Oldtent Archives 2007 - 2008

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Most certainly agree….GR aint no slacker! Good luck on your trevails and hope you can check in more ofter….I find myself also mia often at this time of year. Sure do think about how you guys and gals are doing these days…..It’s amazing that although I know no one here…..A bond has been made between all of us, I’m sure…..Our gain is certainly the little Voronsko-nazi’s loss. Looks like we ended up with about 95% of posters! I don’t like to hold grudges…but I’m still pissed at the little bastard. Never seen a more self destructive personality.

All the best.—–aggie.

video.google.com/videoplay?docid=-6484061137769305763

described at 20:45, and congratulate you on a smart move.  But there is some math that may make it look somewhat less attractive, at least for our circumstances,  than you portrayed.

First of all, if you did the move of mortgaging your home to buy gold two years ago, gold was not then at $450/ounce.  At the beginning of July2006,  POG was flirting between 600 and 650.  But if one goes back to the time that POG was about $450  I reckon that would be about October 2005, so your time horizon may be more than 2 years.

So I asked myself, ‘What if we had done the same as FGC in Oct. 2005 when POG was about $450′?    We had a home evaluation in mid-2005 and have had another recently. In that interval, our home’s market value has increased by an estimated 27 %, and if that market evaluation has any basis in truth that capital gain is all tax-free if we were to sell now.  And that tax-free capital gain is on the total value of the property, not just on the part that was mortgaged (as you did when POG was at $450).

I have taken seriously the move you did and we may do the same sometime soon, but the arithmetic is not straight-forward as to relative merits of holding the assets as physical gold/silver versus holding it as real estate (with tax-free capital gains), as long as one owns the real estate in a location where prices are holding up - as they are in Victoria up to now.

Thank you for sharing your experience with us on Goldtent.  Cheers.  Equiz.

Cosmic……… I agree, I’m an ex real estate broker……. closed shop in 2006 in one of the hottest markets in Florida. watched it all from wanka’s front porch.

Ment……. I really get a kick out of your post…. we’re pretty much in the same lunch line about the same age……. Lucky Strikes for $0.25. I also think 2009 is a good time to convert to more physical. I have been doing that since the beginning. Any stock sale with a profit, a portion is converted to physical.

LP….fair enough can’t object to that I just don’t like lugging all that silver around. My silver is only 4% t0 5%.

FGC……. right on……. we are on the same ride……

JBI… good mix

as of my last quarterly accounting

pms……… 37%    probably 75% in gold with the balance in silver, platinum, nickel/moly

physical …. 52%..  gold.. 95% (avg. $410) , Ag… 5% (avg.. $7.)

some cash……. say  10%   for the dips where I continue to buy.

no debt…….. looking to sell some equities towards the end of the year…..

and I am absolutely not a trader. Do not have the nack for it. and I do get scared at times.

Thanks again.. we all have the same basic ideas. Good to know. 5:30 comes to early. remember

buymore

I will now admit that I am wrong………I will capitulate under peer pressure and cry on me knees to the deflationary god of denuded banking romance that the only flation I observe is the “D” flation of every financial and commodity crevice on earth. 

 NOT~!~!~!~!……….STAGFLATION RULED, DUDE……….

I will not give in no matter how many times that crazy lady from Cannuckville threatens to dress me in her belizian pervo outfits with matching socks……….and sends her cousin on her Father’s side, Bertha, after me………………no matter how many times she takes dictation to the effect that I will be tied to the grill of Irish’s van during the “bumping of trees festival” in b-berg………..and lastly, no matter how many times pokes and pries her little voodoo dolls with pins, and needles, and hammer claws. 

No………Sirree!

….and I kept hearing…”get out of debt”…from many of the Gold Gurus….

….so I worked hard got out of debt..

