Reader Comments On “Get Out Of Gold Now While It’s High Part 1 of 2
LINK To Earlier Post
Raymond36 Jc i dont understand You stated that the goldprice in 1980 was $2073 In my opinion it was $873 at a all time high So i am a little confused
JC Collins The info comes from the data at the following link:
The numbers are adjusted for inflation. Should have clarified that point. Thanks for catching it.
Raymond36 Ok JC but than this whole chart is wrong Also you talk about a declice of 17 percent in the goldprice from $1900 to$1070 That is not correct We also talking about a paperprice set in the futuresmarkets witch is probely heavy manipulated
and when the rimbini wil be included in the SDR the pricesetting for gold will go to China and the pricesetting wil be in fysical gold I am not a goldbug and the essey is very interesting
JC Collins Numbers and paper/physical gold variations can be spun many different ways. The reality is the price of gold has been declining, and is showing no signs of trending the other way.
Steve Henningsen Hi JC I have been by your side from the beginning and agree with the majority of your thoughts – Doesn’t mean things will turn out exactly the way we think! :)
Anyway, as you know, I am a proponent of keeping some of your assets in gold bullion. I am neither a “gold-bug” nor a PM dealer, but a fiduciary who believes it prudent to hold at least some portion of your wealth in hard assets, which includes gold.
I am not going to comment on your post except to say this; It’s one thing to say that you feel gold’s price will drop and people should maintain a minimum amount of exposure to gold, say 5%, but in my opinion it is reckless of you to make the recommendation that they sellout.
Sure golds price may continue to drop, especially if the dollar continues it appreciation, but no one knows the future; especially in these historic monetary times.
I realize that you are under a lot of pressure, as many follow your thoughts closely. My only advice is to temper your “all-in, all-out” recommendations, as a little diversification never seems to hurt in the end.
JC Collins Steve, I’m not “all-in or all-out”. I’ve stated previously, and stated again at the end of the article, that its good to retain some gold but be more diversified. The article was targeted more towards the all-in gold crowd who think the sun rises and sets on the precious metal.
I’ve been extremely responsible, considering people are losing their life savings because they listened to the gold pumpers and charlatans. Commodities are a great bet in the coming months and years, as they have been low for so long. Buy low and sell high. Sorry if the intent of my article wasn’t clear. The gold topic seems to be an emotional one for many.
Steve Henningsen Yes, you did state so at the end. However you led with: GET OUT OF GOLD NOW WHILE IT’S HIGH, which as you say plays to emotions. Don’t let the goldbugs distract you from the trail.
Anyway, in the end investors get what they deserve, not what they want.
JC Collins Valid points.
Tony Graupp As Ray Dalio says [World’s largest hedge fund manager..BridgeWater]….
Bridgewater’s Ray Dalio explains in under 120 seconds why everyone should allocate some of their portfolio to gold:
“If you dont own gold…there is no sensible reason other than you dont know history or you dont know the economics of it…”
I’m sorry JC….But I think your TOTALLY “””WRONG”” on that one…. Gold has a 5000 year history…and you’ve got a decade or two at most….
China is accumulating gold at a rate of near 50 tonnes per week while the US Comex futures has “”SOLD”” ……””ONLY”” 40 tonnes for the whole year…
That’s 50 times more gold being “”PURCHASED”” in China than the US…. I think you ought to go back and review your premise.. to sell your gold now Take Care Tony
JC Collins Please provide verifiable links to the data of China accumulating 50 tonnes per week. Gold has been dropping and dropping in value. Fact. Keep losing if you’re so convinced you’re right.
The chart I provided contains almost 100 years of data, not just a “decade or two at most”. And to reference 5000 years of history would only be relevant if everything else was static in the time period and nothing changed.
Unfortunately we experienced massive and fundamental change in that time period, including another agricultural revolution, the industrial revolution, and an on-going information age which is showing no signs of slowing down.
And once again, I have expressed that gold should be held, but I definitely feel it is time for those heavy in gold to diversify and buy commodities while they are super low. This is a good investment strategy for those who believed the crap of the precious metals pumpers.
The system isn’t about to collapse and the world is not going to end. There will be volatility, but there are other alternatives to the dollar emerging which are working towards stabilizing the international monetary system. When this system is stable the price of gold drops. That is another fact.
I stand by my analysis as always.
Tony Graupp Greetings JC…. As a gentlemen I ask you to understand what is actually going on, because I believe you are misinterpreting what is in fact happening…
China is accumulating “”MASSIVE”” “”MASSIVE”” amounts of gold….
Please, please do not associate the price of gold on the Comex with the demand as the >>> “”FUTURES PRICE “”<<< is ""COMPLETELY"" disassociated from it on the Comex
Here Koos Jansen explains it fully….. Please take the time to read & understand it … Take Care Tony
JC Collins Already read it. Thanks. I stand by my original analysis. As a gentlemen I say I am correctly interpreting what is going on, which is why the POM thesis is trending accurately.
Extremely accurately I might add. I state that humbly and for the sole purpose of drawing attention to the accuracy itself, and not for my own personal fulfillment. The moderate accumulation of gold by China has everything to do with internationalizing the RMB and creating a liquid market.
