Preserving Wealth

Discussion in 'Silver' started by Bit Baron, Apr 18, 2014.

  1. Bit Baron

    Bit Baron Member

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    The continued decline of the price of precious metals since 2013 has made me start to question if silver and gold are really preservers of wealth. I understand that the answer is dependent on your investment time frame, which for me is 5-10 years at this stage.

    It would also be interesting to know how people track their previous metal investments. Namely to you monitor your investment based on purchase price, spot price or just the total number of ounces you hold.

    Cheers,
    BB
     
  2. a1nipper

    a1nipper New Member

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    I'm stacking by the ounce not spot price.
     
  3. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    I measure my wealth in XAG not AUD. I work the 52 week cycle and live within that paradigm quite comfortably, but all my wealth is moved outside the system into silver. I feel I can flip-flop between the two worlds as I see fit. My wealth in the real world is a good life and that is what working preserves; silver on the other hand is insurance, a hard asset, peace of mind, an occupational diversion and off the grid.
     
  4. Old Codger

    Old Codger Active Member Silver Stacker

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    Yes, by the ounce.

    Clause #1 in my 'Disaster Insurance Policy' says, if the disaster happens, a bucket of inflated (G & S) money will be paid. If it does NOT happen all premiums will be refunded at G & S Spot Price.

    JMO



    OC
     
  5. clear

    clear Well-Known Member

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    sometimes insurance policies/companies pay out only after long delays......
     
  6. Old Codger

    Old Codger Active Member Silver Stacker

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    Given that ALL my 'premiums' are stored under my control, I have no worries.


    OC
     
  7. a1nipper

    a1nipper New Member

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    I dollar cost average also but planning on never selling. Either leave it to my kids or use it in an emergency I hope never occurs.
     
  8. trew

    trew Active Member Silver Stacker

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    Don't track anything

    ignorance is bliss
     
  9. clear

    clear Well-Known Member

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    why do you care about averages, your wasting energy, your not a seller.
     
  10. a1nipper

    a1nipper New Member

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    I'm not wasting anything.My energy is good. Perhaps you're a waste.
     
  11. a1nipper

    a1nipper New Member

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    I apologize. Shouldn't have insulted your post. I dollar cost average because I feel best way to buy silver. Dollar cost averaging works even if you're not a seller.
     
  12. Old Codger

    Old Codger Active Member Silver Stacker

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    In 3 years of stacking I have never concerned myself with anything other than I pay the approximate market price on the day of purchase. I have never kept any records.


    OC
     
  13. Belvedere

    Belvedere Active Member Silver Stacker

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    Its not often the old fart writing this agrees with anyone but this time I must. If I pay a fair price on the day then I am a happy man. If I sell and feel that it was fair then, again, I can sleep well at night.

    I buy and sell some big bits and some small bits for fun. Simple really.
     
  14. Pirocco

    Pirocco Well-Known Member

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    I already questioned the preservers of wealth status back in 2011 when price was driven above double 2008's average, above triples 2008's bottom, and above the tripled amount dollars. I wondered how anything that is bought at a dollar price that increased more than the amount dollars, can preserve wealth.
    Like it is now, todays price is the best one in 3 years, yet you... start... to question.
    I monitor my past silver based on what I can buy with it now versus what I could have bought with it then.
    So my recent must be surely better than my past and I intend to keep it that way. My time frame is undetermined, just like with my bank savings.
     
  15. Pirocco

    Pirocco Well-Known Member

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    Should I interprete this as that you never chosed those days of purchase based on your idea of possible lower price in a future (future from that moment back then ofc)?
    More general, and depending on what you meant, sometimes the best is doing nothing. I've read quite some posts about people saying afterwards that they better not had played the sell>buy back in game, and had better just stopped concerning and continue the path they were on, albeit in a more eductated fashion.

    I do count by the ounces, since that is what I chosed for when I dumped, and dump, the euro's. This way I'm sure of an amount of an asset. With a bank account, what are you sure of?
     
  16. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Pirocco, can I ask, what is your favorite silver product for future liquidity?
     
  17. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    In most respects I'm with OC. Within reason I buy at the best price possible on the day and move on. I usually buy on a Wednesday when in town for our lunchtime meet, when I have excess money, I buy on the day.

    My biggest concern is not to keep any savings in the bank. I'd rather walk around with $10,000 in my back pocket than leave it in the bank for 4 days over Easter. I was lucky enough to pick up 525 fifties yesterday which made their way to the safe deposit box this morning.

    As OC said its insurance that refunds premiums at spot if not required. Throw in the fact that I am running my own bank off the grid, I feel that this is the answer to wealth preservation.
     
  18. BiGs

    BiGs Active Member

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    Wealth preserving and investment are different things. There are far better investments over PMs. I simply would rather keep my spare non invested wealth in physical PMs then in a cash accounts represented by figures on a screen, barely keeping up with CPI. But hey, 1.3 trillion AUD in cash accounts could indicate otherwise :p.
     
  19. Nugget

    Nugget Well-Known Member Silver Stacker

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    I'm in need of raising some fiat to pay for essential renovations of my house. I have some silver that I was stacking for a rainy day / retirement. Well guess what? It's raining. Think I can sell that silver for a fair price?

    That brought home to me the importance of diversification. Harry Browne advocated dividing your wealth evenly into four areas Gold / Cash / Shares / Bonds (Permanent Portfolio). The idea is when one is down another is up. You rebalance your portfolio which means you take the profits from one area ($50 silver) and buy into a depressed area (ASX 3k). There are similar idea's out there with different weightings. Pick one that works for you.

    My personal thinking is that the permanent portfolio can be mixed with the Alpha Strategy. Buy stuff that stores well on sale in bulk eg toilet paper. Let's say you like to add tuna to your sandwiches at work & you buy those 100g cans. When one of the duopolies have them at $1 or less you buy 100 of them. Usually they're what? $1.50? That's a saving of $50 right there. Same with toilet paper. Hell, I bought so much tooth paste when Coles were selling European brand for 50cents a tube that my wife and I had 2 years supply.

    What am I saying?

    Buying PM's for wealth preservation isn't the be all and end all. We are living in interesting times. It's game on & "they" aren't playing fair
     
  20. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    I agree that balance is important. Its a bugger having to cash out due to necessity when prices are down thats life if you dont have a cash buffer. You might be better off borrowing the funds at current rates and keep your PMs for when the market improves.
     

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