Well here goes nothing.....

deleted

 

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REITS, US Equities via ETF's and Mutual Funds, long on the Greenback vs. the Euro, some bonds, and too much cash sitting on the sidelines which will be corrected.

 

Post deleted because original post was changed, so response made no sense.

 

You should be a detective.

 

I guess you can lead a horse to water...

 

LMAO @ this thread. And to think my very first intro post got attacked because someone thought i may act like ? this? ...on the forum. I guess there is no need to worry about that. You guys need to chill

I should have made it more clear that i did not invest "everything" just most everything. Also I am only 35 and dont have millions....And the most important reason was personal I would have never gone all in on something had it not been for my current situation. It was either cash or PM. so i dont see it as a risky move. IMO it is safer then holding a wad of cash....for many reasons...
I have read pg's of bickering post about the economy and what not. I wont go off with my opinion. I just post a cartoon. My apologies if you have seen it. If you have not, its is a quality watch.........
http://youtu.be/ZPWH5TlbloU

 

Mike's investing in 'deleteds'? I want a piece of that.........:devil:

 

I completely understand why you believe I specifically targeted you with that response, as I was replying to you. However, you are just one of many. So I'm really not trying to single you out as an individual in that regard. I also apologize for my tone. I could have been more tactful. Nonetheless, every time I see someone post about investing in silver over their 401K it seems there are just as many naysayers as there are supporters. This should not be the case on a coin forum unless there is some concerted effort. I am not a member of a stock forum, but I would bet that if someone posted there that they sold their silver for stocks nobody would argue with the decision. I'm just thinking logically here. If you disagree that is fine.

You are entitled to your opinion that going all in on anything is foolish, just as I am entitled to my opinion that there is no better investment than silver. However, opinions have no impact on whether something is foolish or not. They are merely opinions. I disagree with your angle of trying to make the OP feel foolish. I feel he has made a very wise decision and therefore I felt the need for my other response. I would never argue against diversification, however it stands to reason that if your diversification includes giving your money to crooks and putting your money into things that have no basis in reality it's not a good way to diversify. Ultimately there needs to be quantification to make a worthwhile determination.

 

You used the word "foolish" to describe someone's moves here in the 21st century economy yet you are basing your decisions of today on a singularity, and one where the causes are well known, that occurred 32+ years ago? You made a mistake and bought in a bubble. Learn from it and move on. What happened in 1980 is completely irrelevant to what drives prices in PM today.

 

Well almost exactly right. Just because I listed only one example, does not mean by belief is only based on that one example. I will never understand why folks believe PM's a sure thing or even the best thing.
They were certainly one of the best asset classes for the last decade, but nothing lasts for ever.

As for the OP he has modified his position and the Global Economy might not be the main driver as stated in the original post. In a later he post, he has stated the choice was Ag or Greenbacks. Given that choice I would also have to pick Ag.

As for calling the the move foolish, remember, this is not an attack on PM's. If someone told me they went all-in on Apple, my response would have been the same.

 

Inflexion,

You would see similar stuff on stock forums. If someone was recommeding that folks should go all-in for APPLE, the responses would be quite similar.

You may believe Silver is the best investment right now, but I beleive REITS are. I am not going to argue the point of which is better for this discussion, but just state that even though I believe REITS are my investment of choice, my portfolio only contains 25% REITS. Why would that be?

The answer is simple. I may be wrong. Staying humble will go a long way in keeping your finances intact.

 

Ok great, I have few extra deleteds I can sell you. I'll PM you where to send the check

 

From the standpoint of an investment professional, this clarification changes everything.

1) Ag is a fair (if highly imperfect) proxy for cash, and probably won't be worse than stocks for the next ten years (my guess.)
2) Ag is a fairly high risk investment and for a 35yo, his/her asset-class choices SHOULD be aggressive & higher risk (versus what a 65yo holds) for capital appreciation.
3) With 30 years of income-generation ahead, future opportunities to invest in those other asset classes changes everything: balance it out, as you go.
4) 'All-In' anything is imprudent (possibly foolish: only time will tell) and gambling attitude is still reckless and youthful ... but given the OPs stated age & inexperience, it's par for the course.

