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Thread: Gold as a replacement for large cash and bond savings

  1. #51

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    Quote Originally Posted by LongDonSilver View Post
    Building cash to buy land is a whole lot different than being 70% all the time, which is what it sounded like in the other post. Unless you are saying that you are still 70% cash after buying the land?
    As a rule I try to maintain a substantial amount of cash so with this 30 acres since its a organic medjool and deglet date field I'll get my initial investment back in 3-5 years depending on date prices so yes I maintain that 70% all the time.

    I like to be ready for these type of things when they come my way and God forbid I hit tough times everything is paid off so I wouldn't have to worry about payments, rent, employees etc.....I have cash on the side to bail myself out and if that runs out I can still liquidate everything and still not be broke.

    I'm this way for a reason because when I was a kid a couple of my uncle's were very well off and worth millions but eventually went broke in 2001 after tech bubble burst. They didn't have enough cash reserves and nothing was paid off. They had nice homes, apartment buildings, various other real estate holdings, boats, and so on.....everything was financed and when the economy took a hit and profits went down they couldn't keep up with everything and eventually went broke.

    I learned from them and never got carried away, I own everything outright and have cash reserves. My back up money has a back up, and that back up has a back up. I'm a little paranoid but my uncle's and cousins went through a long rough patch and never fully recovered from it and it's something I won't forget and don't want to go through myself.

  2. #52

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    Quote Originally Posted by TurboLag View Post
    As a rule I try to maintain a substantial amount of cash so with this 30 acres since its a organic medjool and deglet date field I'll get my initial investment back in 3-5 years depending on date prices so yes I maintain that 70% all the time.

    I like to be ready for these type of things when they come my way and God forbid I hit tough times everything is paid off so I wouldn't have to worry about payments, rent, employees etc.....I have cash on the side to bail myself out and if that runs out I can still liquidate everything and still not be broke.

    I'm this way for a reason because when I was a kid a couple of my uncle's were very well off and worth millions but eventually went broke in 2001 after tech bubble burst. They didn't have enough cash reserves and nothing was paid off. They had nice homes, apartment buildings, various other real estate holdings, boats, and so on.....everything was financed and when the economy took a hit and profits went down they couldn't keep up with everything and eventually went broke.

    I learned from them and never got carried away, I own everything outright and have cash reserves. My back up money has a back up, and that back up has a back up. I'm a little paranoid but my uncle's and cousins went through a long rough patch and never fully recovered from it and it's something I won't forget and don't want to go through myself.
    yes, better be the yeoman of a small holding than the lord of a besieged castle.

    but cashwads are IMO not the right liquidity solution. The helicoptermoney is whatever they say not created ex nihilo, it is an Xth percentage punction of the dollar / euro purchasing value they collect and redistribute, so yr cash is everytime they inject " helimoney" the Fiatpurchasingvalue in yr wad in principle diminishes by some cents ( i cannot calculate the US percentage what such means to the dollar, but i can guess what 750 billion here in europe means to the euro. The GNP 2019 was approx 13 trillion euros ( UK included ) which is now gone, but let us take that as an example. The 750 billion injection means the EB taxes the GNP by 5.76 percent and redistributes it then to whomever they deem worth their esteem, ( which is not proportional to the population of the countries ).
    This just an example. It does not mean that yr dollarwad will loose 6 percent, because the struggle between inflation and deflation is on.

    Just my 2 ecnts

    golditiki2+++

  3. #53

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    Quote Originally Posted by TurboLag View Post
    As a rule I try to maintain a substantial amount of cash so with this 30 acres since its a organic medjool and deglet date field I'll get my initial investment back in 3-5 years depending on date prices so yes I maintain that 70% all the time.

    I like to be ready for these type of things when they come my way and God forbid I hit tough times everything is paid off so I wouldn't have to worry about payments, rent, employees etc.....I have cash on the side to bail myself out and if that runs out I can still liquidate everything and still not be broke.

    I'm this way for a reason because when I was a kid a couple of my uncle's were very well off and worth millions but eventually went broke in 2001 after tech bubble burst. They didn't have enough cash reserves and nothing was paid off. They had nice homes, apartment buildings, various other real estate holdings, boats, and so on.....everything was financed and when the economy took a hit and profits went down they couldn't keep up with everything and eventually went broke.

    I learned from them and never got carried away, I own everything outright and have cash reserves. My back up money has a back up, and that back up has a back up. I'm a little paranoid but my uncle's and cousins went through a long rough patch and never fully recovered from it and it's something I won't forget and don't want to go through myself.
    Sorry to hear that some family members went broke. Glad also that you have enough wealth that even putting 30% to growth gives you a great life. Most of us don't have that size nest egg. But going broke because they were over leveraged isn't the same as being wealthy. They had assets worth millions, but debts worth more than the assets. Assets isn't wealth if it is leveraged. That's the same thing the buy homes for a buck snake oil build wealth salesman push all hoping that the merry go round never stops spinning.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  4. #54
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    Quote Originally Posted by TurboLag View Post
    I'm this way for a reason because when I was a kid a couple of my uncle's were very well off and worth millions but eventually went broke in 2001 after tech bubble burst. They didn't have enough cash reserves and nothing was paid off. They had nice homes, apartment buildings, various other real estate holdings, boats, and so on.....everything was financed and when the economy took a hit and profits went down they couldn't keep up with everything and eventually went broke.

