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Tesla stock reaches $2,000 amid soaring interest in EV companies:
Tesla's stock closed at a record high of $2,000 on Thursday, pushing the company's market capitalization to $370 billion. Tesla has been on a weeklong rally since announcing a five-for-one stock split. The split will be distributed to anyone who holds the stock tomorrow—Friday, August 21.
A little more than two months have passed since Tesla's stock first reached $1,000 per share. Last month, Tesla announced a solid second-quarter profit of $104 million. It was the fourth straight quarter of profits.
That could qualify Tesla for inclusion in the S&P 500 stock index. If Tesla wins a slot in the S&P 500, funds that track the index would need to buy Tesla shares. That could push the stock price up even further.
(Score: 5, Insightful) by JoeMerchant on Saturday August 22 2020, @04:58PM (4 children)
Back in the late 1970s local coin shops would sell 1.0oz Krugerands for exactly the price per ounce quoted on the evening news. When it came time to sell them, those same shops would only pay 90% of the quoted price, so that's a big margin to overcome, but not impossibly big if you're holding for a couple of years.
The true value of anything is what people are willing to pay for it. In the right circumstances, a ham sandwich is worth more than a gold Rolex.
🌻🌻 [google.com]
(Score: 2) by istartedi on Sunday August 23 2020, @12:53AM (3 children)
A lot of people don't get this. Gold merchants make money on the *transactions*. A lot of them even have it right there in their names, e.g., Joe's Gold EXCHANGE.
The spreads on physical gold transactions are stuck in the past--fixed percentages of quantity, like stocks used to be. The introduction of ETFs has changed that somewhat. You can buy and sell ETFs with no transaction fees, just like stocks; but you generally don't get physical delivery unless you jump some really high hurdles (in the case of the GLD fund, you must be a registered broker-dealer capable of moving 100,000 shares). Then there is Kitco Pool [kitco.com] which is more within the grasp of small investors. Note the spread between buy and sell prices... followed by "small premium" for conversion in to physical metal, which ain't so small.
Turns out, the best way to make money with gold is to facilitate transactions with it [youtube.com]... as long as you don't cheat and/or piss off Eddie Murphy and his friends because of a stupid bet.
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(Score: 2) by FatPhil on Sunday August 23 2020, @08:36AM (2 children)
At time of clicking, spreads here are between 0.02% and 0.55%, depending on the market and currency:
https://www.bullionvault.com/market-depth.do?previousCurrency=USD&considerationCurrency=EUR&securityId=AUXZU&marketWidth=8&priceInterval=10&unitOfWeight=KG
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by istartedi on Sunday August 23 2020, @04:37PM (1 child)
Those spreads are low because it's "vaulted gold" -- no better in security than the Kitco Pool. If I were in that market, I'd just buy GLD with zero transaction costs. It's just as trustworthy, if not more. You can get coins from there too, but only to a UK address, and then you're right back to bigger fees. [bullionvault.com]
Oh, and while we're still on the topic I forgot to mention that in the USA the IRS taxes physical gold as a "collectible" with a much higher capital gain rate.
Gold really brings out the toll-takers!
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(Score: 2) by FatPhil on Sunday August 23 2020, @09:38PM
And why do you you say "vaulted gold" as if it's inferior? It's in a guarded vault and ensured. That's unimaginably safer than, and thus superior to, having the metals on my own property, and I'm perfectly happy to pay the absolutely minuscule fees for that storing. guarding, and insuring.
And regarding Stupidoland, all I have to do is mention 1933 and Roosevelt. The US govt. either hates or loves gold, depending on your point of view. I live in a country where there isn't even any VAT on gold or silver, so if I did want stuff in my hands, I could historically get it at about spot + 2-3%. Of course, actual metal now is as rare as rocking horse shit, so good luck with that, anywhere in the world.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves