Gold: “This Time It’s Different!”

[Teach]

Just the other day, I had a phone conversation with a long-time friend, a former teaching colleague, a fellow named Joe. Although I didn’t transcribe it, this is the gist of our conversation.

Joe: "Walt, how ya doing? How’s life treatin' you?”

Walt: “Joe, how’ve you been? How’s Alice doing (his wife)?”

Soon, after exchanging pleasantries, our conversation got around to the markets and the topic of gold.

Joe: “Walt, I see that gold is slip-slidin' down the greasy pole.” (Joe, in a good-natured sort of way, liked to give me: “the needle.”).

Walt: "Joe, this time it’s different. In most cases, when gold ‘takes off,’ it’s meteoric. Yet that's usually followed by a sharp decline. Not this time. Yes, I agree, Joe. Gold has dropped, but it’s much more gradual than on most previous occasions. It’s staying in what I call 'narrow channels.'”

Joe: "That may be true Walt, but isn’t it time to ‘take a*little something off the table?’”

Walt: "I don’t think so. Joe. There’s just so much overhanging this market, not the least of which is the debt-ceiling negotiations. Time is running out. Even if an agreement is reached, that agreement has to be approved by both Houses of Congress. That takes time. Another question that remains is: 'Are there enough votes for approval. For some, the agreed-upon compromise may not go far enough, for others, it may go too far.'"

Joe: "I’m sure that they’ll get that issue resolved. Theres just too much at stake. So many people will be affected if they fail to reach a compromise."

Walt: "Joe, there are other factors. I just read that central bank after central bank is buying tons and tons of gold. What that says to me is that countries around the world are hedging. This current monetary situation is in a state of flux; it wouldn’t take much…"

Joe: "You may be right, Walt. But all this is going to take time. I don’t want to sound morose, but we may not even be here."

Walt "You’re right Joe. I want to leave my assets to my children and grandchildren. In fact, my financial planning is not about me, it’s about them."

Joe: "I hear you Walt. It’s just that I believe, at least from what you've been telling me that you’re putting too many "eggs" into that gold basket."

Walt: "Joe, if my gold-stake were drawn up as part of a pie-graph, it would be just a sliver of my holdings. I believe in diversification. It’s just that I believe that this time, when it comes to gold, 'its different.'"

With that, Joe and I concluded our conversation.

[RayT]

Originally Posted by Teach

Just the other day, I had a phone conversation with a long-time friend, a former teaching colleague, a fellow named Joe. Although I didn’t transcribe it, this is the gist of our conversation.

Joe: "Walt, how ya doing? How’s life treatin' you?”

Walt: “Joe, how’ve you been? How’s Alice doing (his wife)?”

Soon, after exchanging pleasantries, our conversation got around to the markets and the topic of gold.

Joe: “Walt, I see that gold is slip-slidin' down the greasy pole.” (Joe, in a good-natured sort of way, liked to give me: “the needle.”).

Walt: "Joe, this time it’s different. In most cases, when gold ‘takes off,’ it’s meteoric. Yet that's usually followed by a sharp decline. Not this time. Yes, I agree, Joe. Gold has dropped, but it’s much more gradual than on most previous occasions. It’s staying in what I call 'narrow channels.'”

Joe: "That may be true Walt, but isn’t it time to ‘take a*little something off the table?’”

Walt: "I don’t think so. Joe. There’s just so much overhanging this market, not the least of which is the debt-ceiling negotiations. Time is running out. Even if an agreement is reached, that agreement has to be approved by both Houses of Congress. That takes time. Another question that remains is: 'Are there enough votes for approval. For some, the agreed-upon compromise may not go far enough, for others, it may go too far.'"

Joe: "I’m sure that they’ll get that issue resolved. Theres just too much at stake. So many people will be affected if they fail to reach a compromise."

Walt: "Joe, there are other factors. I just read that central bank after central bank is buying tons and tons of gold. What that says to me is that countries around the world are hedging. This current monetary situation is in a state of flux; it wouldn’t take much…"

Joe: "You may be right, Walt. But all this is going to take time. I don’t want to sound morose, but we may not even be here."

Walt "You’re right Joe. I want to leave my assets to my children and grandchildren. In fact, my financial planning is not about me, it’s about them."

Joe: "I hear you Walt. It’s just that I believe, at least from what you've been telling me that you’re putting too many "eggs" into that gold basket."

Walt: "Joe, if my gold-stake were drawn up as part of a pie-graph, it would be just a sliver of my holdings. I believe in diversification. It’s just that I believe that this time, when it comes to gold, 'its different.'"

With that, Joe and I concluded our conversation.

Gotta think that Gold's muted performance of recent times is due to CRYPTO. I have to believe a large part of that crypto money (especially institutions) would be in Gold or Silver prior to Crypto.