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Guys - sorry to desert you all - I've just sold all my gold and silver!

 

This was a BIG sale [and an emotionally very difficult decision!!!!!!!]

 

Rationale:

- the money was put into PMs to buy a UK home, once house prices had fallen

- in Sterling, we've doubled our money and have enough for a VERY nice house, even at todays house prices

- will buy a house in about 12 months, and fear PMs in Sterling could fall in that time (before a final big run up in prices as inflation hits the next several years)

 

Plus we considered...

- the dumb majority may soon start thinking we're past the worse of the recession (and so lighten up on PM holdings)

- PPT seem intent on keeping gold below 1000

 

So, basically, all things considered, we couldn't tolerate the risk of sitting in PMs the next 12 months.

 

Pension pot PMs, and childrens PMs, are still retained - as these are long term holdings, not intended for house purchase.

 

HOWEVER - Mrs Bigt and I agree - if PM prices fall far enough (USD 700 ?), we'll 'find' money from wherever we can (beyond house money), to buy back in via our pension pots

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Surely you jest... you must have kept some of it.... just a little?? :unsure:

 

Oh, and good luck with the house hunting. :)

 

Edit: opps just re-read your post.

 

My exit plan is the same, to buy some property but not just yet. I share your concerns about the volatility that we may see so plan to trade this and increase my bullion with my bullion.

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Surely you jest... you must have kept some of it.... just a little?? :unsure:

 

Oh, and good luck with the house hunting. :)

 

Edit: opps just re-read your post.

You've no idea how much that sale made me sweat (and swear)

 

I tried selling with gold at 21150 / kilo - but the deal had to go through my Swiss banker and thereafter onto the broker. I feared a knock down from the Yanks! The delay in exchange quotes, however, caused me to eventually get only 20930 ...I sat watching it fall waiting for the call. ...heart racing.

 

But now, with double my substantial starting funds - I can relax and make a cash offer on a house (actually, a 'home') at my leisure. ...and I'll sleep well tonight, which I haven't done for the last 2 weeks!

 

Might also add...

- wife is Swiss, so its all tax free!

- may anyway take out a Swiss mortgage to improve further what we can buy, and thereby benefit from eventuall restrengthenning of Sterling.

 

Most important of all - long term PM holders should NOT loose faith. I am 200% certain we'll get an inflationary kick back in next few years, and gold will hit 1500-2000 USD.

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Guys - sorry to desert you all - I've just sold all my gold and silver!

....../......

 

 

- the dumb majority may soon start thinking we're past the worse of the recession (and so lighten up on PM holdings)

 

........../.......

 

 

Man - you sold ALL OF IT!

 

that is wild!

 

ps. the above quote doesn't make sense

 

edit - ah, I just saw the pension pot bit....

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You've no idea how much that sale made me sweat (and swear)

 

I tried selling with gold at 21150 / kilo - but the deal had to go through my Swiss banker and thereafter onto the broker. I feared a knock down from the Yanks! The delay in exchange quotes, however, caused me to eventually get only 20930 ...I sat watching it fall waiting for the call. ...heart racing.

 

But now, with double my substantial starting funds - I can relax and make a cash offer on a house (actually, a 'home') at my leisure. ...and I'll sleep well tonight, which I haven't done for the last 2 weeks!

 

Might also add...

- wife is Swiss, so its all tax free!

- may anyway take out a Swiss mortgage to improve further what we can buy, and thereby benefit from eventuall restrengthenning of Sterling.

 

Most important of all - long term PM holders should NOT loose faith. I am 200% certain we'll get an inflationary kick back in next few years, and gold will hit 1500-2000 USD.

It is only money after all and then only a means to an end and I guess enjoying certain conditions in life such as peace of mind and property is the measure of real wealth. Good luck with the house buying!

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listening to Jim et. al. on FSN this weekend, there was talk of the possibility of a DOW bear market rally; if this is the onset of the rally, then it seems plausible that many etf gold holders will swap into stocks. Therefore, time to hold your hats people, the sales may be back on soon!

Bring it on. I will only buy at around 850. Only with half my funds mind... it could well go below the 200MDA in the next few weeks.

 

I also value US dollars these days. Only these days mind, later want to be all in gold. :rolleyes:

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Guys - sorry to desert you all - I've just sold all my gold and silver!

