FIRE Buys Ice

[big67]

Re: FIRE Buys Ice

Sorry guys... if the banksters demonize gold, where are they supposed to stash their private fortunes?

If I was a bankster I will have bought Gold, much of it, in the last months... I do not think they are filling their mattresses with dollars today.

Your opinion?

Regards

[kartius919]

Re: FIRE Buys Ice

They stash it outside the US.

[wayiwalk]

Re: FIRE Buys Ice

They stash it outside the US.

Yes.

The previous generation in the US took years to learn about protecting family wealth through creating trusts, something only the wealthy knew about through the 20th century. It took years for that to become a familiar practice (now somewhat common in the US for the upper middle class, especially the pre-baby boomer generation).

I just get the feeling, especially after the UBS fiasco of earlier in the year as the IRS pushed for disclosure of the thousands of US citizens names with money stashed overseas, that I'm years behind the curve on this one, just as the previous generation was about trusts.

[metalman]

Re: FIRE Buys Ice

They stash it outside the US.

this works...

[wayiwalk]

Re: FIRE Buys Ice

this works...

Already there. That's my bank for saving for my future retirement (along with others to come into existence, I'm sure. I really don't like to keep all my eggs in one basket).

But, besides that....when I want it, I still have to bring it home into this country.

Who knows how punitive "gains" may be taxed a few years down the road when I need to cash out. I know the rate is guesstimated to be as high as 90%, or better, whatever is necessary.


For that matter - what is the fairness of an income tax on your earnings then an inflation tax on your savings in something that basically is not earning interest.

That's rhetorical question.;)

[hayekvindicated]

Re: FIRE Buys Ice

this works...

Have 50 percent of my physical there. remaining 50 percent is in India.

[RebbePete]

Re: FIRE Buys Ice

Some people (cough, cough) would say mining stocks would be a way to leverage the price of gold, however, that gets complicated. Mining stocks (as many have pointed out here) are, in fact, "stocks" and subject to the same forces affecting any stock.

I (chagrin on my face, staring at my shoes, voice suddenly strangely quiet :rolleyes bought into some junior miners on the Canadian TSX Venture exchange. Although the price of gold is up slightly, the TSX Venture exchange as a whole lost about 80% of its value, the mining stocks along with it. :eek: Fortunately, I only had a small portion of my portfolio in it.

- Pete

[metalman]

Re: FIRE Buys Ice

Some people (cough, cough) would say mining stocks would be a way to leverage the price of gold...

not luke, our very own jim cramer. one day it's 'buy and hold gold and silver for inflation', the next it's 'trade. trade, trade!'

I (chagrin on my face, staring at my shoes, voice suddenly strangely quiet :rolleyes bought into some junior miners on the Canadian TSX Venture exchange. Although the price of gold is up slightly, the TSX Venture exchange as a whole lost about 80% of its value, the mining stocks along with it. :eek: Fortunately, I only had a small portion of my portfolio in it.

- Pete

sorry to hear that.

[Tybee Island]

Re: FIRE Buys Ice

I put this in the current post re: "when will gold break a thousand" and here.

Ye who have little faith, pull up a chair.

That same Smith Barney broker I have been telling you about that advises my father-in-law did a very curious thing yesterday.

My father-in-law had a muni-bond called and the proceeds were deposited into his account. The nimble, always angling for a commission but wrong for the last two years, broker calls him to say, "what would you like to do with the money?"

Father-in law: "What are you recommending?"

Broker replies: "Gold!"

"Hmmmmmmm," Father-in-law, thinks and then stays to broker, "when my son-in-law (yours truly Tybee) told me to buy gold 4 years ago, you told me it was a horrible investment, doesn't pay dividends and is expensive to store, now you are recommending I buy gold? In fact that is when you told me to buy those awful GM and Citibank bonds, that I lost my shirt with!"

Broker: "Yep, I have changed my mind."

Father-in-law: "But I could have bought it for something like in the three hundreds, low fours then"

Broker: "I know, better late than never."

Father-in-law: "What are you selling"

Broker: "Gold Eagles or Kilo bars, 1.5% above spot sent to you via UPS"...............very interesting, indeed.

[jpatter666]

Re: FIRE Buys Ice

Some people (cough, cough) would say mining stocks would be a way to leverage the price of gold, however, that gets complicated. Mining stocks (as many have pointed out here) are, in fact, "stocks" and subject to the same forces affecting any stock.

I (chagrin on my face, staring at my shoes, voice suddenly strangely quiet :rolleyes bought into some junior miners on the Canadian TSX Venture exchange. Although the price of gold is up slightly, the TSX Venture exchange as a whole lost about 80% of its value, the mining stocks along with it. :eek: Fortunately, I only had a small portion of my portfolio in it.

- Pete

Yep. Gold and silver stocks took a *major* hit in the November/December period last year but have bounced back nearly tripling. I kind of wish I'd ignored iTulip advice then.... :rolleyes:

I do have a few silver (PAAS) and gold (AUY, AEM, etc) stocks. I've been watching Fleckenstein's blog for recommendations on those as he seems to follow them closely.

Certainly he was (still is?) a director of PAAS so I felt reasonably confident on that one and it has done very well.

Gold/silver stocks may well get hit in the various pullbacks, *but* I think if you can slowly build a position during downturns, when the PM mania *really* hits, you may well see a rise far above that of PMs as the lemmings pour in.

Keep an eye on the price of energy as well -- mining is very energy intensive.

[WildspitzE]

Re: FIRE Buys Ice

V Interesting, thanks - I love all this background. Different ways of thinking etc.

Here you can see that same curve, however weird the early "innovating" folks are, personified.

[dummass]

Re: FIRE Buys Ice

Wow! So that's how it's gonna be?

What happened to the poor innovator? I hope he got out of there with some profit and wasn't crushed by the mob.

[Mega]

Re: FIRE Buys Ice

I think FRED is a little too low..........i think $3500 ish, as does Max Keiser.....But i would say that the best course of action is to split up your Gold holdings into 10 parts (?)

Then after $2500 start to sell, 1 part at a time......that way you might not be 100% right, but you will not be 100% wrong either. If Gold goes higher fine, if not then the averge price will be around "Peek" price..............(Hope that made sense).
Mike

BTW SCHIFF Sez Golds going to the MOON!......(He also said buy Badcock & Brown).

[LargoWinch]

Re: FIRE Buys Ice

Wow! So that's how it's gonna be?

What happened to the poor innovator? I hope he got out of there with some profit and wasn't crushed by the mob.

Moral of the story: during hyperinflation, ice owners are bound to have lots of friends? ;)

[xear]

Re: FIRE Buys Ice

Anyone know of a good leveraged way to buy Au?

Other than taking out another mortgage on the house and burying bullion under it?

You can get double leverage using DGP Deutche Bank gold. If Deutche Bank goes out of business you lose everything though.