A trip back to 1964 proves Silver creates wealth

http://silverenthusiast.com/silver-creates-wealth/

 

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Unfortunately, Past performance does not guarantee future performance. You are also looking at these numbers after 10 years, of a very bullish metal run. If you looked at those numbers just 5 years ago, they would not have looked so pretty. Also, 5 years in the future, they might not look so pretty.

One final thought, If in 1964 you took those 3500 coins and bought some blue chip stocks like IBM and AT&T , you would have done MUCH better. In fact if you calculate a modest 7 percent since 1964, that $3500 would now be worth $110,000. Can you say Porsche 911 It also gets better. I can only check back from 1980, but IBM has returned 8% since then. If we can make leap in faith and plug in that return since
1964 we get $185,000. Also , it is very hard to get a rate of return with the 7 way break up and all the other break ups and sits , but I believe AT&T did much better.

You see metals just sit there, but companies grow and that is the main reason why metals should only have a small place in your potfolio.

 

All good points, but do not forget the real benefits of PM's.

Noone know you have them.
Wall Street does not take a fee to buy/sell
Gov't does not take a fee to buy/sell
PM's do not go out of business
PM's last forever (multigenerations) with out issues (become numaraics) over time
How much is Enron, Montgomery Wards, Borders Books, stock worth today?

 

But you either have to store them somewhere which costs money or you have them at home which might not be the safest choice.

Wall street doesn't take a fee to buy/sell but the dealer will.

 

Dealer only the first time is generally true. After private party sales no issues. Can you buy/sell private sales stock?

 

Or you could sell your silver on eBay and then complain about the fees:

http://www.cointalk.com/t214615/

 

1) The first point is true except if you sell for a profit then the taxman knows

2) While Wall Street doesn't not take a fee, but the premiums for PM are MUCH higher and the Hit you take selling is also MUCH higher than any brokerage fees wall street may charge

3) Government surely does take a fee. It is called capital gains tax. You can you don't need to pay that. but you can also walk out of a restaurant without paying the bill. Both however, are illegal

4) In todays world we have index funds, ETFs etc. These will also not go out of buisness. If the fund becomes no longer available ,the underlying equities are still there and you will receive the current value and you can transfer that money into another fund

5) Yes, risks do exist, that is why it is best to diversify. In todays word it is is very easy. You can buy funds, REITS, etc,. which when done correctly should minimize the risk. Also do not be fooled into thinking there is no risk in Silver. There is a lot of Risk

 

I had two friends trade a gun for PM's. No taxman and no Wall Street pimp taking a cut. Just a simple trade. Both happy. You can't barter junk paper!

 

I assume that this trade of a firearm was done with all required paperwork and reporting? If not, it is worse than Wall street taking a cut, it is far from a simple trade.

 

I most States including the one here a private sale (guns and PM's) do "not" require paperwork. We are not a Police State yet?

 

In most states, there would be no additional paperwork or reporting for selling/bartering a firearm than there would be if you sold or traded any other item. Federal Law states that I can sell a rifle to anyone in state, even if they're a resident of another state, or a handgun to another resident of my state, without going through a dealer with a FFL, or reporting the sale to anyone, or even filing any paperwork. Of course, if I sold it for profit, I would be obligated to report it to the IRS, but I would have to do that for anything I sold for profit.

Anything that falls outside of the guidelines above would require me to use the services of a dealer with an FFL.

 

I have way more paper assets than I want, but it's noteasy to get your USD paper assets converted to other assets in the USA. I willkeep the paper assets, but I have little faith in them. All new money goes into tangibles. Tangiblesaway from Wall Street, Big Banks and Gov't control. PM's are just some of thesetangibles. When Wall Street talks diversification they only talk paper assetsthey control and other keep eyes on. This is the diversification lie that theypeddle.

 

100% correct:yes:

 

Well, I always have said, in the unlikely event of a total financial meltdown, things like cigarettes, booze, lumber, nails, etc. would be they things that have the most value. Problem has always been storing it. What type of items are you speaking of?

I have never been big on PM's in such a scenario, since you can't eat it, drink it, and it does not keep you warm and dry. In other situations, with total fiscal meltdowns, PM's have held their value because there was always some place to take them. If the Greenback had a total collapse, the effects would reach every corner of the globe. It would be an event like no other, so I just wouldn't count on PM's retaining value. PM's are really just another form on fiat currency, once removed. Once the industrial need is removed, if you think about it, they really are not worth much. Pretty much 0 Intrinsic value.

 

Well, unless you disclosed beforehand to the IRS that you believe such an exchange qualifies for like kind exchange treatment, your friends are simply illegally dodging taxes. Legally, they should report the gain they had from selling the firearm for the current value of the PM they traded it for.

Sure, being a tax cheat sounds like a great deal, until caught. But I don't think its the basis of rational justification of financial performance, unless you are advocating everyone here lies and become tax cheats.

 

I agree I don't believe its an ATF issue, "merely" an IRS issue.

I still have friends at the IRS from the time I served on a Treasury advisory committee. Care to PM me the names of your friends Silverforlife? I could have the IRS send them a friendly reminder of the tax treatment of such exchanges.

 

And if they did they would be told that it didn't qualify as a like kind exchange.

 

You can pass Pm's on to your relatives..no one needs to know. Why do so many folks think that is true? It is not true. They have to be reported as part of an estate, or else whomever received them will have a difficult time ( well, unless they don't fear the IRS.) I really would like someone to explain the thinking behind "don't report it.." Makes me want to scream!

 

It just means don't tell the gubment. Most people don't care to divulge information to that entity, legal or not.

 

There are some people who believe that if a person earns $75,000 a year and pays taxes on that $75k, then the government should be content with that and not worry about what taxes they might owe on a one time exchange of goods that might or might not have worked out in their favor.

Do you realize how complex most people's tax returns would be if they declared every possible thing on them? TurboTax wouldn't be enough, every person would need to hire an accountant to prepare their taxes. Heck, in most cases, the IRS is probably thankful people don't declare everything, especially when it doesn't actually result in any additional taxes being paid.

There are also people out there who believe there are some things that are none of the government's business.