 

This was a BIG sale [and an emotionally very difficult decision!!!!!!!]

 

Rationale:

- the money was put into PMs to buy a UK home, once house prices had fallen

- in Sterling, we've doubled our money and have enough for a VERY nice house, even at todays house prices

- will buy a house in about 12 months, and fear PMs in Sterling could fall in that time (before a final big run up in prices as inflation hits the next several years)

 

Plus we considered...

- the dumb majority may soon start thinking we're past the worse of the recession (and so lighten up on PM holdings)

- PPT seem intent on keeping gold below 1000

 

So, basically, all things considered, we couldn't tolerate the risk of sitting in PMs the next 12 months.

 

Pension pot PMs, and childrens PMs, are still retained - as these are long term holdings, not intended for house purchase.

 

HOWEVER - Mrs Bigt and I agree - if PM prices fall far enough (USD 700 ?), we'll 'find' money from wherever we can (beyond house money), to buy back in via our pension pots

Hey BigT: I totally understand your sentiment. Securing a place to live must rank high on everyone's list.

Once you have enough capital to get a house, you are sort of gambling and you are risking market moves if you have a definite timescale.

Hey, I bought my place in 2004 and I'm going to take a pasting on it, but it's mine and unleveraged.

If I had bought the equivalent amount of gold in 2004, yes I would be able to live in a 10 bedroom mansion now, but what price certainty? For me, it was house and home first, then save for the future.

 

I'm still buying Ag/Au as I am not saving for anything special but I do see taxes/governmental failure/currency failure as a big risk in the future.

GL & Keep posting!

 

 

 

 

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Amex Gold Bugs Index. HUI (INDEX)

 

258.38

Change:-17.44 -6.32%

 

 

Ouch.

 

Yup that sort of fall happening for a lot of gold/silver producers...

 

I'm looking at:

 

SSRI - Silver Standard -13.49%

SLW - Silver Wheaton -13.57%

GG - Goldcorp -10.62%

AUY - Yamana -14.14%

 

Long term i'm still thinking PM's will rocket so i'm hoping these all pull back a little more before people start recognising inflation is incoming.

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Just a little bit of a conspiricy thought.

 

Daylight savings change in the US, gives the markets an extra one hour overlap for about 2 weeks. Gold plunging, stocks rising but what has really changed ??????? Plunge Protection ????? The Cartel ???? :unsure:

 

 

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I want to see gold smash through $1K now, it's becoming tedious watching it bounce off this psychological barrier.

 

BTW - Good luck bigtbigt, I hope it works out for you. I can't help but fear you have jumped out at exactly the wrong time, I hope I'm wrong. Are you holding your `winnings` in CHF or do you have other plans?

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BTW - Good luck bigtbigt, I hope it works out for you. I can't help but fear you have jumped out at exactly the wrong time, I hope I'm wrong. Are you holding your `winnings` in CHF or do you have other plans?

Thanks for the good wishes.

 

Goal from day 1 was to double our money, tax free, and pull it out for a house/home. That profit has been achieved, so at this stage its most wise for me to bank my profits.

We had more than doubled our money a week ago (as gold hit USD 1000 again), but I then felt it could/would go yet higher after a pull back to the 900-950 region.

 

But that second assault on 1000 hasn't materialised (PPT simply refused to let it happen!!). And now I also fear we'll have a significant bounce in the stock market, given the stimulus actions/packages thrown at the economy. That will bring down fear, and the price of gold (after all, its the fear component that's push gold up these last many months).

 

So we may have had a double top in PoG - and there could be a long leg down from here. ...before a second run up to 1500 too late for my house buying plan

 

If I'm wrong - I'll be able to buy my house anyway (though definitely not rushing into this, as prices will fall much further throughout this year)

If I'm right - I'll buy more gold before the big run up, with earnings and other redirected investments as they mature over next 2 years or so.

 

The money is now sitting in Sterling, and we'll move it into various 6-12 month maturity blue chip Sterling bonds. I.e., capital is now in same currency as planned house purchase, so we'll be gaining so long as house prices continue to fall - plus will get a further uplift via bond interest and bond capital increase (as corporate bond prices are low just now). Who knows - we may even end up rolling over those bonds into other Sterling bonds, and take out a mortgage in CHF, as that currency is at an all time high vs Sterling. The bond income will then pay the mortgage each month, and we can sell the bond and pay off the mortgage whenever Sterling strengthens again in X years time.

