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OK I am I pretty much done repositioning my holdings - opinions?

tydyetydye Posts: 3,894 ✭✭✭
About a year ago I decided I had too much money invested in coins and not enough in precious metals. Now I am 50/50 coins/pms. I was at 75/25. I still have a few thousand in generic/junk coins to get rid of which I am working on. But the brunt of the value of my coins has been converted. I am keeping the classic part of my collection - bust and seated. My PM holdings account for around 20% of my liquid assets (rest is primarily stocks). My PMs by value are 50/50 gold/silver.

I will continue to purchase pms weekly along with my other investments. Leaning more toward fractional gold in pms. (Silver storage starting to be a problem as well.

I lucked out in feb 09 and purchased quite a bit of stock when the stock market looked its bleakest. GE, FORD, Pfizer. I should probably move that soon. Land?

I realize this is not an investment advice board but I figure with the amount of silver, gold and other investments collectively this board owns that you must be doing something right. I was unimpressed with the advice of so-called investment managers.

Advice?

Comments

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    I paid off my house & land. This is by far the most rewarding move I've ever made.

    As far as investment land that seems tricky in these times. When I visit big city's and even in my small small rural town.

    There are many a empty or for sale sign on prime locations.

    I assume the taxes on this type land to be very high so taxes could eat up long term profit.

    Me I believe in keeping investments comfortable. Having control~confidence in what I'm doing.

    If it works for you keep doing it. If you want to venture to new investments take small bites and educated your self. JMO Peace, Tim
    Avid collector of GSA's.
  • tydyetydye Posts: 3,894 ✭✭✭
    I wanted to pay off my mortgage but my accountant told me not too. I have about 6-7 years left on it. I still might just for the peace of mind that I owe nothing. I live in a small rural town surrounded by farms. Mostly amish/mennonites
  • gsa1fangsa1fan Posts: 5,566 ✭✭✭


    << <i>I wanted to pay off my mortgage but my accountant told me not too. I have about 6-7 years left on it. I still might just for the peace of mind that I owe nothing. I live in a small rural town surrounded by farms. Mostly amish/mennonites >>



    Mine told me smart move? I suppose if your write offs exceed your monthly payments & interest you pay I could see it.

    I had the $ to pay mine off in savings earning 1.2% interest at the time. My house loan I was paying 8% interest on.

    Seemed like a no brainer to me. I realize every one has a different situation. My write off on interest a year gave me around $80

    on my tax return. Knowing my place is mine=PRICELESS!image
    Avid collector of GSA's.
  • tydyetydye Posts: 3,894 ✭✭✭


    << <i> Knowing my place is mine=PRICELESS >>



    That is kind of how I feel.

    My rate is low though at 4.6%.
  • Here's my Crystal Ball. So far, it's been quite succesful, not a billionaire by any means, but secure in this depression and trying to stay ahead of the "game".

    1) This stagflation is going to last 3-10 years. Inflation has already started and will continue.
    2) 2011 probably will see another double dip recession/depression.
    3) Diversify and preserve holdings.
    4) Eliminate debt, pay off house. We have no other debt.
    5) Take cash and buy PM's, when Pm's reach my sell price, sell and buy tangible assets that provide cash flow, real estate, more precious metals, skilled labor, unskilled labor, farm land, pay CASH.
    6) Finally, when things turn around, use those tangible assets for leverage (loans) to buy financial assets such as Stocks, Bonds, ETC.

    Of course a few huge factors need to be considered, will the election of 2012 bring in conservative pro business policies? Is it too late? Will global unrest bring about more conflicts?

    Most importantly, Have a positive attitude and only take risk that you can handle. Have faith in yourself and don't change your values and morals because of fear.

    There you have it.

  • jmski52jmski52 Posts: 22,826 ✭✭✭✭✭
    I wouldn't pay off the rest of a mortgage, yet. I'd keep the extra money, save it or buy metals - but I wouldn't get rid of the debt, especially if your debt is less than 35% of the property's value. Interest rates are low, and you still get a mortgage deduction.

    You are better off managing the money yourself than by giving it to the bank and having the property free & clear, imo. In an inflationary environment, you want to have some debt so that you can pay it off with inflated dollars later. Keep enough cash available if for some crazy reason it becomes more advantageous to pay it off, but don't pay it off. Just be sure to manage it, rather than thinking that it's free money to spend - it's not free money. It's just better to have it in-hand than not.

    On coins vs. precious metals, I'd still thin out the herd even more - maybe to the point of 25% coins : 75% metals (& some cash). There's no need to rush the process, in fact it is better to do it gradually and thoughtfully. You can still have the nicer coins that are more fun to own, and at the same time - you can continue to average into a position in precious metals that will be more fungible and more liquid.



