Discussion in 'Wealth Creation & Management' started by SlyGuy, Nov 8, 2018.
If you count metals as 'investments' - you are doing it wrong.
Depends on the timeframe.
I bought a 1oz maple leaf in 1998-2001 period. Had to pay GST on it. To me, it's not an investment because I lose like 10% (GST + spread) on the day I bought it. Hence, I consider it a novelty buy then. Investment for me was penny stocks. At that time it wasn't possible (or I didn't know how to) to buy silver bullion in Singapore.
Let me rephrase vast majority, I still have 5% or so in heavily speculative US stocks, and about 10 percent in metals now.
As for timeing yeah 100% no one can time it, and if anyone does it’s sheer luck.
For exasample, my basis for selling out of properties was I felt official interest rates would jump to 5% by now driving affordability down, how wrong was I, lol. However other factors thumped the housing market.
Stock market wise I just had feeling this China thing wasn’t going to be an easy fix but snowball into something Trump would retreat. Since XI can’t backdown to Trump without embrassing whole of China, he can’t do it, even if China suffer more. And after last years sensational growth I thought let’s take it easy, until all calms down.
At this moment anything not going down 20% is an investment lol.
Lol, exactly. Gold is a fine place to park cash when you want to get out of the market for awhile. It would have done pretty good over the past couple on months.
An investment is technically anything that is expected to go up in value.
No, gold doesn't cash flow since it has no dividend or rent or profit or anything... but it still stores value and can increase in value.
Hi Stackers. New to metals and reading in on this conversation and wanted to ask for some honest opinions.
I’m probably the most irresponsible investor I know.
I have travelled most of my 20s and when I did work locally I left my Super in a range of funds which I have only recently combined.
I’ve never understood or cared for the share market, my investments are a mix of bank savings and cash, rare vintage watches and recently metals. I don’t own property and Since I’ve been able to afford it I’ve found property to be overinflated and I’ve never been one for buying into bubbles. Which is why I am spending more of my spare funds on metals now rather than vintage watches.
I’ve been stocking up on silver and a bit of gold recently (approx 70/30). I have been intending to put more of my spare cash into metals but I’m now at an approx 10% of total investment in metals and I see an average investor would only allow 3-5% to hedge against other assets.
Being that I have no other major investments, have no understand or interest in the stock market and have no intention of buying into a bubble how would you advise I approach metals going forward?
Appreciate any tips and advice.
I can't say much since I don't live in Australia, but if I were you, I'll sell the vintage watches and convert them into cash, pay down debt (if any) and convert some into gold. If the Australian property bubble were to pop, you might be able to buy a small apartment for an affordable price.
I would not go above 10% in metals. You sound youngish around 35 or so.
If so what ever is in your super funds (preferably industry super) put it all into a high risk shares. You don’t need to like or understand it. Super in shares over twenty years will be better than any investment.
As for vintage watches... well it depends what you have and if you are active, I have owned 50 or 60 Rolex, Breitling and ICW but never had more than 10 at given time, now I have three, as I’ve been selling, people are pay8ng stupid prices now, I can always buy it back when the times are bad.
As for non super savings just save to a decent bank savings account, until everyone says we are in property Armageddon (we are not at it, not even in Perth, wait till every other sale is a distress sale). Than buy anything near public transport. Live in it for a year to get full first home buyer bonuses, if you can’t live in the property, just rent it out. $10 or $20k first home buyer bonus now is chicken feed when you look at 30 year outlook.
If you are below 40 time is on you side, HOPEFULLY you will experience multiple real painful recessions.... that you are ready to take the opportunities to set yourself to financial freedom.
I’m 47 and lack of real suffering of others in recessions is hindering my next doubling of my wealth.
The goal to financial wealth is buying when people need money and selling when money is cheap.
Thanks for the insights guys. Very good information.
In regards to age, correct I’m turning 35 so time is on my side. I am in no rush to get quick fast. Mainly just wanting to preserve what little wealth I’ve accumulated so far and come up with a good long term strategy going forward.
So with that said if you guys had spare funds sitting around gathering dust, would you...
A. hold onto it for a time you might want to invest into a more stable market in the future.
B. use it for metals and then sell them when you decide to diversify.
C. Commit those spare funds for other investments now.
I hope that makes sense.
I think You May have already answered the above question in your post.
It's difficult to advise as there are many factors to consider including currency exchange rates and risk appetite. How much you will allocate depends on your job security and whether you have any debt and future financial obligations, e.g. marriage, kids, etc. Everyone's situation is different.
My current allocation is 50:50 gold and silver which I built up from May to Dec last year. I started off with mostly bullion bars (not vintaged) as that had the lowest premium. By June, my GS allocation is 40:60.
As you may have known, May '18 was actually the high for silver and gold which collapsed the month after. It was bad luck but I got over with it and resumed buying again in Oct-Feb period, averaging down my costs and upping my gold allocation. This time round, instead of boring bars, I only bought qb for gold from local lcs, and a mix of low premium 5/10 oz silver bars and qb 10 ouncers.
I hoped I've bought more gold but the sentiment then was quite bad, especially for silver (worst than now if you look at the $13 silver thread). Even Jim Rogers was saying he expects gold to drop to $1000 or below. I learned that persistence is rather important as precious metals, especially silver has the tendency of making sharp nerve racking plunges. Whatever decision you make, make sure you HODL.
Moving forward, the economic situation in Singapore has worsen since I started a year ago. the fed rate has stopped rising and my USD term deposit rate has actually fallen last month. I've been thinking about my allocation the past week or so, and felt a need reduce my cash and buy more pm (with a bias towards gold if gold falls backs to $1300+ levels).
Naively I’ve asked a how long is a piece of string question with so many variables but I think what I’m after is some perspectives which you have shared brilliantly.
Thanks for the insights. Really appreciated.
I expected more of you to be in the 25-50 % range, some even above 50 %.
Yes, cash is more liquid... is that the only reason why people (you) are so precautions about investing "too much" in PM's?
I don't see why someone can't have 30, 50 or 70 % in PM's. Provided that we're not talking about "peanuts", but at least
5,000-10,000 USD-total worth of savings.
who care what % of money away from deprecating currency. Main focus is buy cheap sell it expensive for investment. On side line good idea to (trade) mining stock .
Trading is different from investing.
Started buying around 13-16$ USD
Silver to gold ratio ** mostly into silver
Interesting poll - 31 votes so far.
25.3% of the voters (8) being the majority having over 50% holding in precious metals,wise I would say
The Book of Revelation Chapter 22 verse 12
And behold,I am coming quickly,and My reward is with me,to give to everyone according to his work
Silver is clearly a better buy with greater price gain potential, but I just can't get over the possibility of a deflationary event. Of course, even if that happens, silver will dip back to $13 or worst $12 and then bounce back later. The other issue is the bulk, not easy to hide from the partner..
Pirocco has almost 100% in silver?
Pretty much this, but 13.5% in PM's.
Most Australians make the bulk of their money over a long period of time from real estate. The main reason is leverage. You would never borrow that much money to invest in shares or precious metals. So even if shares out perform real estate on a percentage basis, the total value of your assets are much less.
Keep an eye on your super, just go for index investing with low fees. Get into the habit of stashing a little bit extra into your super every month if you can, does not have to be much. Since you have time on your side, some small extra contributions now will pay dividends (pardon the pun) many years down the track.
If you have some spare cash, put it into super.
Do some homework on Super Contributions to ensure your paying the least tax possible and getting your government co- Contribution if your entitled to it.
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