Wednesday, January 6, 2016

Nobody Cares About Gold

TTMYGH came out with this great video:


Sadly, it is true. Nobody cares about gold anymore.

However, that's okay.

I'm still planning to go for my usual 2016 haul:

1 X Gold Canadian Maples 1 oz
25 X Silver Canadian Maples 1 oz
20 X Silver American Eagles 1 oz

Good news is that the RCM 10 oz premiums have come back down to earth a bit. I feel a bit sorry for the desperate herd that rushed in at 20+% premiums.

For single RCM 10 oz bars, premiums are at 18.40%. This is still a far cry from the 12.6% that it used to be in the past. Perhaps this is because supply constraints are finally being reflected in the market?

Compare that to "the standard" Johnson Matthey 100 oz bars which go at 13.17%. This is 3% up from the premium it used to sell at. What is interesting to note is that the humble Nadir 1 kg bar is selling at almost the same premium.

Like I've said before, I might be giving BullionStar's competitor a try since they offer free delivery for silver kilobars, which I think sounds pretty sweet. I really might give them a go and pocket a Nadir kilobar just for shits and giggles.

I've been so busy lately, but I will definitely continue to opportunistically accumulate grams of precious metals during price spikes downward, with the eventual aim of "cashing out" in the future. Most likely though, I will only take delivery of the gold and sell away my silver when the "day" finally comes.

In the past few years, I've only met 2 friends who have been somewhat excited about gold. The first person's excitment fizzled after realizing how hard and expensive owning gold through the traditional "financial" methods of gold accounts, ETFs and etc. Which is pretty ironic since the most traditional way is holding it literally as a pet rock, and that is dead simple. The second friend is perpetually waiting for price to hit $0, and so has thus far bought exactly 0g of gold too.

No matter how hard I look, I can't find a single person excited about gold. In a way, I guess that's a good thing.

I continue to humbly stack my "unsurance policy" in relationship to my growing net worth, as well as increase my bets in the gold area through miners and both direct and indirect ownership of the precious metal.

13 comments:

  1. Fret not, GMGH. You are definitely not alone in your love for gold and silver. It is just that people do not like to admit holding assets that experienced such a 'long' and publicized downturn. They don't want to lose face.
    They will all come out in the open once the trend has changed and when it is their time for a bit of boasting. That time will come. Lol

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    1. Hi Tacomob, I'm eager to find out who are all the other hidden gold bugs out there then! I think hitting $1400/oz might draw them back out, hehe. Do you have a stash Tacomob?

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    2. Sure. I am favorable of precious metals. It is a component of my diversification strategy. I do not consider myself a gold bug though, not yet. I do currently hold only about 8% of my portfolio in physical gold or silver. Additionally I do have some silver miner ETFs. Some of those miners should emerge as significantly stronger once the silver price trend changes sustainably.

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  2. Hi,
    When I invest in gold and silver, I collect collectibles like the Lunar Silver coins and they still make money as the supply is limited. Purely gold and silver will have to depend on the market price so it is very volatile. Although the price is not favourable, it is still a good hedge for uncertainty and insecurity. Ultimately it is the goal that decides our investment direction.
    Just my 2 cents' worth and thanks for reading!

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    Replies
    1. Hi Anon,

      The bullion definitely don't command a price premium when later being resold, but they also weren't bought with much premium. I think finding a buying for non-bullion coins who is willing to pay a premium isn't always that easy.

      I've heard that the gold pandas and kangaroos can go for a nice premium for the vintage years!

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  3. Hi GMGH,

    Just curious, how much gold are you holding as a % of all your assets?

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    Replies
    1. Hi Mr 15HWW,

      Wow that was a good question, I had to quickly run the numbers to get that answer. I have about 20% in gold and gold related investments.

      I have physical possession of 4%, while the other 16% are readily available for sale at the right time. About half the 16%, or 8%, is quite readily for me to take delivery if we do go the "unsurance" path instead. I like having that optionality available to me.

      Maybe I ought to increase my exposure... but argh, prices just spiked in the past few days, ehehe

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  4. Hi there, I'm a newbie looking to invest in gold/ silver too. May I know why did you choose to get gold Canadian maples instead of pamp gold bars? as far as i'm aware, they do offer 1 oz too.. :)

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    Replies
    1. Hi Anon,

      I chose the Canadian Maples because I like the security features on them better. I'm wary of PAMP bars that are still sealed and untouched because I've seen many instances of fakes, especially since they run in the higher denominations as well, making them more lucrative to fake.

      The Canadian Maple is also easy to bring around and its value isn't contingent on it being sealed in its packaging, making it more portable as well.

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  5. I love gold too. For me, it's a hobby rather than investment. Have accumulated 11+ ounces of gold (mainly US/European coins). Intend to collect one from each country if their designs are interesting. My way of tracking: http://goo.gl/2YGQJw

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    Replies
    1. Wow DH, 11+ ounces, someone has a nice gold stash! How about Silver? I do actually like gold more because of just how amazing a small piece is worth, but Silver seems like a better potential as an investment. I'm just going for a Canadian Maple every year for the personal collection!

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  6. What is RCM?

    I'm a gold investor for more than three decades now. When I first invested, gold price was USD 200+. It was really a long wait before it climbed up to about 800+ then down again before rising to about 1900.

    Then there wasn't much publications for informations. I learn through trial and errors, from jewelry to saving account, to coins, bars and finally bullion.

    Hindsight, it wasn't a great investment except that it gives much enjoyment of bringing them out to love each piece and adorning them during Chinese New Year for embellishment.

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    Replies
    1. Hi Anon,

      RCM is Royal Canadian Mint.

      3 decades is a long time! It hasn't been a great investment for you? You seem to have had returns many times over the initial investment!

      I'm glad that I stumbled upon bullion early on. Numismatic coins do look very tempting, but I know that it isn't very worth it sometimes, haha.

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