Porn for Hobo and Sunfish
- Thread starter Bigtone
- Start date
SF if one were looking to enter the market... and I believe there is a long way for this to run yet, particularly when mania breaks out... would you just pile in or is there some reason to believe there will be a pull back in the near term? (I know you aren't nostradamus). I believe that gold stocks are a leading indicator of gold prices and these are suggesting a pull back. Or if there is a lag would stock be better than physical at this point?
The truth is we dont know whether gold/silver is in a mania break or not.
The truth is we also dont know what the fundamental 'balance point' is that reflects fundamentals.
Just looking at price doesnt give an indication of fundamental balance because we dont know the impact that speculation has on the underlying assets.
All we do know at the point in time is that gold has a very strong upwards trade movement. The trend is both strong, and has been of long duration.
As for silver its near term price movement is potentially parabolic. In the future this could be a significant 'step up' in fundamental price, or it could come down hard.
Never the less fortunes will be made and lost in this space (and not necessarily lost through being 'long of the asset', those that are using leverage to short these assets must be crapping in their pants at the moment)
sought of.
Gold could come back (from memory) to around $1200 and still be within the long term upward moving bandwith (ie the major trend would still be in play)
Silver has gone balastic, so its trend is parabolic. This gives a risk that it could come back hard. But it could also be the start of a 'structural step up price', which means that the actually 'fundamental price' of silver has been higher than people previously thought. If a fundamental step up price occurs, then in the future silver should trade fundamentally around this step up price. The 'step up price' is not necessarily the current price. But from meomory the underlying 'fundamental price' of silver was between $5-$10US. The step up price would be a fundamental price significantly above this price.
Hope this makes sense, i am not very familiar with all the trading jargon, i understand the main trading principles but forget all the specific jargon.
Aussie, you'd find it difficult to buy any quantity in retail sizes of Au/Ag but I still believe everyone should have some "available" somewhere so you should keep your eye out for crowns, sovereigns and other recognisable coins. That doesn't help as an investment though.
Jim Puplava believes in dollar cost averaging and if you buy a bar every month from Perth Mint you should avoid serious shocks.
The miners are undervalued because institutional investors believe that silver will average US$20/oz in 2011 and less in 2012 and similarly low values for Au but if Ag hits $60 and Au $2000 the miners will be making BIG money. My strategy has always been to invest in miners but there have been disappointments along the way. Kinross (grossly overweight in my portfolio) which bought out Redback Mining which had treated me so well is languishing near it's 12 month low, in spite of the POG.
I no longer have a broking ac which allows me to trade futures but if you keep a clear head and use caution, it is the best return.
Jim Puplava believes in dollar cost averaging and if you buy a bar every month from Perth Mint you should avoid serious shocks.
The miners are undervalued because institutional investors believe that silver will average US$20/oz in 2011 and less in 2012 and similarly low values for Au but if Ag hits $60 and Au $2000 the miners will be making BIG money. My strategy has always been to invest in miners but there have been disappointments along the way. Kinross (grossly overweight in my portfolio) which bought out Redback Mining which had treated me so well is languishing near it's 12 month low, in spite of the POG.
I no longer have a broking ac which allows me to trade futures but if you keep a clear head and use caution, it is the best return.
Ok so you buy some gold/silver bullion from the mint - what are we taking an ounce a month, a kg how much do you guys buy? I ask this because you may have heard of leverage, magnifies the gains as well as the losses. How do you leverage into physical bullion to make it worth it. I may have "lost" 200k on my property portfolio in the last qtr, but I "made" 500+k last year.
Do you use the loc that's attached to your ip's?
Do you use the loc that's attached to your ip's?
I can see how it is hard to allocate a reasonable portion of your gross assets to precious metals - particularly now when you shoul dbe overweight and most people are hopelessly underweight. I am no expert but I believe the best way to leverage for a punter would be a margin loan over some gold producers. SF has suggested futures contracts but i have never traded this sort of thing so it's all new ground for me, but may spend the easter break learning about it.
I am onboard with the idea of buying a gold bar every month - just chuck it in the super fund.
what areas are you invested in pieman to have such volatility in real estate? most trends span years, not quarters.
I am onboard with the idea of buying a gold bar every month - just chuck it in the super fund.
what areas are you invested in pieman to have such volatility in real estate? most trends span years, not quarters.
so went up 12.5% in 9 months and dropped 5% in 3 months? are these real numbers or are you just talking generally? does it take into account the holding costs? a falling market while neg geared is particularly brutal.
of course you are wielding a double edged sword, but all leveraged investors know that (god help them if they don't !!!). A 20% drop in property prices wipes out a good deal of owners unless they can hang in.
Do I? You have lost 2% on the percentage you pay interest on.
I'm down the tube over 25% on my Canadian $ exposure and that focuses the mind.
But I would rather own own a US (cost) based miner and cop a loss on the repatriation of profits than an Aussie miner whose costs are in A$. Think about it.
30% LVR entire portfolio (includes ppor)
you forgot rent, non cash deductions and some tax man help ( I earn >180).
Most of my dough is in PPOR - fully paid off so zero non deductable debt.
So how have you gone with the gold/silver bullion again? Do you own, like 10kg's or so?
My statement is correct. You lose 2% on borrowings every year. The rest of the stuff was not not part of your OP.
So you come here to brag about your income? Bully Bully If I ever earned that income I'd simply tell the working class (me) to kiss my ***.
I'm very working class myself, simply did a bit of work at uni and only recently have started earning (actually 250ish) as a consultant. I've been a member way back in the original forum and owe alot to those first PI guns like "the wife" etc and its the first time I've discolsed my income.
Excuse me to those to whom this would make feel uncomfortable
u can trade gold or sliver or even USD either in an up or down market pieman
It is just a matter of whether it is physical or virtual(CFD, shares, options)
Whenever there is a diaster - gold normally goes up. my favourite is the ASX200 index which is basically consist of capitalization of BHP, Rio as some of the biggest players. Whatever happens to mining etc normally will contribute to the index going up and down.
it can be a an overnight trade on an initial amount of 5K depending on how fast it moves to make 30-50K.
Hi all
I recall Robert Kyosaki telling all who would listen to get out of property and stockmarket and buy Silver more so than gold. He gave reasons that silver actually performs better etc. This was around 8 years ago. If only i had listened.
He was moving all his money into Silver and Gold. That was the time to do it he must be smoking his cuban by now.
Cheers
SG
I recall Robert Kyosaki telling all who would listen to get out of property and stockmarket and buy Silver more so than gold. He gave reasons that silver actually performs better etc. This was around 8 years ago. If only i had listened.
He was moving all his money into Silver and Gold. That was the time to do it he must be smoking his cuban by now.
Cheers
SG
