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Are stackers managing a "hedge fund?"

derrybderryb Posts: 36,824 ✭✭✭✭✭
in Precious Metals
Are those who stack PMs in an effort to hedge against their dollars in affect managing their own "hedge fund?"

"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

Comments

  • pennyanniepennyannie Posts: 3,929 ✭✭✭
    I have a 4k cd that paid me either 19 or 29 cents intrest last month and a 5k cd that paid about the same. I guess it is a hedge fund to some degree. My 401 has not been on fire, gun values are down a bit, ammo is coming back to the shelves, property values are inches up but plenty of distressed property out there. Coin values for the common collector are all over the map. I am just trying to cover the bases.

    Heck I am not the brightest light bulb in the pack, I sold most of my American airlines stock at 12 bucks instead of waiting.image I bought at 90 to 1.05 a share)
    Mark
    NGC registry V-Nickel proof #6!!!!
    working on proof shield nickels # 8 with a bullet!!!!

    RIP "BEAR"
  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>I have a 4k cd that paid me either 19 or 29 cents intrest last month and a 5k cd that paid about the same. I guess it is a hedge fund to some degree. My 401 has not been on fire, gun values are down a bit, ammo is coming back to the shelves, property values are inches up but plenty of distressed property out there. Coin values for the common collector are all over the map. I am just trying to cover the bases.

    Heck I am not the brightest light bulb in the pack, I sold most of my American airlines stock at 12 bucks instead of waiting.image I bought at 90 to 1.05 a share) >>



    Time for you to shop around, which you probably should have done before placing your funds into those low paying CD's. Heck, even my savings account at Discover bank pays .85% pa.

    Good place to start...click on the below link.

    bank rates
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    Stackers can use any semantics they like. They buy metal objects, and later either sell them for more than they paid, less than they paid, give them away, or die with them.

    Liberty: Parent of Science & Industry

  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭
    Probably, since the track record of most hedge funds is dismal. image
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>Probably, since the track record of most hedge funds is dismal. image >>


    Including those that successfully move into and out of markets? Cannot stackers do the same?

    "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

  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭
    By my definition, a stacker never sells. Your definition may differ.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    A successful stacker adds to the pile at the correct time and subtracts from it at the correct time. A stacker is an investor that does not stack paper.

    "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

  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>A successful stacker adds to the pile at the correct time and subtracts from it at the correct time. A stacker is an investor that does not stack paper. >>



    Not necessarily so. Some of our members are SHTF stackers.image
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>

    << <i>A successful stacker adds to the pile at the correct time and subtracts from it at the correct time. A stacker is an investor that does not stack paper. >>



    Not necessarily so. Some of our members are SHTF stackers.image >>


    And their stack will most likely outlive them as they patiently wait. image

    Nothing wrong with a few cases of spam and toilet paper in the basement, but filling the entire house with it is beyond my comprehension.

    "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

  • jmski52jmski52 Posts: 22,858 ✭✭✭✭✭
    True confessions. I'm a stacker and I do sell from time to time.

    To the OP's question, stackers are hedging something - whether it is vs. dollar devaluation or sovereign default risk or shtf - they are definitely hedging vs. something.

    There's a gray area between hedging and long-term speculating. Some of us fall in between the two.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • element159element159 Posts: 512 ✭✭✭
    What does 'hedge fund' really mean, anyways. I never understood that. I know about the financial concepts of hedging, like locking in prices or limiting losses via derivatives, but I can't imagine that making enough profitable business for all the times I read 'hedge fund', so I have no idea what 'hedge fund' really means.

    To answer the OP thread title, Sure, why not?
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    It can be looked at as such. Certainly stackers are hedging against a fiat collapse. Many long term stackers have made multiples of their investment and whether or not they cash in is not relevant. Value speaks for itself. Cheers, RickO
  • fiveNdimefiveNdime Posts: 1,088 ✭✭
    yes.
    but the fees are killing me. image
    BST transactions: guitarwes; glmmcowan; coiny; nibanny; messydesk
  • meluaufeetmeluaufeet Posts: 764 ✭✭✭
    I have been adding to the cash stack lately.... So in that sense my pm stack is a hedge.
  • meluaufeetmeluaufeet Posts: 764 ✭✭✭
    Still waiting for the pm wash out...
  • jmski52jmski52 Posts: 22,858 ✭✭✭✭✭
    The stack of FRNs cried out, "Save me! Save me! Don't let them make mincemeat out of me before I can be spent! Save me! Buy some metals!"

    The siren call echoed through the entire valley...
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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