On the downhill slope.

[FreedomUIC]

Seems everything is taking a hit this morning. Silver has been steadily declining this past week and it seems it is gaining some momentum.

I have giving up trying to predict and resorted to just buying as much as I can when I can.....

 

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[LM]

I have giving up trying to predict and resorted to just buying as much as I can when I can.....

Permabull thinking.

When it's going down, it's opportunity to buy more.
When it's going up, it's proof of concept and you'd better buy more before it goes even higher!

While all sorts of guys spent their time hording little metal discs that have since lost about 40% of their value, some of the most mind-blowing opportunities in equities and real estate have passed them by. I realize metals investing is dead simple and 'pleasingly tangible' but relative to the other opportunities out there in this world, its one of the dumber places to be putting your money.

 

[TreasurePirate69]

Permabull thinking.

When it's going down, it's opportunity to buy more.
When it's going up, it's proof of concept and you'd better buy more before it goes even higher!

While all sorts of guys spent their time hording little metal discs that have since lost about 40% of their value, some of the most mind-blowing opportunities in equities and real estate have passed them by. I realize metals investing is dead simple and 'pleasingly tangible' but relative to the other opportunities out there in this world, its one of the dumber places to be putting your money.

It goes in cycles. You could say the same thing about real estate. For years my father in law (who was a real estate agent) told me to buy as much house as I could get a loan for because housing prices were going up by 7% a year. The good news is that I ignored him and bought a house that I could afford. That house has been paid off for quite a while now. It's simply not possible for all housing prices to continue to go up by 7% a year every single year over a long period of time without there eventually being a massive correction. As you can plainly see, there were LOTS of "permabulls" out there in the real estate market who lost 40% when the housing market crashed. Some of them continued buying real estate all the way down and lost their shirts. Others waited for the bottom and have now picked up some decent deals that COULD make them money in the future IF they bought the right properties. Wait..... does this sound familiar at all?

 

[jim4silver]

Permabull thinking.

When it's going down, it's opportunity to buy more.
When it's going up, it's proof of concept and you'd better buy more before it goes even higher!

While all sorts of guys spent their time hording little metal discs that have since lost about 40% of their value, some of the most mind-blowing opportunities in equities and real estate have passed them by. I realize metals investing is dead simple and 'pleasingly tangible' but relative to the other opportunities out there in this world, its one of the dumber places to be putting your money.

Sounds like something someone would say who decided to buy PMs in 2008 at the peak. If someone had foresight and bought PMs in 2001-2006 or so, they would be way ahead today, even after the downtrend. I bought my first gold Krug at 600 and silver eagle at 12 in 2006 or so.

If you bought stocks in 2006-2007 you would be breaking even or so now after the great crash in 2007, depending on what your specific holdings are. If you bought real estate in 2006 (I almost did), you'd still be underwater, at least where I live.

Jim

 

[TreasurePirate69]

Looks like the July jobs report has caused a huge spike in prices anyway so it appears to be a moot point.

 

[Marchas45]

PM's going up next week, trust me. Lol

 

[jim4silver]

No, I never paid attention to precious metals.
I bought real estate in 2010, 2011 and 2012 when it was being given away. It's turning out to have been a once in a lifetime opportunity.
Likewise, when the world was crashing in 08 and 09, I was buying equities with every dollar I could lay my hand on. I started scaling out this year.

Believe it or not, some people approach this process intelligently and with little regard to 'what everyone else is doing'.
Probably the lowest caliber 'investor' there is is the person who spastically hordes coins for their 'metal value' hoping that market gyrations will get them double in a year or two. Hell, you could've done that with facebook shares in a couple days time, last week.

Anyway, I've learned that there's no point trying to 'reason' with people who engage in such behaviors but I will say this. If your 'precious metals investing' doesn't have a fully defined exit plan, then you're not 'investing'. You're just hording and all this pain you've endured over the past year will be regularly repeated. Surrounding yourself with a bunch of like-minded 'believers' shouting hallelujah-gold doesn't get you an inch closer to actionable insight.

LM,

Since you seem to be so good at finding the right investments at the exact bottom, please tell us what the smart bet is for the next 1-3 years. The reason I ask is that, about every month or so someone like you drops in, and tells us PM bugs how foolish we are, yet they never tell us what the next smart investment will be.

Such persons like you were nowhere to be found when gold and silver were posting yearly gains for over 10 years in a row (unlike the stock market and real estate). But when we have a couple of down years, a bunch of "I told you so" folks come out of the woodwork, much like you did.

I am sure an "intelligent investor" like you can help all of us imbeciles make something out of our sorry, pitiful lives. Thank you in advance for helping me make better investments and for saving me from myself.

Sincerely,

Jim

 

[Eminem]

LM,

Since you seem to be so good at finding the right investments at the exact bottom, please tell us what the smart bet is for the next 1-3 years. The reason I ask is that, about every month or so someone like you drops in, and tells us PM bugs how foolish we are, yet they never tell us what the next smart investment will be.

