Don't know about the rest of you, but I need it to hit 30 to break even ... And I'm not the least bit worried about it either!
there are people who have overtacken the stock from their parents and grandparants. their average is zero and i would definitly not listen to them. all others are maybe dead allready. why do people buy pm ? not to gain a short term profit. physical pm in your hand are a very bad vehicle to invest if you are after a short term profit. you did count up the points already. pm is a insurance against the gov runnunig a paper money system and their friends from wall street. no insurance is for free. so in consequence you always carry a loss if you start buying a insurance. if you have learned quoting your insurance not in paper money your are done and never again ask yourself being ill.
to have a average of Au$10 or lower you have to be in the physical markets from 1990 to 2006 and than stop buying any ounce. how possible is this scenatio for people being into Pm markets exactly finding the best timing and stay away from this markets over the last 10years when fundamentals cook up and people using their brain know the system has to come to a end. 0.1 % can match to fill this scenario. i am sure you will not be able to find anyone here on board that matches this
Are there stackers here still with substantial (how much is "substantial"?) holdings of silver bought at sub-$10 AUD and who did not liquidate when silver jumped significantly?
Not really. Doesn't matter what your buy price was, there are other ways to reduce your average price.
i deliberately chose the word "substantial" rather than a fixed amount as what is substantial to one is not substantial to another. When working on a theory and attempting to come to a defined conclusion one must remove as many variables as possible. For the sake of this theory the actual weight is not as relevant (if at all as it is harder to quantify) as the < 50% spot figure.
He is saying that he bought at 16, then sold at 17, and then rebought at 15 and thus his cost is only 14. I disagree with that logic but that is what he is saying. Couple other ways would be by theft or finding it by rummaging through bank bags. I would also discourage those ways.
I'm not getting your logic for paying by credit card rather than by check or money order. If you bought the silver at the price you wanted, why is it such an incredibly big deal for you to wait the extra few days for the stuff to ship to you if you're going to be holding on to it for awhile. Your impatience seems to be costing you money... If you're buying the silver to flip it quickly, wouldn't you be better off just buying paper silver? The transaction costs would probably be a lot smaller if you were just trading an ETF. As far as payment methods go, in Canada a lot of banks and credit unions give you the option to do checks by email and lots of people and places will take those. In Australia, a lot of payments happen through electronic bank transfer. From having lived in the U.S., I know that checks and credit cards are king, but I'm surprised about how backwards the country remains with respect to using electronic banking to transfer funds. Since I moved to Australia 4 or so years ago, I think I've dealt with 2 paper checks. Whereas back when I was in the states, I was probably averaging 10-20 paper checks/month.
Given the appalling uSA minimum wage I doubt many of them ever have enough funds left to transfer by EFT anyway!
Fishtaco wrote: As far as payment methods go, in Canada a lot of banks and credit unions give you the option to do checks by email and lots of people and places will take those. In Australia, a lot of payments happen through electronic bank transfer. From having lived in the U.S., I know that checks and credit cards are king, but I'm surprised about how backwards the country remains with respect to using electronic banking to transfer funds. Since I moved to Australia 4 or so years ago, I think I've dealt with 2 paper checks. Whereas back when I was in the states, I was probably averaging 10-20 paper checks/month. Given the appalling uSA minimum wage I doubt many of them ever have enough funds left to transfer by EFT anyway Boliver writes: Electronic banking in the US is alive and well I have been using it for years for all my regular bills and other payouts, I think it's the people who are backward on using it, afraid to take the step and worry about identity thief is the the excuses I hear from people who refuse to use the service. The appalling minimum wages in the US as you stated. it should be for kids in my opinion who are just started working and know nothing about being employed or what to do, a starting wage to gain experience and with the ability to rise above and earn larger amounts. If someone has only the skills for minimum wage they do not have the skills to raise a family, I see so many high school kids who cannot find a part time job where I live because the small business cannot afford to hire them, higher minimum wages leads to higher unemployment around here.
I was only joking I have been to USA a number of times and its pretty cheap to live there compared to the Australian cost of living!
America's banking for consumers really is downright antiquated as compared to many other nations. 9 years ago when I moved here, I hadn't written a check in a decade, and hadn't received a paper invoice from a utility in at least five years... the "local" bank I got my mortgage with and opened an account with didn't even have internet banking at the time and I had to start opening mail again - arg! Sure there are some banking giants here in the US, but anti trust laws see this country have more small banks missing many economies of scale many other countries have/enjoy. In my eyes - banking in America for the average consumer (note I said average consumer not Wall st. Trader. The distinction is important.) is downright antiquated. Not something anyone who doesn't live here would understand. Debt/credit cards! What the heck is a "credit" card if you have to have funds in your account lol - yeah for those who love things like interac banking ... It's easier to pay with the established vendor Visa than any other way in many places here. People use credit cards here like many other people around the world use debt cards. As for minimum wage and standard of living in America. There is a outright war in America on the poor. Americans would rather have a police state and incur all the costs that go with it, rather than help a poor slob out via minimum wage or social programs. This is a tough country for those who aren't established. It's not the land of "milk and honey" as so often touted. As for standard of living - to the casual observer, things here seem inexpensive. And they are - sort of. But what those who travel here don't include into their pricing is healthcare. The average Canadian and American who are middle class are no better off if in either country at the end of the day if they have the same services. Living the American dream is actually easier to do in many other countries that "seemingly" tax higher. When I point that out to many of my friends here, many have outright violent reactions. But the facts don't lie. Yeah, I'm a trained economist. I look at things like that.
