All That Glitters Is Not Gold
"In this world everything is governed by balance. There's what you stand to gain and what you stand to lose. And in this moment they think they have nothing to lose. And when you believe you've got nothing to lose, you're overconfident. We will be the ones that are going to show them just how much they have to lose."- Professor, La Casa De Papel, 2017
Anyone who is old enough to be trading, will remember $264/Oz Gold in 2001. Anyone young enough to pick up a trading book believes that Gold is too high, well if you think Gold is too high, you are just not paying attention. You definitely have something to lose and I'll show you just how much.
If you were a long-term investor in Gold be it in your home or some other Gold backed paper, you made a 670% return, there about. Yes, that's through the 2008 meltdown and the European sovereign debt meltdown, which wiped a mere 45% of the initial bull trend from 2001...Guess what? Gold has already made back 70% of that decline and sits on a staggering $1,726/Oz. Why were we not investing in Gold? WHY?!... Well simply, we were over confident in the US Dollar, the Global pool of risky equities, ETF's and mortgage backed securities...Yes, there it is. Now we see what we had to lose.
A 1000 share investment in GLD in 2001 would have cost $42,000 gross, yes the deposit you put down on that $400k house... In 10 years GLD was worth to you $180,000, a 429% return. If you had a property Portfolio in 2008, you got wiped out. If we can't see what we stand to lose, then we are just not paying attention. I am not saying you need to go and start buying Gold...Fuck no! I am saying the next dip will come and be ready because we are going to show them how much they stand to lose. Oh damn! And I did not even mention SARS Cov 2.