Alexandria Minerals Corp ALXDF

Buying physical gold

[Schmoby]

I would agree with BTG1, as investors we should be buying an ounce or two every year minimum and just throwing it in our safety deposit boxes. We would be doing ourselves all a favour. The global output is only 100m ounces annually and declining. Gold fell below $1200 today, buy low sell high. Stand your ground when it makes sense, cut your losses when you hold a dog or a loser.

[Flopticalcube]

ATM gold is both a dog and a loser. How do you "know" gold won't continue to fall and you are actually trying to catch a falling knife here? When do you cut your gold losses?

[Schmoby]

Simply because the cost of production will not allow it to fall below the breakeven point, just like anything else, production/supply will drop if the price falls too far. They will put marginal mines on care & maintenance and inevitably reduce exploration. If that happens the effect will cause the pendulum to swing the opposite direction and go much higher as it takes a very long lead time

[Flopticalcube]

Gold is a unique item in that its never really consumed. Production could fall to zero but if every central bank and hoarder sold and no one wanted to buy, supply would be enourmous. Its only the collective belief that keeps it vlubale in the minds of people. If that belief were to wane, demand would plummet and supply would skyrocket.

[mikenooks]

This post has been removed in accordance with Community Policy

[Schmoby]

Hey if you want to short gold below $1200/oz, all the best to you, let us know how that works out for you...

[Schmoby]

Possibly, but unlikely, there doesn't seem to be any evidence of that at this time. The top 10 gold consumers absorb half the worlds annual production. I don't see China, India and the ME/Iran changing their consumption habits anytime soon. https://www.businessinsider.com/these-10-countries-buy-the-most-gold-jewelry-2017-9

[DaGeneral]

You could say the same thing about all the fiat currencies today - none of the major currencies are backed by anything other than the general belief that those pieces of paper in your wallet, or electrons at the bank, are worth something.  There is no inherent value in those pieces of paper...