If Gold is the ultimate reserve currency, grains have never been so undervalued

[foragefarmer]

BL, you still holding onto PAU?

Been trading in a very tight range the past year.

Any new news?

[ajl]

Ironically, while the original article was being penned, the gold chart was screaming near term top. Today it is selling off. Will it join the rest of the commodity complex heading into the shitter? I do own a small amount of gold for the purposes of hedging shit hitting the fan. Gold and silver will not continue to rise while the rest of the commodity complex in the dumps. Oil is declining, natural gas is free, wheat is poverty grass etc.

[TechAnalyst]

Or, despite gold likely topping yesterday (at $4,398/ounce followed by a $300/ounce lower range today), will the rest of the commodity complex get a boost from unwinding of the long stocks / short commodities mentality?

With worries emerging about loan qualities (regional banks and cockroaches) and debates over the current similarities to the dot-com bubble common -- it's worth considering stocks vs commodities too. During the financial crisis low of '08, the SP fell to just 5.35 x the BCOM index. It hit 65.38 last month, 64.2 currently...

[TechAnalyst]

It's worth taking note of how sharp the correction was in the early days of the Russian invasion of Ukraine.

At some point, the flow of funds out of AI related stocks into assets that hurt if they fall on you may matter.

[wrongway]

We're using cheap borrowed money to buy 2026 inputs and putting the equivalent cash into physical gold. The signal to sell the gold to pay off inputs is when the 10 year US treasury chart bottoms likely around 3 to 3.5% and moves consistently month by month higher, meaning the end of fed rate cuts and a reversal to battle increased inflation. That would put pressure on gold.

this an interesting concept. I am curious as to how you can be certain that you can unwind this position with enough of a profit that will cover off the risk associated with the position. The only gold that we can really buy are coins and small bars and the retail/wholesale mark up will not be insignificant. I would be hesitant as i am very risk adverse. the chance of profit would have to be very large, and if it is everybody would be doing it i suppose.

Perhaps buying a gold producer eft would give you about the same gains with a lot more liquidity and much lower costs. and also not the need to try to store the gold in a safe place.
I dunno but my user name checks out.

[canolacrazy]

It's a good thing to be risk averse. That's why I'm choosing this method. Gold is the best way to protect against inflation, always has been. That's why central banks (excluding Canada) buy it to protect their currency.
I would not buy gold companies, too risky. I use an etf called KILO, which holds actual physical gold to back the fund.

[wrongway]

It's a good thing to be risk averse. That's why I'm choosing this method. Gold is the best way to protect against inflation, always has been. That's why central banks (excluding Canada) buy it to protect their currency.
I would not buy gold companies, too risky. I use an etf called KILO, which holds actual physical gold to back the fund.

I would try to make sure that they have the physical gold on hand... but that is just me. there have been too many instances of precious metals going
"missing"