What's real inflation again 9% ? gee that 1.5% before tax will make all the difference....... I will sell tomorrow and put all my cash in a term deposit for 12 months with a Julia/Swan guarantee upto 250k ....lol Even 1 better 4.65% p.a. WESTPAC For a 60-month term with a minimum deposit of $5,000 or more (interest paid annually) - Thats it lock it in for 5 years - will the bank and Julia be arround ??? not so sure What I am sure of is that your purchasing power will be crushed !!
I was looking for a term deposit account last year and say this ridiculous offering from WESTPAC Yes - deposit some money, allowing WESTPAC to leverage it for 5 years. A measly 4.65% pa doesn't even come close to covering 5 years of inflation and capital gains tax. I didn't open a deposit account in end - bought a new bedroom suite and PMs.
Sure do Less worries, a comfortable bed and added bonus stopped the missus whinging about getting a new mattress.
The only fiat I have in a term deposit is for paying for a party @ my wake. Body goes to medical science, saving on funeral costs. 2 family members know where my metal stash is. Day to day stuff looks after it self. Keep it simple.....
You know I empathise with the OP. BUT I had am epiphany last year. I bought at the top (yep, I openly admit it) and I did go through a time of feeling ashamed. But then I remind myself that I spent HEAPS OF TIME researching and thinking and doing my DD and at the end of that time I bought. Then it came down! Oh well. My point is that I intend to keep the silver for a long time. In the year since I have built up my balance to invest in other things. I am not going to sell unless I have to. My only peeve is paying for storage. But this cost is factored into my investment strategy. I am prepared to hold for ten years. By then I am certain I will come out ontop. Plus, the knowledge I have gained on this board is priceless, so this is all part of the learning processes of investment. I am currently filling my noggin with knowledge about the sharemarket. I hope it goes ok!!! Shiny.
5000 years of history proves nothing. And it certainly doesn't prove that silver is a permanent store of vale because it hasn't been. Find another reason for buying silver.
I'm not going to throw the towel in yet as a lot of you have said "other investment are doing poorly too"but PM's aren't acting as they should.
So if your worried now, then what were you thinking in the mid 1990's ? Times are good now for old hands like you right?
Alcohol kills more people in Australia than smoking. It kills most at a young age and also unlike smoking kills many innocent bystanders. The BS that is sprouted about second hand tobacco smoke is that, BS. Believe me know. Here in Australia we see binge drinking as part of our warped culture. It is a plague on our society and for me to invest 1c in any alcohol producer is like asking me to invest in the Agent Orange factory. I have autopsied many young people who's lives have ended years too soon because of our favourite pastime of socially accepted and promoted alcohol abuse. I would not invest in any such program and despite the likely upside that coming economic hardship is good for tobacco and alcohol I ask you all to keep away.
@ronnie, that's fine, you have your ethics , I have different ones. Humans should be responsible for their own behaviour, it's not up to me to help someone with an alcohol dependency to curb their habit. Neither of these two distilleries (especially The Nant) probably contribute to the deaths of young people through alcohol abuse, their products are too expensive. But anyway, each to their own. Have you thought about RE?
Yes I own unmortgaged RE but will not get involved in managed RE because of the counter party risk. A friend invested $2M in a managed portfolio of homes on the Gold Coast some years ago they are losing a heep. I don't have a long term problem with RE but it is highly illiquid. If you need the cash urgently it is problematic. PM are far better in this regard. More recent managed RE schemes in Australia are not performing well. If you have spare cash then I don't see anything wrong with buying good property and holding on for 10-15 years. But be sure you don't need the funds in the interim. As you see I am very wary of any investment over which I don't have direct control. This policy has served me very well over the past 15 years and no doubt will continue as we move into a more and more uncertain financial future. There is a risk in all investments so we don't need to add another layer of risk ie counter party risk. You can see that I measure investment success over years or decades not months or weeks like many PM pundits (Rawdog). By the way I totally agree with you statement of personal responsibility which hardly exists today. Everything that happens is blamed on someone or something else. With alcohol the issue I have is with young kids and how socially acceptable drinking is. Then they destroy other people's lives and all they get is a slap on the wrist. We demonise tobacco yet ignore this issue of alcohol. Tobacco usually only kills you in the last decade of your life and does not affect others to any great extent. I have no problem with people killing themselves with tobacco, alcohol drugs or food but I have a problem when that impacts on either innocent bystanders or public funding.
