Silver Natural 9
Member
bsides said:
We still talkin' bout diminishing returns?!?!?
Diminishing Returns
- Thread starter Jislizard
- Start date
We still talkin' bout diminishing returns?!?!?
My girlfriend has no ideas about currency, inflation or investing and is constantly angry at herself because she feels she should be better smarter. Sometimes I wish she took an interest even a negative one, then i would have a person to question my decisions, which in turn educates me more. My girlfriend at least understands spot, I think I might send her to the Perth Mint today or tomorrow so she can understand bullion buying. Slowly but Surely....
Good luck, maybe ask her for an ounce worth of pocket money a week and slowly buy silver you bought back from her, if she wants to see money/see money grow or fall this could work and educate her.
Good luck, maybe ask her for an ounce worth of pocket money a week and slowly buy silver you bought back from her, if she wants to see money/see money grow or fall this could work and educate her.
G
Guest
Guest
This is why I don't go hell for leather on silver purchases or take on debt to buy. I am effectively 'free rolling' on my silver in that it's ALL stemming from savings after bills and purely - 100% - of my own effort and toil.
My wife is a stacker herself and has her own silver, so she understands what precious metals actually are (other than a simple capital investment) and she wouldn't ever pressure me to sell one single ounce.
After all, it's mine. All of it. I share it with no one. It's all my own doing. My own effort. My labor.
I'd rather have complete, 100% ownership of my metal and a few ounces only than be reliant on any third party on how I manage my allocation.
But that's just me.
My wife is a stacker herself and has her own silver, so she understands what precious metals actually are (other than a simple capital investment) and she wouldn't ever pressure me to sell one single ounce.
After all, it's mine. All of it. I share it with no one. It's all my own doing. My own effort. My labor.
I'd rather have complete, 100% ownership of my metal and a few ounces only than be reliant on any third party on how I manage my allocation.
But that's just me.
No.Jislizard said:
I consider various factors including the GSR and other measures, indices, etc. and then make a decision how I invest savings. What you need to remember is that fiat is mutable and its value is not linear or fixed. It is not a reliable measuring stick, better to measure in gold ounces.
As a rule I am not selling silver while it is in backwardation regardless of the price unless I am convinced the bull market is over (it's not yet).
I can tell you that I am now out as far as buying is concerned. $35 was it for me and I just don't want to buy anymore.
Like you the vast majority was bought at less than half of the current price. Maybe some of the price forecasts here will come about, maybe not. I'm not taking the chance on any more buying because it has to get to $80 just to double my investment. I bought a lot of silver shares earlier in the year, but absent price dips that has come to an end to. I'm purely riding it now and looking for the best opportunity to sell, hopefully at a point much higher than the current price. I should emphasize I have no intention to sell yet and probably for a long time (a few years I expect) but it ultimately depends on the market.
Like you the vast majority was bought at less than half of the current price. Maybe some of the price forecasts here will come about, maybe not. I'm not taking the chance on any more buying because it has to get to $80 just to double my investment. I bought a lot of silver shares earlier in the year, but absent price dips that has come to an end to. I'm purely riding it now and looking for the best opportunity to sell, hopefully at a point much higher than the current price. I should emphasize I have no intention to sell yet and probably for a long time (a few years I expect) but it ultimately depends on the market.
bsides said:
Sure but when it comes time to sell.....
Fortunately we didn't go into debt to buy the large stash, my main reason for buying it was to take some fiat out of the Banks and convert it into something more stable (this was at the time that America was wobbling and the Australian Government was promising to insure the banks, never a good sign to keep money in the bank.)
We went into debt to purchase the investment properties, she wasn't happy about that either.
She spent the last 40 years living debt free while I spent it mired in debt. The first thing she did when she met me was cut up my credit cards, put my pay into the loans and had me debt free in four years. Not bad for AUD$50,000 in debt.
Also stopped me going down the pub and buying collectibles from eBay, which will be worth a fortune one day. So I certainly have form for spending money, buying stuff and hoarding it for a rainy day.
At the moment precious metals make up a tiny percentage of our investments, just over 1%.
The only investment she likes is the Term deposit, as it is essentially just like a bank account, which she is familiar with.
On a side note, spending $40,000 on a new car every five years is ok, and going on a foreign holiday to a beach resort is also money well spent in her books. (I am from the UK so I can't understand what is wrong with going to the beach in Australia, if you really have to go to a beach at all)
I have had a talk with her and she thinks we should stick to the original plan and cash out at $50 to cover the original purchase costs and just stack the remainder. I will bring up adding to the pile at a later date, small steps!
Thanks for all the different perspectives, all very helpful (with the possible exception of the above quoted!), it does help to take a step back every now and then.
PrettyPrettyShinyShiny
Well-Known Member
hawkeye said:
JUST to double your money? What's wrong with doubling your money?? Houses increase at roughly 9% P.A. (until the bubble pops) or more if you're an avid renovator and like blood, sweat and tears work or about 6% in a bank account. Shares and paper promises can turn to dust. So where else are you getting a bigger, more solid return on an investment that is highly liquid, will never turn to zero and has no counter-party risk that will fetch you a 100% return? I'm confused by your logic and reasoning.
Mr Medved said:And you're looking to sell? WTF?!Jislizard said:
Yeh I thought the same thing. If it only represents just over 1% of your investments why are you and wife even worried about it all. How could she be so worried over something that represents only 1% of your total wealth, doesn't make any sense to me.
Mr Medved said:And you're looking to sell? WTF?!Jislizard said:
No, I'm looking to prove that it can be sold, and then buy more in a less hostile home environment! If you count out the houses that the bank owns then silver rises to 3% of my investment costs, I think it can go a lot higher!
If you invest in silver to double your money what you say is spot on. In recent times silver has gone from $5oz to 10, doubled again to $20 and finally to 40.hawkeye said:
How long will it take to get to $80?
Remembering that silver has historically in the GSR being 15 to 1, it would mean with gold at Just under $1500 then silvers top would be $100. Therefore it may still have some way to go.
What is hard for new stacker with say 2 or 3 grand to spend is that they can only buy less ozs silver in fiat. Only 2 years ago $1000 would have got you 60 to 70ozs now you would be pushing to get 25/30. For small stackers who have been pushing their limits by saving to buy silver each payday it has become a lot harder.
So what do new players to the silver market do? Keep buying is my advice. At least you still have a chance to double your money as it will be a lot harder choice if the GSR returns to 15 and indeed silver is $100oz. From then on the silver price rises will be totally dependent on market forces.
Yes Maybe some of these forecasts will come about or maybe not but one thing I am sure is that IT is better to have tried and lost than never tried at all.
I will be a buyer until the day the GSR drops below 20!
Regards Errol43
Goldrush said:Mr Medved said:And you're looking to sell? WTF?!Jislizard said:
Yeh I thought the same thing. If it only represents just over 1% of your investments why are you and wife even worried about it all. How could she be so worried over something that represents only 1% of your total wealth, doesn't make any sense to me.
I'm not worried about it, other than it is too small, however the percentage is so low due to the vast amounts of cheap credit we sunk into housing which skews the data. high or low percentage, it is still over $10k and that is more than I spend on most things.