Don't you find that over the years, the appreciation in gold prices helps them retain a large enough portion of your net worth?  I bought a bunch of gold coins in the 90s and don't feel a need to add.   If you have anywhere near 40% of your net worth in gold, you are officially a gold bug.  I think somewhere in the Old Testament (or Talmud) there is a guidance that says 1/3 of your net worth should be gold (money?), 1/3 in your business and 1/3 of  your net worth in your home.

But kudos to you and your wife.  You make a great economic team.

Sadly during most of my career, money was very scarce

It has only been in the last few yrs that we thought some thing could be used to diversify

Thus my amount of gold and silver is very small, but more than most who own no physical PM

Perhaps gold and silver owner ship will end up as a losing proposition. I do find the cost to buy, with premium included has increased over the few yrs I have started to buy, which indicates increased demand for physical PM. I am also finding my favorite seller is out of stock on my favorite coins.

It was a wait of up to 3 weeks for shipment, now out of stock

My gold and silver is a hedge against super high inflation which may never happen

However, unless we have some kind of a "re-set" I see no possible way the Fed can avoid super high inflation or destroy the economy and possible gov't default, on gov't bond purchases, if int rates increase enough to tame todays inflation let alone possible future inflation, we have a problem... My guess that is or will be a non event. The Fed will not increase int rates enough to tame inflation. Things are different this time. 

If Biden get's his wish with even part of his wish for more spending, and the current rate of the budget deficit, indicates large amounts of increased liquidity entering the system. Telling us the rich will pay for all this spending is just  so false, Biden should pay a penalty for false information

Sadly this extra money will not have much, although some, affect on increased GDP which IMHO leads to superhigh inflation

Huge liquidity injection to pay for Biden's spending and very small increase in GDP. Now that is not what the Biden team will tell you, just MHO

When/if the bubble pops I have no idea, but I want some gold and silver as a hedge

yes, i have read several articles on shortages,  yet prices are Not surging.

and we have rising inflation, yet prices are not surging.

and we have negative real rates, and yet prices are not surging.  that is the factor that is most astounding. 

so all the evidence suggests that prices are driven by things like the 30 yr cycle, rather than these important fundamental factors.  

Normally when bullish news doesn't result in rising prices I would conclude that gold prices are headed south.  Thanks for the heads up bear.

Agree with joj's statement as sometimes being a strong indicator..........how the market reacts to the news.

It often tells us when bull markets run out of steam......no amount of additional bullish news will entice fresh buying because buying has been exhausted. Everyone that wanted to buy........has bought already.

Similar frame of mind can be applied here. If bullish news is not inspiring buying........then what will do it?

Extreme bullish news!

If the bullish news that's now needed to just keep prices steady......what happens when the support that modestly bullish news is providing, dries up?

Then we have to ask. Is the next significant, tradeable news in gold likely to be extremely(more bullish) or less bullish?

The other FACT is that the more bullish the news is already, the harder it is to generate even MORE bullish news.........the easier it is to DISAPPOINT the market.

Say we were trading on a bullish/bearish news scale from 1-10 and 10 was the most bullish. 

If recent news appeared to be an 8 on that scale, then expectations are for at least news items of 8+ for traders in that market. It's dialed into the price.

There's  alot more room below 8 then there is above 8. Even more so when you get to 9.

At 10, you might think.....that's it we're going lower but you can hit panic buying and margin calls and price rationing that takes us to prices that don't make sense based on the fundamentals. You may know that this is the top but be a couple days early and get obliterated from a couple of limit up moves to blow out people finally crying uncle/shorts under water. 

That's not the current gold market but its all about the mentality of traders, which is what joj is getting at.

It doesn't matter how bullish the fundamentals appear to be and what price you think is justified. 

If the market, with many thousands of traders are pricing it lower  or higher than that...........this is what counts. 

Trading the value that you think gold is worth based on fundamentals or bullish news better be linked up with the value the market thinks its worth trading the same fundamental/news.

But here's the HUGE exception to that rule.

If you know something the market does not know and has not been dialed it into the price......you can kick the market's arse. In most markets, its pretty unusual for a small trader to have such knowledge thats truly legit but it does happen to people that are extremely knowledable in specific markets of their  expertise.

This is the only reason that  I trade at all.......... because I use only the weather's affect on markets...........before the market reacts to weather that is just showing up in the early bird forecasts/models...especially weather sensitive markets at unique times of year.