[Otters27]

Why is gold so high when stocks are also high?

[jjgold]

strange

usually the opposite

good question

[Snowball]

inflation, like asking why a pound of bacon is high.
everything is high.

also frontloading by speculators who see the
"market" (joke) running out of gas and trading
off soon, so they bet on the come and will
hide/profit in gold until the stock market corrects,
then sell the gold and get back into the stocks cheaper.
or so is the plan they have. as usual when they sell
gold later, they will write 10,000 articles saying its
going to the moon, to attract bagholders.

[kidcudi92]

otters get some smaller sizes of gold and silver to barter with when the world ends

don't always need an troy oz piece

silver troy oz pieces usually ok, plus the coinage that was made with silver is good for that

[jose21_us]

Perfect timing gold took a huge ass hit today....

[HAPPY BOY]

big dump on oro...keep it in porfolio anyways

[Ralphie Halves]

Nothing making any sense right now.

Been jerking off on the sidelines for the better part of early 2017. Shit needs to get moving already.

[RoyBacon]

The two markets are not correlated. Gold is simply an inflation index. Gold was $25 an ounce in 1960, roughly the wage per week of a plumber. Today it's $1260 an ounce also roughly the weekly wage of a plumber.

Gold does become over and under valued for long stretches but always returns to the average weekly wage of a skilled trade. If you are bullish on gold you are watching the dollar. A crack in the value of the dollar will send gold higher. And with $20 trillion in debt that crack is coming.

[Snowball]

Gold does become over and under valued for long stretches but always returns to the average weekly wage of a skilled trade. If you are bullish on gold you are watching the dollar. A crack in the value of the dollar will send gold higher. And with $20 trillion in debt that crack is coming.

Here's why you're probably wrong on this part. Trump and a new Fed Chair.
They want the banks to lend more, so all that locked up money the previous
administration printed and gave to banks goes into main street.
This will happen - commesurate with a raise in interest rates.
Another reason for higher rates is the end of stimulus and a base rate hike.
Additionally, the dollar will be strong when the equities slow down, American military
and American domestic jobs will keep the dollar strong, with the higher interest rates.
Interest rates are terrible for gold and silver. There is no rainbow in sight for gold
and silver. Also the national debt is going down now that Trump is in, and it is
the defacto policy of the Fed and ECB to hold gold and silver down.
Base metals and basic materials are better investments now. Railways, cement,
steel, plastics, construction, heavy equipment, electrical, tools, tape, contractors,
all that stuff, all those services.

[RoyBacon]

Here's why you're probably wrong on this part. Trump and a new Fed Chair.
They want the banks to lend more, so all that locked up money the previous
administration printed and gave to banks goes into main street. This will happen
- commesurate with a raise in interest rates. Another reason for higher rates is
the end of stimulus and a base rate hike. Additionally, the dollar will be strong
when the equities slow down, American military and American domestic jobs will
keep the dollar strong, with the higher interest rates.
Interest rates are terrible for gold and silver. There is no rainbow in sight for gold
and silver. Also the national debt is going down now that Trump is in, and it is
the defacto policy of the Fed and ECB to hold gold and silver down.

Good post and do not disagree at all for the short run. The dollar is mainly strong because every other currency with few exceptions are even worse shape.

Trump is bad news for gold and even without doing a thing the 10 year bond has moved from 1.5 to 2.5 and it may just be getting started.

However, interest rates aside for a second(& strong dollar), there is a hint of inflation in the air and a shaky monetary system in general. Even the hint of a crack like we saw in 2009 will send gold higher and possibly much higher. Wouldn't rule out a rise in gold prices even with increasing rates as a backdrop. But would still agree the most obvious signs point to flat prices.

[Snowball]

Roy I sold almost all my gold and silver and won't bother buying it back,
there is no event horizon, indicators are negative, and I would never
own gold over platinum, platinum cheaper than gold right now is an anomaly,
and palladium should be worth more than gold, even though it isn't.

[jayc88]

Very bad decision snowball.
Both will go much higher the next 1-2 years. Indicators mean nothing.

[RoyBacon]

Roy I sold almost all my gold and silver and won't bother buying it back,
there is no event horizon, indicators are negative, and I would never
own gold over platinum, platinum cheaper than gold right now is an anomaly,
and palladium should be worth more than gold, even though it isn't.

I'm holding and added both silver and gold when gold was around $1200. Have platinum and palladium too. Not planning to sell any of it anytime soon if ever. It's a nice hedge in a dangerous world and a global monetary system that is loaded with sovereign debt. Hopefully it will remain flat and world is just business as usual.