Such persons like you were nowhere to be found when gold and silver were posting yearly gains for over 10 years in a row (unlike the stock market and real estate). But when we have a couple of down years, a bunch of "I told you so" folks come out of the woodwork, much like you did.

I am sure an "intelligent investor" like you can help all of us imbeciles make something out of our sorry, pitiful lives. Thank you in advance for helping me make better investments and for saving me from myself.

Sincerely,

Jim

Ever consider putting it under your mattress?? Seems pretty cozy down there

 

[TreasurePirate69]

Right now, the market is pretty overvalued. I am not deploying much capital at this time, save for a few momentum trades.
I have no interest whatsoever in giving 'coin horders' investing advice since it's pretty damn unlikely 1 in 50 of you even have a brokerage account or know how to place a call order. I'd bet the average number of coin horders who have something like a 'debit card' is a good bit lower than the population at large.

I sure wish I had bought my stuff at the 'exact bottom'. Would be making a lot more than I am right now, but yeah... When banks started flinging off REO homes for 1/5th their pre bubble value at insanely tasty CURRENT rent multiples, I got in. When F was at $2 a share? In like Flynn. Rode it back up to 12. I think it's at 17'ish right now.

Understanding the 'value' concept is critical to winning. Buying metals when they're low, middle and high, tehn buying them back down, then buying them back up, doesn't punch your ticket to that dance. No offense, but trying to explain sound investing principles and how to spot bargains to a bunch of metals hording jug tooters would be like trying to teach a monkey to play the piano, so I won't bother.

I will, however, note that even a musical monkey should be able to see that when your strategy is "BUY, ALWAYS!", it's a pretty stupid strategy.

There are many of us that have equity accounts, 401k's, bonds, AND precious metals. Many of us have done well on our precious metals AND have done well on the stock market. I just actually got done making an easy $15K on my 3000 shares of Sprint stock. Sold it around the high at $7.20 and bought it last year at $2.60.

It's easy to sit around and claim that you are a genius because you made a couple of good trades/investments. But I'm NOT a genius despite the fact that I've done well over the years in a wide variety of investments. And yes, I hoard coins. Why? Because diversification is very important. I also just like looking at gold, silver, copper, and even nickels.

By the way.... if you haven't sold those properties yet and are not renting them you haven't made squat. Many investors count their chickens way too early. Although I agree on many of the points you've made, your demeaning attitude makes it awfully hard for me to want to back you. This is an attitude that I have taken many times out here and have paid for it. If you want to get your message across, perhaps you might try a slightly different tact. Although there are many out here who disagree with us, there are also many out here who are much smarter than we could hope to be.

For the record, many people who bought those "insanely tasty properties" also chose wrong and lost their shirts. Getting a good deal on a property usually happens for a reason. I personally have no desire to get into real estate. I have relatives that have done VERY well in real estate over the years and others who have lost a lot of money thinking that some distressed property was going to make them rich. To each his own I guess.

I wish you the best of luck in your investments. You may need it...

 

[Marchas45]

LMAO I am in real estate and if you are buying right now and INVESTING I feel sorry for you as I see it heading down shortly. Sure the sales are up but as I've said before $400,000.00 homes are selling for $200,000.00 As for PM's I'm Stacking not Hoarding and I'm not INVESTING in PM's but STACKING for SURVIVAL. O! I forgot I'm also a PREPPER. LMAO

 

[Wilmingtonsilver]

LM, my only question is, If you hate PMers so much, why are you trolling their page of the board? You must have just wanted to be a troll and try to make yourself feel superior to others. Thanks for sharing what you consider your wisdom. Now get lost again.

 

[jim4silver]

You can almost set your watch for when one of these types will show up. Reminds me of my old days posting in the CRHing forum.

Take one part insults, one part lack of substance, throw in a few calls about price movements that have already happened so you can look smart (like perhaps you actually profited from those past movements) and add a dash of complete lack of future predictions and you have it. I am sure we will have more like this in the future, although when/if the price breaks up they will disappear until the next correction.

If someone wants to be bearish here that is great, in that it is nice to have balance with all of us PM "perma bulls". But with the exception of our friend TreasurePirate, none of the bearish type posters can make any cogent argument why PMs are a bad investment and/or what would be a good alternative right now.

Just my opinion.

Jim

 

[Marchas45]

Boy you sure are a nasty person. As a matter of fact I've been in real estate for 22 years and I am a Broker and pretty knowledgeable in my field and well respected. As for discussing anything with you in the future that is not happening. Go find some treasure. O! I forgot, you did. REAL ESTATE hope your ass gets burned. I'm really sorry but you are the first person on this site that has really pissed me off with your arrongancy hence my hateful attitude towards you. Go buy some more investments TROLL.

 

[TreasurePirate69]

LM has multiple problems.