I don't believe ANYONE (retail) has ever gotten rich investing in PMs; it's still the most unlikely asset class to provide that capital appreciation a 35yo will need later on. But at the end of his/her life, this particular choice (jumping the gun, I think) probably will not have been terrible nor a lasting regret either. Building wealth/assets around a bullion stash is certainly unorthodox, but it's not necessarily catastrophic here.

I will say: when reading these kinds of confessions elsewhere it's almost always been a tragic and sad mistake (typically, from someone old & terrified). Just saying. So everything in moderation and incrementally is still the wisest course of action for new investors and those inexperienced with PMs. Good Luck!

 

I believe that is all Mikem was trying to say. I would go further, and say moderation is the wisest course of action even for those experiences in PM. Any asset can have a game changing negative event happen to it, something today we cannot predict. Inflexion, you talk about how silver is used industrially. Well how about if what Desertgem posted the article about a month ago goes into product, the artificial catalysts? What if a mine somewhere runs into a modern equivalent of another Comstock lode? Life is short, you only have so many years to recover from catastrophic investments, and "what ifs" are infinite.

Show me a man who says he can predict all future unknowns today and I will show you a fool. Because of this uncertainty in ALL INVESTMENTS, I say spread the risk around so tomorrow when the unexpected happens, (and it always does), you do not risk being wiped out. Btw, OP this is not a comment on your situation. Myself, I would have just stayed cash if you need to have your assets cash or PM for a short amount of time. Great thing about cash, there is no "spread" you have to overcome.

 

This rule holds true for virtually everything in life, but the answers aren't always simple.

For example, when diversifying investments, much depends on how one categorize things. My portfolio is very diversified by most standards, but 95%+ of my investments depend on our economy and the value of the dollar. That's a lot of different colored eggs in one basket. Should I try to lower my investments that are tied to the economy in an effort to further to diversify my investments, or would that be less diversification? i.e. Sell some stocks and real estate and buy different kinds of PM (gold, platinum, silver, etc.). Should I look for other non-perishable physical assets that are easy to buy and sell and would still have value in any economic condition? (Guns, ammo, tools, art, oil, etc)

I don't know, and I don't really think it's worth losing any sleep over until I'm ready to retire and I become dependent on my investments. Then, preserving wealth will become a priority. For now, if I lose some of my investment capital because the price of silver goes down to $5/Oz, it's all good. I'll just use some of my income to buy a whole lot more silver.

 

Of course, there are various levels of risk, and correlations between assets and risks. We do what makes us comfortable, and diversify as much as we are able. Yes, investing in one stock is enormously risky, less risky is a basket of US stocks, less risky is some US, some international stocks, less risky is some stocks, some land, some bonds, etc. etc.

Never told anyone HOW to diversify, that is personal preferences, I would simply argue investing only in one type of PM is not very much safer than investing in only a few domestic stocks. Neither will probably ever lose all of its value, but poor performance in this investment can hamper your retirement severely.

 

i think that determining what you are trying to accomplish first wil go along way towards what are good investment strategies if there are any.i retired about 10 yrs ago and have no regrets.i only keep money in banks for bils,expenses whatever.i own land,house,and car and do not make payments on any of it.if i see an opportunity somewhere i take money from ready cash and apply it then sell the land or whatever at a profit and then do it again.i am by no means rich and no i am not on social security yet to young and not doing it till 65 or so and i dont need it,but i am taking it.

 

Can you explain in a little more detail why cash and PMs are your only two choices?

 

Good question.

I also collect art. Some pieces I have are from artists that were just starting out and I was able to buy their work for dirt cheap. Some paintings I have were purchased for between $100 and $200 and now are selling for $4,000 - $10,000 in a matter of seven or eight years.

I'm not saying that you should invest in art but if you are familiar with the art world, then it's another option.

 

Ok, maybe I could also choose kilos of cocaine, a rare painting..etc....
no, I don't want to go into more detail because as stated previously it is for personal reasons much much more than an investment. I just know I will be in this situation for about 2 years, so this gives me the CHANCE of still making money with my money while accomplishing my goal at the same time.