Are there any negatives for holding all of your wealth in physical?

[willrocks]

Wealth creation is all about having your wealth do the heavy lifting while you sit on a beach knowing what the poor people are doing today, slaving away at a job they hate.

Says the 60 year old man who drives a decade old vehicle (with a tape deck).

 

[Aurora et luna]

IBTL

 

[nonrecourse]

Says the 60 year old man who drives a decade old vehicle (with a tape deck).

:lol: I've still got the first dollar I earned from a silly bugger like you. You sneer and buy every mod con, and walk around with a ten gallon hat with no cattle complaining about how expensive property is... good onya wee willi

Kind Regards
non recourse

 

[Chilli]

Just wondering if anyone can think of any negatives of holding JUST physical metals?

Sorry but this question doesn't make sense without any context.

It depends on what your purpose is for holding physical (inflation hedge, speculate, shtf scenario),
time frame you are talking about (1 year or 50 years?),
your age, housing/financial situation (rent, mortgage, other debts) etc.etc.

^ This, your age, do you own your home ? other debts, etc .........

 

[lamp]

Why all?

 

[Chilli]

Wealth creation is all about having your wealth do the heavy lifting while you sit on a beach knowing what the poor people are doing today, slaving away at a job they hate.

Says the 60 year old man who drives a decade old vehicle (with a tape deck).

That is called very smart in my books

 

[errol43]

You get no passive ongoing earnings from holding bullion. You have to sell which is a diminuation of your assets. Contrast that with an unencumbered commercial property where the tenant pays all the outgoings except land tax. If the tenant is a publically listed company they also pay the single unit land holding component of your land tax bill.

So the unencumbered property is a golden goose that just keeps producing

Property :lol: a steady income while retaining the asset. Holding 100% of your assets in gold bullion is a bit like a nocturnal wet dream makes you feel warm and fuzzy but in the hard light of day you have pi$$ed away a passive compounding income stream & future capital gain on the mistaken belief that a capital gain will out perform.

I call that fools gold because the owner has had to hold the bullion in a secure vault for a cost while earning no income.

Wealth creation is all about having your wealth do the heavy lifting while you sit on a beach knowing what the poor people are doing today, slaving away at a job they hate.

Kind Regards
non recourse

I like to sit on the beach and feel secure with my silver and gold and wonder what the rich people are doing today, jumping out of high Wall St buildings?.

Regards Errol 43

 

[Jimmy1986]

Btw, I'm 26 years old. Don't own a house, just renting ATM. Have a newborn baby and mrs and earn around $900 per week after tax

 

[nonrecourse]

I like to sit on the beach and feel secure with my silver and gold and wonder what the rich people are doing today, jumping out of high Wall St buildings?.

Regards Errol 43

:lol: 1929 all over again. Problem is the glass in those towers cannot be opened and the glass is reinforced so you can't break it. Pity really.

Kind Regards
non recourse

 

[lithium]

You'd be in trouble if the silver price drops in the short term and you need cash for something unexpected, like losing your job or an out of the blue health issue.

 

[Naphthalene Man]

Also how're you going to feel if there is another correction and you have no dry powder with which to buy? Or as thatguy touched on, you need cash, and its a bad period to be selling AU or Ag?

Just consider it another form of saving, as long as it is even or above the purchase price at a time that you have to sell then don't worry about whether or not it is a good or bad period to sell. Sure it would be nice to hold all our metal until the peak but in reality, life occurs and occasionally you need to liquidate to keep going.
We do what we can to hold on but if we can't then just start again from a lower base.

 

[nonrecourse]

Btw, I'm 26 years old. Don't own a house, just renting ATM. Have a newborn baby and mrs and earn around $900 per week after tax

At 26 you have a lifetime ahead of you to make your fortune, just don't forget to smell the roses on your journey. Our happiest time to date was when the kids were little and we were just starting out. Money does not make you happy it just gives you choices. Focus at being the best a whatever you do and enjoy it.

Kind Regards
non recourse

 

[Naphthalene Man]

Wealth creation is all about having your wealth do the heavy lifting while you sit on a beach knowing what the poor people are doing today, slaving away at a job they hate.

Says the 60 year old man who drives a decade old vehicle (with a tape deck).

That is called very smart in my books

I held my last car for 16 years, and it was still okay as far as i was concerned.
I learnt from the ethnics in the area i grew up in. Still driving old cars and living in average houses - but worth a squillion through only dealing with family and friends for work - mates rates. Who cares what other people think of you i reckon.

 

[Naphthalene Man]

Btw, I'm 26 years old. Don't own a house, just renting ATM. Have a newborn baby and mrs and earn around $900 per week after tax

At 26 you have a lifetime ahead of you to make your fortune, just don't forget to smell the roses on your journey. Our happiest time to date was when the kids were little and we were just starting out. Money does not make you happy it just gives you choices. Focus at being the best a whatever you do and enjoy it.

Kind Regards
non recourse

excellent advice
two thumbs up for that bit.

 

[wrcmad]

Hey all,

Just wondering if anyone can think of any negatives of holding JUST physical metals?

Flaming suit on....

1. You become addicted to reading about the potential of holding PM's, and this makes you excited.
2. Next, your perception of reality becomes clouded as it becomes compulsive to read only the things that support your investment decision, whilst dismissing every other opinion as utter nonsense - cause it is obvious silver is going to the moon.
3. Then you develop a paranoid perception of the world and everybody who does not hold PM's - they are all dumbass's or criminals, and are all out to steal your wealth.
4. You then end up bewildered and wondering why everyone around you thinks your a total wank (including your family) and does not see things as you do.
5. Next step is to pull out that chunky bar and stroke it lustfully while soaking up that warm fuzzy feeling. Now you remember why you do this.
6. Goto step 1.