🚨BOOMER ZONE🚨 GRAND DADDY’S ADVICE

Submitted by hyperchimpchallenger t3_119ahri in wallstreetbets

As my late grandfather said “my little r-word, the only things of true value are AK47s, booze, cigarettes, and gold krugerrands”. What he didn’t anticipate was the absolute shitshow that is the current economy. Rest his soul that he does not have to see the country that he fought and worked for come to these levels r-word-ation.

I’m going to make this very simple. The fed is going to continue to increase rates. It will do this until unemployment reaches the level it wants. With the rate going up, the dollar will continue to grow stronger compared to other currencies. Gold and the dollar have an inverse relationship, meaning as the dollar moves higher, gold will move lower. This is why I am currently shorting gold through $DUST. Bought at $11.10 maybe two weeks ago, and it’s trading at $15.80 currently. GDX is my metric. Gold hasn’t even begun to bottom yet, which means the shorting potential is still fresh.

Furthermore, there will be a time where this does reverse, and it will be glorious when I abuse the bullish leveraged daily etf. I am saying this because I want some of you to at least see another color other than red.

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VisualMod t1_j9l8fqr wrote

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>TL;DR: -The fed is going to continue to increase rates, which will strengthen the dollar and weaken gold.
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VisualMod t1_j9l8gci wrote

>Thank you for your input, hyperchimpchallenger. I will keep this information in mind when making future investment decisions.

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Specialist-Island-41 t1_j9l91y8 wrote

Your grandpa sounds like a good dude. Speaks true. And your thought process is on point. Agreed sir.

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suasposnte187 t1_j9lbbk9 wrote

He opted for a russian firearm over the M-14 or an AR?

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vacityrocker t1_j9ldm0o wrote

The feds been on job destruction for about oh... 8 months now...

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hyperchimpchallenger OP t1_j9ldsyk wrote

Replying to vacityrocker (#1,925,685)

Correct, and it’s not working. They’re not going to stop trying until they reach whatever magic number for rates. Regardless, the point is that as they continue to raise rates, and as the global economy stays in the position, the dollar will continue to increase in value, which will push gold down.

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BuffaloChips92 t1_j9lek4k wrote

So was it a Chinese made or Russian made AK? If it was Russian made that's good! China made are junk. Oh...by the way Dragon and Bear country are LONG on gold....so am I

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cletus_ t1_j9lfr3u wrote

Didn’t your grandad see it in the seventies when interest rates were north of 50% or something? Different fed now, I realize. As a man’s man, if Paul Volcker were alive today he would probably walk in to a meeting, sneak up behind Yellen and put his dong on her head just for laughs while lighting a cigar, then bust into another meeting, smack Jerome Powell and tell him 25 basis points are for pussies. I could then see him getting angry while watching mad money that evening, call up Cramer and tell him he’s an asshole because the shorts never closed and he’s going all in on GameStop. That’s what I look for in a fed chair.

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RavenousHorde t1_j9lghys wrote

King R3tard here, No one should be shorting gold during extremely volatile times... I can't see the play here unless you want to lose your money... you might stand better the opposite there is far less gold than there is currency in this world.

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m0ka5 t1_j9lgq80 wrote

Why would you need Jobs if we can all earn money on stockmarket imgimg

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vacityrocker t1_j9ljl93 wrote

Replying to hyperchimpchallenger (#1,925,706)

Given the sudden arrivals of high tech spy balloons from China and the recent costs of shipping and port jam ups - rhetoric and blame pointing one could wrinkle the tin foil cap a bit and assume they are front load financing a conflict with China and Taiwan will be the social justification for the two nations to swing the bats ... papa (daddy) bush went looking for weapons of mass destruction as a cause to justify the incursions in the mid east.... oddly the economy did the same things back then... the devaluation of the greenback followed with a blind slap called "financial" crisis, oil reserves overflowed until 147.50bbl from 47... some things seem familiar but who but they really know.

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007baldy t1_j9lozt7 wrote

Are you day trading it or holding day to day? Aren't LETF's supposed to be day traded only?

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garycow t1_j9lppkx wrote

What good is gold really?

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GuiltyBee60 t1_j9luwxs wrote

good I’m always a net buyer of gold.. we buy the dip!!

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hyperchimpchallenger OP t1_j9mhhl3 wrote

Replying to 007baldy (#1,927,002)

It’s very risky to hold left’s especially in such a volatile market. but yes I have been holding for about two weeks. However, I think that the relationship of these two assets and how fundamental they are does eliminate some of that risk in an otherwise highly volatile market

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Invest0rnoob1 t1_j9ms0kp wrote

The dollar topped out already when dxy was nearly 115.

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HotMessMan t1_j9oe3mk wrote

How do you explain the massive drop then from September to Jan while rates were continuing to increase on Dust?

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Keyboard_smashgood t1_j9og120 wrote

I’m curious what the Fed is going to do when inflation is at 2% and unemployment is still really low.

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hyperchimpchallenger OP t1_j9pebb6 wrote

Replying to HotMessMan (#1,939,992)

A pause announcement, actual recession hitting, worsening economics here than abroad. We might see a short term rally on gold in the next month (based on some TA) but it’s not going to be long if that does occur.

Usually increased rates strengthen any currency. It brings investors from all over due to attractive bond rates and similar vehicles. Also, america experiences an influx of capital when the global markets seize due to relative robustness of the American economy

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