Not sure if I've got the cojones for gold stacking!!

[ApisMellifera]

17 hours ago, walesdave said:

I like what people say about involving the kids - my eldest (14 y.o.) has her first silver walking liberty, and the middle kid (11 y.o.) bought her own silver florin a few weeks ago, youngest sproglet (nearly 10 y.o.) is begining to show an interest - mainly in my smallish silver stack as it looks more impressive. I'm just waiting for 3 small silver rounds to arrive from Australia to give one to each of my girls....

Nice, that's good : )

This is the video of BelangP about teaching his kids about PM and savings.

 

[Bumble]

When you say you are thinking about selling and would break even if you sell now, you make me suspect you are in the following situation: Forget gold, this could be a stock, or a fund, or any commodity... Alice invests in something, believing it will go up, because lots of pundits have said it will. It goes up a little but then goes down below the price she paid. She tells herself this is just a temporary piece of volatility and decides to wait it out for the price to recover. The price doesn't recover, it goes down even further. Alice is now upset but still doesn't want to sell because selling at a loss is an admission of failure. So she waits and waits... eventually the cycle comes round, the price reaches the value she paid for it, she breathes a big sigh of relief, sells it and vows never to invest in that again. The price then continues to rise and she misses out on all the gains.

If this happens to you, know that you are in good company. It has probably happened to anyone who has ever invested in anything. It is a very common error and part of the learning experience of becoming a successful investor. The lessons to take away are:

1. When you buy something, be clear in your mind why you are buying it and under what conditions you would sell it.
2. If the price moves down, review whether your reasons still apply or whether something has changed.
3. Don't think that selling something at a loss is a failure. The best price to sell something at has nothing to do with the price you paid, only the future expectation.
4. If your timescales are fairly short, use stoplosses to stop you out of negative positions before you lose too much.

Hope this helps.

[BaldyBob]

On ‎11‎/‎03‎/‎2016 at 22:12, walesdave said:

Bought most sovereigns at around £200 each (average then was £201) but bought another 15 recently which pushed the average to £206 per coin; Atkinsons are offering about £206 each for bullion at the mo so I'd more or less break even

Thanks Walesdave.

Having picked up most of my sovereigns at about 185, this seems expensive to me, but I have only been stacking about 18 months, so I suppose our perception of a fair price depends upon what year you enter the market, and what the think the price will do next.

For me personally, I think this rally will dip for a few months, go mad again around Brexit time, and then end the year on a downward slope (when I can hopefully buy again). But what do I know?, mine is just another opinion amongst many.

Good luck whatever you do.

[vand]

Forget what it cost in GBP terms. You now own gold. The price of fiat may go up or down in gold from one month to the next but an oz of gold will always be an oz of gold, which has proven to be one of the best stores of wealth over time. If you want to be a sucessful investor and grow your wealth then you must think of the end goal and view a dip in price as an opportunity to buy more at a better price.

Peter Lynch who ran the Fidelity Magellan fund, one of the greatest fund managers ever who returned 29% annualized over 19 years, let slip a little dark secret - of all the "investors" who bought into his fund, more that half actually ending up selling out at a loss! How is that possible when you are piggy backing on one of the greatest outliers in the history of mutual funds and all you needed to do was sit on your hands? The uncomfortable fact is that most investors with got scared whenever the market took a lurch down, and instead of sitting tight they would liquidate their holdings when the panic hit, then sit on the sidelines as the market recovered and went to new highs.

History is not enough in most cases. Experience is needed to teach people how to become better investors. A glance at a long term chart of any asset will reveal that they are always large bear markets to be navigated, yet people who have their money invested during a drawdown rarely behave rationally or with the long term goals in their mind when their portfolio falls below the price they paid, and then continues plummetting. Money today is worth more than money tomorrow (net present value discounted to the future) and when you see you portfolio value going down you behave in a manner consistent eith this truism - you want out.

[Murph]

At least gold isn't likely to drop as far as shares can.

[DRooster]

I think WalesDave should hold onto at least half of his sovs.

Selling some may give the amount of psychological relief he craves and that's the job done : he can then relax.

As others have said : he actually owns gold, in-hand. Real physical gold. That is something most folk do not have.

[modnrock]

If I had decided to sell and I had a mortgage, id use the cash to pay off a lump sum. Work out the interest id save and spend that on PMs. Might satisfy my urge to sell and lingering desire to buy. Just a thought!

[walesdave]

Hi All,

Still more relevant and insightful advice - all taken onboard, especially the 'take the long term view'.

Went a bit mental this weekend at an auction and thought I'd have to sell a sovereign to cover it up from the wife add some funds to the bank, but I got away with the old fashioned method and just lied about how how much I spent .

Yep, a lot of people have 'read' me correctly as I just got a bit scarred and thought selling at at a loss would be the end of everything  now I've realised how much things would have to go down to make a significant loss I've sort of started hoping the prices will drop down to £200 a piece again so I can buy some more!

Cheers again....and I must say this is the most friendly forum I've been on...you should try shooting forums, ask for advice and wait for the abuse!!

David