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Thread: Stocks and "the market"

  1. #76
    Join Date
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    Quote Originally Posted by Edwin Santos View Post
    Jim,
    Good job if you bought gold at $10/ounce and have held it. Even if it were 30 years ago, at today's spot rate, your return has been over 18% annually compounded. Not too many people could beat that.

    Just as a comparison, the average home in the US has appreciated at about a rate of 1% per year over the long term. Most people don't realize how poor an investment a personal home is. Shelter yes, an investment, not so much.

    Edwin
    On housing, it is all about location, location, location. In some areas a person would have a difficult time giving away property. In other places one might get tired of 'investors' knocking on their door every day wanting to buy their home.

    Quote Originally Posted by Gary Ragatz View Post
    I'm pretty sure Jim's not old enough to have bought gold at $10/ounce. I'm thinking it's the silver he got at $10.
    Quote Originally Posted by Edwin Santos View Post
    Well as has been pointed out from time to time, we do have some old dawgs around here, but I think you're right on this one.

    Edwin
    Yes, my faux pas not stating it was silver. Even the founding fathers had gold pegged above $10 an ounce.

    Some of my silver was pulled from circulation at face value. Shortly after the Hunt brothers tried to corner the silver market one could purchase common silver dollars from many coin dealers for less than $10. Some of the 'regular customers' would come in and purchase a few then make the rounds of some bars, slap one down on the counter and ask, "anyone here buy me a beer and give me $20 for this silver dollar?" Tough job, but someone's gonna do it.

    jtk
    "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
    - Sir Winston Churchill (1874-1965)

  2. #77
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    You have to have shelter. The only choice you get to make is how much, and whether you rent it (0% return on investment) or buy (some return on investment). All else being equal, something beats nothing every time.

  3. #78
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    Quote Originally Posted by Nicholas Lawrence View Post
    You have to have shelter. The only choice you get to make is how much, and whether you rent it (0% return on investment) or buy (some return on investment). All else being equal, something beats nothing every time.
    Besides, if one rents the owner can raise the rent, sell to someone who wants to move in or any other myriad of untoward actions.

    Buying with a fixed mortgage at least lets you plan month to month expenses without a big surprise or having to move.

    Our old home in California was purchased by my parents in ~1946. To the best of my knowledge it cost less than $9000. It was transferred to me in the late 1980s at $110,000. We sold it a few years ago for double that. If we had wanted to put in a bunch of work via long distance we could have likely tripled from the price at transfer. We were happy to be out of the long distance real estate business. It was a bit serendipitous that a broker called wanting to know about my M-I-L's house. She had died recently. He ended up conveying our old home instead. It was a very easy transaction with almost all of it taking place over the internet and telephone. No regrets.

    jtk
    "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
    - Sir Winston Churchill (1874-1965)

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