my answer to the current silver price
chumley
Posts: 2,305 ✭✭✭✭
0
chumley
Posts: 2,305 ✭✭✭✭
Comments
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>I disagree. I buy PM's because I worry about the direction this country is going. >>
a few others of us do that as well. buy that and buy lead
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>My answer: "more moo-goo-gai-pan" - Bob Newhart
Good answer. If you still have the physical silver in hand then you have lost nothing.
How is that?
Knowledge is the enemy of fear
<< <i>If you still have the physical silver in hand then you have lost nothing.
How is that? >>
One does not lose/gain until the item being held is sold at a loss or profit. Until then, there is no loss/profit.
<< <i>If you still have the physical silver in hand then you have lost nothing. >>
You have lost previous value (or cost) minus current value. You just haven't locked it in yet. True, a value loss is not the same as a realized loss, but it puts you farther away from a realized gain.
It's a "paper" loss.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>If you still have the physical silver in hand then you have lost nothing.
How is that? >>
One does not lose/gain until the item being held is sold at a loss or profit. Until then, there is no loss/profit. >>
right! Same with a stock that has lost 50% of it's value, or a house, or anything really, you haven't "lost" money until you sell for lower than you paid
edit" watch out for "opportunity cost" and "time value of money" though, while you're waiting to "get it back"
Liberty: Parent of Science & Industry
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>If you still have the physical silver in hand then you have lost nothing. >>
You have lost previous value (or cost) minus current value. You just haven't locked it in yet. True, a value loss is not the same as a realized loss, but it puts you farther away from a realized gain.
It's a "paper" loss.
Those darned paper losses can be tough on the blood pressure though.
Relax, be happy!
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Why do we bail out the banks of all their mortgages losses are just losses on paper?
Knowledge is the enemy of fear
<< <i>
<< <i>
<< <i>If you still have the physical silver in hand then you have lost nothing.
How is that? >>
One does not lose/gain until the item being held is sold at a loss or profit. Until then, there is no loss/profit. >>
right! Same with a stock that has lost 50% of it's value, or a house, or anything really, you haven't "lost" money until you sell for lower than you paid
edit" watch out for "opportunity cost" and "time value of money" though, while you're waiting to "get it back"
Baley hit the nail on the head, isn't this what stock market guru's advise people all the time?? Do not jump in and out of the market or sell your stocks when they are out of favor, rather add to your holdings when they are on sale cost averaging your price down.
<< <i>
<< <i>
<< <i>
<< <i>If you still have the physical silver in hand then you have lost nothing.
How is that? >>
One does not lose/gain until the item being held is sold at a loss or profit. Until then, there is no loss/profit. >>
right! Same with a stock that has lost 50% of it's value, or a house, or anything really, you haven't "lost" money until you sell for lower than you paid
edit" watch out for "opportunity cost" and "time value of money" though, while you're waiting to "get it back"
Baley hit the nail on the head, isn't this what stock market guru's advise people all the time?? Do not jump in and out of the market or sell your stocks when they are out of favor, rather add to your holdings when they are on sale cost averaging your price down. >>
They might advise that you don't jump in and out. Or they might advise you do so. Some might say go long and buy an option or buy both options or buy the stock and short it at the same time .
The thing I notice is they seem to get paid whether their advice is any good or not. Financial advisers are like bad drinking buddies . Sooner or later you wake up with all your pockets turned inside out and they are nowhere to be found.
<< <i>
<< <i>
<< <i>
<< <i>
<< <i>If you still have the physical silver in hand then you have lost nothing.
How is that? >>
One does not lose/gain until the item being held is sold at a loss or profit. Until then, there is no loss/profit. >>
right! Same with a stock that has lost 50% of it's value, or a house, or anything really, you haven't "lost" money until you sell for lower than you paid
edit" watch out for "opportunity cost" and "time value of money" though, while you're waiting to "get it back"
Baley hit the nail on the head, isn't this what stock market guru's advise people all the time?? Do not jump in and out of the market or sell your stocks when they are out of favor, rather add to your holdings when they are on sale cost averaging your price down. >>
They might advise that you don't jump in and out. Or they might advise you do so. Some might say go long and buy an option or buy both options or buy the stock and short it at the same time .
The thing I notice is they seem to get paid whether their advice is any good or not. Financial advisers are like bad drinking buddies . Sooner or later you wake up with all your pockets turned inside out and they are nowhere to be found. >>
You are correct, just using an often qouted phrase regarding stocks. This PM situation will eventually pass but at this point in time still has validity as a store of value. Once everyone on the street talks about how great silver is and how much they've been purchasing the gig should be up along with a much higher price, until them keep stacking.
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Same with a stock that has lost 50% of it's value.
edit" watch out for "opportunity cost" and "time value of money" though, while you're waiting to "get it back"
I agree with you. As someone who invests in a number of America's finest companies, I don't really own a "stock" per se as a piece of paper, I actually own part of the company and have rights associated with the companies as a shareholder/I investor. CEOs, directors, and employees provide a profitable service for me as a shareholder.
The more efficient the company is run, the better.
I own silver and gold as I own FRNs. I prefer a balance of sorts because when silver or gold goes down for example, the value of my FRNs goes up, so it's a wash.