Hypothetical "best use of funds"

jmski52

In your opinion, what's the best place to park some money right now?

Give me some kinda reason for your suggestion.

derryb

cash is king, but that won't last. you wanna get into whatever you think is gonna go up before it goes up. The issue of liquidity may or may not be a concern. I've been keeping an eye on VXX. when and if equities take a dump it will be the place to be. More QE will put a damper on that. Another idea is an inverse bond ETF if you think the bond bubble will pop any time soon. Or, of course metals. me, right now, i'd be buying metals (I like the leverged ETFs like AGQ or even USLV) or GDXJ on dips.

Baley

Cash in left front pants pocket

edit: forgot the reasons, which should be obvious and are: safety, accessability, liquidity

any other answer would need contextual definitions of "best", "park", and "some", along with an idea of risk tolerance and time horizon and financial goals

jmski52

Actually, I do have some cash in my left rear pocket.

My tendency is to keep putting money into precious metals, since nothing has changed in my world view, which follows Jim Sinclair's general line of thinking. For the past couple of years, I've also been siphoning off cash into a separate fund for liquidity purposes.

I wouldn't be able to tolerate a 3X leveraged ETF, although I have every confidence that derryb knows what he is doing. I've been splitting my precious metals between straight bullion and some Mint collector bullion over the years.

I'm considering these alternatives:

- 1/4 oz random date AGEs
- raw farmland
- selected low mintage Gold Spouses
- some of the 5 oz ATBs
- some graded Plats for my collection
- some special issues as they appear
- some Proof AGEs
- I've considered doing a "derryb" and grabbing a bunch of 2012-W Burnished AGEs

For context:

Best = Safe, with upside potential

Park = 2 to 5 years with good liquidity in case of an unexpected need

Some = more than the usual accumulation from a sporadic income stream

Risk Tolerance - no leverage, no margin accounts; high degree of confidence in precious metals; low degree of confidence in paper assets

Time Horizon - everything is situational in today's financial environment, no return on capital specified

Financial Goals - growth via careful macro trend evaluation, and successful navigation of a hazardous sovereign debt landscape

By the way, Baley - Richard Russell indicated a textbook Primary Bear Market Signal in May. He's one guy not to mess with. I'm just sayin'.

derryb

<< <i>I'm considering these alternatives:

- 1/4 oz random date AGEs
- raw farmland
- selected low mintage Gold Spouses
- some of the 5 oz ATBs
- some graded Plats for my collection
- some special issues as they appear
- some Proof AGEs
- I've considered doing a "derryb" and grabbing a bunch of 2012-W Burnished AGEs >>



The issue of liquidity (future buyer demand) along with store of value should guide your decision. 2012-Ws could be this year's sleeper, jury is still out. Ian Russell just sold about 20-25 MS70 First Strikes on his site for $1950 ea.

The 11's did pan out with a new low AGE mintage number. They should be selling for more than they are, I'm holding most of mine.

DeepCoin

PCGS MS66 Saints with a bean

jmski52

Ian Russell just sold about 20-25 MS70 First Strikes on his site for $1950 ea.

Yup, I waffled on those 2012-Ws all the way to the finish line, just like I've waffled on the Unc Hayes & Unc Garfields for the past few days. I've decided that there will always be another opportunity and that I don't have to rush this one. I'm waiting for the perfect fastball down the middle, I guess.

Justacommeman

Forever stamps. I remain vigilant. MJ

derryb

<< <i>Forever stamps. I remain vigilant. MJ >>


while a good store of value they have very limited liquidity and are too dependent on continuity of postal operations.

tneig

I still don't know what form to keep Cash. Do you keep it in your pocket, bank, a cd, a securities mutual fund, etc?

"Ian Russell just sold about 20-25 MS70 First Strikes on his site for $1950 ea."
Wonder what the profit margin is? The risk? How many other flat ventures for every good one.

derryb

<< <i>Ian Russell just sold about 20-25 MS70 First Strikes on his site for $1950 ea. >>




<< <i>Wonder what the profit margin is? The risk? How many other flat ventures for every good one. >>


Excellent price for a coin with this particular label that cost $1828 (just went up to $1878) raw from the mint. Not much risk at all with US Mint burnished gold. Not aware of any that ever lost money. A few of them have been very big winners.

LochNESS

I think my head exploded 2-3 posts after that graph ...

Yukoncornelius1

Farmland has exploded in price the past few years.
The last piece of ground I purchased was 10 years ago for $790 an acre, this spring not far from this piece of ground 160 acres sold for $6,200 an acre and it's even worse in the corn and bean belt where land is selling for $8,000-$10,000 an acre!!!

derryb

<< <i>I still don't know what form to keep Cash. Do you keep it in your pocket, bank, a cd, a securities mutual fund, etc? >>


I consider physical gold to be cash. All other forms of cash are just "paper" that are subject to counterparty risk. While currency itself will never go to zero, its value is at the mercy of central bankers and fiscal fools. If your bank fails, and FDIC makes you whole, will the amount you eventually receive be "worth" what it was when you deposited it? Historically, most likely not.

