$37 silver!

are taxes are different?

 

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Well this thread got way off topic. . .

 

"Profit" was probably the wrong term to use but I'm sure Silverhouse had no idea the fire this casual reference would draw. If one were always on point and careful to use precise terms he might have used the term "capital gain" instead. If the metals were sold and he had money sitting in his bank account he could have talked about his "realized gain". It's perfectly fine to maintain a capital gain or cash out and have a realized gain; there's a thousand different investment objectives that drive this decision. Of course the IRS recognizes this difference as well and has different tax treatments for each.

BTW Frydaddy, I just used your repsonse here because it was the last in this "profit" conversation, I'm neiter agreeing or disagreeing with your point.

Regards,

Bluesboy65

 

Cloud, in the previous post, you made no distinction between "intrinsic" value and "actual" value. I would go even further to say that "Actual" value (in dollar terms) has little meaning ever since we abandoned the gold standard...but that's another discussion.

Whatever the stanard is (dollars, euros, yuan, Snicker's bars, etc), the "actual" value of anything isn't realized until it is converted to the standard.

"Intrinsic" value? ...I agree with everything you said. :thumb:

 

I appreciate your thoughts. I keep bullion as a nest egg and as diversification.
I'm not in it to think it's ever going to make me money.

 

I didn't mean to cause a firestorm, and I do apologize for my misuse of proper terms. I look at it as a "profit" for me if I CAN sell my silver for more than I bought it for, whether I hold onto it or not. Whether I choose to sell it next week or in 30 years. But mark my words, in 30 years I don't think silver will be below 20.00 an oz. In this last 30 years I'm sure many people thought silver would go nowhere either, but it has. Someone argued PM's will go down when the value of the dollar rises, or something to that effect. Well you can keep your paper money, I'll take me some physical gold and silver instead. And yes I know we need regular money to live etc. But imagine if the United States government regained control of the printing and issuing of coins and currency. Ah, dare to dream. Ever in the hands of private bankers.

 

Your post was fine and no apology necessary. If someone wanted to make a distinction between profit and capital gain that would have been fine too. I think people were just a little uptight this weekend. :arguing: It happens!

Regards,

Bluesboy65

 

I recall as silver was headed for the $50 range back with the Hunt Bros in 1980, that no one buying ( including dealers), thought it would fall to 50% in 4 days and to 10% ( 4.98) in 30 months. Many posters on this forum uses such words as "never, guarantee, etc." when history shows that such is one way to lose friends and money. IMO. Yes a view from an older person

Jim

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I've been trying to make the same point in some other threads, but no one seems to care...:headphones:

 

look what I started lol investing is taking a risk if it drops to 10$ so be it this thread was just celebrating the profits right now, not an argument about where it will go

 

I apologize for any part I had in the twists of the thread. It sounds as if you realize what risks are in any investment and are willing to assume the gain/loss that may come. I do feel that many others are almost giddy over the gains of PM and do not realize how suddenly or how far prices can drop. Some think they will have weeks or months to sell their PM and dealers will be happy to take it at then spot. I think they will find many do not answer their phones, emails, and do not respond to web requests until the prices stabilize for a period of time. We can tell new investors to only invest what they can afford to lose, but most don't believe that, and they know in their mind and reinforced on TV and internet that gold "will" reach $5000 and silver $100. Thus why not buy with the college fund???

Anyway, again I am sorry for the direction of your thread.

Jim

 

Ya its ok no worries, you are right about people getting gitty and hearing mike maloney say it could go to 1500 or max keiser saying 500 does not help the cause. Lol I'm just in it for the ride

 

That's very true and people should cut out your quote and keep it. The only real way to keep the profits is to sell on the way up. When the price goes parabolic, and I believe it will at some point, the correct move will be to sell and let others have the last few dollars of "easy" profit.

 

Like gold, silver benefits from the perception that irresponsible central bankers are intent on dooming paper currencies – a view that endures even as policymakers in Europe consider rate hikes and the Fed approaches the end of its unpopular bond-buying program.
But unlike gold, silver trades in a relatively thin market where prices are apt to spike when sentiment is positive and plunge when it isn't.
Even at the elevated prices prevailing now, the annual output of global silver mines is worth just $27 billion or so, says Winmill. That's the size of a good-sized but certainly not giant public company, such as, say, Dell (DELL). That means there is a small doorway for a huge number of people to squeeze through when silver gets hot.

I cut the above excerpt from an article on Fortune magazine. I think it captures some of the reasons behind why we've seen silver explode recently. Of course the down side is that silver can drop just as dramatically. Bullion investor beware!

Here's a link to the article, it's one of the better articles I've read on PM investing.
http://finance.fortune.cnn.com/2011/03/28/fools-silver/

 

I'm enjoying the price increase of silver cautiously. Gold and silver seem to be in a bubble right now. How long the bubble will last depends on world events and the housing sector right now. I stopped buying silver at the pace I was once it crossed $23/oz. Now I'm watching to see what happens since silver is in the middle of huge daily swings up and down, something that is prevalent in bubbles and speculation. time will tell though...

 

imagine how people will react if we see a drop like in the 2008 silver market lol. I used to be a gambler so I think I personally can handle it

 

Eventually such a drop (to low $20's) is more likely than not.

Bluesboy65

 

A drop ti 20 would be a great buying opourtunity that I would take full advantage of

 

me too. Once it drops below $23/oz again I will be buying the crap out of ASE's and Maple Leaves. Maybe some Peace Dollars as well.

 

A drop to $20 would probably only happen if there was a fundamental change in the market conditions that led to the present rise. It would probably be a signal that the bull market was over, not a buying opportunity. Remember the tech stock boom of the 90s? The market "trained" everyone to buy the dips, and when the bull market ended in 2000, a large number of people were buying all the way down and suffered losses that they still haven't recovered.