What is YOUR endgame?
gecko109
Posts: 8,231 ✭
It is well known around the firehouses that I most often work in that when it comes to silver and gold, im the man to talk to. Whether thats a good thing or not, it always seems I have one or two "financial geniuses" who are always giving me unsolicited advice....most often that I should be jumping in and out of gold as the prices fluctuate. Since I neither possess the intestinal fortitude, nor the ability to time the markets, this advice has fallen on deaf ears for the most part. Although much like that pesky fly at the family BBQ, while I dont focus much attention on it, im certainly aware of its presence. Another factor is that a great majority of my holdings are in the form of "numismatic bullion". In other words, once I sell it, its bye bye. If I had mostly 1oz bars, or common date AGE's, then the jump in/jump out endeavor would be slightly more appealing. Anyway, what got me to thinking about this was the recent pullback (which we all expected). On the day gold hit 1225, I had one of these "monetary firehouse wizards" tell me to sell it all...take a profit....and wait for the dip. The way I look at my bullion is the same as how I see my life insurance policies. I dont know if I will ever cash on the bullion, and I HOPE my wife nor I ever has to cash on the policies. I suppose my "endgame" ....baring a serious monetary meltdown......is to turn my holdings over to my son when im financially set in retirement.
Whats YOUR endgame???
Whats YOUR endgame???
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that seems to be increasing would be a source of anxiety.
With shortages increasing,when it's time to buy back in, it may become increasingly difficult
to find inventory.
What works best for me is to hold bullion for insurance purposes and trade (not often) the stocks of the
gold mining companies.
I enjoy the bang for the buck that you get with the juniors.
BTW...It just occurred to me that the statement "shortages increasing" sounds somewhat oxymoronic...
Kind of like Jumbo Shrimp.
I hope to see the day when gold trades at $40.00 again.
Thank goodness I don't have my coworkers giving me this sort of unsolicited advice.
Knowledge is the enemy of fear
In all my financial analysis I can only come up with two outcomes. The first is we default on our debt and the government stops paying all the social programs:medicare/medicaid, welfare, social security, government pensions, benefits and salaries. Unemployemnt would soar, real estate would be essentially worthless and we would have crushing deflation and a depression much worse than the 1930's. The other outcome is the politicians keep spending and giving money away to those who have a stranglehold on the election process: AARP, SEIU, NAACP, etc. The gravy train keeps rolling to buy votes and avoid riots. This of course results in ever more borrowing and monetizing, and probably shows up as inflation in gold and silver.
But, as cohodk points out, any number of things could derail my best laid plans.
Unlike cohodk, I am loathe to take a profit while I am still earning a paycheck. I don't want to "churn the account" when I should be "averaging in".
The endgame really depends on the circumstances that I find myself in when I need the money. That's true of any investment, retirement funds or no.
I knew it would happen.
And my personal "endgame", I really don't have one, but I'm retired. I have some PM funds but most of my loot is in an IRA divided between stocks and bonds. If my holdings were to triple tomorrow or to be cut in half my lifestyle wouldn't change. I'm of the opinion that if the IRA was to disappear in some financial meltdown it wouldn't matter because we would all be in the same boat. I don't think having a stockpile of PM's will make any difference. I have a good deal of money invested in my antique and coin collections but if that evaporated tomorrow it wouldn't change my life style. If I was a younger guy I probably would be doing things different .
Silver I buy as a spectulative investmest to be bought low and sold high. That's the plan at least
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Nobody gets out of this life alive. My family will have to deal with it.
Proud recipient of two "You Suck" awards
In honor of the memory of Cpl. Michael E. Thompson
<< <i>Whats YOUR endgame??? >>
I've considered selling many times in the past. Most recently right about the last most recent high.
I didn't.
As I've said before: What would I do with the profit?
My first reaction is "Why, I'd buy me some gold!"
So that's what I did.
The concept of dollar cost averaging is not new. But when I made my last gold purchase I thought of it in a different way, borrowing from the idea of selling gold to buy gold.
I've bought steadily from ~$500 to now. My biggest purchase was about $900. So maybe $750 is the average cost per ounce.
Call it rationalizing, but when I bought that short roll of K-rands a couple of weeks back, I thought of it this way:
"Sell" 10 ounces of your gold bought at $750 for the going price of $1140. Profit made: $390 x 10 = $3900
Now step up to the counter and buy 20 ounces of gold: 10 ounces to replace what you sold, plus 10 more ounces. ($1140 x 20 = $22,800).
Apply that $3900 profit you just made from the "sale" = $18,900/20 = $945 per ounce.
With gold at $1140 per ounce, would you pay $945 an ounce for 20 ounces? Yessir.
So that's kind of how I picture it in my head. I didn't have to sell the gold I had. I just raised the average price per ounce that I've paid a little. Best of both worlds.
--Severian the Lame
I may be late to the party, but I'm here and enjoying the refreshments of ownership.
peacockcoins
B: It would be nice to pass it on.
hyper inflation. Eventually the collection will be sold, in part,
to help my youngest son open a business as a bail bondsman.
Camelot
<< <i>...to help my youngest son open a business as a bail bondsman. >>
The offspring of Bear is a Dog?
I use my collection as a storehouse of value in the event of
Great Plan Bear, I lucked out and moved to Fiorida almost 30 years ago, great endgame thing down here, just live within 20 minutes of the skyway bridge........
<< <i>
<< <i>...to help my youngest son open a business as a bail bondsman. >>
The offspring of Bear is a Dog?
that is pretty good!
<< <i>A: It's nice to have a stash.
B: It would be nice to pass it on. >>
+1
<< <i>to make money. simple as that. >>
Another +1
I'll second that; and for over three years now, I don't regret doing just that.