    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • tydyetydye Posts: 3,894 ✭✭✭


    << <i>you can continue to average into a position in precious metals that will be more fungible and more liquid.
    >>




    Liquidity is something I like in PMs. Cash in less than 24 hours if needed. With coins I needed to plan (wait for the next show, ebay, etc) And PMs also satisfy the collector in me. Art bars are fun and at spot you cant go wrong. I may slowly shift some more coin money in to metal. The mortgage I am still on the fence
  • RedTigerRedTiger Posts: 5,608
    Sounds like you might be giving advice instead of getting it.

    For those with enough net worth, some think in terms of "stay rich money," and "get rich money" (or get richer money). Stay rich money is enough of a pile, to survive and take care of basic needs for yourself and immediate family, and will tend to be invested conservatively. Some might speculate or take risks with their "get rich money."

    Let me offer a different perspective. At the end of the day, while it is always nice to have more, the rest of the pile doesn't matter near as much. There is a lot to be said about spending some of that money and enjoying life, taking trips, having nice things that bring pleasure, and the overall quality of life. More than a few hard money advocates end their days without much joy. Some spend their time and energy, reading, writing and thinking about doom and gloom and the end of days. Their finances might be sound, but their mental health, physical health, and other aspects of their lives might suffer. It doesn't sound like you fit in that category, but some others reading along might be, so I thought it is worth mentioning.

    As for finances, the cliche is to diversify into age appropriate investments. Again, it sounds like you have a good handle on things and don't really need advice from strangers. Folks interested in reading about some low maintenance approaches on the subject, can search on "lazy portfolio." I realize that many on this forum might find those portfolio ideas to be idiotic, but there are also some that will at least find some of the ideas to be food for thought.
  • gecko109gecko109 Posts: 8,231


    << <i>

    << <i>you can continue to average into a position in precious metals that will be more fungible and more liquid.
    >>




    Liquidity is something I like in PMs. Cash in less than 24 hours if needed. With coins I needed to plan (wait for the next show, ebay, etc) And PMs also satisfy the collector in me. Art bars are fun and at spot you cant go wrong. I may slowly shift some more coin money in to metal. The mortgage I am still on the fence >>





    Just had this discussion yesterday at work. My position is that its probably a better move to take any extra money you want to apply to your mortgage, and use it for PM purchases. Im just 3 years into a 30 yr mortgage at around 6%. With my payment at about $1600/mo, we could easily add an extra $2,000/mo towards the principle to knock the term down to just another 7 years or so. My problem with that however is that im a firm believer that the money I have right now will never be more valuable than it is right now. Since I think a serious case of double digit inflation is just around the corner, why would I take my "good" money today and give it to the lender when the lender will accept my "bad" money anyway in a few years? Since my rate is fixed, and I do believe we will experience inflation like this country has never seen before, im actually paying myself by not adding that extra money towards my loan. Its just a smarter move in my mind to take the extra 2 grand and buy PMs while the money is still relatively worth something.
  • jmski52jmski52 Posts: 22,826 ✭✭✭✭✭
    I agree with Red Tiger, although I wouldn't make too many assumptions about what other posters to this thread are doing with the rest of their lives outside this forum. Here, we are simply exchanging viewpoints. Money is great if you know how you want to apply it, as it represents a store of value in which you have invested your time, energy, talents, and hard work. A nice trip is good, but I'm partial to improving my immediate surroundings to enhance my enjoyment. I love my place in the country and the improvements I've made in my "quality of life" since I made the move.

    Be careful to draw a distinction between "gloom & doom" vs. a recognition of "reality as we know it". It isn't "gloom & doom" to be able to understand the rudiments of finance and to be able to draw your own conclusions and to map out your own responses to the realities that you see coming at you. We know that the US faces an unprecedented debt problem, is running out of stooges to sell that debt to, is spending beyond any possible level of sustainability, is robbing Peter to redistribute income to Paul, and is committed to do nothing to fix any of these problems. That's reality, and I don't see much in that toxic stew to be enthusiastic about. The thing about a forum like this is that you can get a reaction to your ideas and make adjustments accordingly, whether or not you choose to integrate new ideas or reject them. It's always a good thing to know if an idea makes sense to anyone else but you.

    This is only the 2nd time in my life when it has become obvious that a monetary problem (or whatever you want to call it) is in the works. The first time was in 1976 when "stagflation" became a new term in the world of economics. Stagflation preceeded a significant rise in inflation and fueled quite a bit of speculation in commodities. I see the same thing now, except that some of the foundations in our social, financial (and political) structures have cracked, unlike in 1976. I think that we are more vulnerable to serious disruptions of all sorts now than ever before in my lifetime. That being the case, and having the benefit of having seen something like this once before I can give one man's perspective - but that's all it is.

    Kenny Rogers had it right, "you've got to know when to hold'em and know when to fold'em...............every Gambler knows............the secret to survivin'..............know when to walk away, and know when to run............." image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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