1) He is a "binary thinker". He believes the world is only black and white. He can't fathom that people could invest in PM's AND invest in equities, real estate, and the like. He thinks that if you aren't a genius then you must be stupid. He thinks that a "prepper" couldn't also be a real estate magnate. He believes in mystical "magic numbers" at which all the planets align. He can't understand that the world is not black and white. Instead, the world is made up of a whole spectrum of colors. This of course is a very sad way to go through life as it clouds your judgement and keeps you from seeing the bigger picture.

2) He is a troll.

And he is now on ignore because there is no reason to feed a troll....

 

[jim4silver]

Boy you sure are a nasty person. As a matter of fact I've been in real estate for 22 years and I am a Broker and pretty knowledgeable in my field and well respected. As for discussing anything with you in the future that is not happening. Go find some treasure. O! I forgot, you did. REAL ESTATE hope your ass gets burned. I'm really sorry but you are the first person on this site that has really pissed me off with your arrongancy hence my hateful attitude towards you. Go buy some more investments TROLL.

Don't let it get you pi$$ed Charlie. I myself have fallen for such antagonistic posts in the past and it is not worth it. You'll be the one laughing someday when your "hoarding" pays off.

Jim

 

[FreedomUIC]

You're not a 'genius' if you've made a couple good trades.
You're a genius when you do it consistently.



Speaking of genius, would I be out of line if I passed judgement on your intelligence level- and in turn, how apt you'd be to perform well or poorly in the mean markets- by pointing out that you just wrote that sentence in the context of my mentioning buying real estate contingent on standing, real time rent multiples?

Here's a little '101' stuff for anyone who may care.

* Compounding is the objective.
* Taxes are real and one of the most pernicious dynamics working against your investments.
* The magic number is 15%, compounded, averaged. That will get you to 'wealth' within the space of a human working lifetime. If humans lived to 200 years, expected returns would be a helluva lot lower and the investing landscape would be totally different.
* For higher net worth or higher capital outlays, all investments are usually judged for capital efficiency against the return offered by a risk-neutral portfolio of bonds/treasuries, inflation adjusted.

In 08 and again in 09, a massive liquidity crunch- largely precipitated by hedge fund and mutual fund redemptions- caused many firms to jettison holdings into a world where there wasn't any money looking to buy anything. We're talking airtight growth equities being sold at a price that offered 10%-12% dividend yields. Anyone who wasn't a monkey had the opportunity of a lifetime, right there, available for the taking.

While 'preppers' bought canned beans, ammo and golden discs, opportunity passed them by. Meanwhile, plenty of us who already have enough ammo discarded this absurd doomsday-bunker fantasy and bought up the rubble while it was on the cheap.

And PS. Metals are dogshot for portfolio 'diversity'. They're a hedge.

I hear the Coin Roll Hunting forum could benefit from your vast knowledge of utter bull squat, there is alot of it there already!!!!!!!!!!!

 

[Wickaboag]

I invest in silver and coins because I'm 16 and can't afford real estate... And to young to buy stocks...
And I like coins an silver ;-)
Wicka

 

[Marchas45]

It's quite a dumb opinion.
At least the 16 year old kid is honest and objective enough to appraise where he stands. Most people here are in his exact same boat, only in middle age.

I'm guessing reading comprehension probably isn't your strong suit, but if you go back and try your hardest, you just may see that I wasn't making a call on metals one way or the other. I was pointing out the methodologically moronic 'strategy' so regularly employed by metals hoarders of treating metals as a fetish object and justifying any and every external circumstance as a reason to buy more... then, amusingly enough, calling themselves 'investors'.

I have no problem completely disregarding most of your hardcore 'preppers' and other flavors of fantasists who just have a tenuous grasp on the realities of life. Sure, they think they do, they're certain the day will come when they get to say I told you so, but the reality always is they leave their family with a bunch of 'preparedness' crap that gets sold off in a garage sale.

What bothers me is when metals fetishists call their permabull practice as 'investing'.
It isn't.

Want a future call? Right now, biflationary, leaning towards deflationary pressures, are keeping what will likely amount to vicious inflation tamped down. This will turn around and the prices of metals will rise again. Of course, there are MUCH better ways to profit from inflation than metals, but perhaps 1 in 100 of you would even comprehend what I wrote, so why bother.

Keep buying your old quarters and dimes then, when they rise 10% or even DOUBLE, you can think yourself vindicated while those intelligent enough to really comprehend whats going on make that in a week trading momentum.

Boy you sure are an arrogant WANKER

 

[Tnmountains]

As a holder of several of these professional licenses spoken about in this thread I have yet had to resort to name calling or the need to be disrespectful or talking down to others who do not agree with my logic,actions or pastime .

That being said keep it civil or stay out of the conversation or this thread will be locked and you may loose your posting abilities.
Have a great day.

 

[Tnmountains]

Thread locked, sorry FreedomUIC.