$37 silver!

it's not a profit unless you actually realize that profit by selling.

 

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It's still a profit no matter what. Today I can't buy 3 oz for that kind of money. Sold - unsold. I GAINED and that IS the point. And I'm not looking to sell like a majority of people are.

 

I think that's called "appreciation", not "profit".

 

In investments there is no difference between stocks or precious metals. Both are speculations that something is going to increase in value. If you buy 100 oz. of silver @ $40 an ounce and the price falls to $20 an ounce, you have lost $20 for each ounce you have. But if you buy another 100 oz. @ $20, you have only lost $10 for each oz. you have and can realize gains if the price increases to $35. This is a long term investment strategy commonly used on Wall St. by big money. If you don't have the ability to wait long term, maybe you don't really need to be investing at all.

 

To me, stocks are nothing but pieces of paper. Nothing I can hold on to. Silver, gold, I can put into my hands, and see them. Can they lose value? Yes, but they are tangible. They will always have "some" value.

I'd like my 401k to get back where it was before 2008. In fact, I wish I could just get right on out of it (probably there is a way). I hate the stock market! One really needs a head for it, or one can really lose a lot in it, boom! Just like that! And yes, they can make a LOT in it too, boom, just like that. My grandfather did. Alas, I have no head for it. To me, it's like a snake!

But ultimately, yes, at the moment, it's all numbers on a piece of paper -- stocks, and gold and silver-- until you sell!

Lucy

 

Indeed they are Lucyray. They (silver and gold) in turn will be the only source for goods and services when the SHTF happens. The big question is, when will it happen? Best be prepared for all he** to break loose when it does.

 

And what does that mean? Nothing. By your standard, Warren Buffett has never profited from his ownership of Berkshire Hathaway. Somehow people believe that appreciated assets do not represent increases in wealth, and depreciated assets do not represent decreases in wealth. This is nonsense when you think about it. All selling does is freeze the profit at a measurable level and trigger a current tax liability. It doesn't increase your wealth.

 

That's true...unless you measure wealth (as does the IRS) in US Dollars. You never know "for sure" how many dollars you're gonna get until you actually sell.

I could have a nice 1885 MS63 Liberty nickel. The Red Book might list it at $2300 and the Grey Sheet might list it at $1700. If I sell it on eBay and the winning bid is $800...what's it worth? (Let's not forget about salesmanship.)

So, yes, Warren Buffet's net worth only amounts to a creditor's "belief" of the value of his holdings...based on the published balance sheet...and other "representations". The "actual" value is only realized at point of sale.

I think this was FryDaddyJr's point.

 

I'm sorry to hear that you believe that. Many [perhaps most] of the great investors obtained their wealth by recognizing the difference between the intrinsic value of assets and the "actual value" that is realized at the point of sale. And many of the catastrophic results that individual investors suffer from arise from the belief that there is no loss until you sell. I hope that you aren FryDadyJr can get beyond that level of thinking someday.

 

no one is going to care about silver if things gets that bad. back to the old "the end is is coming" huh?

 

they don't. who cares if you had a stock that was worth a million but only 10 dollars now. you never realized the profit.

 

my 401k is back where it was and then some. of course you can cash out your 401k.
what the hell?

 

Hi cloud, Lucy here. I am really trying very hard to understand your meaning here..can you try to put it in words that might make more sense to my confused brain?

My husband always told me that these were numbers on a piece of paper until I finally do something with them..sell at a gain (hopefully) or sell at a loss, depending on if the loss might be at a time when it could be offset by a gain in another area..of course he had his fingers in lots of pots.

The pm that I have 'looks good' on paper, but in truth serves only as an anti-anxiety balm at this point in time. Mr Buffet , well he's in a way different category than Mr Buffet.
So do I have something, of do I have nothing?
What is the intrinsic value of which you speak that buffet and others recognize, cuz it seems like you are saying the same thing but with different words.
Thank you, Lucy

 

We'll have to agree to disagree. I know that many people think that Federal Reserve notes are the only source of wealth and only measure of wealth and gain. I don't count myself as a member of that group. But if you don't know how to measure intrinsic value, it is probably safer to just keep your net worth in dollars.

 

Of course I can.. and excuse me, I ran the program in our company so know it 'fairly well'.. perhaps your life and situation is very cut and dried..mine however is not that simple and in fact quite complicated. I work daily to learn to proactive understand all that my cpa's and high 'fallutin attorneys bring to me. The 401k comment was to make a point, which I obviously failed to properly make.
I learn from every post on here, even the ones I don't agree with.
Lucy

 

oh you know you can cash out your 401 but just said you weren't sure.
I understand now.

 

missing your times to cash out is even more foolish than keeping simple dollars and interest. rich people realize their profits. they don't simply let things go high and let them dwindle down to nothing again.

no one said you had to keep dollars. you can cash out, buy land or better stocks. don't simplify the conversation

 

Not an argument here, just saying there are other decisions to make when terminating participation beside, gee can I get out! Obvious to me you probably stand in different shoes than I with regard to this issue. For me each decision of this nature affects more than just one facet.
'Nuff said.

 

in my case i decided my 401k is only part of my nest egg. I rode out the bad times when others panicked. I looked at my stocks and I have moved them into safer stocks since i got all my money back and then some. I decided the riskier stuff wan't for me even though I have a while till retirement. now I continue to invest in bullion and other things I think are good onvestments. food for thought.

 

I gave up on that- I was just wasting my time. good luck