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 Replies: 11 / Views: 1,523 |
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Pillar of the Community
United Kingdom
616 Posts |
Reading several PM Forums I have seen several people post "You haven't lost money until you sell" as their advice to some folks less confident than themselves. Just curious but has anyone ever seen anyone post "You haven't made money until you sell"? Edited by starbuxinvestor
06/20/2013 12:39 pm
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Bedrock of the Community
13014 Posts |
Ive seen it some for stocks.
Its true you havent locked in a loss until you sell, but as long as it is in the loss territory that loss is very real its just not locked in. Just like the profit is real at the moment but not locked in.
To keep myself from getting sloppy I consider all losses real till proven other wise and nothing is profit till its sold. That said that doesn't mean I panic about everything if it dips but the comments youre referring to are likely people trying to convince themselves of that just as much as others.
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Pillar of the Community
 United Kingdom
616 Posts |
I know if I was to calculate my net worth I would be using what I could sell things for not what I bought them at for that calculation. It just seems that some people almost want to bully others into confirm their beliefs.
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Pillar of the Community
United States
1200 Posts |
Very true. The profit or loss isn't locked in and realized until the sale is completed. Nonetheless--now that we're down into the teens, that old "You haven't lost
$ until you sell" chestnut isn't really helping me feel happy about things.
I have to admit one thing, though. This looks like a good time for a newbie to be starting into stacking PM's. Silver spot is back down to where it was 34 months
ago (before "the big hump") and it's at the top of the $10-wide range where it sat from from 2006 to late 2010. It does look like a good time to start stacking...
unless that old "It's always darkest just before it gets even darker" saying proves to be true...
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Pillar of the Community
Canada
2805 Posts |
"I bet the government's going to collapse! Time to buy a subsistence farm in the middle of nowhere instead of stockpiling guns and gold!"
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Pillar of the Community
United States
7840 Posts |
The thread title sounds like a George Carlin skit...I'll leave it at that.  Edited by oih82w8
06/20/2013 3:06 pm
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Pillar of the Community
Canada
3692 Posts |
You don't have less ounces when the price goes down. I'm sure you've heard that one and it's true.
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Pillar of the Community
United Kingdom
616 Posts |
I have heard it but the value of anything is tied to its purchasing power not its existance. Although as long as you have it you have the possibility of the purchasing power increasing.
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Valued Member
United States
410 Posts |
The same can be said of any object, it is just that some things are more useful than others. If the price of my house goes down it still provides shelter. My car may depreciate but it still takes me to work every day. If the price of silver goes down it just sits there doing nothing. PM's serve no useful purpose until they are sold, they don't provide for a physical need or pay interest or a dividend. The whole purpose of PM's is to buy low / sell high / pocket the difference.
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Pillar of the Community
United Kingdom
616 Posts |
Or act as a counter balance or hedge in one's portfolio.
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Pillar of the Community
United States
2543 Posts |
Quote:
The thread title sounds like a George Carlin skit...I'll leave it at that. You mean like the seven words you can't say on CCF So many people are led to believe that PM's are like " blue chip " stocks, you buy them as a safe investment. I still hear cash for gold commercials, everyday, claiming gold is at all time highs. Or invest in gold or silver prices have tripled in the last ten years. |
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Pillar of the Community
United Kingdom
616 Posts |
Denco7
Most feared words in PMs, "Mean Reversion"
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Replies: 11 / Views: 1,523 |
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Posted 06/20/2013 12:37 pm
