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r1lee
Reputation Activity
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r1lee reacted to vand in Pep talk: don't sell your PM now
A plea to you all: sit on your hands.
We stand on the breakout of what will very likely be one of the greatest bull markets of our lifetime. Think about what has happened over the last 10 years: unprecedented level of stimulus into a monetary system that is no longer fit for purpose. This is much worse than the abuse of the system that drove the prior PM bull markets of 1971-1980 and 1999-2011.
The fallout from this crazy experiment will drive the price of gold by similar factors over the next decade, just as it did during the previous bull markets. Bull markets always run longer and further than nearly all their early adopters think is possible.
PMs will be valued many multiples higher in the years to come. Scoot on over to a "mainstream" investment site like MrMoneyMustache or MoneysavingExpert and gold doesn't even figure on the radar. They are ALL about passive index funds and chasing the stock market. They worship VTSAX. If you are lucky you might find someone holding 20% bonds. They won't even look at gold until it has at least doubled from current levels, and even then they will be some of the earlier adopters.
There will come a time to sell your PMs and buy something that is better value, but that time is still years away. It will be when everyone thinks it is a good time to be overweight on gold, when Dow/Gold is somewhere between a half to a quarter of its current level.
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r1lee got a reaction from MancunianStacker in The coming Gold crash
This is why in the other thread, i state that "this time is different" haha. I can't fathom $400 GOLD, especially with the devaluation of the USD, it makes no sense. But i'm not inclined to think that its not possible. If we have a massive market crash, one so violent that it would make the dot.com and financial crash look like silly, then anything is possible. This world is running on debt, and if those debts are called, there might be a scramble to liquidate any assets as possible. What we have learnt from history is that Cash is King during this time, what happens thereafter is a different story. If gold was $400, people would probably be kicked out of their homes for not being able to pay.
I think a great reset is probably likely to happen with Gold being re-evaluated per ounce to the new currency.
