How to Invest ?

[NeptunesTrident]

Watch the market, buy the VIX (volatility index) on a very down day, like we have had lately. And on a good run up buy the one or two of the SPY's. Gold is a good long term investment. I would think at least a year. With inflation, (the fed is printing money), gold will yield well over the long term, I think.

[Doodles]

Best advice ... Get your investing advice from a sailing forum! :-)

[Therapy]

Originally Posted by Doodles

Best advice ... Get your investing advice from a sailing forum! :-)

Actually I think there are a number of boat owners who schemed (invested?) for a long time to get "the" boat they would not otherwise have.

Hint - nflx, crox to name a couple...........

[atoll]

Originally Posted by 70AMX

I tell you what, since there is no way I am going to convince you of anything....why not come back to this thread 6 months from now and we will see how gold is doing.....I will bring dinner and if I was correct and Gold continues to rise....I will feed you....and if Gold goes down AND stays down....you can feed me my own dinner....OK?




BTW...corrections are part of all markets and it wouldn't surprise me at all to see a correction in Gold to even $1000 (most likely 1350 or so) They would be buying opportunities to take advantage of......But feel free on September 3 2011 to come and feed me my dinner.....I might not be Hungry....but I will eat it anyway.....Will you?

what was the outcome,who bought dinner?

[silkyblue]

SILVER and GOLD are the best these days for Capital Preservation and Growth. In Order to get over (95% for Gold and 90%Silver) when selling. It is necessary to have over 3 ounces minimum of good quality gold (14K or better ) , or 50 ounces of .925 or better Silver.
Also when you are buying remember that a TROY OUNCE = 31 GRAMS not 28.3 as a regular ounce is.
.925 Silver or "925" Serling is 92.5% Silver, 950 is 95%, 999 is 99.9%, and those are the percentages of "Spot Market Pricing that your metal is worth at 100% of its Value.
To get the percentage of real gold in your sample divide its "k"or karat quality by 24.
14k/24k = .583 or 58.3% 18k/24k = .750 or 75% etc....

For Income investment , Invest in low rent neighborhood properties. Poor people always need a place to rent and most are good people. You can get these properties for a reduced price in cash too !

[70AMX]

Originally Posted by atoll

what was the outcome,who bought dinner?

Since the deal was to come back in 6 months and check prices again we will have to wait for October 3 2011 for the results
April 3 2011 Gold was $1430
Gold 2011 high (so far) about $1930
Right now about $1640 which is still a 15% gain. The Dow which was about a thousand points higher on April 3 2011 than it is today.
It was obvious in April that the economy was going down much further and today the average joe is starting to see it too.

Gold, the only real money and the best investment class of the last 11 years.

[silkyblue]

when you can buy a cheap house 35000, PITI = 400 per month, rent it for 600 when most rentals are 800 and you can choose a good tenant, as well as make 200 per month or 2400 per year . on an investment of a 7000 down payment !
The house is paying for itself as well as giving you a 33% annual return on your investment. Leaves plenty of room to hire a property manager and accountant as well so you can keep cruising. Not to mention leaving your real money in Gold and Silver.
Gold will be 4000 per oz PLUS and silver around 150-200, within 7-10 years.

[70AMX]

Possible problems Silkyblue
Taxes continue to go up as your appraisals go down and down.
One bad tenant and all gains can evaporate
The economy gets worse and you have to lower the rent to get a tenant.
Major hassle if you do it yourself and the profits go way down if you have a property manager.

[silkyblue]

There are possible problems with crossing the street as well. Playing it "Safe these days is a sure fire way to lose everything in short order.
It does not take long to recoup a 7000 dollar investment in a down payment with a 600 per month return. Even at a 50% occupancy rate, and shelling out 15% for Management.
What's an annuity gonna get you when the REIT or the bonds it's invested in is Madeoff with ? The Dow is headed for 5000 and below again as well.. I thinks probably 1000 before the bottom comes even within view.

[Jamel]

Originally Posted by 70AMX

Since the deal was to come back in 6 months and check prices again we will have to wait for October 3 2011 for the results
April 3 2011 Gold was $1430
Gold 2011 high (so far) about $1930
Right now about $1640 which is still a 15% gain. The Dow which was about a thousand points higher on April 3 2011 than it is today.
It was obvious in April that the economy was going down much further and today the average joe is starting to see it too.

