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Posted

@Eldad I think Druckenmiller said that basically Gold had history on its side, and that it had built a lot of trust over that time.

 

Bitcoin obviously doesn't have that.  He said (I think) he wouldn't write Bitcoin off completely, and that it may have a place as well, but it was too new, and that Gold remained THE store of value.

 

I agree.

 

Obviously the tangible helps too, plus the useability in jewelry.

Posted
21 hours ago, Eldad said:

I don’t get the constant comparisons between gold and Bitcoin. 
 

Have you ever seen a Holocaust movie? You are rushing to grab a few things and fleeing your home with your family. You grab a couple thousand bucks worth of gold coins to hopefully bribe your way to safety. That is what gold can offer when nothing else can. 
 

I know the tangible argument is a very tired one for the Bitcoin enthusiasts, but it feels like you are arguing with somebody about the existence of gravity sometimes. 


You can also get robbed if you carry gold, which seems to me more likely than needing it for bribes.

 

Venezuelan military personnel at the borders have a reputation for seizing the money of people who want to leave, but Juan’s, being in Bitcoin, was accessible only with a password he had memorized. “Borderless money” is more than a buzzword for those of us who live in a collapsing economy and a collapsing dictatorship.”

https://www.nytimes.com/2019/02/23/opinion/sunday/venezuela-bitcoin-inflation-cryptocurrencies.html
 

Also:

https://brendait.blogspot.com/2022/03/what-asserts-should-refugees-carry.html?m=1

Posted
8 hours ago, thowed said:

@Eldad I think Druckenmiller said that basically Gold had history on its side, and that it had built a lot of trust over that time.

 

 

Posted

It seems like the Bitcoin bro's are 100x more bullish right now than gold bugs.  Gold is hitting new all time highs whereas Bitcoin has not, yet.  Probably because gold bugs have years of brain damage and trauma to overcome.  Gold miners are still lost in the wilderness.

Posted

I am starting to see the benefit of bitcoin more and more being a way of temporarily storing wealth to transfer to a different location or sidestep a legal issue like forced receivership or an ugly divorce. 
 

gold still has the long term storage power but lacks in the easy transferability. 
 

I guess I don’t see them competing as much as complimenting each other. Bitcoin if you live under authoritarian rule and plan to escape and gold for long term storage once you get to your new home. 
 

I have about 10 oz of gold and even with such a small nominal value it would be really difficult to smuggle. And I wouldn’t burry a bitcoin key in my backyard that’s for sure. 

Posted (edited)
4 hours ago, JRM said:

It seems like the Bitcoin bro's are 100x more bullish right now than gold bugs.  Gold is hitting new all time highs whereas Bitcoin has not, yet.  Probably because gold bugs have years of brain damage and trauma to overcome.  Gold miners are still lost in the wilderness.

 

Im sure it depends on which currency you're looking at, but Bitcoin is hitting ATHs in several currencies including the USD. 

 

We just hit $69k+ a day or two ago surpassing the prior ATH by a few hundred $. In many non-USD currencies, the highs are more notable and 2021 levels surpassed much earlier. 

 

And while I understand the point that gold is up over the last 3-years while BTC is flat, would also note that 1- and 5- and 10- yr returns all favor BTC and that it's notable that we hit a new ATH before the supply shock of the halving which has never happened before - so I'm optimistic we're gonna turn the 3- time frame as well. 

 

Edited by TwoCitiesCapital
Posted
4 hours ago, TwoCitiesCapital said:

 

Im sure it depends on which currency you're looking at, but Bitcoin is hitting ATHs in several currencies including the USD. 

 

We just hit $69k+ a day or two ago surpassing the prior ATH by a few hundred $. In many non-USD currencies, the highs are more notable and 2021 levels surpassed much earlier. 

 

And while I understand the point that gold is up over the last 3-years while BTC is flat, would also note that 1- and 5- and 10- yr returns all favor BTC and that it's notable that we hit a new ATH before the supply shock of the halving which has never happened before - so I'm optimistic we're gonna turn the 3- time frame as well. 

 

 

My mistake, I obviously don't follow Bitcoin price too closely even though I own a tracking position now.

Posted
7 hours ago, TwoCitiesCapital said:

 

Im sure it depends on which currency you're looking at, but Bitcoin is hitting ATHs in several currencies including the USD. 

 

We just hit $69k+ a day or two ago surpassing the prior ATH by a few hundred $. In many non-USD currencies, the highs are more notable and 2021 levels surpassed much earlier. 

 

And while I understand the point that gold is up over the last 3-years while BTC is flat, would also note that 1- and 5- and 10- yr returns all favor BTC and that it's notable that we hit a new ATH before the supply shock of the halving which has never happened before - so I'm optimistic we're gonna turn the 3- time frame as well. 

 

Also because of the new coins that have been mined since the last ATH in 2021 the market cap is well above 2021 highs.

  • 3 weeks later...
Posted

Mako has made an offer on Goldsource mines in Guyana. I guess they are going to grow as Akiba mentioned.

 

Gold is also at an all time high in USD. Amazing that Oil has not been able to keep up. I guess Oil is more affected by technology and improved production advancements.

 

 

 

 

Posted
47 minutes ago, Jaygo said:

Mako has made an offer on Goldsource mines in Guyana. I guess they are going to grow as Akiba mentioned.

 

Gold is also at an all time high in USD. Amazing that Oil has not been able to keep up. I guess Oil is more affected by technology and improved production advancements.

