Selling Gold and Silver

"When the market falls 10% from a previous high, buy, as is every subsequent 10 percent decline. When the market rises 25%, raise cash by selling."

Deeply negative inflation-adjusted interest rates tend to favor hard assets.

In this environment, and probably extending through much of the 2020s, I tilt my portfolios towards assets like commodity producers, value and growth-at-a-reasonable-price stocks, real estate, global stocks, precious metals, and bitcoin, in order to position against depreciating currency and in favor of finite assets

Buying Silver makes sense instead of gold as long as Gold Silver Ration (GSR) >30.

The goal of an retail investor is to buy low during panics, while the goal of a trader is to buy high with a break out in mind.

Taking profits or even selling out won’t be based on a specific price. It’s going to be based on one of three things.

1. Some kind of runaway mania. If we get a true bubble, then it would only be prudent to take some profit. Even though it’s gold, I would sell some of it to capture those runaway gains. I wouldn’t sell all of it. I’m going to hold some of it and pass it on to my heirs.

But if we get a true mania, prices wouldn’t be sustainable. And I’m talking about a true mania, where the gold price doubles in six weeks like it did from December ’79 to January ’80—I don’t mean the 20 to 30 percent annual increase that some in the mainstream have called a bubble.

2. Positive real rates. And by that I don’t mean rising interest rates. A lot of people assume that when interest rates start rising, the gold trade is over. That’s not true. If the CPI is also rising and stays above the interest rate, then you still have a real negative rate. The gold trade would still be on, and that’s what we expect to occur when rates do eventually rise, at least initially.
The Tipping Point is when Real Interest Rates become 3%

3. if all of a sudden politicians proposed and followed through on a responsible plan to deal with the debt and deficit, and they stopped printing money. That’s highly unlikely at this point. We’re going the opposite direction of that.

So those are the three things to look for. And until one of them occurs, still buy gold and silver and the stocks.