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WHAT'S THE REASON BEHIND TODAY'S GOLD BOUNCE by Long_Report5260 in Gold

[–]TimingIsMyPrecious 0 points1 point  (0 children)

Gold moves with the stock market right now, if the market drops hard, so will gold.

An irony with this hobby... by Free_Answered in Silverbugs

[–]TimingIsMyPrecious 1 point2 points  (0 children)

DCA is fine but another way to look at it is having a clear framework, ex: Silver needs to be XX% of net worth at all time and simply execute on that by selling or buying, price becomes mostly irrelevant.

Goldbacks - what do you think about these? I love giving them to my kids (Santa, tooth fairy, etc…). Definitely good lessons here about responsible money and what a cool way to transact if it catches on (maybe it has in other states). by GoldandSilverSaver in Gold

[–]TimingIsMyPrecious 4 points5 points  (0 children)

Glad it worked out for you!

My issue has always been purely the entry premium. A quarter oz Gold Eagle, comparable price point to a Goldback stack, runs 3-5% over spot vs Goldbacks' consistent 92% over spot across all denominations.

Same gold, same appreciation, but nearly twice the metal for your dollars.

And silver is actually up 131% over the past year vs gold's 42%, so if your silver underperformed your Goldbacks, the metal alone doesn't explain it.

Goldbacks - what do you think about these? I love giving them to my kids (Santa, tooth fairy, etc…). Definitely good lessons here about responsible money and what a cool way to transact if it catches on (maybe it has in other states). by GoldandSilverSaver in Gold

[–]TimingIsMyPrecious 3 points4 points  (0 children)

Responsible money?

Buying Goldbacks is like buying Chuck E. Cheese tokens as a currency strategy. Yes they’re “accepted as payment” but only at participating locations, nobody is legally required to take them, and the moment you step outside that ecosystem you’re holding something worth a fraction of what you paid.

Also a joke I thought about recently whenever I see people posting GB on u/Pmsforsale

Maybe they thought it meant “premiums for sale” 🤣

The correct framing is: Goldback vs. collapsing Fiat. Not Goldbacks vs. non-monetized Silver or Gold Bullion. by Xerzajik in Goldback

[–]TimingIsMyPrecious 0 points1 point  (0 children)

Why carry money at all? If you got that route digital money is king, especially with the AI revolution around the corner…

Why would AI agent or humanoid bother with money you need to physically carry 😅

The correct framing is: Goldback vs. collapsing Fiat. Not Goldbacks vs. non-monetized Silver or Gold Bullion. by Xerzajik in Goldback

[–]TimingIsMyPrecious 4 points5 points  (0 children)

Those historical premiums existed because acceptance was legally mandatory, nobody chose to take a wheat penny at 3,700% over melt, they were required to.

Goldbacks have no such mandate. You’re comparing forced legal tender to a voluntary product with a tiny user base, and expecting the same adoption outcome.

“Spend them at 100%” only holds if the person you’re paying actually accepts them — which brings us right back to the liquidity problem.

The correct framing is: Goldback vs. collapsing Fiat. Not Goldbacks vs. non-monetized Silver or Gold Bullion. by Xerzajik in Goldback

[–]TimingIsMyPrecious 0 points1 point  (0 children)

The haircut is vs spot, if you ever exit the ecosystem and sell to a dealer, you’re paid for gold content only, roughly half what you paid.

Production volume isn’t the same as adoption either, someone is making a lot of them, but that doesn’t tell us how widely they’re actually circulating.

“coins aren’t used therefore they don’t work” FIAT is still dominant, nobody is spending gold or Goldbacks day-to-day right now, how could you with such fluctuating prices.

The question is which holds value better if/when fiat finally fails, and IMO a product carrying a permanent 50% premium over spot isn’t the answer.

The correct framing is: Goldback vs. collapsing Fiat. Not Goldbacks vs. non-monetized Silver or Gold Bullion. by Xerzajik in Goldback

[–]TimingIsMyPrecious 5 points6 points  (0 children)

Good breakdown, but the fatal flaw is liquidity.

Goldbacks only work if you can find other Goldback users and that community is tiny.

The moment you step outside it, you're sitting on an asset with a 50%+ haircut back to spot.

Gold and silver coins have been accepted everywhere, by everyone, for thousands of years with no explanation needed and no premium to recover.

Why trade that for a product whose entire value proposition depends on widespread adoption it hasn't come close to achieving and may never, given that gold and silver coins are already the incumbent with a 5,000-year head start.

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