Rotation into hard assets has begun?
- Thread starter sgbuyer
- Start date
I believe CGT is applicable to precious metals in australia and usa. Only collectible non bullion coins that are considered a collectibles are exempt.
As I understand when there is a threat of increase in CGT you get a sell off in risk assets which triggers some money to transfer into less risky more safe haven markets.
My guess?
As I understand when there is a threat of increase in CGT you get a sell off in risk assets which triggers some money to transfer into less risky more safe haven markets.
My guess?
Buy high and sell low. That strategy has always enabled me to avoid CGT
Haha. Very clever
After dabbling into crypto trading (which I'm loving at the moment), it's evident to me how little faith I have in the longevity and security of such "assets". There's no assurance your gambling tokens are even going to exist when you check them next.
Of course, the major cryptos are more secure - but are they really? I think people still value tangible assets above all for wealth preservation. You can have as many illusionary digits in any account, whether it be your bank, trading account, share portfolio or crypto wallet...but it's just an illusion until you transfer it to tangible asset or goods.
I reckon we're seeing an influx of demand for metals from crypto speculators and other of the like, converting a portion of their profits.
Of course, the major cryptos are more secure - but are they really? I think people still value tangible assets above all for wealth preservation. You can have as many illusionary digits in any account, whether it be your bank, trading account, share portfolio or crypto wallet...but it's just an illusion until you transfer it to tangible asset or goods.
I reckon we're seeing an influx of demand for metals from crypto speculators and other of the like, converting a portion of their profits.
Jason1
Well-Known Member
yer allot of regular people are doing the crypto thing in the hopes of being able to afford hard assets.
Id say most peoples end game would be to buy tangible assets from their crypto trading.
id say people are putting their cash into cryptos for the perceived easy money and when its not so easy, the money would return to other assets in a hope to have more buying power.
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Concur, I think the CGT is irrelevant and we are just seeing all that funny money poured in due to the beer virus work its way through the system into assets. Whether you want to call it inflation or not doesn't matter, hard assets will continue to increase in value for the foreseeable future.
I've also noticed hundreds of payday lenders reopen and banks offering abundant credit at almost unimaginable rates. No interest for five years with a monthly minimum repayment? Three years without a minimum? No interest ever only a $20 fee on remaining balance?
All this easy money can only go on for so long until something gives.
I've also noticed hundreds of payday lenders reopen and banks offering abundant credit at almost unimaginable rates. No interest for five years with a monthly minimum repayment? Three years without a minimum? No interest ever only a $20 fee on remaining balance?
All this easy money can only go on for so long until something gives.
No. Crypto is the asset.
CGT can be avoided by submitting a BAS. (Boating Accident Statement)
In regards to crypto I wouldn’t want to make an assumption but I do see the value of a boarderless, decentrilised private asset which only requires your memory and working internet to access.
I think there is value in that to many people but likely represents a distrust in other markets more than a belief in the crypto space.
regardless if crypto becomes mainstream in decades and centuries to come, I still think history repeats and people revert back to what has worked for thousands of years. Not just financially but also socially, politically and culturally.
I think there is value in that to many people but likely represents a distrust in other markets more than a belief in the crypto space.
regardless if crypto becomes mainstream in decades and centuries to come, I still think history repeats and people revert back to what has worked for thousands of years. Not just financially but also socially, politically and culturally.
Nothing is more decentralised and anonymous than gold and silver. No ledger of ownership, no way to track transactions. Cryptocultists should be the biggest precious metals permabulls on that point alone!
Nothing is more decentralised and anonymous than gold and silver. No ledger of ownership, no way to track transactions. Cryptocultists should be the biggest precious metals permabulls on that point alone!
Absolutely agree. Can’t see where they don’t coexist.
People with large sums in the banking system are looking for other asset classes to invest in in order to get their money out of banks. The reason is that the interest rate they are being paid is below the inflation rate and therefore money in the bank is a losing strategy.
Hedge funds selling off like crazy here.
Millennial Engineer
Well-Known Member
On the boarderless comment I love how you have a watch as a profile picture which is a man's way of being able to get value across national boarders.
https://au.finance.yahoo.com/news/s..._LYER-9j_rp158zHU0IPbtpsB6ld6brLXDrJ4m_qjby_2 That Sam Zell, guy who i heard of only the other day was making a bid for Gold, and Buffet/BH was reported of buying Barrick Gold shares last year, only 1.5% of the portfolio.
Might be my imagination I heard on the net Dailo Say something similar recently but can't find an article.
I think that they can, Open question do you think that there is much polarization between the general members of each camp in an all or nothing. From my limited experience there isn't.
I perceive People who have neither (Boomers) seem to favour gold and silver
I agree there would be lots of people who sat on the sidelines in 2017 who might want to get in now, as well as BTC, entry way being a safe haven from perceived inflation. Although from my personal experience none of my friends who were in Crypto or Precious metals who weren't in them in 2017 are in them now in 2021 to any significant extent from what I can tell.
Additionally someone who rode generally 2.5 years of down after 2017, I and I think a lot of others have become aware of https://www.blockchaincenter.net/bitcoin-rainbow-chart/
Which would let me cash out of cryptos to buy hard assets, any excess money this time would go to shares or more precious metals. Say over investment properties.
Although I think COVID and Stimulus as well as more people knowing about the chart does throw a wrench into the calculations.
No cap gain tax here if under individual, saves a lot of trouble. But even for corporates, I don't think it's easy to track physical metal as one can buy and sell using personal name and transactions in cash is very difficult to track. CGT will hit assets with lots of profit to pay. Everyone will be dumping to avoid the tax and this in itself will cause a monumental collapse. As for gold and silver, there's not much profit to begin with...
Haha. Absolutely, jewelry has been borderless wealth for centuries. I don’t go anywhere without one of my watches.
in regards to the polarization of the two markets I think it has been blown up by a few people on the media. Ultimately BTC represents an electronic distrust in fiat money and PM’s are the analogue godfather of that.
The bulk of wealth in the western world is held by boomers and no doubt they will run to what they know. I think millennials who have never known a world without internet will have an inherent trust in a digital asset but in the long term I don’t see a reason they wouldn’t trust something physical in their hand once they understand it and it’s purpose better.
From my observation I’ve been seeing an increasing number of younger people at my local dealer so maybe they have already started the transition. I consider myself one of those people being in my mid 30s, although I am an old soul and respect history.... and time
I probably should have listened to my youth back when BTC was $3k and I was looking at it. But I’m quite confident my metals will serve me well in 30yrs regardless.