This has happened at the same time as signs that the economy is not rebounding as much as many have hoped to support these valuations. I believe that this leads to a vicious cycle of more debt and money printing to stimulate the economy despite the failure of it being sustainable. The amount of small business with no revenue or substantially less is incredible to see when I drive around. While professionals have been impacted somewhat less, the economy will feel the hit as spending continues to decline after the recent rebounds we have seen.
I am so happy that I have accumulated some great precious metals to the collection this year as current prices are now above all of my cost basis considering the premiums paid in the past. The demand will likely continue to lead the supply as the health crisis has impaired most supply chains around the world; particularly for raw materials like metals. While some demand issue may arise from some commodities due to the economy, demand due to capital perservation should offset these for the rare metals like Silver and Gold. So it might be just the start of this price run higher!
I guess this is when it is best to sit back and watch the markets… It will be interesting to see how the rest of the markets react as valuations continue to be relatively high to these real assets. We have seen how markets become tethered to themselves in the past but this has become very irrational which is not uncommon to experience. The only scary part is that the corrections are fierce and swift; timing is the only uncertainty.
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I've been thinking about buying some tokenized gold like XAUT or Tether Gold to add to my portfolio, having BTC is great, but Gold has been battle-tested for so long that taking a position in it makes perfect sense, especially since I can get interest on tokenized Gold using Celsius.
Agree, I have also looked at this option but have been concerned about the potential liquidity that exchanges can offer. Not much moving on those markets...
Gold is looking like a safe bet
Yep. It gave no one a chance to get in. Buy all pullbacks in this baby.
Tough to call a safe bet these days but definitely value there relative to other assets.