an asset with no maintenence costs

[craig12]

I now look on silver a little different , I went to the building society the other day for my 1% interest and thought , now what , that's rubbish, I know ill buy a property as an investment, or I could buy a place in spain , or I can get another classic car , which ever way you look at it theres a cost to maintain these investments , council tax , rates , elec , gas, service charge, ground rent, car tax , car insurance,  etc etc, , now looking at silver what are the maintenance costs 

zero , nothing yes it might not have performed well but you buy it store it forget about it , yes it can go down , but so can proprety and classic cars and Spanish property, im sticking with precious metals , £1000 spent requires no ongoing costs , and if I can secure for under £15.50 per oz cost average im well happy 

[Toddie]

Sometimes i feel like putting money into precious metals is such a straight forward and dilligent thing to do, but when asking for peoples opinions they'll shrug their shoulders and tell you about the new Jag they're paying 500/600 a month for on a 28k wage. Blows my mind man.

[craig12]

leasing cars don't start me/ mugs game 

[Michal]

It is so true, physical PM are simple and you really can't loose majority of your capital in it in current economy (except theft). People loose on PM in short term when try to speculate on them or buy paper which occurs worthless at some point. Never than less I love PM for that simplicity and their ability of store of value. That helps me to wait trough periods of uncertainty. 

[HawkHybrid]

48 minutes ago, craig12 said:

I now look on silver a little different , I went to the building society the other day for my 1% interest and thought , now what , that's rubbish, I know ill buy a property as an investment, or I could buy a place in spain , or I can get another classic car , which ever way you look at it theres a cost to maintain these investments , council tax , rates , elec , gas, service charge, ground rent, car tax , car insurance,  etc etc, , now looking at silver what are the maintenance costs 

zero , nothing yes it might not have performed well but you buy it store it forget about it , yes it can go down , but so can proprety and classic cars and Spanish property, im sticking with precious metals , £1000 spent requires no ongoing costs , and if I can secure for under £15.50 per oz cost average im well happy 

 

holding physical gold is better

 

HH

[Clens92]

Maintenance costs:

• Security - £1000 of silver is easily nicked.
• Coin capsules
• Depreciation if tarnished etc

Every class of investment has pros and cons.

[PansPurse]

PMs tend to under perform other asset classes though. Sure it has a place in one's portfolio but some well chosen investment funds, some government bonds etc will all tend to see you much better than whatever counts as an interest rate in a bank account

[sixgun]

3 hours ago, PansPurse said:

PMs tend to under perform other asset classes though.

[HawkHybrid]

23 minutes ago, sixgun said:

 

slightly biased considering:

1. year 2000 was close to a multi decade low for gold.

2. year 2000 was a multi year high for stocks.

 

(it's the odds of gold out performing stocks in the investment

time frame looking forward that counts. history is just a guide.

current data suggests that gold is likely to outperform stocks

over the next 10 years.)

 

HH

[sixgun]

@HawkHybrid The comparison is what it is but agreed the stock market was in bubble territory in 2000 and the gold price had been thoroughly trashed. So with gold coming off bargain basement prlces and stock prices at dizzy heights you might expect gold to beat stocks.

We are now in a repeat of bubble territory prices for stocks with gold being lack luster since the peaks of 2011. i see this as a repeat 2000 scenario, so it would not be unreasonable to see the next 10 year performance chart produce a similar picture.

[DarkChameleon]

The market is up again, the interest on bank accounts is pointless, bond payments are a joke, MUNI's are not great and not as iron clad as they used to be, silver pays nothing as does gold but the best part is they offer security to their owners, the French used to buy nuggets and stick them under the floor boards...not in enough weights to buy another house or even car but enough to give themselves a sense of security, a bit like a gun (and some people buy them by the dozen) for that very reason, like nuclear bunkers...for that a $15 oz coin is worth it for its public confidence.

 

As for maintainance , you need a safe or safe deposit box, both cost money, you may need a gun which is also not legally free, nothing is free...if it was somebody would be working on a way to change that.

[DarkChameleon]

4 minutes ago, Bdean316 said:

My portfolio is made up of:

20% hard assets (physical gold silver diamonds)

20% REIT fund for income / small growth

40% global equity income fund

20% global sovereign debt fund

 

Its a nice balance for me between income and risk

20% hard assets seems a little high, I wouldn't cross 15%...that way metals are not dragging down a growing market.

[Abyss]

5 minutes ago, DarkChameleon said:

you need a safe or safe deposit box

Everyone circumstances different I already have a safety deposit box so adding gold bullion to it was at no extra cost. When it comes to PMs I am still on fence that is why I have a fixed amount of Gold/Silver that I will purchase when the right set circumstances and opportunities present themselves (i.e. the price of the metal and into a series that has potential to increase in premium and protect any significant adverse movement in PM price). The fixed amount will act as both insurance policy and portfolio diversification.

[DarkChameleon]

30 minutes ago, Bdean316 said:

Just in the current climate where we’re due the end of the current economic cycle - splitting the 20% out I have 10% gold 5% silver 5% diamonds 

I know some follow the rule that when times are good buy pms and when times are bad buy shares....sell greed and buy fear but I think the percentages should swing from 10% to 15% depending on the market...15% right now seems to be good for a market run over its time to fall as 2010 would be a time running late to drop down your ownership of commodities and buy into the market.