Interests Rates?

[klickitat]

I have been stacking seriously for the last few months. I believe that we are going to see PM's slingshot and when they do it is going to be too quick to jump in so I have been stacking on the way down and will continue to stack until I see the slingshot.

Anyhow I believe I will see $40 oz. and yes I might be a little inefficient, but I do not want to miss that shot.

So I am going to continue to buy until I see the Fed raise interest rates and then I will sell 90% of my PM's. Is this a good strategy or am I making a mistake?

 

[MiningNut]

Not this time. For a serious philosophical gold bug like me, making fiat profits is a distant reason for owning gold. When interest rates move, the last thing you'll want to do is sell your gold--that is when you are going to need it. No matter what crazy price action happens in the gold market, the dollar is on its deathbed and that is why you are buying gold. I agree with Peter Schiff, who says that Bernanke can't stop QE without pushing interest rates up and thus killing the dollar, so I think we will QE until we can't anymore. Bernanke opened Pandora's box in 2009, Schiff calls it "checking in to the roach motel of monetary policy". Once you check in, you can't check out--til the market throws you out.

It's like this: the dollar is propped up by a global (fading) confidence scam and mountains of fiat debt. When interest rates begin to move up, servicing our national debt is going to become quite expensive, and then unaffordable--and that spells game over for the dollar. Hell the rest of the world is already making moves to dump the dollar, they are sick of importing our inflation and the whole thing is being kept together not by today's production, but by today's debt monetization. You can only kick the can for so long.

 

[mmerlinn]

So I am going to continue to buy until I see the Fed raise interest rates and then I will sell 90% of my PM's. Is this a good strategy or am I making a mistake?

You will be kicking yourself if you do that. Continue buying as prices drop. When prices reach high unreal levels then sell only what you need to sell to survive. The rest is your insurance policy (hedging) against Fed stupidity. When everything finally washes out, you will have preserved your wealth while all others have lost everything.

If I had spare money I would buy some EVERY week, no matter what the price, as long as prices stayed below the all time highs. Once above those highs, I would MAYBE buy bits and pieces on retracements, but would mostly just sit tight and wait.

 

[dontdeBasemebro]

:agree:
I don't like churning the PMs to make short term profits, as it is just way to easy to get burned due to volitility of the worthlessness of dollars. I see metals as a way to maintain assets and protect them from the rest of the economy rather than an invest on which profit is made.

Buy when you can, hold, sell only as needed, the stack will maintain your purchasing power through rough times.

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