All countries, including China, may deposit their gold reserves with the IMF, like countries did with the US under the Bretton Woods system. That is more likely what gold repatriation is all about.
I’ll continue to interpret the data through a complete and thorough analysis of the whole monetary framework. I have no desire to cherry-pick data points and scripts which don’t take into account the whole picture.
Tony Graupp Greetings JC: My only comment to your rebuttal is that China ‘accumulation’ is NOT moderate…..IT IS MASSIVE.. Take care Tony
JC Collins Tony, here’s another example of how disproportionate reporting and misleading articles spread the big misconception.
What the article doesn’t tell you is that the 24% of JPM eligible gold which was removed amounts to only 2.42% of all eligible gold in Comex. It’s peanuts and doesn’t amount to much. But its taken and blown up into a huge precious metals story which is used to pump the idea that gold will skyrocket because of some mysteries hidden demand.
People are starting to awaken and they’re going to be pissed at those who misled them. Some of these gold pumpers are just as bad as the international bankers themselves.
Tony Graupp Greetings JC; My last comment here would be that the price of gold on the Comex has NOTHING to do with demand or supply..
The Comex is a futures ‘bet’, at best…. 99% of the contracts are settled in paper…and no gold moves..
SO, yes the price of gold could drop to $250 on the comex,,, But I doubt there would be any movement of product…. “”IF”” that did happen, I’d back up the truck and load up…. Take Care Tony
chaosut17 Hello JC, I had been following what you have been saying for past year or two. I bought a substantial amount of gold around $800 an ounce prior to the 2008 crash and dollar cost averaged buying the rest from 2009 to 2015.
Once I saw the high of $1900 and none soon after the realization was obvious that the peak point had been reached. I sold all my gold and silver around May 2015 when the price was $1199.
It has not breached that number since then. I actually agree that the gold price is heading much lower. I am diversified thanks to your information – i have stocks, cash reserve, a new house (part of the gold sale was a down payment to the house) and now a rental property. Reading your site has been eye-opening. Cheers
JC Collins Thanks for sharing. Glad to hear a good news story out there. As you say, being diversified is the ticket.
Speedspirit When everyone is giving up on gold then it is then that you know the bottom is near. JC you have just indicated the bottom is near. I will hold, Thank you.
We should see a small reversal in December and then the FINAL low in April. Interesting how this correlates with your thinking on commodities rising next year. Gold in history has risen with lack of confidence with governments not interest rates not inflation.
War creates lack of confidence with governments and world war creates a global demand for Gold. With all happening in the world now is not the time to run from Gold.
Do not know if you have seen the latest news from RT where Putin releases evidence that the G20 and 40 nations helped finance ISIS.
Also the cover of the famous Economist magazine the 11.5 and 11.3 symbol could of stood for 11/13/15 the date of the Paris attacks.
Holding Gold is a non violent act of revolt against the system. How often you write about personal responsibility and yet you advocate readers participate in a rigged casino of Wall Street that perpetuates War, poverty and killing innocent people. Why? Have you lost your compass?
JC Collins Not sure how to respond to your comment. I simply do not accept the framing of your argument, as it is based on misleading interpretations of current affairs, the half predictions of others, a bizarre magazine cover which people are desperately trying to find meaning in, and a personal attack on my character. You have proven your own ineffectiveness at addressing the fundamental issue which is discussed in the article.
Do you not care that people are losing their life savings by believing in the fear porn being pumped by others? What are you doing to help others and bring real understanding to the issues of the day? Nothing but parroting the talking points of absurd scripts.
Come here with facts and realistic analysis or don’t bother coming at all. I’m attempting to help others and not promote the same misleading and counterproductive scripts which are presented elsewhere. And it’s working, as some of the other comments can attest.
Gold is going down. That is a fact which you are unable to address. I heard the same crap from others when gold was over $1300 and guess what, gold is now $1070. And as I’ve stated endlessly, holding some gold is good. You seem to brush past that fact as well.
Speedspirit I know you have not lost your compass, by the way. Money needs to be a means of exchange for goods and services. Gold and silver historically has provided that role. If a way could be devised that banks are not investment banks and investing is separated from savings then we could have a promising future.
It is against natural law to charge interest. It is not right to expect gains for doing nothing to add positively to the expansion of the Universe. Investing in Wall Street is just bad for everyone because what we see destroying the world is created by Wall Street.
People vote everyday as they spend their money. If you spend it on companies that disrespect life then they will not change. If people continue to leave money in investments then Wall Street will not change until it’s too late.
Peacefully take a stand for yourself and hold in your possession physical Gold and silver for the day will come in the future where you will not be able to buy it when the time comes. Supply and demand.
In the future when the price begins to rise it will rise very fast. Why? Because of demand. Those who have it will not be selling at any price.
When that day comes that SDR’s cannot plug the holes in the dam digits on a screen will not get you food or water. Come 2032 you will wish you have enough gold. Silver will return a bigger return, IMHO.
JC Collins I’m glad you know what is going to happen in 2032 because I certainly don’t. There needs to be better understanding about the current system, and the changes which are taking place, so people can make the best decisions for themselves.
Whether you agree with those decisions or not. I do agree about better returns on silver in the coming years.
Comments may be made at the end of Part 2 Thank You