Rotation into hard assets has begun?

Discussion in 'Markets & Economies' started by sgbuyer, May 8, 2021.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

    Joined:
    May 25, 2018
    Messages:
    3,892
    Likes Received:
    1,963
    Trophy Points:
    113
    Location:
    Singapore
    Started with gold in early March, now looks like Silver is catching on. Real estate stocks are starting to move. All coincided with talk about huge hike in capital gains taxes. Gold is capital gains tax free? At least for coins I believe.
     
  2. Oddjob

    Oddjob Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2018
    Messages:
    3,749
    Likes Received:
    6,771
    Trophy Points:
    113
    Location:
    New Gulagland
    Interesting topic.

    Not sure about SG, but CGT is payable on PM's in Aust...should you sell for a profit....
     
    Shaddam IV likes this.
  3. STKR

    STKR Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2019
    Messages:
    1,487
    Likes Received:
    2,846
    Trophy Points:
    113
    Buy high and sell low. That strategy has always enabled me to avoid CGT :p
     
  4. GreatSouthernTime

    GreatSouthernTime Well-Known Member Silver Stacker

    Joined:
    Mar 13, 2019
    Messages:
    380
    Likes Received:
    304
    Trophy Points:
    63
    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?
     
  5. GreatSouthernTime

    GreatSouthernTime Well-Known Member Silver Stacker

    Joined:
    Mar 13, 2019
    Messages:
    380
    Likes Received:
    304
    Trophy Points:
    63

    Haha. Very clever
     
  6. Jason1

    Jason1 Well-Known Member

    Joined:
    Aug 9, 2019
    Messages:
    1,191
    Likes Received:
    1,346
    Trophy Points:
    113
    Location:
    Qld
    Yer PM has cgt, but its easy to move along with no one knowing lol, thats the upside to it.
     
    slavaja and Ag bullet like this.
  7. STKR

    STKR Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2019
    Messages:
    1,487
    Likes Received:
    2,846
    Trophy Points:
    113
    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.
     
  8. Jason1

    Jason1 Well-Known Member

    Joined:
    Aug 9, 2019
    Messages:
    1,191
    Likes Received:
    1,346
    Trophy Points:
    113
    Location:
    Qld
    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.
     
    Last edited: May 8, 2021
  9. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    2,987
    Likes Received:
    3,389
    Trophy Points:
    113
    Location:
    Melbourne
    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.
     
    GreatSouthernTime and Jason1 like this.
  10. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,606
    Likes Received:
    4,392
    Trophy Points:
    113
    No. Crypto is the asset.
     
    LiverBird and GreatSouthernTime like this.
  11. Ag bullet

    Ag bullet Well-Known Member

    Joined:
    Dec 27, 2013
    Messages:
    1,582
    Likes Received:
    1,570
    Trophy Points:
    113
    Location:
    SE QLD
    CGT can be avoided by submitting a BAS. (Boating Accident Statement)
     
    oziwassabi, heartastack, PM and 4 others like this.
  12. GreatSouthernTime

    GreatSouthernTime Well-Known Member Silver Stacker

    Joined:
    Mar 13, 2019
    Messages:
    380
    Likes Received:
    304
    Trophy Points:
    63
    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.
     
  13. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    2,987
    Likes Received:
    3,389
    Trophy Points:
    113
    Location:
    Melbourne
    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! :D:p
     
    Ag bullet, STKR, raven and 2 others like this.
  14. GreatSouthernTime

    GreatSouthernTime Well-Known Member Silver Stacker

    Joined:
    Mar 13, 2019
    Messages:
    380
    Likes Received:
    304
    Trophy Points:
    63

    Absolutely agree. Can’t see where they don’t coexist.
     
    madaw1 and 66rounds like this.
  15. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

    Joined:
    Mar 22, 2010
    Messages:
    8,298
    Likes Received:
    7,656
    Trophy Points:
    113
    Location:
    House Corrino
    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.
     
  16. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    2,987
    Likes Received:
    3,389
    Trophy Points:
    113
    Location:
    Melbourne
  17. JohnnyBravo300

    JohnnyBravo300 Well-Known Member Silver Stacker

    Joined:
    Mar 16, 2019
    Messages:
    3,553
    Likes Received:
    3,397
    Trophy Points:
    113
    Location:
    Colorado USA
    Hedge funds selling off like crazy here.
     
    GreatSouthernTime and ozcopper like this.
  18. Millennial Engineer

    Millennial Engineer Well-Known Member

    Joined:
    Apr 19, 2020
    Messages:
    455
    Likes Received:
    414
    Trophy Points:
    63
    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.
     
    GreatSouthernTime likes this.
  19. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

    Joined:
    May 25, 2018
    Messages:
    3,892
    Likes Received:
    1,963
    Trophy Points:
    113
    Location:
    Singapore
    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...
     
    Oddjob and GreatSouthernTime like this.
  20. GreatSouthernTime

    GreatSouthernTime Well-Known Member Silver Stacker

    Joined:
    Mar 13, 2019
    Messages:
    380
    Likes Received:
    304
    Trophy Points:
    63

    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.
     
    madaw1, adze67, STKR and 2 others like this.

Share This Page