MishTalk TV Episode #2: The War on Cash

September 30, 2021

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12:45 pm

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24 comments

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Economics

Charles and I discuss what the Fed is doing right now and the case for gold and silver.

Charles is a best-selling author. His latest book is The Last Gold Rush Ever!

Read the book. You will enjoy it and learn a thing or two.

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Elevatorman

4 years ago

Cash is the only thing that works when the electricity or internet shuts off.

davebarnes2

4 years ago

cash is stupid

credit cards are the only way to go

I am fine of cash is done away with

Eddie_T

4 years ago

OT….. Interesting political development in Texas. The Democrats have a good potential candidate in Matthew Dowd….for Lt. Governor to run against Dan (Goebel) Patrick. Not sure he gets the nod, but he is SO much better than anybody the Dems have found in recent history…..it will be very interesting to me to see if he gets nominated….

He used to work for Bush, of course, but he also once worked for the legendary Bob Bullock, who was Texas’ last Democrat Lt. Gov.

He picked a better race by going for the number 2 spot…..avoiding throwing his hat in the ring with Beto (and maybe Matthew McConaughey, who keeps teasing a run). I don’t really think McConaughey will run…

In Texas the Lt. Gov has a lot power, because he controls what legislation is put before the legislature. Arguably it’s just as powerful an office as Gov.

Dowd is a liberal, no doubt…but he is running on restoring public service and telling the truth….which is smart. Patrick is a Trumpite Rush Limbaugh wannabe who has hurt Texas, I don’t care which party you’re in.

Dowd catching softballs on MSNBC in the link below.

https://youtu.be/6K9q3xzWjH4

anoop

4 years ago

what is your preferred way to own gold?

– miners (get dividends while you wait)

– etfs (are these safe given basel iii? are some etfs better than others?)

– goldmoney/bullionvault (are these safe? is one better than the other?)

– physical metal (where do you buy it? are there concerns of fake coins? where do you store it?)

– other (please elaborate)

Scooot

4 years ago

Reply to anoop

Bulk of my holding is BullionVault. Holdings are allocated and there’s a daily audit so you can look at the vault online and view your actual holding, so personally I think it’s as safe as it can be without actually having the gold in your hands.

ETFs you have a credit risk with the ETF provider, but some are ETC’s (Exchange Traded Commodities) so they’re meant to match all purchases by actually buying the physical bullion.

Miners are more volatile but act a bit like a leveraged position so I’d have a small percentage in these. They do pay dividends though. I’ve recently taken a small position in PolyMetal international, dividend yield is about 7.5% with good earnings cover. It’s price has been free falling recently so I’m pound cost averaging.

FromBrussels

4 years ago

Reply to Scooot

YEP bought Polymetal too, at 1400£ two weeks ago , it s now down 10% …. while gold is stable… nice incentive I’d say….

Scooot

4 years ago

Reply to FromBrussels

I don’t think it’s just Polymetal, the Ishares Gold Producers ETF has been falling too so it looks to me as if the gold mining sector has been under pressure. I just view it as a long term cash machine based on their earnings forecasts, (assuming they don’t change much) and there aren’t many of those about these days.

Eddie_T

4 years ago

Reply to anoop

For me now, physical metal only…..gold Eagles or Buffalos only. I do not use the offshore metal banks personally. Typically I have always gotten my premium over spot back when selling….which is likely if you sell tops.

For silver I buy 100oz bars (cheaper premiums usually) like the Canadian Mint 100 oz bars.

I buy all this from my local dealer (Amergold)…..they also ship…..I’ve used them for well over 15 years and they are extremely good on customer service, in my experience.

I would never let a dealer store my metals…just a good rule to never break, imho. Fwiw, I think GoldMoney is different, much more trustable, but I have never used them.

I don’t play the miners. They’ve disappointed me way too many times.

Captain Ahab

4 years ago

Reply to anoop

My advice, for what it is worth: consider the premium on physical/possession and you will see how far the price of gold must rise for you to get your ‘money’ back. The current premium for a $1755 gold Buff is about $300 (17%). So gold will need to rise to $2,100 to get your money back (assumes a $50 sales premium).

Some ETFs are convertible to gold coins for a low premium. I like Perth Mint ETF (7% premium if you must have gold coins)–it is also govt guaranteed, with the lowest service cost of ETFs. The US version of Perth Mint ETF was AAAU, which had the same convertibility and guarantee until Goldman SUCKS took it over. No notification to ETF holders, just change the conditions.

