux. There’s that word again, “uncertainty."

In closing, I do believe that when it come to investing, the key is “diversification.” Yet, in that light, I strongly believe that gold, especially in these “uncertain times” has a place in most investor’s portfolio. Personally, in my opinion, I wouldn’t go over 10% in precious metals, but that is a personal decision. As I always say, "Everyone's a free agent."

Finally, I believe that in these inflationary times, it is important to consider “hedges.” Under that heading, I would consider real estate, “collectibles” (you have to know what you’re doing), and precious metals, i.e., gold.

the amazing part of this rally has been the strength in the us dollar and the bonds.

if you go back to 1995 trend lines in gold, we are about the hit that trend line on the weekly chart. there is no bigger trend line. if you break that line that would suggest a multi year bull run in the gold. something big is coming for sure, but gold still needs to bust through that trendline. the last 5 times gold went up to the trend line, the gold market fell apart.

i am using the Wycoff method for accumulation and distribution. there is nothing that would make me be more happy than being wrong on this!

there is a gold mining stock that has already broken that same trendline, its Angelico Eagle. (AEM). that stock just did it, is selling for $59 and $89 is the all time high and that's where its going now. the generals usually lead the soldiers.

silver and gold have made nice rallies during the last 2 weeks.

gold highest ever and silver highest in last 10 years.

gold down $100 today since I posted :eek:

today gold broke the 30 year old trendline that i have been looking at.. often times these things clear the trend line on the 3rd try. my guess is that the breakout of gold is very close and will probably run for many years to follow.

I don't consider my Phyz to be an investment. I consider it insurance.;)

"Unlike cash or even gift cards, Costco classifies gold bars as collectibles, which may or may not retain their value over time.

For that matter, the Internal Revenue Service also considers gold bars as a collectible too, and demands as much as a 28% cut of any profits on gold held for more than one year.

The bars themselves might be fun to hold and look at, but between the possible interest, taxes, shipping, and other expenses — not to mention the hassle of finding a buyer — trading gold just might not be worth the trouble, even at Costco prices."

https://www.msn.com/en-us/money/mark...4f5882c0&ei=29

the tax part is true. US minted coins do not require a 1099, all others do

Biden wants to fix that to a 'more fair' capital gains tax of 44.6% for his redistribution needs :ThmbUp:

for all the gold enthusiasts of the world, April 30 is your big day. the XAU index is already on a weekly buy signal, tomorrow i will know if its on a monthly basis as well...these indicators don't signal tops or bottoms, but you can get up to 80% of the move. those moves often run for multi-year runs.

so far it looks like the move will be confirmed, but i thought the same way last month and at the end of the month it told me to wait another month. i am pretty sure that the waiting will be over tomorrow.