[ASBSECU E93]

Originally Posted by Mywifes335

To clarify, what I had mentioned previously was a lot of professional investors are moving to gold for capital preservation...not for a LT investment strategy. I in no way suggested gold as a cash flow instrument - it's about Keeping what you got.

Sorry. But your first statement is 100% incorrect. Gold, not jewelry, but in standardized coins, biscuits and bullion are indeed fungible for the average investor.

All commodities are traded at actual market prices - hence the existence of commodities markets. Yes, these are futures but if you trace each contract back, it is to physical gold, coffee, silver, crude, whatever the commodity. The joke back in the day was if you owned a June contract for crude, you can actually get barrels of crude delivered to you.

I'll just be a slum lord and sell off R/E assets to fun my car habits.....

For clarity - never said precious metals were not a option to make money - just have a steep downside relative to other investments such as dirt that was purchased at one of the cheapest periods in history.

Additionally - I'll depreciate the assets and use expenses to offset any gains or profit from asset sales to further reduce my tax liability....OR EVEN GET $$ BACK

People can mine more metals - they are not making anymore land to my knowledge...not on Earf anyway...

To each their own - my way is/has worked for me, that's all that I can say.

[Biorin]

Originally Posted by ASBSECU E93

I'll just be a slum lord and sell off R/E assets to fun my car habits.....

For clarity - never said precious metals were not a option to make money - just have a steep downside relative to other investments such as dirt that was purchased at one of the cheapest periods in history.

Additionally - I'll depreciate the assets and use expenses to offset any gains or profit from asset sales to further reduce my tax liability....OR EVEN GET $$ BACK

People can mine more metals - they are not making anymore land to my knowledge...not on Earf anyway...

To each their own - my way is/has worked for me, that's all that I can say.

YOU CAN'T DEPRECIATE LAND FOR TAX PURPOSES.

That is all.
(I love real estate too. I'm sure you are depreciating the building.)

[ASBSECU E93]

Originally Posted by Biorin

YOU CAN'T DEPRECIATE LAND FOR TAX PURPOSES.

That is all.
(I love real estate too)

You can depreciate the asset(s) if the property has a house that is rented....or property with farm animals

[Mywifes335]

Originally Posted by ASBSECU E93

I'll just be a slum lord and sell off R/E assets to fun my car habits.....

For clarity - never said precious metals were not a option to make money - just have a steep downside relative to other investments such as dirt that was purchased at one of the cheapest periods in history.

Additionally - I'll depreciate the assets and use expenses to offset any gains or profit from asset sales to further reduce my tax liability....OR EVEN GET $$ BACK

People can mine more metals - they are not making anymore land to my knowledge...not on Earf anyway...

To each their own - my way is/has worked for me, that's all that I can say.

Agree that each their own. If I somehow implied you said gold is not an option to make money...that was never the intention.

Perhaps it was my differentiating between the investment objective of gold. In my opinion, it's not an income generator (not a cash flow generator) at all...to me, it's for capital preservation.

I guess there's a disconnect in definitions.

Not to confuse, also not saying you cannot make a profit off of gold. You certainly can but for me it's more a tool to hedge against every other security market taking a nosedive. If I end up buying low and selling higher, great.

[Biorin]

Originally Posted by ASBSECU E93

You can if it has a rented house on the property....of farm animals

You can depreciate the building... And the animals!

Edit: I'm sure you know this but building and land are separate. Land can't be depreciated. I was just being enthusiastic.

[Mr Tonka]

Originally Posted by Biorin

Why are you thanking me for oversimplifying?

Some of us need it spelled out, all simple like.

[M2BMW]

Originally Posted by bimmette

Did you see the turtle logo I put on my helmet?

http://giphy.com/gifs/fast-turtle-wheels-9H2J2Dkln0nGE

[ASBSECU E93]

Originally Posted by Mywifes335

Agree that each their own. If I somehow implied you said gold is not an option to make money...that was never the intention.

Perhaps it was my differentiating between the investment objective of gold. In my opinion, it's not an income generator (not a cash flow generator) at all...to me, it's for capital preservation.

I guess there's a disconnect in definitions.

Not to confuse, also not saying you cannot make a profit off of gold. You certainly can but for me it's more a tool to hedge against every other security market taking a nosedive. If I end up buying low and selling higher, great.

I understand your point/position - I guess, for me the idea that a traded commodity is safe from loss of value is difficult for me to come to terms with, even precious metals.

I may be thinking of this in the wrong terms, but the value of the commodity is only as strong as the currency used to buy/sell the assets - right? Unless....you are hedging that the commodity will become the standard of monetary exchange?

[Biorin]

Originally Posted by ASBSECU E93

I understand your point/position - I guess, for me the idea that a traded commodity is safe from loss of value is difficult for me to come to terms with, even precious metals.

I may be thinking of this in the wrong terms, but the value of the commodity is only as strong as the currency used to buy/sell the assets - right? Unless....you are hedging that the commodity will become the standard of monetary exchange?

I would disagree with the last part. If you buy a barrel of oil in Venezuela pre-hyperinflation, it doesn't lose all value once the currency becomes worthless. That's the problem with fiat currencies... They're backed by nothing.

