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 Replies: 19 / Views: 2,387 |
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Valued Member
United States
302 Posts |
I personally don't care what I paid for PMs.
Since I always buy low and always sell high, in the long run I will make money. However, since my main goal is for when SHTF, the cost is irrelevant.
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Pillar of the Community
United States
2130 Posts |
I keep track of the prices I paid or what something was traded for. Especially on pm's. At this time it's all cost averaging.
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Valued Member
Ireland
131 Posts |
Of course - otherwise how else does one know how much capital gains is payable on any profit one has made  Norm |
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Pillar of the Community
United States
3294 Posts |
I thought gold wasn't money. Bernanke said so.
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Valued Member
United States
362 Posts |
I have a little word document saved...somewhere... that I try to record everything in. So just in case I need to sell, it would be nice to see how much I paid
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Pillar of the Community
United States
2120 Posts |
I keep a ledger that tracks every PM purchase/sale I make.
It tracks Date, Item, Spot price @ sale, Purchase/Sale prices (minus premium), Premium paid/RCVD, ASW/AGW. And the n also a spot to track If an item has been sold and the sale date.
I also keep page totals on the last line of every page for quick reference.
Makes it easy to calculate Cost averaging and total value.
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Pillar of the Community
United States
931 Posts |
I use NGC's Collection Manager for all of my NGC slabbed purchases. Since 80% of my slabbed purchases are NGC I have relatively little work to keep track of profit / loss of the rest of my invsstment. I keep a runing log of my Silver Eagle purchases which make up the bulk of my silver bullion. My gold purchases are all NGC slabbed so that is easy as mentioned above. My bars, rounds, burnished, and proof silver don't count because I am collecting them and not using them as an investment vehicle. I don't have OCD as far as profit tracking but I do have it with regards to the condition of my silver bullion. I only buy really clean Eagles and they are all in airtites stacked in tubes.
Edited by junior e
09/13/2011 1:52 pm
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Pillar of the Community
United States
4008 Posts |
I use a simple spreadsheet to track the date, source, item, weight, and cost of each silver item I buy. No sales yet but will probably open a new sheet for that when the time comes. Not trying to get too detailed but do want to have a good general idea of what I have, where it came from, and how much it cost. I use the purchase dates to get an idea of how often I am buying. I could collect a lot more data on this but am more interested in collecting bullion and less in collecting data.  Edited by Ed_B
09/13/2011 6:05 pm
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Pillar of the Community
Canada
677 Posts |
I did not in the past but things accumulate pretty fast so I did start a journal. It is nice to look back and say, Wow I forgot all about those.
It sure is easier to open a book than to dig through the safe.
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Valued Member
United States
293 Posts |
I have a nice Excel spreadsheet and log all PM purchases.
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Pillar of the Community
 Canada
1502 Posts |
Always a bit of a shock to take a look at the spreadsheet and find out how many I've purchased and sold.
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Rest in Peace
United States
9104 Posts |
Quote:
if I buy a 1 oz bar at $20 and sell at $30, that means I raked in 50% in profit. But if I then buy again at a later date for $40, even when I can sell for higher than $40, before I sell again my books will say I've only broke even with that first $30 sale. Don't understand your example. You made a 50% ($10) profit. Your book is now clear, and $40 is a new starting point. This is how brokers figure their biz. It doesn't matter that they are now paying more than they sold for as long as they make money on the new one. The $10 profit is on the books, and stays there regardless of what they have/get for the new one. Four systems, pick one and be consistent: LIFO: Last in first out. Popularized by Scrooge McDuck. fill your money bin, add and subtract from the top. Reflects cost best in a rising market, likewise tends to show lower profits. FIFO: First in, first out. Like a vending machine, you add at the top, sell the older stuff on the bottom. Shows higher profits in a rising market. Cost: Often used by dealers, those funny letters on their holders. MDIV means they paid $2375 or whatever. Average: You need to know your cost per and quantity. When you add more, you add the new cost to the old total cost, and divide it by the new total quantity. |
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Rest in Peace
United States
9104 Posts |
Quote:
Of course - otherwise how else does one know how much capital gains is payable on any profit one has made Keep in mind that CG only applies if you held it for a certain time, and not at all for dealers. If a dealer sells something he bought five years ago, it's the same as if he bought it yesterday. |
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Rest in Peace
United States
9104 Posts |
Quote:
I have a little word document saved...somewhere Right-click on start > find > an odd word or number that would only be in that document (or better yet, a term in the title if you remember) and let your computer's fingers do the walking. Edited by biggfredd
09/15/2011 8:28 pm
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Pillar of the Community
Canada
1502 Posts |
The only way I know how to set up the excel sheet is to do the averaging system, which works alright for some but grossly underestimates profit for other more frequent repurchase and sales items. Still haven't figured out a way to do LIFO or FIFO within excel without separately naming each purchase of the same item.
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Replies: 19 / Views: 2,387 |
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Posted 09/13/2011 05:58 am