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jrt103;tizofthe;bronze6827;mkman;Scootersdad;AllCoinsRule;coindeuce;dmarks;piecesofme; and many more
<< <i>"The smartest investment move a "working stiff" can make is to pay off his mortgage ASAP and live debt free"
I'll second that; and for over three years now, I don't regret doing just that. >>
Haven't paid off my mortgage yet, but I agree with that too.
Proud recipient of two "You Suck" awards
1. Believe all of the Government statistics
2. Believe that the economy is improving
3. Believe that the Government TARP and bailouts
are really helping the working man and woman.
4. Believe that we elect officials to look after the peoples interests
5.Believe that good sounding legislation with 2000 loop holes will
really do something positive to protect the common folk.
6. Believe that Government officials, that go back and forth to organizations
and companies, that they have or will in the future regulate, is really a good thing.
7. Believe that money is good and gold is very , very bad.
8. Believe that the unhindered and unregulated free market system can be trusted
to look after the health, safety and well being of the average citizen.
9. Believe that we have the best Government that money can buy.
10. Believe that the National debt is nothing to worry about.
11. Believe that Goldman Sacks is doing" God's work"
12. Believe the words spoken by our National Leaders. Do not look at the deals and
deeds being done secretely, quietly and behind closed doors.
The only cheerful news today, is that violent crimes against people in the financial industry,
appear to be on the rise.Gee, I wonder why. Is it because , maybe, that is where all the money
is?
Camelot
As far as gold making it to $40 again someday, that will happen......when a gallon of gas is back to 10c. I wouldn't bet the farm on it though as the money supply would have to contract by 30X or be devalued a similar amount. When was the last time a fiat society did a reverse 30-1 split?
My endgame? To get the most bang for the buck out of this commodity bull cycle. Any silver and gold bullion I've picked up along the way has not been touched. That's the insurance policy. I really don't expect to have to think about it until at least another year or two. It's not going anywhere until at least $2000+ gold and $50 silver. And even then probably only outer layers will be shed to see how much further the bull can run. I don't rule out levels of $5K-$10K gold and $100-$250 silver. I didn't get into the fray to make chump change, or 10% or even 100%. This is probably the last time in my lifetime such a cycle will occur. Let's not screw it up! I will hang on as long as the wrong decisions keep being made for our dollar and economy. And the way things are headed, we have a number of years left as the decisions being made now couldn't be any worse than if we purposely tried to kill the economy.
I'm spread out between bullion items and generic gold in all denominations with a preponderence towards higher grade Saints. I also play with gold stocks - intermediates and now larger juniors. Don't yet have the smarts or nads to figure out what smaller juniors really have the goods. While I think this is a good way of benefiting from the move up in gold and silver with leverage I don't like the idea that someone named Cede & Co. really has possessions of those shares. They aren't in my hand. And if SHTF someday who knows what happens with all that electronic paper.
roadrunner
<< <i>I am 60 years old, and the only way I would pay off my mortgage is when and if I sell my house. If you have tax-sheltered funds, mortgages come in handy. This is going to start a huge debate, but that is just my opinion, and I am sticking to it. I intend to pay off my fixed rate mortgage with ever-inflated dollars. >>
If you think you're"saving"' because you get a write off on the interest, you're mistaken, and your compensation would have to exceed the rate of inflation, when it gets here, for that angle to work for you. The mortgage interest "deduction" is one of the scams that the banking industry has convinced Americans is a great deal. In almost ANY circumstance your net outlay will be less with your mortgage paid off and you keeping that money every month, maybe buying gold with it.
Changed my quality of life 100 fold.
<< <i>Home ownership NO Mortgage = The Peace of Mind is Priceless!
Changed my quality of life 100 fold. >>
My principal residence isn't paid off yet, but I own a rental property free and clear. Just paid off the mortgage last month.
If you think you're"saving"' because you get a write off on the interest, you're mistaken, and your compensation would have to exceed the rate of inflation, when it gets here, for that angle to work for you. The mortgage interest "deduction" is one of the scams that the banking industry has convinced Americans is a great deal. In almost ANY circumstance your net outlay will be less with your mortgage paid off and you keeping that money every month, maybe buying gold with it.
I decided not to pay off my mortgage, but not because of the interest deduction and not because I am paying it off in depreciated dollars. I could pay it off - I just don't want to. Communists in government do funny things sometimes.
I knew it would happen.
I take 1/3 of my savings overage and purchase what I believe to be the opportunity of choice at that moment. Gold has been berry berry good to me in the last 7 years.
When an opportunity comes up that needs to be taken advantage of...I sell off other -ahem-off the books -assets to purchase the new one. Gold is very liquid at this time and just happens to be a great way to finance new opportunities.
When I was in college I asked my pop...."dad, how do you find the deals that you seem to come up with?"---------His reply--------"Son, if you learn to save money-the deals find you"
Gold is a terrific way to be able to move fast when an opportunity presents itself. It's just a way to step from one arena to another.
I have watched some smart people my age completely blow a lot of inheritances........MILLIONS.........I never got that chance. I am actually greatful that I had to learn to save money.
Never take it to the grave.................use it while you are alive. If you have the smarts to realize what an opportunity it has been...then realize the next opportunity. SOMETHING is always undervalued in this world.
My endgame is to have food for my family if TSHTF - We have lots of kids and grandkids, and the land and house is free and clear. We don't have any auto payments, but still the monthly bills can eat you alive. I also want to have enough PM to cover any taxes due on the place and to purchase any supplies we may need.
My reason to have PM's is because if the $ goes to HiaH, then at least we will have something vs. useless paper money, or dissipation in the banks.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870