[Mywifes335]

Originally Posted by ASBSECU E93

I understand your point/position - I guess, for me the idea that a traded commodity is safe from loss of value is difficult for me to come to terms with, even precious metals.

I may be thinking of this in the wrong terms, but the value of the commodity is only as strong as the currency used to buy/sell the assets - right? Unless....you are hedging that the commodity will become the standard of monetary exchange?

Cool. And I'm glad we can have this conversation in an intelligent manner... Unlike in politics. Still annoyed by that dude... Bbbbbbmw.

But trust me, if we're headed for another 2008/2009...a 30% downside for most fund managers is a great hedge.

Regarding the correlation of currency...to commodities. It's much more complicated than that.

For argument sake, I would view it as a separate animal... The fact that gold costs 1265/oz in US...it's the same value everywhere else <-- this is key. Currency impact and affordability is something else. So now, let's separate the two.

Each commodity price - like the milk and fuel example - is driven by a different set of market forces. If you focus purely on precious metals...there are still a lot of differences. If we talk about gold, it's the first stop investors go to to protect themselves. But under normal market conditions, the price is driven by, believe it or not, jewelry demand...demand from individuals (i.e. China and India comprise about 1/2 of the worlds gold demand). Then there's the constant speculative component.

Hope this helps!

[Biorin]

Originally Posted by Mywifes335

Hahahaha. Sure thing.

I had no idea those were called biscuits. I just thought they were... Baby bars?

[bimmette]

Originally Posted by M2BMW

http://giphy.com/gifs/fast-turtle-wheels-9H2J2Dkln0nGE

OMG!

[Mywifes335]

Originally Posted by Biorin

I had no idea those were called biscuits. I just thought they were... Baby bars?

You're kidding right? Lol.

Now you know. I gots some. Bling bling, bitches!

[Mywifes335]

Originally Posted by bimmette

OMG!

That Turtle has a turbo kit.

[ASBSECU E93]

Originally Posted by Mywifes335

Cool. And I'm glad we can have this conversation in an intelligent manner... Unlike in politics. Still annoyed by that dude... Bbbbbbmw.

But trust me, if we're headed for another 2008/2009...a 30% downside for most fund managers is a great hedge.

Regarding the correlation of currency...to commodities. It's much more complicated than that.

For argument sake, I would view it as a separate animal... The fact that gold costs 1265/oz in US...it's the same value everywhere else <-- this is key. Currency impact and affordability is something else. So now, let's separate the two.

Each commodity price - like the milk and fuel example - is driven by a different set of market forces. If you focus purely on precious metals...there are still a lot of differences. If we talk about gold, it's the first stop investors go to to protect themselves. But under normal market conditions, the price is driven by, believe it or not, jewelry demand...demand from individuals (i.e. China and India comprise about 1/2 of the worlds gold demand). Then there's the constant speculative component.

Hope this helps!

So....you're saying gold is the exact price in every country..? How is that possible when each country has variations in currency comparatively speaking?

[Mr Tonka]

Originally Posted by Biorin

Metals aren't a hold for future earnings, imo... More of a hedge against shit hitting the fan. I've got plenty, but not because I expect it to make me boatloads of cash. I have it because, well, I don't want the literal cash...

I invested in brass/lead to hedge against SHTF.

[Mywifes335]

Originally Posted by ASBSECU E93

So....you're saying gold is the exact price in every country..? How is that possible when each country has variations in currency comparatively speaking?

Short answer is Yes. There's no currency/country arbitrage opportunity buying gold in 1 country and selling in another. It's a global market.

You gotta separate the two. Throw out the notion that USD = 0.87 EUR or whatever.

[Mywifes335]

Originally Posted by Mr Tonka

I invested in brass/lead to hedge against SHTF.

^that. I've got a few things. Plus, Food, water supply, a bit of fuel, mad batteries and medicine.

[ASBSECU E93]

Originally Posted by Mr Tonka

I invested in brass/lead to hedge against SHTF.

In the zombie apocalypse - the only true currency is bullets

[ASBSECU E93]

Originally Posted by Biorin

I would disagree with the last part. If you buy a barrel of oil in Venezuela pre-hyperinflation, it doesn't lose all value once the currency becomes worthless. That's the problem with fiat currencies... They're backed by nothing.

Ah....but today, my currency can buy ANY asset - but a Barrel of Crude without a standard of exchange is only valuable to someone that wants the commodity in trade....

[Biorin]

Originally Posted by ASBSECU E93

Ah....but today, my currency can buy ANY asset - but a Barrel of Crude without a standard of exchange is only valuable to someone that wants the commodity in trade....

I think I misunderstood you - thought you were referring to a specific currency rather than currency in general. However, it doesn't make t worthless without a currency to exchange. Maybe I don't want your oil, but if I trade you my goats for your oil, I can trade the oil to someone who values it for their goods.

[Mywifes335]

Originally Posted by Biorin

I think I misunderstood you - thought you were referring to a specific currency rather than currency in general. However, it doesn't make t worthless without a currency to exchange. Maybe I don't want your oil, but if I trade you my goats for your oil, I can trade the oil to someone who values it for their goods.

Someone, somewhere wants that oil. And the market is asking somewhere north of $41/bbl.