Discussion in 'Bullion Investing' started by Phil Ham, Feb 22, 2015.
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@Phil Ham illustrates here, but I'm compelled to point out that this chart starts near silver's all-time historic high. Sure, a very unlucky speculator would see returns this poor, but this chart is no less misleading than the silver-bug charts that start at 1999.
Edit: BTW, I'm a bit confused that the chart shows the NASDAQ higher now than it was pre-2000. We still haven't reclaimed the NASDAQ's all-time high. Or are these monthly or yearly averages, or snapshots that missed the high point?
Here's the look from 2000-2014. Silver is king!
Here's the look from 2010-2014. Not so good for silver.
awful lot of that one a few years ago.
Yeah, I still have the welts on my back from the bullion section whipping me when I dared contradict them.
Chart probably includes dividends in the percent return, hence the higher level for the NASDAQ.
However, Modern Portfolio Theory (MPT) would state that rolling periods are the best measure. On that score, commoditites do terribly compared to equities and even bonds. There are too many years/decades where PMs are flat or down, even when prices were no longer fixed.
NASDAQ pays miniscule dividends, Beef.
For the S&P 500 or DJIA, dividends are 40% of the total return over time. Probably 10% for the NAZ.
It can be capital preservation. I simply hate thinking about it in th ose terms though. I prefer to love my coins, treat them as spent money, and let my heirs benefit if they have caught the coin bug and wish to cash them in. This way I am not tempted to spend investment money on my hobby, and I don't have to stress if my coins will go up in value.
Have fun with your coins.
I give a lot of my friends and family advice on this topic. It all depends on your time horizon. If you'll need the money in 1-3 years, put the money into a safer investment. If the need is 3-5 years away, go a little more risky. If it is longer than 5 years, go aggressive. I'm retiring in the next couple of years and moved some investments that I will need in the first 2 years on retirement into a safer place. As I plan to life for 30 more years, much of the rest will remain aggressive. As a note, I'm not a financial advisor but consider myself quite good with money, math, and statistics. Take my advise at your own risk.
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