All Topics / General Property / $150,000.00 cash to invest Property or Silver

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  • Profile photo of wealth4life.comwealth4life.com
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    @wealth4life.com
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    I've been spending some time on the Robert Kiyosaki sites and I have some spare cash in a fund.

    Would you invest in real estate and "gear" it or put all of the money into silver …

    D

    Profile photo of Paul DobsonPaul Dobson
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    Hi D

    I know Robert hates "deworseification" but I know he loves both silver and real estate (not so much US real estate at the moment).  Possible go 50/50.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of simplesimple
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    W4L, I am looking at gold, rather. Not investment but as protection.
    2.5 ounce per purchase will keep you under $5k for regestration for ID.
    Only drawback is many trips to accomulate $150K in phisical gold… :)

    OT, I like now we get taxed on inflation…  AU prints money at 7% /year. 1.5% population growth = 5.5% inflation created.
    Bakn gives you 6%, out of which you get taxed over 40%. So in real term you LOSSE at the rate of 1.5% / year :(((

    Profile photo of VeroniqueVeronique
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    simple wrote:
    Only drawback is many trips to accomulate $150K in phisical gold… :)

     The physical gold is very little for $150k so I don't think you will need more than one trip :-) . Silver on the other hand would require more than one. Psychologically I prefer buying silver because it looks like you have actually bought something. The gold gets lost at the back of the safe.
    Personally I would spend at least $100 000 on property, $30 000 on bullion and $20 000 for day trading.

    Profile photo of reddahaydnreddahaydn
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    Silver will give u much higher percentage returns in the short term, silver is being used much quicker than it is being mined. It won’t be all that long before there is a huge jump in the silver price. Just check out the gold- silve price ratio and see what it’s average has been over time. Problem is you are then stuck with only 150k appreciating. That same 150k could get u 2 400k places that might cost you 150 a week to hold.
    So say 800k at 8% = approx 63k p.a growth. So silver would need to appreciate at approx 40% pa over the next 12 months to beat property.
    I would probably be buyin property with your cash, however maybe a smsf full of silver might be a good idea, as silver is going to go up, just when is a bit unpredictable.
    Anyways, my opinion only! Cheers, let us know what u end up choosing mate

    Profile photo of fitzydarlingfitzydarling
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    my very first investment decades ago was two kilos of silver when the bunker hunts cornered the market. to my amazement after buying the first kilo for $500 it went up to $1500, then I bought another at about $1100 expecting it to go up again and it just slid down and down and down and was worth about $200 a bar for the next few decades. made great paper weights

    Profile photo of simplesimple
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    fitzydarling wrote:
    my very first investment decades ago was two kilos of silver when the bunker hunts cornered the market. to my amazement after buying the first kilo for $500 it went up to $1500, then I bought another at about $1100 expecting it to go up again and it just slid down and down and down and was worth about $200 a bar for the next few decades. made great paper weights

    Love to hear some first hand stories, especially from those who lived long enough to accumulate long trend knowledge.
    I guess, one can reason that gold/silver investment can be no different to property investing as it comes in cycles….

    Profile photo of IntrigueIntrigue
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    owe it went down to worth zip…. :(

    How risky is investing in silver as apposed to property?

    Profile photo of white_goodmanwhite_goodman
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    simple wrote:
    Love to hear some first hand stories, especially from those who lived long enough to accumulate long trend knowledge.
    I guess, one can reason that gold/silver investment can be no different to property investing as it comes in cycles….

    last time i checked silver and gold dont pay dividends… personally gold and silver is the oil of 2007 in terms of bubble. If you dont have a position on now I wouldnt want to be buying big $ worth at the top

    Profile photo of IntrigueIntrigue
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    Hi white goodman, is that a foreign language? I having trouble understanding.

    Are you saying, you feel that peoples interest in gold and silver has aided in driving the property bubble? (maybe you mean about ones willingness to accept more and more debt?)

    Then are you saying that you feel that gold and silver is not at the top of its cycle and if you didnt get in 3 years ago, you missed the boat?