Eddie_T

4 years ago

Reply to Captain Ahab

My dealer has buffalos right now for $1881.29 on a spot price of $1762.33 That’s a premium of 6.75% by my arithmetic….which is not a super low premium, but it’s a lot less than your example.

I wouldn’t put money in an ETF for anything but a trade.

FromBrussels

4 years ago

Reply to anoop

… bought mine with a reliable swiss AA bank …they charge 0,5% /year on a advisory investment portfolio so also on your gold positions, I think it is safe and hope the price will break out at one point….the way things ve gone berserk in recent months it should, but so far it s only been wishful thinking of mine….if only I d bought Bitcoin ……We are living in a crazy fn world, I am afraid …..scared rather …

Steve_R

4 years ago

Reply to FromBrussels

Bitcoin, I was late to party and bought in after the correction in May. I took some cash out of pass book saving for crypto. This has worked out so far, up about 50%. If you are interested there are a couple of people I listen to, “invest answers” and “cryptos r us” on youtube. Also a new ETF launched in Canada that will allow investors to gain exposure to both bitcoin and ethereum https://www.businessinsider.com/bitcoin-ethereum-ether-etf-launch-canada-crypto-exposure-btc-2021-9. Hope this helps if you are interested.

FromBrussels

4 years ago

Reply to Steve_R

…thanks but, it s not my piece of cake I must say, you probably are a rather young person , maybe I am too old,stubborn and wrong, unwilling to put my money in what seems to me like plain stupidity ….Good luck anyway !

Steve_R

4 years ago

Reply to FromBrussels

Well I am younger than my grandfather when he painted his fascia and soffit boards leaning over from the top of his roof on his 2 story farm house, at 92, but old enough that I qualified for Medicare a few years ago. Something like teaching this old dog new tricks. Good luck to you also!

RonJ

4 years ago

Goyette: “Malevolent Convergence”

Covid-19 government policy.

Eddie_T

4 years ago

Big move in gold this morning…..could be turning. Silver looks pretty cheap. Need to put a little physical back into my portfolio for insurance.

I still only see the one scenario where metals become truly important to hold….and I don’t give it a high priority right now. But it is insurance.

Scooot

4 years ago

Reply to Eddie_T

The continuous co-basis on Silver is very tight if not negative, so there isn’t an abundance of the metal about. It doesn’t mean it won’t get cheaper against gold though. I’ve been watching the Gold/Silver spread, got to a high of about 126 and a low of 62.5. A 0.232 Fibonacci retracement puts it at around 77.5, a touch higher than where its got to over the last few days. A .382 retracement moves it out to 86.75 so a bit further to go. Will have to wait and see. -:) The Gold basis and co-basis is tight too, but not as tight as Silver.

Scooot

4 years ago

Reply to Eddie_T

Talking of Silver, you might find this interesting.

https://monetary-metals.com/silver-crash-makes-silver-trash/?utm_source=Pardot&utm_medium=Email&utm_content=Silver%20Crash%20&utm_campaign=Supply%20and%20Demand%20Report

Tony Bennett

4 years ago

Anyways, I one of those who still feels the $US has at least one more hurrah.

I’m one of those credit = money believers … WHEN (not if) the Bubble FINALLY pops … credit will collapse —> Cash is King

Tony Bennett

4 years ago

Watch China

…. if you are looking for a pin.

Attempting to rein in housing while dealing with energy crunch which has led to factory slump.

Scooot

4 years ago

Cash is definitely on the wane. I went away for a few days a couple of weeks ago and one bakery wouldn’t accept cash, card only. Then again another small cafe near the beach warned you might need cash as they had a poor signal. The trouble is many people prefer to pay with their phones etc so I don’t think anything is going to change. The march towards a cashless society continues.

TexasTim65

4 years ago

Reply to Scooot

Hard to make it rain in the club with your phone 😉

Tony Bennett

4 years ago

Reply to TexasTim65

hhmm, sounds like a business opportunity.

Got App?

Tony Bennett

4 years ago

Reply to Scooot

“The march towards a cashless society continues.”

…

Yes, many (including my wife) never have ANY cash (I’m always sticking a $20 in her wallet for “just in case”).

Of course, many small businesses “skim” when cash involved … which fedgov hates, but I would hazard that MANY of these businesses could not survive without it.

MishTalk TV Episode #2: The War on Cash

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