iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,617 Blog Posts

Let Me School You On Why Gold is the Truth

All jokes aside, the Fed is cutting rates into a smoking hot economy. This deviation is going to cause ripples in inflation, and not that bullshit crypto shit. With the perception of higher inflation, you should expect assets that protect against it to boom. The gold miners are trading at valuations not conducive with bull markets. The sector is trading in the ballpark of 1.5x sales. Back in 2006, it was trading 6x.

Does it means the miners can run 5x from here?

Answer: Yes

Your job is to make money, not have a bias. Gold is where it’s at, busting loose from a 6 year base. It cannot be defeated, as long as the Fed is leaning towards cutting rates.

You’re also gonna want to get long some value stocks — because lower rates is good for valuation expansion amongst shit companies that depend on financing to keep the lights on. My top distressed pick in all this, believe it or not, is GE.

Long a basket of high octane gold stocks — head out of the window with my middle finger up. Fuck off.

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3 comments

  1. chuck bennett

    Long BTG from 2.60’s.

    Fly is on to something

    Regards

    Chuck Bennett

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  2. snoozemr

    hey a ticker pick thx.
    The preferred bank stocks have been killing it this year. I normally just dividend capture with them. But I’ve kept practically all the ones I bought in Jan and Feb eg C.PR.K and they are all up very nicely and paying 6% on top of that.

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  3. bob smith

    Ok. This is talking sense. Day trading is for junkies, OK? Gold/silver miners are an easy double from here. Add to that whatever conspiracy theory makes you happy (e.g., Trump declares war on Iran or UK… whatever), and you have a relatively low-risk quadruple.

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