Explaining PM losses to your loved ones

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Explaining PM losses to your loved ones

Postby Does Commute Abit » Tue Jan 20, 2015 7:03 pm » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1366 x 768 1366 x 768

A new discussion point, ready for forum chat in 2015 now some optimism has returned to the gold price, for the moment at least!!!!

I guess all those who post here have had a turbulent past 2 years in terms of PMs and PM stocks investments - 2013 was the year of great losses, but more pertinently 2014 was the year of no noticeable rebound, in which all those "Don't worry, it will return to normal" excuses began to wear thin with our partners and family.

How have people here explained losses on their PMs wealth to their loved ones in the last year or so?

Personally, the last year saw 80% of the savings I could make from my salary being swallowed up by absorbing falls in the gold portion of my saving pot. I bought a house in late 2013, so my % of gold fell rapidly within my savings portfolio as I used it mostly for the purchase, and I did most of this selling out before the big falls, but still, I have had an investment pot that has made for painful returns this last two years, with this money very important towards securing future goals regarding a family. For a while, I stopped checked the price of gold.

Personally, my 'saving' grace was that with my house purchase came some land and the remaining 20% of last years post-expenditure income went towards fixing the house or making the land suitable for cultivation (lots of root vegetables, potatoes, corn etc.). This has rather distracted my wife from the lack of capital gains for our future, focusing instead on reporting fixes to the house or our jointly harvesting crops instead.
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Re: Explaining PM losses to your loved ones

Postby Pixel8r » Tue Jan 20, 2015 7:46 pm » Safari 8.0.2 Safari 8.0.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

I have not had the problem of explaining the drop, in fact I have just been asked to help move my other half's pension to a SIPP for investing in gold/commercial property.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Explaining PM losses to your loved ones

Postby azazel » Tue Jan 20, 2015 9:13 pm » Firefox 35.0 Firefox 35.0  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1366 x 768 1366 x 768

Great topic DCA. Its been awkward with a few friends who bought metals and were at a loss. One sold out on friday so I recon that means the correction is over! Makes me look either wrong or arrogant when I defend gold and silver. Things is, I see them as fair and honest money and I would like to see a return of real money. Worst thing is having to pay bullion vault fees for storage when the metals have been going down.
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Re: Explaining PM losses to your loved ones

Postby warpig » Tue Jan 20, 2015 9:15 pm » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

I explained I didn't fully understand the investment cycle and the flow of capital given certain market conditions back in 2011, but to be fair few did. I can't say I fully understand it now, but hopefully I've got a much better grasp of the markets this time around, time will tell. I am angry with myself for not seeing the top in 2011, I should have, but I will hold my hand up and say I was too blinded by goldbug thinking. Experience has led me to believe, if you focus on just the fundamentals and predominantly the gold market, you'll miss the next top as well. :naughty:

How did you explain it to Mrs DCA?
"There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be turned into ingots bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence"

"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history."

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Re: Explaining PM losses to your loved ones

Postby Does Commute Abit » Wed Jan 21, 2015 10:08 am » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1366 x 768 1366 x 768

warpig wrote: How did you explain it to Mrs DCA?


Luckily, I had a house to partly renovate and a piece of land to get into shape for cultivation, so my wife was less vigilant/concerned about the savings totals and more bothered about getting other things fixed or into shape. But she knows that all 2014 left-over savings have basically gone on plugging falls in gold
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Re: Explaining PM losses to your loved ones

Postby warpig » Wed Jan 21, 2015 11:30 am » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

Wasn't she concerned you didn't see the 2011 top?
"There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be turned into ingots bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence"

"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history."

Charles de Gaulle
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Re: Explaining PM losses to your loved ones

Postby Does Commute Abit » Wed Jan 21, 2015 12:01 pm » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1366 x 768 1366 x 768

warpig ยป Wed Jan 21, 2015 11:30 am wrote:Wasn't she concerned you didn't see the 2011 top?


No. My wife isnt a goldbug or an investor or a speculator, and as such she doesnt think like that. She wants a family, a good marriage and a stable home life, and that is what concerns her, and I love her for that. From her point of view, she was wondering 1) why the savings pot has stood still in 2014 2) am I in any way 'gambling' with our savings or making excessively risky decisions that could cost us years worth of savings. 'Tops' and 'QE' and 'negative IRs' are not her thing, and are not 95% of the populations thing. That is the talk of internet forums. Perhaps if I hadn't been priced out of UK housing for many year by my demographics (I have now bought with mortgage), I may also think this way and not have ventured into HPC/24k/GEI (pre-loony) environments where my outlook was changed. After all my internet readings, I still by the way do not feel in any way able to time tops in marketplaces, I have developed no fool proof methodology and cannot guarantee exiting at the next one.

The obvious response is to trim back the % of gold in our savings to what I feel is appropriate for the return and risk of capital loss. I remember reading that 5% gold should be in all portfolios for SHTF reasons but that only (!) 40% gold was considered "aggressive". I now see why that was stated (sorry, cant find the source, something like 'motley fool') and why being higher still may be excessively aggressive. This statement of course varies with everyone's risk profile and lifestyle and aspirations.
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Re: Explaining PM losses to your loved ones

Postby warpig » Wed Jan 21, 2015 12:06 pm » Google Chrome 39.0.217 Google Chrome 39.0.217  Windows Seven 64 bits Windows Seven 64 bits  Screen Resolution: 1680 x 1050 1680 x 1050

Yes everything's a gamble, even buying a house. All you can do is do your best... Glad your wife's happy with her veggie patch! :thumbup:
"There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be turned into ingots bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence"

"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history."

Charles de Gaulle
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Re: Explaining PM losses to your loved ones

Postby wee Jinky » Wed Jan 21, 2015 12:14 pm » Safari 4.0 Safari 4.0  Android Android  Screen Resolution: 1280 x 800 1280 x 800

Mrs WJ Doesn't care what I invest my pitiful wages on
if I try investing hers though I would have to make myself accountable.
Atm, my liquid gold is far outperforming my solid
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