abe supercro
Well-Known Member
13.88$/oz damn that's low for silver!
Hot Diggity! Absolutely and thanks mate. I have been trading for over a decade and was taught by an old CME pit trader. Damn did that dude have some cracker stories about his days in there.First off, congrats to you on making a successful trade. Here are some things that we know are true. These are not conspiracy theories or other bullshit but verifiable facts:
Gold and Silver have been manipulated lower through naked short selling and price fixing.
Global Equities have been pushed up by the same entities that have been suppressing gold and silver.
Bond prices have been pushed up by the same entities that have been pushing global equity prices up and gold and silver prices down forcing rates to unprecedented levels and even negative in many Eurozone areas.
De-dollarization continues to pick up speed.
Something to think about while holding shorts at already extreme lows. I sure hope you don't go bed on a Friday and wake up on a Monday with a repricing.
Well no shit! Are you even literate enough to read?
Dude said he sold short! If you don't understand the market why did you even respond to this thread! Buy a book. Learn to read first tho.
Peace and love.
Gold and Silver will continue to go lower...just how much...who knows. Just keep stackingWith the feds poised to increase interest rates, I have been hearing that gold and silver will continue to go down. Not sure how that makes sense since hard assets are usually a hedge when the economy might hit a bump.
Thanks man for the solid advice, I'm always looking for encouraging advice from like minded individuals. My uncle has apartments that he's making great money on. But gold and silver I still believe is a solid hedge and it's all about diversification. So your example you gave, if your only netting $7,300 what would you suggest someone/entrepreneur do for more cash flow. With $20,000 you could go buy landscape equipment and start a small grass cutting business to net more than that.I consider gold and silver to be pretty good capital retaining instruments for the long term. If you can buy really low for whatever reason it would be safe to assume that is the price went lower you would be reluctant to sell. If the price went high enough you can choose to sell all your silver if all profit but to EXPECT that to happen is gambling. I say this having used the method you describe to flip some physical assets. I rode the 2010-2012 wave of anticipation for the end of the world. I didn't expect the end of the world but I had been saving a bunch of silver and when people got scared and the price of silver and gold went up past $30/oz what I paid for it I sold, sold, sold. When the fears subsided and people needed money for Christmas holidays, silver was at $17 and I was all buy buy buy. I don't really deal with gold, just silver because I can afford more of it and that just feels better. Its good to have to touch and feel good about, but really thats about it. I know a man personally who died with a footlocker filled with silver bars... what good did that box do for him with no family to give it to? I'm sure it went to the state.
Investing is the art of making your money make more money for you. Being that gold and silver are not as liquid as cash, you can only make gains if the markets go up which could be completely due to unforeseen market manipulation. Same thing with stocks. The best thing to do if you are going to buy Ag and Au is to stockpile it until you can flip it to a 20% down payment on an investment real estate deal. At the very least look for an 8% capitalization rate with preference around the 17% range if you can find it.
Cap rate = Net Operating Income / Current Market Value
Let's say you find an investment property for $100,000 that a retiring landlord just wants to get rid of. He lists it on forsalebyowner.com with little information but you are browsing at 8pm and the ad pops up. You're fortunate enough to be the first person to make an offer. You look at the property that night and determine the building is sound and worthy of investment. There are two tenants on long-term leases (2-year) for $700 each, and you pay for water which averages about $50 per unit. The property grosses $1,300 a month or $15,600 a year operating income. At $80,000 financed and $20,000 down, on a 15 year term at 4% interest is $591 per month mortgage and lets say extra insurance costs $100. Therefore $1,300 - $691 = $609 net monthly operating income, $7,308 yearly. If you didn't want to deal with the property itself you can tack on another 20% in fees for property management -- well worth it.
$7,308 / $100,000 = 0.073% Capitalization rate with 20% equity. You spent $20,000 for the cash down payment and are receiving $7,308 yearly so your cash on cash return is 0.365%. There is no cash on cash return for physical gold and silver.
You could pay $500 extra on monthly payments for a total of $1091 monthly and pay off the loan in its' entirety within 7 years. During those seven years you would still have $2,508 per year in net income which would yield a mere 0.025% and cash on cash return of 0.125%, but that is still far better returns than you could expect with gold unless you are lucky and have good timing. Its WAY better than a bank savings account yielding 0.0025%. After those "miserable" seven lean years, you would essentially have a cap rate of 0.156%. You would have a cash on cash return of 0.78% for the 8th year and your initial down payment would have been paid back in.
If that property is bringing in even just $100 a month that is still a successful investment property. You could buy junky 50k ghetto homes with 10% down, slap $10,000 of work into some of them and pay a $250 mortgage to charge $450 on. Don't pay any utilities and you are grossing $200 a month which STILL gets you a 0.12% cash on cash return. Or be a slumlord and dont do shit to your properties and charge $600 for a cash on cash return as high as 0.72%.
The possibilities are endless. That's my argument for Real Estate Investing vs. Gold and Silver physical holding.
Tomatoes grow pretty much the exact same as cannabis. If you grow the two together using the same nutrients, the tomato plant has fruit and visible yellow flowers which tell you that something is needed. In addition, as a companion plant, tomato fruits give off Ethylene Gas which is a known ripening hormone which would stiffen up your bud as well. Tomatoes smell far more pungent than marijuana and can also be used to cover the smell.@TheFuture Thanks for you time and laying that out for me, it seems like your headed in the right place. It feels good to be self employed. Currently my only income is from this industry and would like to diversify like yourself. I was thinking about setting up a little greenhouse in the back yard to grow flowers and sell them at farmer's markets during my slow days in the summer. I find it easy to grow plants around the house so why not do something I have knowledge in make some cash.
Being self employed is a wonderful thing but being scorned for being in this industry and not having a job might lead me to being a paper pusher. Not complaining by all means I just don't want to put myself creating wealth for others while trading my time I'll never get back. Any who it's been a pleasure chatting it up with you, if you need an investor or partner; lets talk!