Aside from physical gold, what are you guys' gold exposure?
I have some mining stocks that are doing very well, and a small amount on a crypto gold-pegged futures trade that is also doing well, but would like to put some into an index, etc. I have Fidelity, if that makes a difference, but also a few other accounts I could possibly use if needed.
Stick with physical gold and silver (with the caveat that you have a safe and secure place to hold it). Try to buy it at the lowest premium over spot price. Don’t overpay for pretty coins—as when you go to sell it (if you do)—the offers that you will get will predominately be made based on purity, amount and spot gold price at the time. You generally don’t get return on the premium. Part of the run up in the precious metals is that as artificial intelligence and quantum computing evolve, hacking and theft of digital assets will be a bigger risk. The criminals and crooks tend to be one step ahead. Also, when you buy an asset that is connected to gold—but that isn’t physical gold—you are still opening yourself up to poor management, fraud, and market manipulation. I don’t know if the values of precious metals will continue to have a line shooting straight up and to the right—but I do think that there is still a lot of long term upside. Almost any country, individual, entity that is holding a lot of US debt in the form of bonds is purchasing gold and precious metals as a way to insure holding that debt that is almost certain to lose value with a fed that will probably have Powell and perhaps cook replaced in the near term.
With that said, I think that most legitimate equities, investments, and commodities are very bullish long term. We have a situation here where the government is still overspending, AI is just starting to improve the efficiency and profitability of big businesses, in a market where the dollar will be cheap for qualified entities to borrow. I think banks will be hesitant to loan out money to small and medium size businesses, but will have no problem loaning to big busineeses. These large businesses that are present in the stock market will have access to cheap capital and will be able to buy into the expensive up front cost of integrating AI into their business models—which will in turn make them more profitable. They will be able to lay off expensive workforces and replace them with AI that works 24 hours a day 7 days a week. These will make life very difficult for small and medium size businesses and many will go extinct or bought up by the larger companies. I think we could very well see a situation where in the medium to long term—the markets could be thriving meteorically while a large portion of the public (a far bigger wealth disparity than we see now) is struggling to make it. My advice is to avoid being cash rich. Hold enough to get you by—and hold a little extra for some unknowns—-but aside from that—I think asset accumulation is the must play for the medium and long term. There is no super great reason to hold too much cash at this moment in time—as if you have solid net worth—you should have access to cheap capital if needed here pretty soon.
broke $5. Up 18% on nearly 6x daily volume already this morning
