patrick.net

When gold and silver peaked in 2011 the dollar index (ticker: DXY) was down to 73.

DXY is now 113. It near 1999 to 2000 levels.

The high dollar value may be one major reason for silver and gold not increasing in value due to inflation.

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I suspect the Fed economists are wanting the DXY or dollar index to drop when inflation decreases.

That import prices will not be as high if the dollar goes down, since there is less inflation of prices.

And I believe gas prices will remain constant since production is being cut.

OPEC realized gas prices would crash as the economy slows down (in a less inflation or more deflationary environment), so they got ahead of this and are making production cuts now.

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I think one big reason for the decline in gold and silver is the rise in interest rates. Investors are tempted away from gold by increased interest on dollars.

Long term, gold may be impacted by an intergalactically large find of gold in Uganda:

https://energycapitalpower.com/uganda-discovers-31m-tons-of-gold-ore/

Patrick says

Long term, gold may be impacted by an intergalactically large find of gold in Uganda:

Production will be metered or managed to ensure there is no major drop off of gold prices.

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Patrick says

Long term, gold may be impacted by an intergalactically large find of gold in Uganda:

https://energycapitalpower.com/uganda-discovers-31m-tons-of-gold-ore/

I doubt the story is true.

My friend has a bunch of silver coins he bought around 2011 at $45/ounce.
I bought shares of AAPL a bit before that.
He’s underwater, I’m up and my shares split, he’s got the same number of coins.

clambo says

My friend has a bunch of silver coins he bought around 2011 at $45/ounce.

Silver is a good hedge based on it being matched to a price of gasoline.

https://patrick.net/post/1344893/2022-05-01-silver-dime-buys-gallon-of-gas

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I seek capital appreciation first, dividends and interest second.
Hedging isn't among my objectives.

clambo says

I seek capital appreciation first, dividends and interest second.

Apple and Google are two companies that are good long term bets.

I own them as well as Walmart, Goldman Sachs, and Amazon.

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Just bought a few hundred ounces of silver at $25 an ounce. Dealer had it on hand.

When it comes to valuing gold and silver, make sure you separate the fiat paper metals markets, which are highly manipulated, from the real market, which is not.

NuttBoxer says

Just bought a few hundred ounces of silver at $25 an ounce. Dealer had it on hand.

When it comes to valuing gold and silver, make sure you separate the fiat paper metals markets, which are highly manipulated, from the real market, which is not.

iTulip used to recommend these guys:

Bullionvault.com

They have "good delivery" gold held for you in what is called a bailment. Reasonable trading fees and storage costs. The one thing you have to be aware of is FATCA (as of 2013), so if you're thinking of using foreign vaults as opposed to their NY vault, be prepared for mass paperwork.

Edit: Disclosure - I got involved with BV before 2013, so up until that time there was only the collectibles tax to deal with.

CEF and GLD used to be OK, but Sprott bought them out. I don't know how much smoke and mirrors Sprott is doing, but it doesn't bode well when Sprott said they were buying so that shareholder value could be better maintained. Uh - if your business is buying and storing precious metals, there will be associated inefficiencies. That meant that there were lags in share value between when gold and/or silver stocks could be acquired and the swings in PM prices.

NuttBoxer says

Just bought a few hundred ounces of silver at $25 an ounce. Dealer had it on hand.

Congrats on being able to find something in stock. Were they a popular bar brand? Looks like the local place in Marin has Royal Canadian Mint 100oz. bars or Nadir Turkish bars -- oh wait, that is presale. Actually in stock you've got 1 oz. Lakshmi or Ganesha rounds. Silver eagle premium is $16.

stereotomy says

They have "good delivery" gold held for you in what is called a bailment. Reasonable trading fees and storage costs.

As long as they agree to deliver if you ask for it. A vault that won't do delivery, isn't holding anything. It's getting a bit late in the game to be doing storage investments though. Meaning during or after a collapse, what's the likelihood you'll still get your metal?

EBGuy says

Silver eagle premium is $16.

So 80% over "spot" price. Amazing. Sounds like something is broken.

I miss the good old days when silver was $46/ounce

clambo says

I miss the good old days when silver was $46/ounce

I miss the old days when it was $6 an ounce, I was buying then, and I was nervous, because the price before that was $3 an ounce.

Dumped a bit of money into that, don't regret it now.

Ironically, I'm now eager to see the price drop. I bought gold when it was $600 an ounce as well.

Regrettably, it's obviously clear that if you want to fix the system, you have to bankrupt it. If EVERY American bought just 2 ounces of silver (around $50 today) I would drag this criminal government to its knees, but not really, they just wouldn't fulfill the order. Instead, they'd just steal the money.

You mean the last time the economy tanked. Don't worry, it's coming back around, and for way more.

clambo says

I miss the good old days when silver was $46/ounce

I remember that! What was it 1978 or 79? I remember because I could take an old quarter to the coin shop and get $5 for it.

There is more silver in the world than could ever be squeezed from the water and soil, but not at $20 an ounce.

https://kingworldnews.com/sprott-china-is-replacing-u-s-treasuries-with-gold/




I don't know that this is true, but it makes sense.

do the elites prefer higher or lower precious metal prices?