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Posted 06/29/2011 06:17 am
That sounds good on the surface and is very tempting. But let's dig deeper. We are talking big money here, it's not pocket change. The best way to handle any investment is to try and produce maximum returns with minimum risk.
If you are in a casino and have a $5,000 chip and a $1 chip. You can use that $1 chip on any bet in the casino, probably even a bet with odds as bad as a lottery, to try and win big money. Because it's only $1, you lose it, no big deal. But what about the $5,000 chip? With that in your hand, you probably want to watch the table for a bit, see how other players are fairing. Then when you think you have pretty good odds based on the last few rounds, thats probably when you want to put that chip on the table.
Same here. And I'll just use your numbers to keep the continuity. Now it may seem like it should be pretty soon, but nobody knows for sure when silver will hit $50, $75, or $100. And we are not talking about just one ASE, we are talking about $33.5K worth. First of all, should we tie up all that money until however long it takes for silver to hit $100?
Now I think there is a good chance silver will hit $50 by year end. And I am not sure of $100 at all, could be five years, could be five decades. And right now all things look bullish for silver, and they always do before bubbles burst. But lets be positive about it and say it goes all the way to $100 by year end. What's the return? Losing $500 on fees and shipping like above, you make 66K, or 194%.
Yeah that's amazing, and I'll take that anyday! Well, what about an immediate sale like I said? So our $6K from above equals to a mere 17.6% return.
Well, that concludes it right?
No, mathematically we are comparing apples to oranges here. It would take us six months to make $66K. And $6K is immediate, which can be reinvested for more returns. Now if it were me, I'd have a dealer lined up even before I purchased these, and sell same day for minimum risk to me. But let's just say it takes him a full two weeks to find another dealer to sell to, even in today's craziest of silver markets. So say 14 days.
So to compare apples to apples, anyone with a finance degree will tell you that we need to annualize our returns.
The 194% return in six months, annualized is 791% return.
While 17.6% in 14 days annualizes to 6,820% return.
There is the math. Not to mention we also minimized our risk, by flipping immediately. That's why I'll stick with immediate resale.
If you are in a casino and have a $5,000 chip and a $1 chip. You can use that $1 chip on any bet in the casino, probably even a bet with odds as bad as a lottery, to try and win big money. Because it's only $1, you lose it, no big deal. But what about the $5,000 chip? With that in your hand, you probably want to watch the table for a bit, see how other players are fairing. Then when you think you have pretty good odds based on the last few rounds, thats probably when you want to put that chip on the table.
Same here. And I'll just use your numbers to keep the continuity. Now it may seem like it should be pretty soon, but nobody knows for sure when silver will hit $50, $75, or $100. And we are not talking about just one ASE, we are talking about $33.5K worth. First of all, should we tie up all that money until however long it takes for silver to hit $100?
Now I think there is a good chance silver will hit $50 by year end. And I am not sure of $100 at all, could be five years, could be five decades. And right now all things look bullish for silver, and they always do before bubbles burst. But lets be positive about it and say it goes all the way to $100 by year end. What's the return? Losing $500 on fees and shipping like above, you make 66K, or 194%.
Yeah that's amazing, and I'll take that anyday! Well, what about an immediate sale like I said? So our $6K from above equals to a mere 17.6% return.Well, that concludes it right?
No, mathematically we are comparing apples to oranges here. It would take us six months to make $66K. And $6K is immediate, which can be reinvested for more returns. Now if it were me, I'd have a dealer lined up even before I purchased these, and sell same day for minimum risk to me. But let's just say it takes him a full two weeks to find another dealer to sell to, even in today's craziest of silver markets. So say 14 days.
So to compare apples to apples, anyone with a finance degree will tell you that we need to annualize our returns.
The 194% return in six months, annualized is 791% return.
While 17.6% in 14 days annualizes to 6,820% return.
There is the math. Not to mention we also minimized our risk, by flipping immediately. That's why I'll stick with immediate resale.
