Reddit #silversqueeze redux

Discussion in 'Silver' started by 66rounds, May 8, 2021.

  1. alor

    alor Well-Known Member Silver Stacker

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    The population size is reasonable big
    so many with 250k cash too
    10k/300M = 0.0000333
     
  2. heartastack

    heartastack Well-Known Member Silver Stacker

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    i still tell myself that’s 1/100000th yearly mine supply
     
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  3. alor

    alor Well-Known Member Silver Stacker

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    the volanoes will spit out gold & silver pillars in wonders
     
  4. Millennial Engineer

    Millennial Engineer Well-Known Member

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    111k Members today.


    What caught my eye is a couple of news paper clipping about inflation and its growth was rated at #7 on Reddit, WSB being 2. Yeah cherry picking after a good day of growth.

    Surprised to see WSB not at #1 after AMC GME action this week.
    inflation 1.jpg
     
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  5. Millennial Engineer

    Millennial Engineer Well-Known Member

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    112K memebers, after the recent growth i thought it would be higher over the weekend, american time.

    https://www.reddit.com/r/Wallstreet...w_to_defeat_inflation_curb_spending_save_and/


    Disappointing that this one didn't get more upvotes as well, it has some practical advice.

    "
    Inflation is at the gates. Government statistics says 5 % annually, Shadow Government Statistics says 12 %. It’s a beast! Inflation is dishonest, demoralizing and destructive to society. Yet, since we don’t have the political opportunity to defeat it, we need to take individual action. First and foremost:
    Curb spending – now!
    Repeat spending is the greatest offender. Got an excess vehidle to sell? Now is a good time! Got too much insurance? Minimizing to just the essentials makes economical sense, statistically. Any chance that your home can becoome more energy efficient? That’s a nice, taxfree investment.
    Discretionary spending is another big offender. Sure, that cruise might look attractive, and there’s a fancy restaurant just opened. But what is the silver price of these pleasures? How many ounces does it take to go out for dinner? Fiat tends to jump faster out of the pocket than prcious metals.
    Lasting consumer goods? Those are investments in the life of yourself and your family. Better make them good investments! Quality items might cost twice as much as the El Cheapo brands. But they last much, much longer, and cause less trouble along the way. They might use less energy, too.
    Easy credit is addictive. Been there, done that, took the rehab. In an inflationary environment, variable rate credit is bound to kill your finances. Rehab now! Fixed rate credit, like a mortgage, makes sense, as long as the rates are manageable. Inflation cuts away the value of the sum owed, so eventually it can be paid off. German farmers had a ball during the Weimar hyperinflation!
    Getting refurbished items is a good choice. Enterprise-class laptops can be had for a fraction of the Latest and Greatest. Going too cheap can be expensive in annoyance and fast replacement. A converted investment is supportive for your future activities. Getting rid of excess gadgets is useful. It may not generate a lot of cash, but life will be lighter without them – even if given away!
    Inflation has significant moral hazard – it causes moral decay that can be very difficult to step out of. The Weimar hyperinflation is the classical example, but the Roaring 20’s had similar issues. That is best dealt with along with your partner, using a long term perspective. United for children and society.
    Saving – real saving – is the way to carry through the inflationary madness that’s coming at us. Land is good if you have farming skills, or can lease it to someone who has. Gold and silver is good for everyone. Gold is the more stable choice, silver is the more speculative. Some diversification into inflation-resistant stocks or cryptocurrencies might be useful, but is also a taxation target.
    How much to save? Rick Rule suggests 10 % of pre-tax income. That’s probably a decent minimum. For the average family with many fixed expenses, that might require extra income to achieve. Selling off excess property can be a financial life-saver.
    Finally, community-building is useful. That requires investment of time more than money, but cna be very helpful in a pinch, Before the Age of the Almighty State, societies were the place to go if drought had killed off one’s cattle, one’s son needed a job, or a joint project could be organized.
    We’re in for a pretty wild ride. The inflation we’re seeing now is only the tip of the iceberg. It’s my firm conviction that classical virtues will be needed to weather the storm. The time to act responsibly for family and society is Now!"
     