 

 

 

 

Gold bugs are saying it’s all Central Bank buying as well (gold bugs have to be taken with a grain of salt)

 

But the disconnect between the gold price and the miners does support their point. I had to buy some NEM as much as I hate commodity producers as a longterm holding. 

  • 4 weeks later...
Posted (edited)

Interesting take on gold at the 12:26 mark of the interview. Nick says gold is moving higher primarily because the US government has weaponized the US$. He says that sanctions on Russia have taught other countries (like China) that it would be foolish for them to have all their US$ on a ledger in the US or Europe. There are very few assets that can be priced in US$ and stored anywhere (like in your own country). Once the gold is in their country it is safe from sanctions. 
 

He said pre-2020, central banks used to buy about 10% of gold. This has doubled - to about 20% today. This is causing higher prices.

 

Nick said central banks slowed down purchases in recent months but the market is now front running the fact that central banks will keep buying gold (at some point). He said central banks have to keep buying (they don’t have a choice) so they will come back at some point.
 

He does not think the recent move in gold is due to concerns about inflation. 
 

 

Edited by Viking
Posted

The problem with the blockchain is that every transaction is recorded. So it has advantages over gold and silver but also disadvantages. 

One of these assets acts as risk on and one acts as risk off. 

It's only a matter of time before a lot of that crypto money finds its way into precious metals.

I can see a lot of "off the grid" utility for silver coins in a world where all commerce is done electronically and paper money is no more. 

Posted
29 minutes ago, K2SO said:

The problem with the blockchain is that every transaction is recorded. So it has advantages over gold and silver but also disadvantages. 

One of these assets acts as risk on and one acts as risk off. 

It's only a matter of time before a lot of that crypto money finds its way into precious metals.

I can see a lot of "off the grid" utility for silver coins in a world where all commerce is done electronically and paper money is no more. 

Yep. Don’t want that extra fifth of vodka to mess up your social credit score. 
 

 

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Posted
3 hours ago, brobro777 said:

Gold keeps grinding higher to another record high - maybe $3000 before year end?

Yep, and still hated. Imagine when the momentum people finally get on board. 
 

Debt to GDP in the US is a problem and it’s not going away easily. Getting to the point where inflation has to be the unspoken policy goal. 

Posted
3 hours ago, Eldad said:

Yep, and still hated. Imagine when the momentum people finally get on board. 
 

Debt to GDP in the US is a problem and it’s not going away easily. Getting to the point where inflation has to be the unspoken policy goal. 

 

Yea I'm surprised there's not as much favorable coverage/talk about gold

 

Posted

Ive been thinking about how to keep a little wealth for my children and grand children. Note: I am 39 and dont plan on going anywhere anytime soon. But after the death of my dad and seeing that the slope is slippery and the tax man is sticky i'm thinking about it more.

 

In our case my mom was the sole heir so the probate was the only frictional cost and it was only on a few assets that were tricky. However when she passes there will be tax implications for her heirs. 

 

What if i just bought some gold coins. Say 50k worth and left it for them with specific details on how to think about the asset. As far as I know you dont pay tax on it since it is technically a form of currency and not an investment. Now i understand completely that it is unlikely to outperform the index but once taxes are accounted for it just may. 

 

Lets call it a very rainy day fund. Insurance on calamity or ever increasing taxes. Anyone have some thoughts? 

 

Posted
1 hour ago, Jaygo said:

Ive been thinking about how to keep a little wealth for my children and grand children. Note: I am 39 and dont plan on going anywhere anytime soon. But after the death of my dad and seeing that the slope is slippery and the tax man is sticky i'm thinking about it more.

 

In our case my mom was the sole heir so the probate was the only frictional cost and it was only on a few assets that were tricky. However when she passes there will be tax implications for her heirs. 

 

What if i just bought some gold coins. Say 50k worth and left it for them with specific details on how to think about the asset. As far as I know you dont pay tax on it since it is technically a form of currency and not an investment. Now i understand completely that it is unlikely to outperform the index but once taxes are accounted for it just may. 

 

Lets call it a very rainy day fund. Insurance on calamity or ever increasing taxes. Anyone have some thoughts? 

 

Unfortunately you have to pay capital gains tax on sales of physical gold. 

Posted
11 minutes ago, moneyball said:

Unfortunately you have to pay capital gains tax on sales of physical gold. 

How would the cost basis be calculated if were talking 40 or 50 years? 

 

For the physical i currently hold the cost basis is $1720 canadian and I only know that since i kept the receipt and wrote a note on the current cost of items, minimum wage ect so I can back test a long time from now.

 

If its my kids selling a few oz to buy a car for their grandkids 50 years from now who the hell is going to know and pay the taxes?

 

 

 

 

Posted
3 hours ago, Jaygo said:

Ive been thinking about how to keep a little wealth for my children and grand children. Note: I am 39 and dont plan on going anywhere anytime soon. But after the death of my dad and seeing that the slope is slippery and the tax man is sticky i'm thinking about it more.

 

In our case my mom was the sole heir so the probate was the only frictional cost and it was only on a few assets that were tricky. However when she passes there will be tax implications for her heirs. 

 

What if i just bought some gold coins. Say 50k worth and left it for them with specific details on how to think about the asset. As far as I know you dont pay tax on it since it is technically a form of currency and not an investment. Now i understand completely that it is unlikely to outperform the index but once taxes are accounted for it just may. 

 

Lets call it a very rainy day fund. Insurance on calamity or ever increasing taxes. Anyone have some thoughts? 

 

 

https://fortune.com/2012/02/09/warren-buffett-why-stocks-beat-gold-and-bonds/

 

Not much to add:)

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