| Author |
 Replies: 22 / Views: 2,536 |
Page 2 of 2
|
|
|
|
Valued Member
United States
376 Posts |
My phones broke! So I can't check my Gold Silver Price widget every 5 minutes! So I had no idea it hit $33 today. Crazy. I guess I'll have to slow down on buying for a little while until it goes down a bit. But I'll still buy  |
|
Pillar of the Community
Canada
3692 Posts |
Quote:
Perhaps some profit taking or we go higher. With a prediction like that, how can you be wrong? I didn't see this rise coming so fast. I thought it'd take at least 1-2 more months before we saw silver poke over $30/ozt. Does anyone see the price drop from November and on? Seems to me like no matter who gets elected as president of USA that the tension of decision will be off again and people will get a sense of political placebo. Then the December slump as usual. Might be a good time to take your money and run! Disagree? |
|
Bedrock of the Community
13014 Posts |
I would say a reelection of Obama could lead to higher prices as that would mean another 4 years of the same policies, but I do agree that there should be a nice run up to voting day
|
|
Pillar of the Community
United States
3294 Posts |
Quote:
Quote:
Perhaps some profit taking or we go higher.
With a prediction like that, how can you be wrong? A stagnant trading day with little movement either direction. |
|
Pillar of the Community
United States
4008 Posts |
Quote:
Might be a good time to take your money and run! Disagree? Agreed. In fact, I am about 8% in PMs now, 70% in cash, and the rest in a few core mutual funds. Too many off-the-wall things going on to make any sense of the current stock market. Am hoping that things will have either settled down or blown up by Jan-Feb. Either way, we would at least have some direction.  |
|
Pillar of the Community
United States
667 Posts |
Great start at diversification Ed.
|
|
Pillar of the Community
United States
4008 Posts |
Thanks, MK. What additional steps would you take at this point?
Like a lot of investors, I don't want to go all-in with any investment. The cash that I hold is a temporary arrangement. It will be reinvested as soon as the financial situation clarifies a bit. There is no rush. I have plenty of money to live on comfortably but really do want to avoid a sudden drop in the market if I can. In 2008, cash was definitely king. Anyone who had cash could scoop up quite a few bargains in many asset classes, including PMs. I did not do this in PMs but did get some real bargains on some great mutual funds. While that may or may not be the case during the next recession... or next leg of the current recession... it seems reasonable to me at this point.
|
|
Pillar of the Community
United States
667 Posts |
It is hard to say Ed. I have a lot of time before I retire. Time is very good when you have money in the stock market. Thus I have it there and can afford to be a little aggressive.
My 410k and retirement plan is another area. I'm lucky in one point that I will have a retirement and I max out my 410k.
PM's are my major diversification. I have been buying for 30 years. While it is a speculation the market would really have to fall back into the 1970's to really hurt this side.
Cash is good to have on hand.
I own a few things that give me a better position. The farm has coal and a lot of it, they will be mining it next year. SO on the side I root for China's economy since it will all be going there. I'm still working on the financial plan for this income.
The Marcellus Shale will be tapped in a few years so that brings more into play.
The farm still produces a profit and I cut my teach on commodities with beef and grain. It was a great year for beef but there have been some not so good years in the past.
My day job is going strong but of course you never know how long that will last.
I'm not a financial adviser so I don't or can say if I am right or wrong. I think having money in the market is a good thing weighted in investments that fit when you will need the money. History is on your side as long as the timing is correct.
PM's have been very good to me but I made most of my larger buys when I was young had no money and bought at a fraction of the price PM;s go for now. We suffered early in our marriage for going fun stuff to buy the PM's. As far as percentage I am really out of whack with 40% in PM's. However the bottom would really have to fall to be hurt. I continue to buy each month and at time have sold some to buy more at a lower price.
Land - buy cheap and get lucky with having coal reserves that you were not aware of. Then compound it when your area becomes a hot spot for gas.
I know this is long winded but if I gave any advise it is diversification, and do something when you are young. It was hard not going on vacation or not buying that new car and putting as much as I could into my 410K. But oh what dividends it has paid today.
Today I could care less if gas went to $10 a gallon and if I wanted to I could retire from the day job even when kids at home. My day job is a normal position not a CEO or something like that.
MY goal with PM's when I started > First off it wasn't something to flip and make a fast profit. The stuff was cheap I could buy a few ounces of silver each pay for less than going out and having fun on the weekend.
|
|
Bedrock of the Community
13014 Posts |
Quote:
Anyone who had cash could scoop up quite a few bargains in many asset classes, including PMs. Thats the truth. Any time theyre massive sell offs like that you can get great deals. Most of the major fund managers do the vast majority of their buying in times like that. Theres still some companies that havent even come remotely close to their 08 levels. AIG comes to mind, about 34 right now used to trade at 1500. Will it ever get back to 1500 probably not, but if it gets even remotely close to spitting distance a minimal investment in it pays off huge. |
|
Pillar of the Community
United States
4008 Posts |
Quote:
Time is very good when you have money in the stock market. Thus I have it there and can afford to be a little aggressive. Indeed it is, MK. The power of compounded interest / earnings is pretty amazing, especially when there is enough time to compound the earnings over and over. Quote:
My 410k and retirement plan is another area. I'm lucky in one point that I will have a retirement and I max out my 410k. I have long believed that the 401K plan is the greatest wealth creation engine ever created. Yes, the stock market is volatile and our balances move up and down with that. It never really bothered me that much because I had a good way of looking at it: if the market was up, I was happy that my balance was higher; if the market was down, I was happy to be buying cheap shares. Either way, it was a win.  Quote:
PM's are my major diversification. I have been buying for 30 years. While it is a speculation the market would really have to fall back into the 1970's to really hurt this side. That's a long time to be buying PMs! Congrats on having the foresight to get in very early on in this game.  Quote:
I'm not a financial adviser so I don't or can say if I am right or wrong.
