I've been reading posts with interest now for a couple of months and the tips, and generosity in sharing information is a stand out on this forum. I would love to get a handle on the average fiat value of stacks accumulated by contributers. Or more to the point, what portion of total assets might contributors hold in PM's - total assets including real estate - even the family home. This would give some sense of the conviction felt on the whole "fiat is melting" argument. Anyone care to hazard a guess on a % PM asset allocation for the cross section of contributors. I can say that I have less than 5% at present but am building steadily!
when you refer to the asset in the family home or any property how are you defining that? 1. Max mortgage value - Current outstanding value = amount able to redraw / amount already repayed or 2. Amount you think you can sell for now - Amount oustanding on mortgage ?
So - is that silverstack value/total asset value? Or should it be SSV/total asset equity? Eg. If I had $10k worth of silver but I have a $500k house (but owe the bank $400k). Would it be: 2% or 10%??
I dont think its quite that easy to work out. I dont know for sure but maybe its like this.... The 500K for the house is what you think its worth, its not the equity (profit) which is 100,000 at the present time. The 10k is what you think the Ag is worth, but you need to know what did it cost ie 2000 (or whatever) so equity (profit) is 8000. therefore 8% I'm hoping someone will enlighten us all.
Auagau is correct. It's not about your profit, it's about the net asset position, ie asset value less any debt on that asset.
Call me a sheeple, but I have no idea beyond too much mortgage and not enough silver. Edit: However, I did just work out that if silver went to $1500 overnight, I could be mortgage free.
That's a great insight Loxmyf and it's something we can all work out fairly easily: "What silver price would pay off all your current debts?" For me it's $108/ounce (just a few more weeks at the current rate!!)
Well I don't regard the house I live in as a financial investment. It's where I live, I'll always live in a house, and the price of any house I have will go up and down in accord with the market. And as my house is now effectively paid off, I've invested in silver. Between my super and silver, silver is running at %27 of my portfolio. Oops, make that %28, no that's %27, ok so now its %29......
(Worried has started a new thread with this question - so folk here can continue to work on The Accountant's original question.)
My meager portfolio is about 25% in silver but rising weekly, with the aim of hitting (depending on market) about 40%. A significant pull-back would see me hit this 40% immediately
I'm portfolio heavy in metals since early last year. About 33% which is way above the 10% I have been prior to 2008. I'm prepared to go a little higher but 33% in one asset class is pretty weighty so I'll hold up at about this level now I think. My other investments are shares and term deposits @ 8% p.a. and no property.
I get the sense that most people still think a balanced portfolio of assets is the way to go. Probably no more than 30% in PM's. I believe this is sound for present and future conditions in Oz. Got to be careful that we don't get over influenced by all the US websites and newsletters. if I was a Yank I would certainly be 70-80% PM's, but here, even if China does come off a bit we'll have a pull back only - I don't see a melt-down for us.
My investing philosophy is to find the trend and go with it. At the moment pm's are in a bull trend and so is Oil. So I am heavily invested in both of these. I am totally out of the property market as I see too much downside to invest there just yet. That will change obviously in the future, but I can't see any value at the moment. I am holding some cash in reserve ready to pounce on a good thing if I see it. Nothing worse than identifying a good buy and not having the capital to act on it.
The melt-down was harder to see for the US back in 2005, than a melt down for Aus now in 2011. Melt-downs arent such 'biggies' as they used to be. :| The world will get used to them.
Yeh Black Gold is an awesome thing. I never really understood the power of oil until I lived in the middle east and saw the power of the petro dollars in effect. I'd love to be sitting on an oil tankers worth of Black Gold...