    I learned from them and never got carried away, I own everything outright and have cash reserves. My back up money has a back up, and that back up has a back up. I'm a little paranoid but my uncle's and cousins went through a long rough patch and never fully recovered from it and it's something I won't forget and don't want to go through myself.
    And that's what can happen when one puts (100%) Full Trust & Faith into the All Things Dollar-Denominated World (You name it as it is literally everything under the sun and why there's only one true asset and only one asset that is not reliant on the Dollar) ... The Rug can be pulled out from under you in an instant and history proves it will be... Just a matter of when and how much Jubilance will set-in which defers people from taking chips off the table along the way.
    I don't disagree with your 70% cash holdings as that's a form of taking chips off the table in the main casino (plus you're already sitting on bought n paid for Real Assets) yet of that 70% I'd fairly quickly decide how much of that (current purchasing power) I simply want to remove from the casino all together and that'd be my Long to Longer-term Gold Holdings.
    Within that Sitting in Wait world you speak (Buy under valued, sell over valued, rinse n repeat forever) things tend not to move at the lightening speed upwards as they can do downwards so Gold is a fine (the best) store of value into the future and for when needed.

  5. #55

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    Quote Originally Posted by motocat View Post
    When you say "cash" - do you mean actual physical cash, or just digits in a money market or savings type account? If holding for any length of time, you are certainly loosing value vs if you held in gold bullion or gold based ETF's -- no matter the profit in land or whatever else you are into investing in. That's all fine and well, you may gain in wealth either way, however win or loose in other areas -- the value of that cash is going down, that's the fact.
    Yes, I fully understand the depreciating value of cash (fiat). That being said, I always keep around 6 figures, physical cash, on hand to buy whatever bargain comes along, be it real estate, PM's,...whatever I think will return me a profit. Like I say, making $'s is a hobby that interest me and at my age, keeps me active. I don't worship money or wealth and fully realize that at my age, I'm at the end of my life. The most important thing in life, for me , is my Lord and Savior! I might ad that I hold over a 4 decade accumulation of PM's that I have never traded in or out of...all to be left to my children and charity.
    Stacking since the late 1970's

  6. #56

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    My wife's family is East European and they appear to have never trusted governments and banks, they bought land when they arrived in the USA at the beginning of the last century. They kept everything else in cash. But cash back then was gold/silver backed. The next generation never owned a credit card, put money in banks & EE bonds and never invested in the stock market. Until my M-in-L wanted to visit us at our California home,some decades ago, and found out you couldn't easily book and travel with out providing a C.C. number for hotels, car rental etc. Getting credit to her meant not paying cash for everything. So back when we got first got married getting my wife to invest in something other than EE bonds and savings bank accounts took me many years to overcome and I've not been 100% successful to this day. Showing her several years worth of bank interest growth in a few days of investing only led to her into thinking what ever goes up, must come down too. So decades later we're still fighting the battle of growth vs. "safety". She's has begun to worry that the S.M. as a bubble as I show her crazy P/E ratios and stock values and she wants me to "do something" about our retirement funds. Not much I can do with her deferred income account other than hope that we can put the cash out before it isn't there one day. I have been emptying our savings accounts and investing mostly in companies that I understand and a lot of those are mining companies. I've been very successful with that. More land is one thing that I'd like to include, but not in our socialist state of NY. Being in cash means I'm not growing part of our wealth and I'd rather have a small rate of return vs. holding cash.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  7. #57

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    My great grand father immigrated from Germany many, many years back. He did not trust banks and kept all his earnings in gold, silver and cash (backed by gold and silver). He did not trust banks holding his money. So, when the great depression started in 1929 he was not affected by bank closures. With cash he literally bought homes, furnishings and all on the cheap. He had so much furniture he opened a used furniture store and became very wealthy. On the flip side, the paper currency of today is worth only what you can buy today...holding cash long term is a depreciating asset. I am probably too diversified with funds in stocks, bonds, real estate, cash, gold, silver and "stuff". The kids will have fun trying to unload everything...LOL By the way, I did not inherit any of great grand fathers wealth...it was all spent by the time I came along. But I did learn his lessons and have applied many to my life.
    Stacking since the late 1970's

  8. #58

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    Quote Originally Posted by LongDonSilver View Post
    My wife's family is East European and they appear to have never trusted governments and banks, they bought land when they arrived in the USA at the beginning of the last century. They kept everything else in cash.
    Awesome, Eastern European women are some of the best, my own wife from that region to, just more recent, was a child under communism, and remembers well her grandmom who placed perhaps a bit to much love into the chickens. They learned why after her death. Those chickens were sitting on gold. Literally. You are also spot on with leveraged loans not being true wealth. And when you consider just how cash is now created, it's not very far away from that.

    Get some chicken folks - or leaky boats!
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  9. #59

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    Quote Originally Posted by Lawrence View Post
    My great grand father immigrated from Germany many, many years back. He did not trust banks and kept all his earnings in gold, silver and cash (backed by gold and silver).
    I don't know much about cash backed by gold in Germany in those years. I know about the hyperinflation that happened in the earlier 20's in the Weimar Republic. Did they also have gold and silver certificates that were honored by real gold and silver you could trade them in for, and this system was not abused?

    As a boy, I collected U.S. silver certificates. In my late teens, I wanted to redeem them for the silver as noted on them. Then I learned the truth. The promises on the certificates were not kept, my government was like a crack addicted ho. So is it that even Germany during hyperinflation kept to the papers gold and silver promises while our wealthier government could not?
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  10. #60

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    Quote Originally Posted by Lawrence View Post
    By the way, I did not inherit any of great grand fathers wealth...it was all spent by the time I came along.
    Damn it....I wanted to hit you up for a loan....figured youd be loaded...
    Politicians and diapers must be changed often, and for the same reason. -Mark Twain

    The purpose of life is to matter, to be productive, to have it make some difference that you lived at all. -Leo Rosten

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