As far as I understand what is going on in the economy and the living-together derived from it, I see the situation and future outlook like this: There are two kinds of spending: 1) capital, which I define as money that was earnt by producing/delivering services to voluntary customers. 2) unbacked money, which I define as money that was created instead of earnt. Too much of 2) caused the crisis since 2008. Since 2008, the unbacked money spending continued, with the same trend/rate as before 2008 (as what the NET dollar monetary base shows, see the topic in my signature). But a part of the population, concerned by the crisis, cut the spending of their 1) capital. They started to save/increase reserves for the bleak-looking future. In such a degree that it compensated for the continuation of unbacked money 2) This explains why general prices didnt increase in extraordinary degrees. This, makes clear the future. In order to end the crisis and governments deficits build-up, the producing population part has to spend instead of save again. But IF they spend, prices gonna rise. The anticipated inflation wave will finally arrive, catching up with silver, raising its bottom price. Even if all the debt got erased, because aside of continuation, it would facilitate even bigger government/parasite spending. The current situation has no exit that is 'soft' for the parasites. And that is why I swapped my savings to silver despite the already tripled price relative to 2008's panic bottom. Selling in the hope to buy back in lower? Aside from my judgement that this as bad trading behaviour, I wouldnt do it. Because the chance is high that you'll end up having given away your ahead position in the buying order. Just like those that sold in 2008. Even at $9. It wasn't a good idea then and the economical outlook is still the very same and a continuation of the trend to disaster. In terms of economical value relative to other goods, thus purchasing power, silver may be a loss for some time. But what alternatives are out there? A bank account is a designed loss. Everything is bought up/frontrunned. Silver is in macro economical terms a relatively small market. There is alot potential for price increases. Just look at how the price spikes up everytime. Avoid buying in the ups. And if you need to sell some, try to avoid selling in the downs. Keep some fiatmoney reserve. It buys you the time to wait/select. Take that 'Rawdog', whoever it is, he says he sold. Try to see it in the bigger perspective. In order for his decision to end up WISE, it requires alot others to do the same AFTER him. He is now dependent on others willingness to sell at these prices. He gave away his position and requires now others to give up their positions. Well, I try to be WISE too, and I don't.
When the prices fell after the 1980s boom the price went down so low for so long most just hid their silver and forgot about it .It was a really bad time for Pms,very few made any money out of it.Hope this does not happen again.
longtime silver believer, I've been buying this week and paying a monstrous premium for my preferred type - restrikes of old Kooks that are now mintage declared. I'm sure you're not going to sell with 2013 offering rays of hope after a grueling 20 months of correction. Sounds like you do need a trading plan though, so you are prepared, when Silver doubles or something, to sell half your holding. You don't want to be left high and dry again when the king tide goes out. Instead of worrying too much right now you could set to thinking about what might be the next best thing for you to invest in
Great idea to get the kooks before they are all gone. With so many weak hands it is a good time to increase your stack.
The first sentence. There are places where such statement is judged as harassing/baiting. I left those for good. The second sentence. Freedom. Responsability. Instead of relying on others, do the job yourself. If you made an error, nobody but you is to be blamed. Take the blame, and learn from it. The third sentence. There is such thing as stacking silver, and there is such thing as stacking errors. In 2011 I saw people selling at $32, with the intention to buy back in at $28. I saw them back. Buying at $40. An example? https://www.kitcomm.com/showpost.php?p=1450366&postcount=1 It's a funny thing. I read so much negativity as of lately, that I started bidding on silver again. And bingo, finally some sellers agreed on my bids. The same bids I placed this summer, when spot was $27-28. I can only say them thank you. And I mean that. One seller apparently didnt know much about silver. After agreeing with my bid, he mailed me with an offer with some more junk silver, but not of the kinds I stack. I explained that and he then asked me if it was worth selling at all. I said that silver is always worth the effort, and I looked up the silver purity and content of all the listed coins, and how to put it on sale. Less than a day later he thanked me, saying that he got a very nice price for it. See, that's how I see trading. I get a favor and I return a favor.
Pirocco, I speak mostly from the position of experience in this game and knowing that giving happy advice and looking to promise something not within your control is just not worth the grief. Around these parts especially, there's a lot of vitriol and spite expressed from those who bought high and felt they got 'stung' by community consensus that lead them to believe silver would 'go to da moon' Rawdog style. It didn't happen and we had a lot of negativity and resentment settle in after the fact. Point of the matter is, at least half the people in the game feel this was not only a likely event, but imminent and expected (like property) to make a fortune simply because they jumped in on the wave up. The thing they didn't estimate correctly is that unlike other investment options, Silver and Gold is not in the government's interest and they act to hammer the price down, not up. Moreso, losses in the market will not be counter balanced by the tax payer, so people coming in and expecting a free (and easy) ride felt they got cheated. After you've been here a while, you'll note the bullshit factor has gone through the roof and if things don't pan out as people expect, fingers are pointed. I find it's far better you quite frankly tell people to just do their own due dilligence and be done with it. I'm still stacking today as I have always done, but the reason why I'm in metals is different to the Rawdogs out there - and my expectations are built over the long term. I find the more you speak out here supporting the boom theory in metals, the bigger the target on your back. Better to stand back and say 'you know what bud? You work it out yourself. It's your money, you accept your own responsibility on how you invest it' Seen this caper too many times over the recent years to even bother with it anymore, we get at least one 'should I' post on these forums every day or two now and it's just not worth the hassle.
