Economy crash =/= stock market crash?

adindas

Type_45 said:

My gold miners and silver just can't catch a break...

My personal opinion. Buying assets when they are already making a run and a lot of people want is not a good strategy.

The contrarians are buying assets when not many people want it.

Unless you are a trader, If you buy gold for long term hedges, buying Gold, Miners, Silver should be done in November last year, not now.

If I want to add my Gold Miners, Gold, Silver as a hedge, I will wait until they drop significantly. When the inflation is under control you might get it at a very good price. In the meanwhile if you buy now, you might see you are severely in red once the inflation is under control. There might be a long wait until the cycle is reversed to make profit. 

Type_45

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

adindas

Type_45 said:

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

Not really significant if you compared before the inflation become an issue (not the peak in March). Keep in Mind November last year the FED was still saying the Inflation was transitory, not there to stay.

To me, I will wait until Gold reach the next support level e.g around US$1,790 or the US$1,720 for ideal buying price (e.g Not many people want it)

Keep mind Gold is a hedge against inflation. The inflation is nowhere near the desirable state of 2%.

The inflation will fall eventually, it is just a matter of time.

Type_45

adindas said:

Type_45 said:

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

Not really significant if you compared before the inflation become an issue (not the peak in March). Keep in Mind November last year the FED was still saying the Inflation was transitory, not there to stay.

To me, I will wait until Gold reach the next support level e.g around US$1,790 or the US$1,720 for ideal buying price (e.g Not many people want it)

Keep in mind Gold price has an inverse relationship with inflation. The inflation nowhere near 2%.

The inflation will fall eventually, it is just a matter of time.

You say gold price is inverse to inflation. 

Inflation is currently at 40 year highs.

So your logic would mean that you should buy gold now.

adindas

Type_45 said:

adindas said:

Type_45 said:

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

Not really significant if you compared before the inflation become an issue (not the peak in March). Keep in Mind November last year the FED was still saying the Inflation was transitory, not there to stay.

To me, I will wait until Gold reach the next support level e.g around US$1,790 or the US$1,720 for ideal buying price (e.g Not many people want it)

Keep in mind Gold price has an inverse relationship with inflation. The inflation nowhere near 2%.

The inflation will fall eventually, it is just a matter of time.

You say gold price is inverse to inflation. 

Inflation is currently at 40 year highs.

So your logic would mean that you should buy gold now.

Sorry it should say Gold is a hedge against inflation. The inflation is nowhere near the desirable state of 2%.

There is nothing to prevent people to buy gold now. If you do not intent to trade it, please post your result of what you get in the future after inflation fall to 2%.

masonic

Gold itself has done quite well over the past 6 months when measured in GBP, in part due to the weakening GBP which is now being classified as 'emerging market'-like by some. We could see a reversal of this, but the problem seems to be a lack of clear economic policy coming from the government, frequent policy changes, U-turns, etc.

Type_45

adindas said:

Type_45 said:

adindas said:

Type_45 said:

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

Not really significant if you compared before the inflation become an issue (not the peak in March). Keep in Mind November last year the FED was still saying the Inflation was transitory, not there to stay.

To me, I will wait until Gold reach the next support level e.g around US$1,790 or the US$1,720 for ideal buying price (e.g Not many people want it)

Keep in mind Gold price has an inverse relationship with inflation. The inflation nowhere near 2%.

The inflation will fall eventually, it is just a matter of time.

You say gold price is inverse to inflation. 

Inflation is currently at 40 year highs.

So your logic would mean that you should buy gold now.

Sorry it should say Gold is a hedge against inflation. The inflation is nowhere near the desirable state of 2%.

There is nothing to prevent people to buy gold now. If you do not intent to trade it, please post your result of what you get in the future after inflation fall to 2%.

2% inflation is not "desirable".  It takes money out of my pocket.  0% inflation is desirable.  Or preferably DEflation!  Nobody should call price increases "desirable".  Sure, 2% inflation is more desirable than 10% inflation.  But that's as far as it goes for ordinary people.

Regarding gold, yes it is a hedge against inflation.  But that is not it's only use.  The primary use being that after a crash it is a safe haven.  And if anything the price of gold is inversely linked to interest rates, not inflation.  When interest rates go up the price of gold goes down because people need the money to service their debts.  And when interest rates are low the price of gold goes up.

Type_45

masonic said:

Gold itself has done quite well over the past 6 months when measured in GBP, in part due to the weakening GBP which is now being classified as 'emerging market'-like by some. We could see a reversal of this, but the problem seems to be a lack of clear economic policy coming from the government, frequent policy changes, U-turns, etc.

The GBP, like the USD, is being intentionally crushed.  

adindas

Type_45 said:

adindas said:

Type_45 said:

adindas said:

Type_45 said:

adindas said:

Type_45 said:

My gold miners and silver just can't catch a break...

If I want to add my Gold Miners...I will wait until they drop significantly. 

They have! 

Not really significant if you compared before the inflation become an issue (not the peak in March). Keep in Mind November last year the FED was still saying the Inflation was transitory, not there to stay.

To me, I will wait until Gold reach the next support level e.g around US$1,790 or the US$1,720 for ideal buying price (e.g Not many people want it)

Keep in mind Gold price has an inverse relationship with inflation. The inflation nowhere near 2%.

The inflation will fall eventually, it is just a matter of time.

You say gold price is inverse to inflation. 

Inflation is currently at 40 year highs.

So your logic would mean that you should buy gold now.

Sorry it should say Gold is a hedge against inflation. The inflation is nowhere near the desirable state of 2%.

There is nothing to prevent people to buy gold now. If you do not intent to trade it, please post your result of what you get in the future after inflation fall to 2%.

2% inflation is not "desirable".  It takes money out of my pocket.  0% inflation is desirable.  Or preferably DEflation!  Nobody should call price increases "desirable".  Sure, 2% inflation is more desirable than 10% inflation.  But that's as far as it goes for ordinary people.

Regarding gold, yes it is a hedge against inflation.  But that is not it's only use.  The primary use being that after a crash it is a safe haven.  And if anything the price of gold is inversely linked to interest rates, not inflation.  When interest rates go up the price of gold goes down because people need the money to service their debts.  And when interest rates are low the price of gold goes up.

In the U.S, the Federal Reserve targets an average inflation rate of 2% over time by setting a range of its benchmark federal funds rate, the interbank rate on overnight deposits. After 2% is reached "hawkish" action is no longer  needed.

If you observe the news regularly, every time Jerome Powell or other FED members are talking about Hawkish action, the minute they spell it, the minute the stock market will tank immediately, even in the middle of the day started with an uptrend.

masonic

Modest inflation mainly impacts those hoarding cash and those lending to the government. Ordinary people, who generally don't have much in the way of savings, are relatively unaffected providing they see their income rise with inflation. High inflation is a problem because wages and benefits do not keep up, but low inflation is a gentle nudge to the rich to deploy their capital in productive assets rather than staying in risk free assets.