No no no, you are not playing by the rules! This only works if you pick a time frame when silver is doing badly. Some of my gold has been swapped for silver, doesn't matter what the spot price is for GSR swaps if you have already bought the metals. I guess the silver in my SMSF will be recorded as a loss, not as much as my industry super lost on shares during the GFC though. I should be able to get a bit of tax relief on that though as I did sell some for the GSR swap. The rest of my silver has been on a few field trips, with displays at a couple of shows and a couple of coin clubs. Some of my silver has been showcased in a talk I gave on "Modern Community Currencies" to a numismatic society. Some has been given to my friends' kids as New Years Presents and some went to my niece as a birthday present. Some has been donated as a raffle prize. The rest is pretty much ignored in the safe, waiting until I retire or actually need it. However the 60 cans of cider I had in the fridge have all but dissapeared, compared to cider, silver was a far wiser spend. If I regularly bought and sold silver I would be kicking myself that I didn't sell it all in the 30s and buy it back in the 20s but no one knew that was coming and as I still have the first bit of silver I ever bought back in the 90s it is highly unlikely that I would have sold anything anyway. My dollar cost average was around $26 when I last added it all up so I am not too deep in the red. I spend more money on mortgage repayments for my investment properties each year than I have ever spent on silver and they are still a good investment apparently.
The difference between AUD cash and AUD gold was only 2 basis points over the same time frame. Guess which one was 0.02 higher...
based off the RBA cash rate since the 90's to today http://www.rba.gov.au/statistics/tables/xls/f01hist.xls
You have some valid points CJ and good justification but it's your incessant 'I told you so' grandiloquence that riles people up. So what if people chose the wrong 'investment'? I'm sure they're well aware of it without having someone making a point about it. I know I am. Let bullish bulls lie and suffer the consequences of their actions. Smile knowing that you warned them and they didn't take heed to some random on the internet. Then again, posts like these do produce some interesting provoked responses So who used their Hindsight Ball and bought into The All Ords? Nobody of course. For most people I don't think they even see PM's as an 'investment' so hardly fair to compare it with the ASX where there's an expectation of dividends, tax breaks etc. Out of interest, any idea what the rise was after taxes, fees etc were deducted? I have a friend who was doing exceptionally well in the stock market for about 14 months when he was around 22 years old, very smart bloke. His profits were well on track to pay for his Masters and Doctorate. Guess what? The GFC came out of nowhere and utterly annihilated his portfolio and profits. Estimates that he lost upwards of $110k in about a week. It's paper and digits, easy come and much, much easier to go. When we hit that $40 bull's-eye within two years, the rest of the dominoes will fall like a house of cards...Checkmate.
Dont forget house I am in that same boat I ahve also choose silver poorly over other investments ( although I have sold a lot and shifted my money recently ) I no longer believe in the underlying metal, I still do buy and hold silver but I stick to what I believe will have collector value, and not based soly on the metal itsself. Just trying to help other not make the same mistakes. as myself and others here. as for the GFC annihilating your portfolio. yes I lost some big $$ them too but it is only a loss if you sell. most of these losses in the large companies ( BHP, RIO, big 4 banks west farmers etc etc ) have regained their losses and then some. the GFC just shook the weak hands.
So how do you get an average of 8.5% deposit rate from a cash rate that has been below 7.5% for the past 20 years ? I just did a quick spreadsheet using those cash rates you have linked to since 1994, assuming a 30% tax rate on the interest and compounding the interest $50,000 in 1994 would have grown to $100,000 in the 20 years
Hello Village Idiot, I haven't read every post, but this is directed at you. The past year I have bought a squillion ounces of silver sub AUD24. They sit in two SDBs. I have added this squillion to my original silver stack. All are in 50 cent pieces. I know their value at any given time. I can cash them in when I want, I fly under the radar with them. They are my asset base, insurance and pension. Now these 18% profit shares you refer to. Which ones did you buy? What was your exact return? How much of your portfolio did you invest in shares? What where the exact dividends? (Hint) Check your name.
I was using all the available data which was from 1990 to calculate my numbers if you want to have a strict 20 year the average term deposit would still be around 7.5% so still better than silver(slightly) over that time period and generally safer. and lets not compare shares or house prices over that same period as the gain will make you cry vs silvers pitiful returns.
ahh Sammy im the village idiont but yet you are 3 failed sredictions in and mine are holding true. I sold the bulk of my shares and silver recently moved to property investing you know as well as I do the 18% is an average across all stocks and some would have gained ore than this some less and some lost. but on an average as a whole the stock market moved up 18% over the year, you you have a diversified portfolio you should have been somewhere around this. please sammy put the crack pipe down.
I didn't quite come out of nowhere, you need to keep and eye on the long term trend and look to crashes as opportunities. I bought bank shares in a cap raising and sold into the subsequent rally as well as some woodside to hang onto.
I thought you said you were good with numbers - how do you get average of 7.5% from: Jun-1994 4.75 Jun-1995 7.50 Jun-1996 7.50 Jun-1997 5.50 Jun-1998 5.00 Jun-1999 4.75 Jun-2000 6.00 Jun-2001 5.00 Jun-2002 4.72 Jun-2003 4.75 Jun-2004 5.25 Jun-2005 5.50 Jun-2006 5.75 Jun-2007 6.25 Jun-2008 7.25 Jun-2009 3.00 Jun-2010 4.50 Jun-2011 4.75 Jun-2012 3.54 Jun-2013 2.75 Jun-2014 2.50 ??????
I sold the bulk of my shares and silver recently moved to property investing. What was your return on the shares?
what do you get out of a thread like this court jester? it's pointless. "sideways" is the new "savvvvvy" it's getting very annoying to read, and that's coming from a fellow bear. You need more variety to your posts, currently a yawn fest.
If you lost on investment, he needs to make sure to rub it in your face, as if you didn't know realize it. Either that, or this:
geeze lucky there are warning labels on things or natural selection might have gotten you earlier that is the base cash rate, you get a couple of percent more percent usually above that for a term deposit. i.e. you can get term deposits now >4% even though the RBA cash rate is 2.5%
Before you pull more bs out of your arse you might want to check f04hist.xls from the same rba site It contains the actual term deposit rates available at the time For the most part they are within half a percent of the cash rate - sometimes higher sometimes lower
You forget that all the interest on the 50K has been classed as income and your paying tax the entire time on that. No tax on the Bullion until you sell. That's 1381.25 tax just in the first year alone. (0.325 in the $)