    What are you investing in currently? property.. shares?

    no disprepect intended, just trying to understand

    Profile photo of white_goodmanwhite_goodman
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    Intrigue wrote:
    Hi white goodman, is that a foreign language? I having trouble understanding.

    Are you saying, you feel that peoples interest in gold and silver has aided in driving the property bubble? (maybe you mean about ones willingness to accept more and more debt?)

    Then are you saying that you feel that gold and silver is not at the top of its cycle and if you didnt get in 3 years ago, you missed the boat?

    What are you investing in currently? property.. shares?

    no disprepect intended, just trying to understand

    what?… im looking to property atm, im long gold currently from 1070 dollar mark, ive traded professionally for a few years now and imo, gold and silver are not at the right point in their 'cycle' to begin building up a position. Then again gold and silver could go to $10,000 but your still getting a terrible price atm… the only way you could play it is wait for a dip to buy and hold yourself to a price to get out at. Too many perma bulls in 'precious' metals and alot of people storing the physical stuff will be getting burnt I feel.

    Too many people with mantras such as "it must go up" with no view of any possible downside. Id love to see the gold and silver market when the Fed star raising rates again. It is generally said anything that doest pay an income (dividend/rent) is speculation as opposed to an investment… plenty of other markets, world regions at the lows of their cycles, imo no need to chase a market well on its way in a self reinforcing reflexive bull run. Theres always new markets, no need to be a sheep.

    Profile photo of minichickminichick
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    I would leverage into several properties buy under market/reno value get them revalued then buy some gold with the newly created equity

    Profile photo of xdrewxdrew
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    Like anything its a matter of timing. For instance .. my current invest is back in the US where prices have gone too cheap and i'm buying big. I've got the 15-20 years to wait and i'm not dependant on any income from them or debt payment. So its for me all an upside.

    From having invested in both silver and gold when they were cheap to now .. i'm one of those people who says to ignore the sheep when they are flocking and work against the sheep market. Usually the sheep can turn on you when u least expect it.

    Buy in markets where there are undervalued commodities or appropriately valued commodities. I think gold and silver are both rough standards to work with as the major demands for both (currency, jewellery, photography and computers) have softened as people buy the hard metal. In a good market in good times .. they would be worth substantially less. The major pressure on gold and silver now is the revaluation of a depreciated dollar. If you check across most metals markets the values for most metals have gone up at a minimum percentile level relative to the US dollar. Since traded goods are based on a US currency exchange at the moment … it doesnt mean they are all appreciating in demand. This is the casual observers first mistake.

    If the people arent getting a good dollar for GREAT property in good locations. (the major rules still apply in any property market). I keep seeing the doomsayers bagging the property market as either too volatile or too dangerous. Its a market and as such there are always deals to be made.

    Profile photo of kong71286kong71286
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    Hi D,

    Whether you decide to invest the $150,000 into properties, Silver or both, really depends on who you are, what your goals are and what time frame you are looking at.

    Personally, I believe Silver is the biggest investment of this decade, not only because it is a monetary metal, but also because it is an industrial metal and because of supply/demand fundamentals:

    • Monetary Metal: When people lose faith in fiat currency because of excessive currency printing, they always flock back to gold/silver, which has been money for thousands of years
    • Industrial Metal: Because of its unique properties,  Silver is used in all sorts of appliances e.g. electronics, mirrors, photography
    • Demand: Demand for Silver is likely to increase. Not only because of an increase in demand for consumer electronics (e.g. cell phones, computers) due to the rise of middle class in China and India, but also because of emerging uses of Silver such as in Water Purification, and in Solar energy
    • Supply: Stockpiles of Silver are at an all time low, and are being consumed rapidly as the information age progresses. It is estimated that there is less than 10 years supply  and there is not much new supply being discovered

    As a result of my beliefs, and my confidence in the metal I have invested all of my funds into Silver, and my portfolio is fairly aggressive, consisting of 10% physical silver, and 90% Silver mining stocks. However, having said that, this does not mean that you should as well. Before investing any money anywhere, regardless of whether it is shares or properties, you should always do your own research and due diligence first

    Kind Regards,

    Kong

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