southerncross, I will try and answer to the best of my ability. Paper loss - Definition - Loss which has occurred but has not yet been realized through a transaction, such as a stock which has fallen in value but is still being held. Also called unrealized loss. The main thrust of this definition is that if you are holding an asset that has declined in value, then you have occurred a loss in value, or purchasing power. You have taken a hit in economic value. In the case of silver, you can propose that this is untrue because you still hold the same number of ounces, however those ounces are now worth less, and thus hold less value or purchasing power than they did when you acquired them. This, as measured using any means, defines a loss. It matters not if you want to measure in oz's or $ - you are now holding less value or purchasing power, ie a LOSS. While that loss may recover over time, this only constitutes a loss followed by a recovery. This does not constitute a neutral position. Plenty of people allow themselves to believe that they have not made a loss until they sell and crystallise that loss. If you are among them, then ask yourself this: Are your paper profits unreal too? If your answer is no, then you are suffering from a mental disease highly detrimental to your wealth - SELF-DELUSION. It is simply not consistent to treat unrealised losses any differently from unrealised profits. The only reason investors do so is that they cannot bear to admit to themselves that they have in fact suffered a very real loss. Typically, they feel a loss equals a mistake, and they are unable to own up to their mistakes. An example of this is stackers chasing spot price. Why is there such disappointment at buying, only then having spot price drop the next day? Because a real cost has been incurred due to timing. In the world of investing, opportunity cost is present at all times. The opportunity cost of investing in bonds is investing in stocks that turn out better, or vice versa. The opportunity cost of investing today is investing on a different day when the price is lower. The opportunity cost of holding on to an investment is selling it before the price goes down. Lost opportunity, or opportunity cost, follows along the same lines. Opportunity cost is every bit real. It will cost real value, money, or purchasing power out of your pocket. An example of this is stackers trading GSR. They are trading opportunity cost by trying to chase the better performing metal. It is real.
An excellent point! And being proficient in GSR trading appears to be an art in it's own right (which I do NOT have any ability in but wish I did). It's a wonder that all the long long long term physical stackers don't play that game more in order to grow their respective stacks without any use of fiat currency involved in the transactions.
I retract my previous statement(s). You make a very good point wrcmad and have convinced me my previous statement was short sighted. I love to hear logic well laid out on the table and get an opportunity to learn something new, that's one of the best aspects of the SS community and why I wade through so much noise to get to the diamonds in the rough. Bravo.
Mmmmmm... is that what you see? (pffft) You also saw this: http://forums.silverstackers.com/topic-28827-yippee-ki-yay-eats-humble-pie.html Maybe you need to open your eye's a little wider.
nothing about anything going moonish yet? remember that ol' warcry? are we more leaning to Isaac Newton now? what goes up..... good to see a little action finally though, more sideways than a beach full of crabs.
The silver train is building up steam...this time it is a big bastard and it is going to be hard to stop.All aboard!!!!
The current jump in price just doesn't excite me. Maybe it's caution from being burned before, or that $49 is still a long way off. Hopefully you had bought earlier, but it's not too late to buy either.
Although you might be technically totally correct and this had educated my much my unevolved mind still calculates things differently....... Currency spend on silver = currency saved as money Currency not spent on silver = currency spent on junk food, booze and other rubbish In reality if i spend $48 on an oz and spot drops to $9 that's $9 worth of something I wouldn't have had otherwise. = Profit If I spend $48 on a bottle of rum can I get away with the $9 hangover?.... either way = loss
That's looking at things a little too simple. It entirely depends if you actually cut back on those unnecessary spending like alchohol. If you keep wasting your money at the same rate, and you buy silver with the money you where going to put in the bank, you could be in a worse position during a crash/correction.
