Steady hand needed, but very deflated.

Ask yourself why you decided on precious metals.
Have the fundamentals since that time changed ?
Has the global economy improved in any way that would make your original decision seem unwise ?
If next month the metals in your SMSF were worth the same paper value as you originally paid for them would you still be beating yourself up ?

Hold the faith M8, self doubt is exactly what those who manipulate the markets want to achieve in those who stack.
 
I'd welcome a financial/tax eye on this one - I haven't thought it through yet.

If you have unallocated silver and gold in your SMSF (I do, and whilst I haven't seen 30% drop it is well down on purchase points) and you are showing a paper loss, it *may* be worth rotating the asset and converting that paper loss to a real loss and allocating it against tax this year.

You can consider two choices: Sell your unallocated, leave it in the account for a day, then buy again - this crystalises the loss, but you still have the PM less the spread (and you need to ensure the spread doesn't bite too hard), or perform a silver-gold swap (which might avoid the spreads, but is still a financial event).

The GSR is just under 58; if it goes higher there are advocates for selling Gold and buying Silver. By performing this under water you crystallise your loss in this financial year and perhaps avoid capital gains on the swap event later.

Certainly this might increase your capital gains if you sell later, but if you sell at the right time in the SMSF cycle you should avoid CGT.

**Oooops - later edit** You can't claim a capital loss against income. You can, however, claim it against a capital gain, so if you are incurring a capital gain (shares, property) in your SMSF, it might be worth doing.
 
zlatibor said:
Like any trip to the casino, you should only ever invest what you can afford to lose. Stick it out for the long term.
Click to expand...
problem is though, that we're never out of the casino & if u don't place a bet you're going to lose it anyway :(
 
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