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  6. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Probably because it’s shit advice.

    Edit to add: except maybe the 10% bit.
     
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  7. holdandown

    holdandown Active Member

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    The problem with saving (and by all means, one should save) is that the powers-that-be deliberately devalue those savings through inflation. For the last 14 years or so, in the West, they basically sabotaged bank interest rates so those savings are just gradually devaluating. One can save and save, but the game is rigged against the saver as they devalue the purchasing power of those savings.

    The next problem with savings has to do with the phasing out of cash. This is being implemented deliberately, to force people to hold their savings in banks. Once you deposit what you thought was your money in a bank, the bank owns & controls that money. Most people don't realise this and have no idea about the implications of how the law works once you hand over your money.

    Once your money is in the bank, out of your control, in the banks control, then confiscation or asset freezes and your subsequent immediate impoverishment is just a button push away. It may not happen today or tomorrow, but it could and it may well be around the corner. We've already seen it happen in countries like Cyprus where the authorities simply liberated savers' savings. Annoy the wrong politician, pressure group etc, click and your money is frozen or confiscated etc. That's what will happen in the cashless society. A power cut? Good luck paying. Etc. People think it won't happen but these things are already happening or the reality in certain parts of the world.


    This of course encourages people to bet on other things, markets, crypto fads and so on. Which may or may not lead them to further losses, possible ruin, or if they are lucky and don't speculate too wildly, with a profit.

    Investing in PM's, the problem here is that gold, silver etc prices are suppressed through paper trading instruments. If one said this out loud a couple of years ago you'd have been attacked with the "conspiracy theorist" slur. Nowadays it's probably becoming harder by the day to maintain that prices aren't rigged, and that (physical) gold & silver isn't oversold 100's of times, meaning that were investors to claim their property, they'd find that the teller counters are shut and they'll be told to go home.

    Large European banks like ABN Amro didn't just stop settling in gold a couple of years ago to be trendy. There just isn't enough gold going around, there hasn't been for a long time, and the more people slowly wake up to this reality, the more the chances of an eventual run increases which they obviously want to divest themselves from. Fiat can be printed into infinity. Gold cannot.

    So... it's a tricky situation for an investor. PM's haven't moved much for a long time and are unlikely to move much. Nevertheless, any smart and reasonable person will hold at least some PM's to cushion against a calamitous collapse which may or may not be around the corner. You just don't know. PM's - like cash in the bank collecting next to no interest - possibly isn't going to earn spectacular returns.


    "Community building" is something to strive for, but what does your "community" look like? It could work or be a worthwhile investment in your time and effort if you have something to work with. Maybe you have, in your area? However, I can positively guarantee you that where I am, the last thing you want to do is to get involved with your uh... "community". It's a rat race straight to the bottom. Therefore, "community building" may not necessarily be a good use of your time and resources, depending on your situation.

    "Classical virtues". Good luck with that. Look around, it's going to hell a lot faster than I would have imagined possible, had somebody told me 10 years ago that this is where things are going. I suspect Law of the Jungle may become more applicable. Ragnar Redbeard wrote a book on that topic called "Might is Right".

    Good investments: Imo investing in personal skills and contacts and connections (and I lack in the networking department) is probably a better investment than most.
    Other good investments include but are not limited to having a handle on certain kinds of tradeable goods, particularly ones that are tightly controlled, always in demand and potentially difficult to obtain. Medicines, drugs, armaments etc all fall in that category. If one had the storage space you probably cannot go wrong with stockpiling certain types of building materials, basic components (screws, nails, basic tools) etc. There'll always be a market for it in future and prices are likely to increase imo.

    As time passes more and more laws get passed to strip away people's freedom, inhibit and control and surveil their movements and new ways are developed to tax or confiscate their assets. The parasite classes steadily grow in numbers, and in ambitions to make the public work for them. The system is a trap and the only way I know of to do something about it is to free one's self mentally and financially from it, as far as one can. Become more independent from the supply chain where possible. Reduce exposure to taxes and taxation.