Downtown1974

<< <i>I still don't know what form to keep Cash. Do you keep it in your pocket, bank, a cd, a securities mutual fund, etc? >>



Credit union.

tneig

Land: Here along the semi-metro east coast, you can spend $150-200k on a modest home with just enough land around it to walk out your trash, and have a min lawn and back yard. Alternately, land and modest homes in Western West Virginnia are common to have 10, 15, 20 arcres with it for that price (of course thats what I'm focused on so that is what I see).

Derryb, Yah, I changed my allottement to 40g/60s accordingly. - Not a lot of profit/-expenses on those coins for the big $outlay/risk??
LockNess, the graph was upside down.
I considered stamps, but a bankrupt agency and gov that could change their mind at any minute gives me pause, so I only have one book.

jmski52

So far, I've keep a lid on the spending with only 2 new purchases:

A $20 Type I Gold Liberty for overstriking purposes by D.Carr.

A 2012 1 oz Plat on order. The design is actually nice.

Judging from the responses I got in my thread in the Coin Forum, there will be no 2nd striking and these will come off with a low population, even after the Mint leaving them on sale for the next 2 years............I'm just sayin. Nobody who bought Plats during the 2006-2008 period even seems to have a passing interest. Of course, things can always change.

If crops are bad, will farmland go up, or down? I suspect that it will reflect any bump in inflation.

DrBuster

One of my paintings

derryb

There will always be a demand for farm land. Problem I have with it as an investment is liquidity. For the young investor with long term goals, probably a great move, expecially if it can also serve as the buyer's home.

I contemplated the new plat proof, but after looking at recent resell prices of previous year, decided against it. I prefer the new AGE uncircs.

derryb

<< <i>One of my paintings >>


But I'll have to wait for you to pass on before it climbs. Just how old a fella are you.?

jmski52

I've re-oriented my thinking about platinum. I still like it very much as a 3rd leg on the stool for pm diversification purposes and as a useful precious/industrial metal, but my Plat collection is mostly a way to accumulate while collecting and I'm not inclined to pay up very much for a "rare" issue. The market seems to feel the same way.

Since 2008, I've arrived at the conclusion that most of the Mint's Modern Gold issues have a good shot at appreciation, both short and longterm - and they seem to always have a clear advantage over platinum.

On the other hand, platinum can rally on other factors than what affects gold and if I'm going to buy platinum, I'd certainly rather be buying it while it's down, instead of when it's up.

Paintings? Let's see a sample.

dpoole

I'm buying farm land and rent houses, as well as PMs.

DrBuster

<< <i>
Paintings? Let's see a sample. >>



What kind of stuff do you like?

Here's some sold big abstract stuff:





Some old thing from a dozen ago, via a pic about that old



Something that displayed at KO HQ for a day or 2 and sold



One of the surfboards from a couple years ago, 6'x2', have a couple of these hanging at restaraunts and boutiques




Folk, abstract, wash, coke-toon stuff, hard to try to summarize a lot of work in a couple pics...

Baley

things must be going pretty well for guys that can casually mention that they're buying thousand dollar coins, not to mention buildings, acres of farmland, and art.

myself, I'm buying petroleum refineries and medical laboratories, and selling electronics factories and Mexican take-out restaurants.

derryb

i'm buying, at a pretty good savings, from those that could not afford what they bought.

jmski52

Dr. B, this thread needed some bright colors! Looks kinda Van Gogh-ish, but what do I know?

I'm buying petroleum refineries and medical laboratories

Are there any refineries left in California that haven't caught on fire? Baley, I didn't know you were an oil man!

pragmaticgoat

I like the Cuckoo bird looking painting

DrBuster

<< <i>Dr. B, this thread needed some bright colors! Looks kinda Van Gogh-ish, but what do I know?

I'm buying petroleum refineries and medical laboratories

Are there any refineries left in California that haven't caught on fire? Baley, I didn't know you were an oil man! >>



Thanks! I've heard the VG comparison a few times on my abstracts. They sell/commission well and I enjoy doing them. Big colors for over a couch or bed, etc.

Here's a spacey one.



This one is at a restaraunt on loan, although it's not VG~ey.







<< <i>I like the Cuckoo bird looking painting >>



Thanks! The birds have been very good to me. I've sold a bunch of them and donated a few for charity auctions over the years. One of the consultants I work bought that one. Was the last bird I did I believe, 2007 maybe. Almost due for a revisit, but I'm working on a contemporary series right now and some commissions that I've got to get out of my head before I take that on. Seem to hit them every 6~years or so so it's getting close for another 1 or 2.

This grumpy one was my favorite. Donated it for a battered womens/domestic violence charity event.

Mesquite

A recent article regarding Pt.

http://www.321gold.com/editorials/moriarty/moriarty081312.html

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