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I have a question. When buying gold or silver as discussed, do you actually mean buying bars of gold and silver? How does one ever sell gold or silver? Or have you just made the purchase on paper? I was hit for 50k on Black Monday in 1987 and never recouped from that loss before retirement.
Young people can possibly ride this out in 20 years or more (maybe, I sure hope so) ... but as KevK said hyper inflation is going to kill us.
My limited understanding is that Gold/Silver is a catastrophe hedge against hyperinflation of fiat printed paper money, not a speculative purchase. Comparing people who buy gold after witnessing the dollar plummet to those who bought real estate after watching Flip that House is rather demeaning. A truly diversified portfolio includes commodities such as gold. I see "gold bugs," in practice, are safeguarding against the chance that they may need to use a wheelbarrow to carry the paper used to buy bread. This has happened at least 12 times in other countries in modern times so I wouldn't want to guess what the chances are of it happening to us now. I'm sure there are a minority of gold investors out there trying to time the gold bubble. I would be interested to know what percentage they constitute. I contend that this rise is fear induced, not driven by greed.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,832,936 times
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Quote:
Originally Posted by RoaminRed
You realize you're talking to a couple of people here who haven't made bad real estate decisions? We see the opportunity, and it doesn't appear that either of us makes snap decisions about buying then selling quickly. Both of us own properties already, and haven't been greedy about the acquisition thereof.
You may be wise but many people buy real estate hoping to quickly sell it for a huge profit.
3) Force manufactuing to close down by underpricing
4) Devalue the currency
5) Hostile takeover of corporations
6) relocate them out of the country <-- This is where we are now
7) close countries credit line
--
I don't know about you but when I get into financial trouble I stop spending and pay my bills down. I guess others think it is best to get another credit card...
What kind of people in Washington think that sending us checks for us to spend on products made in China will help the US economy.
Devaluing the dollar is like stealing money from me, I am so pissed off~!
My salary is the same but I can buy only 1/2 as much now.
Keep wads of cash and piles of gold/silver coins in a safe location, physical. In a safe, under mattress, whatever.
We could go through a highly deflationary environment for a brief time before resuming a course of high/hyperinflation. During this brief time, you may be the only one with physical cash to purchase goods/services. You're hedged against both situations.
Not too much cash though, because the likely case is that there's no deflationary environment in terms of fiat money similar to the early 30's. Likely case it'll make good kinder for a cozy fire.
If the government makes owning gold illegal as in 1934, keep in mind your duty as a citizen is to defend the Constitution, not the government. Also carefully consider what the founding fathers would have done if they were told by DC that their private money was contraband.
I would not be too keen on real estate right now unless it is property that is not in a hyper inflated market. Eventually it will come back but the days of 20% a year appreciation are over with. Those days were not in the world of reality anyway. Any idiot could have seen that you cannot have something going up 20% or more a year when the people buying it have wages that are going up at 3% a year. You can do smoke and mirror loans only for awhile.
I was referring to RENTAL PROPERTY investment.
We've been making money in real estate for over 20 years. We are not in the business of flipping properties. We do careful market analysis, buy properties in appreciating markets, renovate them, and then rent them to a specific target market. We know this target market very well and meet their needs. We've had close to 100% occupancy rates. This is one of several of our businesses.
This is one of the best rental markets I've seen in many years. Our phones are ringing off the hook with people that just lost their SFH to foreclosure. And renters that had their condos sold from underneath them. And college grads that can no longer qualify for a loan. And people desperate for affordable housing. All that desperation to find affordable rental housing indicates an opportunity for me. Everyone else can continue to buy gold and play the stock market...
You realize you're talking to a couple of people here who haven't made bad real estate decisions? We see the opportunity, and it doesn't appear that either of us makes snap decisions about buying then selling quickly. Both of us own properties already, and haven't been greedy about the acquisition thereof.
Exactly....I think we both see the opportunity.
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