My real estate purchases have made a paper loss but I am getting rent on them, it doesn't matter that they are now worth less than I paid for them as I didn't buy them intending to sell them. Maybe I could have waited a couple of years to buy the houses and got them cheaper but I would have missed out on the rent and the tax benefits. The silver is not providing an income, it costs me to store the stuff. I could have bought my entire stack today for much less than I paid for it, I wouldn't have had to store it for so long and I would have been able to buy more of it. The only thing I have lost is the opportunity to accumulate more silver, an opportunity that I would like to have had. I am a hoarder, I am stacking because I don't want inflation to eat away my savings. I believe that in the long run I will be better off but in the short term I have lost out. If I was a trader and I bought and sold I would probably not be making such a loss, but I am not, I am in it for the long term and silver is just one of the ways I intend to store my wealth, at this moment in time it is not the most productive one, I hope that changes.
You are exactly right IMHO. The ATO is the last organisation you should use to back up any argument. No one can predict short term swings in the market - that is why to tell yourself you haven't made a loss until you sell is delusional - the market may never swing you back into profit. If you insist it will swing back your way, then you are predicting the price swings that no one can predict. You haven't committed a crime until you are busted? You haven't jumped off a cliff until you hit the ground? You haven't smashed you car until you claim on insurance? You haven't made a loss until you sell?
Are you serious? Look at all the products we use that contain silver. Tell the latest burn victim that his silver bandages to speed his recovery are not critical.
You hit the nail on the head. I am a delusional optimist and you are a sane pessimist.. Haha. Anyway, you think you made a loss because spot tells you so, yet you and everyone else believes spot is manipulated. So then, have you really made a loss?
Im understand your delusions I get the same way when I get a little head dip at my local youd think I was towing in at Jaws!
The jury is still out for me on manipulation. As far as spot, yes I believe I have made a loss because spot tells me so. Spot price is worshiped here. Any stacker here who doesn't care what they pay for metal relative to spot is a liar. Just take a look at the bitching about dealer and mint premiums, the hopefuls for price disconnect, the whining about alleged smackdowns. In fact the whole theory of price manipulation only exists because stackers follow spot price - otherwise it would not be of concern to them.
Silver has plenty of uses in industry but most of us will never be selling our silver to any of the industries who use it and it is unlikly that any of the industries will come to buy silver off any of us stackers. We sell to each other and spot is the main selling point. Even in an economic downturn people still need to live in houses and landlords would have to drop prices or have empty houses making no money. Many of the companies making electronics or solar panels might decide that there isn't enough market to keep the factories open which means they no longer have a need for silver. Silver in bandages is the exception not the norm, it may kill bacteria but it is thought to slow down the healing process, there was talk of having silver in the threads of the sheets and hospital gowns so that patients would be at lower risk of MRSA but I don't hink anything ever came of it. Of course when there is trouble at home it is always a good distraction to start a war overseas, preferably against a small country without long range missiles. You need a lot of silver in those drones.
+1 about the manipulation THEORY. I also SUSPECT spot is manipulated which does not make this a FACT on which to firmly base decisions. Silverlicious, as far as the ATO position, sure they do not recognize a depreciated asset if it's not a source of actual income. A totally different asset class to PM investment and completely irrelevant, I think that's why we call it income tax. It's still a loss to me though and if I were buying a leveraged asset, such as real estate, the bank would certainly take an interest in my balance sheet as part of my proposal and would certainly notice an asset that had depreciated causing a fall in my nett worth. A LOSS in other words and a reduced capacity to invest in leveraged assets, business expenses or expansion. But we have been over this delusion before. Still, nothing like burying your head in the sand to feel safe from danger I suppose. Edited for clarification.
Well said. You're exactly right. Pirocco loves to take it personal, always has, always will. His opinion is just his...and everyone has one. Take his personal insults/jabs with a grain of salt, because he changes his position like I change my underwear. His definition of a "stacker" is his, and his only. Anyone who "sells at a profit" isn't a stacker, and is somehow contributing to what is BAD in this world...which is greed. I think of it as, taking profits when you see fit. Again, his opinion is HIS only, and everyone has one. His is no more valuable than anyone' elses. Good luck mate.
Finally...there's no wonder you have about 10 people "saying thanks" to this comment. His comments are extremely dull...extremely boorish. He won't give it a rest until he "wins." We got it. You win Pricococococo. Now, can we get back to the topic on hand?
its funny I laugh at the idiots saying back the truck up now is a good buying opportunity etc etc. They were saying that @ $31, then @ the high 20's then again at the mid 20's and now in the low 20's / high teens. lol if you had of "backed the truck up @ $33 an ounce you would be looking pretty stupid now. The simple fact is it has been an a downwards trend for that last 2 years and could now go sideways for the next 20+ years no one knows. Like the fool in the other post saying that the US will NEVER EVER be invaded well it HAS happened in the past and it CAN happen again. All of this "great buying opportunity now get it while it is cheap as tomorrow it will be going to DA moon BS is just that total complete EXCREMENT OF A BULL. They dont have a clue and for all they know it could be just like in the 80 where we have 20 + years of sideways movement
What are you banging on about? Read my original post again. What you are asking me has no relevance to the context of my post whatsoever.
Maybe you misunderstood me. Buying metals is an investment that can potentially produce an income right?If you lose on that investment then you can offset that loss against the tax payable on gains you have made on other investments such as shares.