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we've doubled our money and have enough for a VERY nice house, even at todays house prices

 

I can't disagree with that decision. Doubling your money is nothing to be sniffed at, and converting PMs back into GBPs when the pound's taken (IMO) most of the beating that it's going to take... Well, I can see why you've done it. And good luck to you!

 

I think we all remember watching Gold go to $1000+ and then all sitting there licking our wounds when it fell back to below $700. Sometimes it's time to take your winnings off the table and bank it.

 

(I'm sure folks will warn you that your fiat will be destroyed shortly ... but I think you've actually been quite smart and conservative - good luck :))

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Thanks for the good wishes.

 

Goal from day 1 was to double our money, tax free, and pull it out for a house/home. That profit has been achieved, so at this stage its most wise for me to bank my profits.

We had more than doubled our money a week ago (as gold hit USD 1000 again), but I then felt it could/would go yet higher after a pull back to the 900-950 region.

 

But that second assault on 1000 hasn't materialised (PPT simply refused to let it happen!!). And now I also fear we'll have a significant bounce in the stock market, given the stimulus actions/packages thrown at the economy. That will bring down fear, and the price of gold (after all, its the fear component that's push gold up these last many months).

 

So we may have had a double top in PoG - and there could be a long leg down from here. ...before a second run up to 1500 too late for my house buying plan

 

If I'm wrong - I'll be able to buy my house anyway (though definitely not rushing into this, as prices will fall much further throughout this year)

If I'm right - I'll buy more gold before the big run up, with earnings and other redirected investments as they mature over next 2 years or so.

 

The money is now sitting in Sterling, and we'll move it into various 6-12 month maturity blue chip Sterling bonds. I.e., capital is now in same currency as planned house purchase, so we'll be gaining so long as house prices continue to fall - plus will get a further uplift via bond interest and bond capital increase (as corporate bond prices are low just now). Who knows - we may even end up rolling over those bonds into other Sterling bonds, and take out a mortgage in CHF, as that currency is at an all time high vs Sterling. The bond income will then pay the mortgage each month, and we can sell the bond and pay off the mortgage whenever Sterling strengthens again in X years time.

If youve doubled your money and you have enough for a house then I think you are right in bailing out. I'm at that stage now myself.

 

 

 

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I can't disagree with that decision. Doubling your money is nothing to be sniffed at, and converting PMs back into GBPs when the pound's taken (IMO) most of the beating that it's going to take... Well, I can see why you've done it. And good luck to you!

 

I think we all remember watching Gold go to $1000+ and then all sitting there licking our wounds when it fell back to below $700. Sometimes it's time to take your winnings off the table and bank it.

 

(I'm sure folks will warn you that your fiat will be destroyed shortly ... but I think you've actually been quite smart and conservative - good luck :))

Sure - fiat is toast!!!!!!!!!!!!!

 

But that's exactly why we're going to put it ALL into a house/home (i.e. a real asset that will hold its value if we buy when prices are down, and a place to live where kids can develop a sense of belonging )

 

For the record: This brings the BigT Family's cash/bond holdings to 47% of our wealth, whilst 3% remains in PMs, 10% is in oil/energy investments, and 40% is in rental properties we hold in Switzerland (where a house price boom didn't yet happen ...but soon will [a story for another day]) ...plus Mrs BigT has given me permission to 'maybe' play with 5% (from the cash portion) in further oil/energy trades

 

I would NOT EVER hold fiat long term, unless its earning interest to balance a fiat debt on a real asset (mortgage), which thereby lets me play the forex market whilst not actually having a net cash holding

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Sure - fiat is toast!!!!!!!!!!!!!

 

But that's exactly why we're going to put it ALL into a house/home (i.e. a real asset that will hold its value if we buy when prices are down, and a place to live where kids can develop a sense of belonging )

I am actually feeling a bit jealous that you have managed to step off already, I look forward to the day I can as i have been getting a bit giddy on this rollercoaster ride. :lol:

 

Do please keep posting I have enjoyed reading your analysis and good luck in your future investments. :)

 

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