Gold, the only real money and the best investment class of the last 11 years.

Nice debate guys! Gold has been very interesting for awhile now but way back in 1984 I was working on a goldmine in Western Australia and some comemorative one ounce gold coins were struck and offered to employees at $510 each. I bought one...a beautiful object, very heavy for its size.

So, my question is how has it stood up to the test of time regarding a good investment? At 5% compounding over 24 yrs it should be worth $1645.....and so it appears to be!

It's a bit like superannuation....Joe public is told "it's along term investment", well when you get to my age you realise that you haven't got much "long term" ahead of you......so go sailing, it's later than you think!

[Victory49]

Originally Posted by Jamel

Nice debate guys! Gold has been very interesting for awhile now but way back in 1984 I was working on a goldmine in Western Australia and some comemorative one ounce gold coins were struck and offered to employees at $510 each. I bought one...a beautiful object, very heavy for its size.

So, my question is how has it stood up to the test of time regarding a good investment? At 5% compounding over 24 yrs it should be worth $1645.....and so it appears to be!

It's a bit like superannuation....Joe public is told "it's along term investment", well when you get to my age you realise that you haven't got much "long term" ahead of you......so go sailing, it's later than you think!

Great perspective!

over the long term (and I'm not going to put 6 months or a year down), gold pricing right now is a bubble. Smart money will get out of it as soon as the market has a faster growing place to invest. When that happens, gold will fall like a brick.

5 percent interest doesn't excite anyone. Just think if you'd put 500 bucks into Microsoft.

[silkyblue]

Depends when in 1984 you bought a 1 oz gold coin for $510, but in January it was 400 and December it was 310. Either way %10 was a little steep to pay for an ounce that year. Also that was a Year that The Stock Market was booming due to Regans " Cold War Economy ". The US was building more "NON-EXISTANT WEAPONS" like star wars, just to scare the pants off the Soviet Union. Also we were funding Bin Laden and A number of Khan's and AGA's and Guls in Afghanistan to fight a proxy war against the Soviets for us. So things were pretty goon stock wise and world economy wise. Except for the Soviets and a few others.

Gold in the past ten years has gone up %550. So for these days of high government debt worldwide and low consumer wages and confidence.... Gold is the only real investment.

As far as it's price being a bubble... even IF the economy ever does recover and begin to grow again, gold will still be at a level well over ten times what it was ten years ago.

There are many problems facing the world other than debt and bad business sense that promise to drag down economics for a long time into the future though.
Culture Clash, Super Viruses, and not least of all Climate Change just for three major factors. Then there is the worlds refusal to adopt alternative energy en mass , until the lack of sufficient fossil fuels are cutting our throats.
Times are going to be precarious for a LONG TIME to come.

[Capt Phil]

Great observations, silkyblue... but ain't it great to be alive and watching all this goin' on? Cheers, Capt Phil

[sww914]

I have one investment now, my boat.
I kind of like it like this, it's very simple.
I can only worry about the food, coffee, diesel & tobacco markets.

[silkyblue]

Capt Phil... Yes it is great to be alive , watching all this is heartbreaking knowing it is all so unnecessary and caused by plain stupidity.
All we can do is try to be a part of the solutions.
That is also why I think investing in low cost properties is a good choice.
1) It will enable us to rent the property below what others in the same neighborhood rent for. Which will both a) provide someone with a much needed break in hard times and b) help us to choose a tenant who will stay with the property, pay their rent on time, and take care of the property.
2) Even in the event that we do get a bad tenant from time to time regardless of giving them a deal they would be foolish to screw up, the investment required per property is low enough and the payments low enough that it won't endanger our portfolio if a few rents are non performing or require extra maintenance now and then.
3) If and when it does happen to perform as well as it could on paper, we will be in a position to do other things that are socially responsible investments.

SWW --- Thats an erasy outlook but.. Forget the price of tobacco or your fun will be cut way to short and in a very unpleasant way. Good luck it ain't easy !