I think your costs are too high but you have the right intention. If you were buying at 14's-15's unless its a mix of premium and bullion, your cost average is a little high. Even though checks are antiquated, you get a price lock on the day of and a 4% discount. It makes more sense if you use cc on like ebay and the price was lower or some combination of the two. As far as using a cc, i'm one that leverages debt. I have a 0% interest card for 18 months and used the credit line to buy a bunch of gold and silver from Aug to approx Jan. Flipping along the way to pay down the balance and buy additional stock when deals present themselves. I use a combination of cash and credit. Luckily, this worked out for me since I purchased during the low and sold while it was higher. Combined with ebucks and giftcards, I'm still paying off the metals managing cashflow and have a balance. Now, most people here think its a stupid idea because I'm leveraging credit. I have cash to back it up and if you do then you're fine. It works like a covered call option, except I did it with physical. Am I doing it now? No and definitely not at your cost basis. If you can lower it and leverage credit properly, then you can get the pros without the cons. I was able to ride a 18% gain from it, even though people think its totally the wrong move. Now that prices are higher, I don't buy nearly as much or as often, pay by check and pay down the balance of the card month to month in equal installments, while still maintaining a strong cash position. The other cash, I had in the market, which also luckily for me is up 40%, which I recently sold off thanks to a stop loss and now with a larger cash balance to pay off the card at anytime or reinvest. Of course this could've went the other way but this was a calculated risk and worked out. So no, I don't think you are ill, but I do think the more you do it, the more conservative you get. Buying at high prices is not beneficial because you leave oz on the table in transaction fees. The exception is if you do it on ebay or dealer websites where there's a deal. At govmint there's a deal for Silver Eagles credit card price of $16.95, which I recently bought 80oz on credit. Even if spot goes down, it would have to go lower than $14 to get lower than this price, which is acceptable risk and purchase price.
Leveraging debt is how you get rich - and a great way to do it if you have a high risk tolerance. One mistake and ... Yeah, I have 1 year sans interest if I pay my min payments. It's a good deal. If I could flip or felt strongly that something was going to move one way or another, I would ride the debt myself. Not there yet though. Thanks!
Sorry but your analysis on America is absurd. There is no "war" on the poor here. Generally speaking, anyone in the US who is "poor" (not counting children) are that way because of the lifestyle they chose. America is still the land of opportunity, albeit not as much as it used to be thanks to the progressive libs intent on fundamentally changing America thru their various platforms. Many "poor" people, born that way, strive to succeed and do. If they fail it is not because of their race, sex, etc, it is because they gave up or were lazy. I am not talking about a guy that is laid off and is having a hard time finding a job. I am talking about the type that want free $hit from the gov and any other source they can find. When they can't find free $hit they claim they are poor because of others' fault. Since the 60s the progressive libs have propagated their BS thru the various media sources they have control over- and generally the public has eaten it up. The "poor" here have been conditioned to receive entitlements and not obtain things on their own. For generations "poor" folks have received free gov money for each illegitimate child they produce, and many produce several, each one bringing more money per month. Although there have been some limits on this, it still goes on. People who are able-bodied have learned to fleece the system thru bogus "physical or mental disabilities" and get a free check each month from the Fed gov. Poverty is a state of mind. Poor people generally think differently than non poor people and behave differently. Unfortunately it is a "dog eat dog" world, and you can't take away from the successful to give to the non successful and expect that a nation will be strong and prosper. People in the US are very lazy compared to generations past. Partly this is due to the progressive lib ideology which has weakened the US. Kruschev's promise from years ago has come to pass it seems. As far as the police state, I agree many are incarcerated for drug offenses and that is wrong; all drugs should be legal for adults in my opinion (talking about heroin, etc). Unfortunately there are folks in America that are very dangerous and would kill you for a $1 and they need to be locked up. Such crimes happen everyday and the media won't report it accurately because it tends to cut against the success of progressive liberal ideology. However, when a cop shoots someone, it gets weeks of media attention. PS My line of work puts me in constant contact with many of these types of "poor" people. They claim to be "poor" but always seem to have $$$ for cigs, alcohol, drugs, nice shoes, etc, etc., yet they claim they can't pay me my fees. Just my opinion. Jim
