The question has never really been “Kong – should I buy gold?” but more so “Kong – WHEN should I buy gold?”
The long-term fundamental case for owning gold and silver is as solid today, as it will be tomorrow – and as it’s always been. You can’t go wrong owning silver and gold “if” – you’ve got a long enough profit horizon.
Up until now, gold and silver haven’t been a “trade” as the metals have “generally” fallen like mad, and sat consolidating in range for what feels like eternity. Silver is just a touch lower than the price a full 6 months ago. For the most part when any asset consolidates for this kind of “extended period” the move “out of this consolidation” is usually quite powerful. Very powerful.
In fact, in this case it’s very likely that the first move upward in both gold and silver will be so fast, and likely so large – that anyone who “wasn’t already in the trade” will be left chasing. Not to say that “you’ll miss the boat” as the PM’s (precious metals) have miles of upward potential – just that…..you may be looking to buy “EXK” for example at 7 dollars – as opposed to getting started, down here around 4 bucks.
We are very close to where I would suggest “starting to build positions”, and I feel that the “miners” will provide the largest “bang for your buck”.
Forex_Kong_EXK_Silver_Gold_Nov
It doesn’t matter which “silver miner” you look at as…the charts all look more or less exactly the same. I like EXK as a “trading vehicle” to make a play in the space – but a pile of others will also move in tandem when the PM’s move.
Check out “GPL” for a super low value play – currently trading at .76 cents!
I’m buying gold every week, 1 gram at a time, and making a big extra income in doing so… a very big extra income.
My 1 gram gold bars are safely encased in a plastic card (the size of a credit card), with security features. The gold is 999.9 fine currency grade, verified by the London Merchants Bullion Association.
Wow EZ.
A gram at a time…..very impressive.
That reminds me of a big ol bottle my parents used to save coins in. As a kid I’d “marvel at the amount of money” – completely unaware of exactly “how much” was actually in there. A nickel here, a quarter there until finally one day – that thing was stuffed right full up to the top.
It looked like a fortune to me.
You’ve got the “plan of all plans” and my hats off to you – as this “is” the way everyone should approach their investment in PM’s.
I sent an email to your forexkong.com email box.
Kong – thanks for the heads up on a possible turnaround in PMs. As usual, your technical logic and long term fundamentals make a compelling argument.
If you don’t mind, I’d like to make a modification to one of your above statements:
“The long-term fundamental case for owning gold, silver and BITCOIN is as solid today, as it will be tomorrow – and as it’s always been. You can’t go wrong owning silver, gold , and BITCOIN ”if” – you’ve got a long enough profit horizon.”
I started posting on this forum when bitcoin was ~$115, and I predicted we’d hit $350 before 2013, and $1000 before 2014. I’d look like a mad man if I posted my 2015 and 2016 predictions without gaining a few more supporters here at your forum. I’m pleading with this forum to understand the revolution that is taking place at this very moment.
What I’m saying is that Bitcoin has one hell of a chance to counter gold’s $9T market cap, and it will do it by siphoning off undeserved value from fiat currencies which continue to accelerate their rates of value decay and fungibility.
How do you figure that gold has a $9 trillion market cap?
Ezy,
Wikipedia ” It has been estimated that all the gold mined by the end of 2011 totalled 171,300 tonnes.[1] At a price of US$1500 per troy ounce, reached on 12 April 2013, one tonne of gold has a value of approximately US$48.2 million. The total value of all gold ever mined would exceed US$8.2 trillion at that valuation.[note 1]”
My next question is at what price you are buying your 1 gram gold cards? Also, how in the world does buying 1 gram gold cards produce an extra income, or as you stated “a very big extra income”?
(Hint, if you are paying more than about $42/per gram, you’re the fool here.)
-Galt
I too am interested in the 1 gram gold cards, pricing etc.
Not so much concerned with the price as “being ripped off” as spot will / has fluxuated so much as well dealer costs / fees on physical that I imagine it hard for “anyone” to pin down the “absolute best price” to be buying at.
I appreciate the “plan” – as to be chipping away at it in small increments over time.
I think it’s fantastic….just like that big ol bottle of my parents, day after day, a little here , a little there – building over time.
John – on bitcoin….
As of late I’ve been seeing alot of negative press. Not to do with the concept/future of bitcoin in general – but moreso “peripheral news”.
As with the forex market marred with phony / corrupt brokers / software / etc….would you agree that these blocks “lower on the totem pole” might be hurting bitcoin acceptance?
-The Chinese Bitcoin GBL went offline earlier this month, taking $4.1 million in users’ accounts with it.
-In Australia, a Bitcoin exchange run by an 18-year-old user named “Tradefortress,” claims to have lost $1 million of his users’ money.
-Also in November, a Czech exchange, Bitcash.cz, declared that hackers had made off with an undisclosed amount stored in its users’ Bitcoin wallets.
-In September, Bitfloor announced that it had lost $250,000 in hacked Bitcoins.
-Last year $228,845 was stolen from a trading platform known as Bitcoinica.