……then a lightbulb went off in my head

…. I thought why not sell a portion of my home….( a potential depreciating asset )and buy some Gold (an appreciating asset)….In hindsight it was a no brainer…

….I still cant figure out why financial planners and those types dont recomend it as a strategy….as long as you keep the debt to asset ratio on the low side to account for the lower value of the home…

….Ment….there is still time to Mortgage your Dumpster….if Gold is going to 5000….why not ?

doctor seuss book.

1) M3 is a joke. Anything that doesn’t factor in a 600T derivative monster is irrelevant.

M3 is fiat money plus credit…

when the 600 T derivative monster unfolds, we will either see hyperinflation to pay it off or deflation…there is quite the passage of time required before this occurs so no issue yet. Inflation is rampant around the world, yet understated by the US government?…wonder why Sabre, how would you like to buy a bridge real cheap

J2) More companies filed for bankruptcy in the US than individuals. And you are getting wage inflation?

Where?Read latest Petch on Wage inflation…states why there is no wage inflation..

3)The ability to raise capital is all that matters in this world. Go ask BSC, go ask all the homebuilders in the UK today or the regional banks.

The government is printing money, loaning money and the banks are not lending…bottom line money is being added to replace any that is defaulted upon…a plugging the dike scenario

4)The bond market in the US is showing anything but inflation.

Again, see latest Petch…TNX is set to move within 5-7 months…

5) SBUX closes 600 stores and eliminates thousand of jobs, yet that is inflationary as well.

Gasoline went down $1 today, I suppose that is deflationary?? Give me a break…when inflation hits home, luxuries fall to the wayside and inflation sucks up the money. The USD is declining and will go much lower. A falling dollar is deflationary??? Give me a bottle. Yup, a falling dollar equates to rising energy prices and nearly 100% of what we buy because there is no manufacturing base left in the US…that’s deflation all right lol

.6)Rumors today that the demand for coal was artificially inflated by BHP and RIO in order to secure price increases.

Today they pulled the plug.

What demand? Go and see how China has a ridiculously short supply of coal and are rapidly building infrastructure to try and ensure smoother delivery of coal. Sabre, that little solar panel you installed on your roof ain’t gonna power China or the US anytime soon. If you want to stay warm you might have to try rubbing your Sabre to get a spark…you are like talking to a brainwashed religious nut…

Nnnnnnnext. The markets fell flat today…wait one month to see what results rather than declaring a victory…the war ain’t over yet baby….

……Japan Nikkei slides, economic uncertainty weighs

“TOKYO, July 3 (Reuters) - Japan’s Nikkei stock index slipped 0.94 percent on Thursday, taking aim at an 11th straight day of losses — the longest losing streak since 1953 — on growing economic uncertainty after U.S. stocks tumbled and the Dow sank into a bear market. Drugstore operatorMatsumotokiyoshi Holdings Co (3088.T: Quote, Profile, Research) slid more than 3 percent after the Nikkei business daily reported that Japan’s Health Ministry plans to allow convenience stores, supermarkets and other retailers to sell over-the-counter drugs now available at drugstores, such as cold remedies and painkillers.

By 0006 GMT the benchmark Nikkei .N225 was down 0.9 percent at 13,169.70, while the broader Topix was down 1 percent at 1,288.02.” . . . . . (Reporting by Elaine Lies)

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More deflation across the board in the Asia/Pacific Region tonight

finance.yahoo.com/intlindices?e=asia

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JBI

21,777,466 . . . . . . . . . . .

Well done for putting your money where your mouth is.

Well done for making a mozza out of your mortgage.

You’re a guy in a million!  Probably in ten million.

A good succinct, summary.  

I think you just touched on one of the most important investing advice that there is. We all have to make decisions day in and day out. It doesn’t matter what that decision pertains to as long as we know that the decision was reached after studying and analizing all the available information at out disposal. Life prooves (with the help of 20/20 hindsight) that not all of our decisions are the right ones. However, when looking back if one can say…..”Ya know, with the information I had available at the time, that was the best decision that I could have made.” And yes, given the same circumstances, I would do it again. If you can say that, you undouditly will be comfortable with whatever you do in investing and life.

Cheers
Dusty