    It's all easier said than done unfortunately.
     
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  8. holdandown

    holdandown Active Member

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    I wasn't sure what the redditor who stated that meant but saving 10% seems way too low. I appreciate that not everybody is in a position where they can save much but the smart play is to bite the bullet when you are starting out in life, live well below your means and save everything you can get your hands on.

    Not many people seem to get this.
    Many people seem to want it all, from the start.
    They get flattered by banks throwing credit cards and loans at them.
    They run up bills on those cards they are constantly servicing.
    They go straight into debt from the first paycheck.
    They rent expensive properties where most of their income lands in the pocket of the landlord.
    They have expensive nights out.
    They buy expensive toys (i-Stuff for example) they don't really need and cannot afford.
    They make payments on expensive cars, handing over yet more of their income.
    They get trapped into the world of consumerism.


    Then they buy a property and the cycle widens. Now on top of the aforementioned expenses, they have to service a mortgage. Whilst they aren't paying rent anymore, they are now paying the bank landlord, and because they already wasted all their disposable income and didn't save it, their deposit on the property would have been minimal.

    End result, low deposit = long mortgage term.
    Long mortgage term = the bank is going to make a ton of money off of these people.

    And because they are still stuck in that "spend it the minute you earn it" way of life, they aren't capable of making overpayments into the mortgage to pay it off faster.
    These people are hardly going to be able to save anything, even 10% may be an aspiration rather than an achievable goal.

    Here comes the best part. These people will then moan and complain that "no matter how hard they work, or how much they get paid, they just cannot afford to save." :D

    The reality (which they are oblivious to) is that the reason they can't save and the reason why they are in such debt is because they fell into the consumerism trap when they should have played it smart, bit the bullet and slummed it for the first 15 - 20 years while (over) paying off the mortgage asap, staying well clear of debts and saving way, way more than 10% per year, money they could then use on investments and setting themselves up.

    It is possible. It can be done. But it requires making sacrifices and financial discipline. Many folks don't want to make those sacrifices.

    The other problem we have is that the disparity between earnings and property prices keeps growing. A generation or two ago purchasing a property, while expensive, was still within reach of many wage-earners. Nowadays property prices have increased to such an extent (the property market is where the real inflation seems to be occurring) that the gap between earnings and property prices may become unbreachable to many, basically condemning them to becoming perpetual renters.

    When renting, you're giving your wealth away.

    That's the time you need to start asking yourself what you can do about changing your situation, how to reduce spending, how to eliminate debts, maybe to change careers and move somewhere else where life is still borderline affordable.
     
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  9. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    10% pre-tax income.
     
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  10. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Silver squeeze...not in Melbourne.

     
  11. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Save all of your todays for tomorrow, and one day you will wake up with no yesterdays!
     
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  12. holdandown

    holdandown Active Member

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    Just be careful how and in what you save and have a contingency plan.
     
  13. tdtwedt

    tdtwedt Active Member Silver Stacker

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  14. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    Last edited: Jul 9, 2021
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  15. Millennial Engineer

    Millennial Engineer Well-Known Member

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    Yeah observing the Subreddit's numbers 2 weeks ago seem to increase by 1k a week until 2 weeks ago when they reached 120k

    Now increases 1k per week now at 122k.
     
  16. alor

    alor Well-Known Member Silver Stacker

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    there need for a better platform
     
  17. heartastack

    heartastack Well-Known Member Silver Stacker

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    Good bot.
     
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  18. adze67

    adze67 Well-Known Member Silver Stacker

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  19. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    1871. Bit outdated now. :p
     
  20. heartastack

    heartastack Well-Known Member Silver Stacker

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    Membership numbers have exploded last few days if anyone hasn’t kept track. This makes it interesting again IMO (yes, the content is still rubbish)
     
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