Ok, with $GLD at $178.50 I’m adding it to my Best 2021 “Permanent Hold” Ideas List.
NOT advice, but simply what I am doing in the markets.
A few thoughts below:
NOT advice, but simply what I am doing in the markets.
A few thoughts below:
First, historically, I’ve hated Gold as an asset. It doesn’t produce any income, it has minor utility, and is generally a bet on increased fear.
So, what am I thinking?
So, what am I thinking?
I posted this chart a week or two ago. This is not a prediction of what happens in three weeks, but we are one country, divided.
In addition, we have gotten used to a “management by deadline” approach to our laws.
In addition, we have gotten used to a “management by deadline” approach to our laws.
The result isn’t good (regardless of who’s in charge).
Generally over the last 50 years total expenditures: ~20-25% of GDP.
Generally over the last 50 years total revenue: ~15-20% of GDP.
I’m no expert here, but it seems that we aren’t paying the bills.
Generally over the last 50 years total expenditures: ~20-25% of GDP.
Generally over the last 50 years total revenue: ~15-20% of GDP.
I’m no expert here, but it seems that we aren’t paying the bills.
The result? Now $27 Trillion in National Debt.
If you want to really be scared, pull out your HP 12C and figure out what a 25 bps rise in interest rates would mean for carrying cost.
Answer $67.5 Billion ... per year.
If you want to really be scared, pull out your HP 12C and figure out what a 25 bps rise in interest rates would mean for carrying cost.
Answer $67.5 Billion ... per year.
The Fed currently holds $4.4 Trillion of this debt, and I believe they will increasingly be forced to monetize the Treasury to suppress interest rates.
Why? We can’t afford it if they don’t.
Why? We can’t afford it if they don’t.
Ok, back to gold:
I don’t believe I need the dollar to lose its reserve status for gold to go up.
All I need is an increasing concern that our country is incapable of governing itself, paying its bills, and digging out of the hole.
I don’t believe I need the dollar to lose its reserve status for gold to go up.
All I need is an increasing concern that our country is incapable of governing itself, paying its bills, and digging out of the hole.
Besides with zero interest rates, I’m not giving up any real income.
Also, I can always borrow against $GLD if I’d like to lever it up (After all, I am an American) to make other investments.
Final note: Again, NOT advice, but simply what I’m doing in the markets.
Also, I can always borrow against $GLD if I’d like to lever it up (After all, I am an American) to make other investments.
Final note: Again, NOT advice, but simply what I’m doing in the markets.
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