Let me help you with that. You are doing GREAT and don't let anyone tell you different. Sure, if we always made the perfect financial moves, we would do even better but it is not necessary to be perfect to do very well. If what you are doing is earning money 3 times out of 5, breaking even 1 out of 5, and losing money 1 out of 5 times, we can amass considerable wealth. This really is about as good as anyone else can do. Quote:
I know this is long winded but if I gave any advise it is diversification, and do something when you are young. It was hard not going on vacation or not buying that new car and putting as much as I could into my 410K. But oh what dividends it has paid today. Great advice, MK. Lots of people would do better in life if they followed your example. My opinion is that many more people could become rich if they were willing to do as you have done... use time wisely, invest for the long term, and get into some good things early in life. Good stuff! Quote:
Today I could care less if gas went to $10 a gallon and if I wanted to I could retire from the day job even when kids at home. The freedom to do as we want when we want is absolutely priceless. It is WELL worth the necessary sacrifices early on in life. |
|
Pillar of the Community
United States
4008 Posts |
Quote:
Theres still some companies that havent even come remotely close to their 08 levels. AIG comes to mind, about 34 right now used to trade at 1500. AIG is one of those toxic assets that are unlikely to ever produce the results that its shareholders desire. It went from $35 a share to practically zero before the government stepped in and orchestrated a $180B financial life preserver for them. That raised their share price to around $2. They then did a reverse split to get their share price back into the $30s. Saddled with the debt that they have makes it difficult for them to pay that off and pay their shareholders via a rising share price or strong dividends. Sorry for the rant. Can you tell I used to own some AIG shares?  |
|
Bedrock of the Community
13014 Posts |
Quote:
Yes, the stock market is volatile and our balances move up and down with that. It never really bothered me that much because I had a good way of looking at it: if the market was up, I was happy that my balance was higher; if the market was down, I was happy to be buying cheap shares. Either way, it was a win. Which is a great way to look at it. Plus is your employer matches what you put in even if its down a little youre still up from the free money from the company. Quote:
Can you tell I used to own some AIG shares? Id be very bitter too and be done with them if I had them before the drop too. Itll take them some time and probably wont reach their 08 level again but theyve cleaned up their act enough I dont think itll bottom out, and if it does ill get more before the bailout. I dont mind using a percentage of my investments on risker things when the potential payoff is great. I would say of the companies that generally get blamed for the housing market AIG has rebuilt its name enough to have avoided really being the scape goat MF Global style or be an Enron. Then again I may just have a better view of them since I got it in the 20s and could get out tomorrow being up |
|
Pillar of the Community
United States
4008 Posts |
Quote:
Which is a great way to look at it. Thanks, BB21. Yeah, it may have been a psychological game that I played on myself but it worked to keep me invested when others were throwing in the towel, selling everything they owned that was down in price, and converting those paper losses into REAL losses. Quote:
Plus is your employer matches what you put in even if its down a little youre still up from the free money from the company. That was where I had some really good luck. I worked for an excellent company. They matched us with 3% in cash or 6% in company stock. I took the stock and it worked out REAL well. We also got a separate 4% contribution to our 401k plan as a replacement for the pension plan that we had early on that was replaced by the 401k plan. Towards the end of my career, I was putting 22% of my salary into my 401k plan, thanks to these matching funds. Quote:
Id be very bitter too and be done with them if I had them before the drop too. Well, I'm not really bitter about it but I was pretty annoyed by it. I am realistic enough to understand that investing in the stock market can be a real gamble at times and that when one gambles one will lose sometimes. The timing of it probably bothered me more than anything. I only had $10k or so invested in AIG at the time, so not a big deal, but having it collapse 3 weeks after I bought it kind of stunk. Quote:
I dont mind using a percentage of my investments on risker things when the potential payoff is great. I can only hope that AIG has learned its lessons about "investing" in derivatives. There is no faster way to make or lose money than by involving yourself in the derivatives market. It is the rocket powered roller coaster of the investing world and the only device that allows people and companies to wager WAY more than they actually have. Unfortunately for many, we did not know that they were cooking the books on the LIBOR and manipulating interest rates in ways that absolutely prevented these interest rate derivatives from serving as the insurance against future interest rate rises. The banksters KNEW when they sold these derivatives that they were in fact worthless because they were manipulating the interest rates such that the derivatives would never pay off... until they were ready. It was a rigged game and AIG fell face-first into it. So did some other companies... like Lehman Bros., Bear Sterns, MF Global, PFG-Best, and Sentinel.  Quote:
Then again I may just have a better view of them since I got it in the 20s and could get out tomorrow being up Yes, you may. Or, you may just be Act II of the same financial manipulation that caused so many problems in 2008. Keep your stops close, my friend, because what a person or a company does once, they can surely do again. |
|
Pillar of the Community
Japan
666 Posts |
|
|
Pillar of the Community
Canada
834 Posts |
The spike down was perdicted with what happened in europe today the us dollar gained some ground dropping the price of silver and gold
|
|
Page 2 of 2
|
Replies: 22 / Views: 2,536 |
Page 2 of 2
|
First Page
Posted 09/06/2012 9:19 pm