Kong – you hit the nail on the head. The peripheral market, although growing rapidly thanks to real VC money, is currently in shambles. Scams, thin privately held exchange, and heists abound. It’s truly the Wild West right now. This creates a big barrier to entry at the moment for widespread adoption, but rewards those who are willing and able to traverse the rough areas. In a couple years, bitcoin will be available for purchase in such things as the Winklevii ETF, but the price won’t be $500 anymore. With the current risk, comes the reward to early adopters. It’s a rugged landscape out there right now, though, but it’s advancing rapidly.
What I look at as the most positive signs of continued growth are rapidly increasing numbers of transactions on the bitcoin network, increased number of software downloads internationally, and rapidly increasing hashing power from miners to secure the network.
Ezy – I, too, admire your strategy of steady gold accumulation, but suggest that perhaps you could get a much better value by purchasing not weekly, but quarterly, so you could afford to buy full ounces at a time. At the end of the day, the value lies in the weight of gold you hold, not how many individual 1 gram gold cards you have.
In terms of your question of divisibility, bitcoin is divisible down to 8 decimal places. For example, right now, the value of 1 gram of gold is roughly 0.084 bitcoins. I appreciate the effort that the 1 gram gold card manufacturers are making, but perhaps silver and bitcoin are better suited for small amounts.
Thanks John – that’s what I thought….the first wave of “shiesters” taking advantage of something good / something new, as the masses grind through the trials and tribulations of “early adobtion”.
Very exciting, and yes as you’ve suggested – the Wild West right now.
Hey Dr. Kong…. Yeah I would have to agree….. I think we will start to see things moving reverse the current trend direction in the next week to 2 & then provide some nice moves over the next 45-60 days…. Of course nothing moves in a straight line however a break of the downward trend appears to be setting up…… I personally am a very large Silver bull when call for & do see it taking off in the very near future ready to test the $28-$30 resistance levels – we should then see a nice pull-back where people can load up if they are to miss the next move into early to mid-spring. Should that provide a test of the mid-to -high 30s as a target…..
Also agree, that diggers will provide the largest % returns with Silver running a very close second followed by Gold……. however I just have one word of caution relative to Digger & Silver…. these are not for the faint-of-hart & are VERY volatile PM avenues compared to Gold…… Those taking position in Digger & Silver just need to be aware – do some home-work & be ready for a wild ride!!!! Gold on the other hand is will provide great returns & with less volatility but small % gains – one needs to know there tolerances….. & watch the leverage relative to digger & silver…. :0)
Cheers Schmed,
John Galt, if you are looking at the value of 1 gram of gold, and expect to buy it at the same price per gram as a 1 ounce or 1 kilo bar, you are not thinking straight.
I assume to buy potatoes (about $2 per kilo), milk by the pint (about $1.50) … but you don’t winge and whine about the fact that you are paying double the price you would if you had bought potatoes by the 25 kg sack (less than $1 per kg), or milk by the 5 gallons (less than $1 a pint).
Mmmmmmmmmmmmm…..
Now you understand why almost no average Joe buys gold, and never will at the wholesale umit sizes of 1 ounce and up.
The problem for Joe Average is not the price of gold, its the fact he has to buy it in large unit sizes… much like your bitcoin. Who in their right mind will buy a bag of bitcoin. Bit coin needs to move with the times, and market their product it smaller lot sizes… like the dollar is sold in nickels dimes etc… THAT’s why I’m doing so well with gold bars down to 1 gram… its a size that people can afford, and WILL buy.
I sent an email to Kong detailing the 1 gram Gold savings plan… it’s up to him if he expands on it, or allows me to.
In reference to Bitcoin, I read a very interesting article (that made a whole lot of sense to me), so I’d like to share it. Basically, if you believe in Bitcoin then you should NEVER spend them (especially with the price rocketing up); with that in mind, if no one spends them, but instead collects and invests in them then it defeats the purpose of them being used as “money” for transactions.
I like the idea of gold, silver, bitcoin, etc… as far as a safehold due to the various governments erosion of fiat currency, but I don’t believe in storing wealth in gold or bitcoin, b/c if this whole financial system collapses (God forbid), Gold, silver and bitcoin will be as worthless as government paper… the only thing that will matter will be food, water, guns and shelter. In my opinion, society is hanging on by a thread as is, and we’ll quickly resort to “Jungle Law” (survival of the fittest); just look what’s going on in the Philippines… Long story short, I think the trade of a lifetime is LONG survival skills and SHORT the assumption of human kindness. With that said, I consider myself a nice, respectful law-abiding citizen, but I know not everyone is a “good seed”. Prepare accordingly.
I don’t believe converting Fiat money to real money like gold and silver is storing wealth. It is a hedge against a catastrophic collapse of the fiat money system, nothing else.
If I convert say $65 a week from my pay into a gram of gold, I’m not storing wealth, I’m simply transfering part of my weekly earnings into a Gold Savings Account.
When I can I buy more than 1 gram, but thats not the point, each to his own… almost anyone can afford to buy a gram of gold a week.