Are you in the top 1% of gold holders in the world? Find out here...

Discussion in 'YouTube Digest' started by ozcopper, Apr 10, 2020.

  1. Lusty

    Lusty New Member

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    Depends what you do with the extra credit you take out from the house in the overall picture if you are relying on a paycheck then yes you are pretty much screwed. However, as people pour into physical assets when confidence is lost in the $ your better off having less equity in that property because in the scenario you pain if you had 50-100k difference in the loan and your paycheck only covers your groceries you are in the same position.

    Think if that 100k of equity rather than paying down your loan you put it into an asset which was hedged against inflation, then paid off your loan in full with the hyperinflation?

    We are in nuanced times where the system is set up to benefit people in debt to keep their debt bubble going, otherwise the bank is more likely to collapse.
     
  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Think about paying off that last 100k on your mortgage before hyperinflation depletes your earning capacity. Guess what? The bank no longer has a noose around your neck. Rain hail or shine the house is no longer a liability but a true asset.
     
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  3. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    If your only goal is to buy precious metals without diversifying into other assets and associated services then a SMSF is not for you as you are going to be continually dipping into your income to pay to run it.

    The reason to get a SMSF is in order to have more control over your retirement fund so that you can structure it in a way that meets your needs best now and into the future. With industry funds and fund providers like esuper, you're stuck with what they consider appropriate investment assets and having to work with their mates. Doing it independently won't release you from the ever increasingly anal auditing world but it will give you greater control to do more things such as buy PMs, cryptos, investment property, listed and unlisted shares/funds, tailor your life insurance and trauma/disability insurance, allow you to purchase commercial property and rent it yourself if you run a business etc.

    All of these things will cost you $$$ to set up and $$$ to maintain. Stick with an industry superfund and buy PM's privately until you're in a position to consider diversifying your retirement planning.
     
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  4. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    On the flip side, I opened an esuper account in 2013 specifically to buy gold. esuper was the cheapest and easiest option at the time, though it has got a little less simple since then.
    I transferred some funds out of an industry fund and sunk a 6-figure sum into gold via PMGOLD.ASX and the process was simple and relatively painless. Did not need to dip into income to pay to run it either?
    Just reached the AUD gold price where I have doubled my initial stake.
     
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  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    @wrcmad Does PMGOLD pay dividends? If not how did you fund the auditing and other compliance costs?

    Bullion doesn’t pay a dividend so unless @66rounds has some form of income producing asset in his SMSF then he’ll have to dip into his pockets to cover expenses.
     
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  6. Agnostic

    Agnostic Active Member Silver Stacker

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    In the last month, Australians have lost freedom to travel, freedom to work, freedom to associate, freedom to stack lead and copper, freedom to obtain game and fish, freedom to practice religion, and a few others.
     
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  7. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    No. No divvies. Some of the cash transferred from the industry fund was left as a small kitty in the fund transaction account to take care of that. I considered it an inconsequential (<<1%pa) holding cost.
     
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  8. harry_mr

    harry_mr Active Member

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    Silvers problem as a reserve is its physical storage size. Platinium, Palladium, Rhodium are not around in sufficient amounts and their uses are limited. Gold is the gold-i-locks metal, average about an ounce for every man and women in the population.
    Confiscation is not so easy, try telling 2 billion women they cant have their gold jewelry, they get nasty.
     
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  9. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Do you reckon confiscation is even on the radar any more? I think it’s a relic of past thinking when international payments were made in gold.

    Government doesn’t need our gold anymore.
     
  10. harry_mr

    harry_mr Active Member

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    Its possible, if gold were to ever start trading largely in the economy in opposition to their paper, that would likely mean a break down in confidence of fiat had occurred.
     
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