You dollar cost average your precious metals purchases against their current fiat value and find you've effectively lost money. Your fiat dollar investments in the bank are returning less than the (real) rate of inflation after tax. What's a saver to do? I started stacking in October 2009, so am late to the game compared to a lot of other forum members. I don't doubt that it will all work out well in the years ahead, but on days like today it's easy to feel depressed. At current spot prices, my gold purchases to date are worth 3.75% LESS than what I paid for them. My silver purchases are up 4.91% but that's a pretty piss poor return over 32 months! Clearly what I should have done is gone into debt to buy a nice house, flash car and 50" plasma TV. j/k Edited to fix typo
No, a piss poor return would have been investing in the ASX 200 index which is down 19% over that same 32 month period. [youtube]http://www.youtube.com/watch?v=jHPOzQzk9Qo[/youtube]
Hang in there, I have often felt this way too, then I ponder over where else could I have put my savings, then remember the big picture and relax about my choices :|
Most investors lost a fortune, your silver is slightly up. Most investors are left with worthless paper, you have physical metal which will go up in value later on. I would say you are doing ok but yeah, you should have got the cheap credit when it was being offered!
Is this thread going to turn into the grey nomad thread too? No-one should be giving advice like that without considering the other persons position. What if they're only 18yrs old? Pump it all into super? Egads, do you believe the super system will last the 55yrs it takes until they can retire? End of thread hijack. I suggest ignoring that the mention of super.
Dollar cost averaging just keeps getting better...and you get more silver for your coloured paper and imaginary 1s and 0s. On one hand I get a little sad when it drops because I see people 'losing' currency...but they still have precious metal of intrinsic value in their hands. And then I look at the other hand and realise that having precious metal in it, is worth more than all the empty re-assurances that "everything will be fine, we just need to print more" Full faith and trust in the govmint :lol: you've got to be kidding... When the penny drops with the "100th Monkey", and the real rush into the only true money left occurs, who'll be giving up their precious for "promises to pay"? Not me
^+1 to the above And I'll also add that the joy of super (if it's self managed) is that "they" let me buy copious amounts of precious and I've got it in my hot little hands When (not if) it all goes pear-shaped, those with promises will be left wanting...I'll have my retirment plan where "they" can't frak with it
Best thing to do if you have savings in the bank is keep closing an reopening the account for the bonus interest. Every little percentage helps, until the tax man comes....
Don't get me wrong. I'm fully committed to stacking and haven't sold a single ounce. My plan is to ride out the storm until the current monetary system fails and something else replaces it. No one can predict the future, but I'm expecting this to happen in the 2015-2017 time frame based on everything I've read. I'm just angry at the blatant gold price manipulation/suppression.
Do banks frown upon that or is it a fairly common thing to do? I've got an NAB iSaver account and the interest rate just dropped to 3.5%. I need my cash to be on call, so a term deposit isn't an option. Unfortunately I'm not eligible to open an account at the likes of UBank because I'm not an Australian tax resident.
Just go into your bank, ask to speak to the top person, tell them you would like to close your isaver account and re open it with the bonus interest that they have on offer to any other walk in, they will say they cant do that, then you say, right then ill just close it and go to another bank, other banks are throwing offers at me every day. I am sure they will offer you something to keep you banking with them. Banks DO NOT want to lose any client, picture them hanging on to a cliff by their nails.
Pfft - I could have sworn I posted this but apparently not Sometimes it's not so much about how much you gain but how little you lose (in comparison to everyone else)
I'm with NAB too, the first time I went in to do it I was nervous and worried thinking I was committing a crime. Spoke to the teller and she was like no worries. Took a couple of minutes. Been doing it every 4 months since, funnily enough it was my old bank manager that told me to do it.
I contacted NAB and they said I can simply apply for another iSaver account and then it's up to me whether I close the old one or not. It would be easier if they simply paid the bonus interest on my existing account, but whatever. I wish I'd known this was an option six months ago and not left money on the table!
