Discussion in 'Bullion Investing' started by silver surfer, Sep 19, 2005.
Just my opinion.[/QUOTE]I agree
Log in or Sign up to hide this ad.
this is somewhat off-topic, but i agree. I use my vehicles untill the repair costs go to high ( two $500 repairs in one year tip me off )
I then buy a new vehicle for the wife and kids and drive the old one untill it falls apart. keep it together with bailing wire and duct tape.
sounds odd but i end up saving lots of money. when the vehicle gives up the ghost i donate it.
right now my sweet ride is a 1997 dodge 1500 with 170,000+ miles on it. I actually "retired" it from mission critical use not long ago because it was not fit for driving a baby around ( no air conditioning, and i am in texas )
the thing has been pulling twice what it should for years and has had NO major problems! its a miracle! must have gotten one of the best ones off the line. if it hits 200k i am going to send a picture of it in to dodge
replaced it with a dodge 2500 turbo diesel i get to drive on the weekends
its also fun having a huge truck and an excuse for driving it, we haul cattle with it. last i checked they don't make a hybrid that can haul 16,000+ pounds.
sorry for the off-topic...
Real value is more easily determined. In this case gold has a real value as set by market demand. The most immediate and reliable valuation type available. In all demand curves there is a resistance point or a price-point over which the price will not easily go higher. The current high end resistance point is at or around $500 based on demand curve analysis. So the current price is close to the resitance point. One point to consider when approaching a resistance point is that the price of the commodity (yes gold is a commodity even though it does not get consumed in the food sense but does in the market sense) can fall drastically if it fails to "puncture" the resitance point.
All that said to get to this point in the decsion making process; Is the profit made high enough to satisfy the desired profit motive or does the seller think that he should get more? This determination should be non emotional. Say as in I can make a 30% profit by selling this car or keep from losing alot of money by not selling it and the motor blowing up rendering it virtually useless.
The decision made could be any of the three:
1. Hold - Not enough profit to be made and I think it will go higher (short term or long term)
2. Sell - Profit is good enough or better than good enough and there are better investments to be made. Or I think the price is going to go down and will not have a chance to realise this particular profit factor in the short term.
3. Hedge - Partial sell to realise some of the profit to be had and hold the remainder and decide what to do based on future market conditions.
Only the seller can make this value based judgement based on his market expectations, level of risk he would like to assume and current liquidity requirements.
Whew, didn't think this lesson in Market Based Economics 101 would go on this long lol.
Do you plan on living another 300-500 years ? Because that is probably when you will find "all money is worthless" along with virtually every apocalyptic forecast.
I think making investment decisions based on forecasts of war, hyperinflation, asteroid or meteor strikes, or other End Of The World scenarios is the antithesis of "investing" which is making sound financial decisions based on expected probabilities of future returns.
Sure, have some "disaster insurance" for an outlier situation. But don't make the outlier the norm. It's the far-end tail probability, not the belly of the curve.
Personally I would hold off selling unless you need the money or have some other investment that would produce better returns.
It all depends what your goals are, if your a flipper maybe not but if your a long term
investor like me price really isn’t a concern
because 20-25 yeas from now it will all average out.
Wonder if the OP offer to sell gold bullion at ~ $500 an ounce is still open ?
The original post was made a few years after I sold my first Apple stock. I'd bought it at $30, and sold it around $60. Doubled my money! Of course, each of those shares would've turned into 56 shares today, at $180 each...
I know a fellow that made that play and did hold it until 5-6 years ago….. He used to be a good friend but now I am too lowbrow for him.
There's something to be said for not getting rich until you're old enough to be set in your poor-person ways. If it happens earlier, it can change you in the wrong ways, or reveal the wrong things about who you already are. (Then again, so can being poor, I guess...)
Separate names with a comma.