they are going up, but the dollar is not going down.

explanation?

the answer to this is not really known - there are way too many variables but I will take a stab at it.

It is probably caused by other investors outside of the US that are frightened by their currencies/policies who are flooding to the US and gold.

Thanks.

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the answer to this is not really known - there are way too many variables but I will take a stab at it.

It is probably caused by other investors outside of the US that are frightened by their currencies/policies who are flooding to the US and gold.

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Paper money is backed by the full faith and credit in the government. That's all it's backed by! Crag from your posts I know you don't have much faith in our government. Few have much faith in theirs either!

Governments all over the globe are printing money to give the illusion of prosperity. But printing money doesn't really work to create anything but more paper money and bubbles because it distorts the true value of money. Printing money can buy some time but without policy changes that actually produce jobs and real prosperity, printing fails 100% of the time! Printing new paper money makes the old paper money less valuable, sooner or later!

Gold and silver can't be printed and have been stores of wealth since biblical times. Gold and silver have survived and thrived while entire nations and their currencies have vanished from the face of earth.

Finally, their is no longer any real opportunity lost by owning gold. Previously savers got paid interest for their cash reserves so owning metals that paid no interest cost the interest paid on cash. Some countries have now gone with negative interest rates. So savers have to pay the bank to hold their money! People in those countries are buying precious metals, stocks, real estate, almost anything to not have to pay a damn bank to hold their cash!

How would you like to have your wealth in pounds or euros? The EU and euro are doomed! The euro will end up like confederate money! And few currencies are falling like the Chinese! Brexit is an afterthought compated to what's happening in China. They are buying gold hand over fist!

Nixon took America off the gold standard in 1971 when gold was $30/oz. When George w Bush became president gold was $230/oz. Today gold costs $1,350/oz. Historically one ounce of gold sells for the cost of a new nice suit.

IMHO, gold should be a part of a diversified portfolio. Gold my be owned physically, through the ETF's or gold miners or gold royalty companies.

Everytime I've read your posts recently, you sound more and more like a right wing conspiracy theorist. The Nixon to Bush to current attempted fiat currency correlation was the nail in the coffin.

When you can accurately calculate the intrinsic value of gold net storage etc (don't come give me the spot plus a bunch of other plugs), then you can begin to build an arguement off your statements. When you can't call a true instrinsic value, you can throw 1000 back tests against the wall with 1000 variables and make yourself be a past performance isn't indicative of future results genius.

The correlation and spread between the hard asset, the etf, gold miners, and royalty companies is so small (correlation) and so massive (miners) that I can only shake my head. If you were looking at a +.8 correlation, I'd bite my tounge and say ok, but when the correlation is close to .07, it's just lame duck bad due diligence.

Also, when you look at the bid ask spread on hard bullion, combined with the storage costs, etc since Nixon, you come out net negative on almost every 10 year and 5 year rolling average.

Ergo, it is a timing trade which by some' definition would make it a tactical trade. So you're making a tactical trade on a hard asset with a 1%+ bid ask spread on both ends unless you enter into an ETF where you hold paper vs physical bullion which undercuts your fiat currency arguement even more.

Sorry to play contrarian, but calling fiat currencies out to hold a hard asset and then telling someone to double back and invest fiat currency into a fiat currency trade backed by bullion (not backed 1:1 on a physical vs. shares outstanding basis) just comes off as short sighted or based on a lack of information.

You realize the Frank and Bund went negative because of capital requirements on European banks that require holding more govt paper and the total net inflows from non-sovereigns is only about an 1/8 of the total market.

You are playing the fear card which is most psychologically appeasing. BUT, remember the old adage "be greedy when others are fearful, and fearful when others are greedy". One wrong right turn and your whole premise is unsound.

My gold and silver miners are up 15-27% over the course of the last month and some have tripled since February. I took time out of my life to answer Crag's question in a detailed and thoughtfull way.

BTHOtu, I don't care if you own gold or not. Different opinions on investments makes the horse race. George Soros knows a lot about fiat currencies since he made billions shorting them, he isn't a right ring conspiracy guy and he bought 10 million shares of America Barrick and and 1 million shares of Silver Wheaton. Peter Druckenmiller is one of the more successful hedge fund guys around and he actually said sell all your stocks and just buy gold.

BTHOtu, are you richer and smarter than George Soros and Peter Drukenmiller?

Crag, I would never recommend owning only one investment. A diversified portfolio of quality dividend paying stocks, growth stocks, real estate, oil and gas royalties and some gold has historically worked out well for the long pull!

BTHOtu, Crag asked why gold and silver are going up. And I gave my opinion on why they are going up. But your answer sounds more like the answer to the question of "Why are gold and silver going down". Since gold and silver are going up and not down is your answer that those buying gold and silver miners/bullion/royalty are insane, stupid or just old fashion wrong?

In my book the market is the answer. Those invested long in gold and silver (whether billion, miners or royalty companies) this year seem to either know something you don't or we are just very lucky!

Using Soros to justify forex trades. I needed a laugh before bed.

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Using Soros to justify forex trades. I needed a laugh before bed.

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Then I suggest you look at the market results so far in 2016 and then reread your posts on this thread and you will get a hugh laugh before bed!

Meredith Whitney for financials?

Naming 2 successful forex managers in arguably the largest active market is alarming.

Soros' Sterling short was a much more dynamic trade then a simple short. Watch interviews where it's labeled a short and he quickly will disagree. He was not open kimono on that trade.

I don't take a 6 month tactical view on past performance to give me anything but better covariants.

Also, stop looking at the just the car and not the engine. His trades are way more complicated than your implication.

Go back and look at historical performance. Empirical data speaks for itself.

well crap, guess I need to sell off all my mining stocks that have a 75% upside over the last three months.. such a stupid investment per BHTOtu...

Japan's Abe (Abenomics) won reelection in a landslide. So the reigning king of money printing will, at a minimum, keep printing, and if printing continues to fail I would expect him to accelerate printing/QE. Abe's reelection, though expected, should help gold as time (and printing) goes on.

Where did I say not to buy miners? I didn't. I said the argument for investing in miners as a hedge against fiat currency is an empty water trade. I then spoke about the correlation between the two asset classes (hard bullion vs miners). The fact gold has had a poor 10 and 5 year rolling average doesn't mean that the companies that operate in the space can't increase in value. There are many commodity backed industries that have great value names. BUT, don't come over here spouting off about central governments manipulating monetary supply and a false history lesson on the spot vs actual intrinsic value of gold.

I am overseas, but the lack of reading comprehension on this board is somewhat astonishing.

That wasn't a referendum about economic policy. Why? Abe has taxed the living **** out of the Japanese populous. So, the results on an empirical level show it was an election based on the populous voting in a non-unified but coalition govt direction because they wanted fundamental constitutional reform to remove their pacifist restraints both militarily and economically, and only a supermajority would accomplish it. Yes, LDP won a majority for the first time in almost 30 years, but it was based on constitutional reform, not solely on economic policy.

I feel like everything is a conspiracy to you.

Staff can you get rid of BTHOtu? He is ruining this thread! This is a thread about gold and silver prices and he has latched on to me like a nutcase!

HELP!!!!

Bthotu is adding some reasonable insight and viees. Not sure why you would have an issue with them.