think of gold as a stock. 1750 = 17.5. so the stock dropped from $17.5 to $16.5 big fuckin deal? and you havr the financial media fearmongering on gold gold is actually less volatile than the stock market any particular stock can drop 5-10% on any given day
Investing Assets Held in a TFSA
- Thread starter johnnyone1
- Start date
Sorry friend, with the state of the world where it is and gold is still not moving this might be a big signal that precious metals might be dead for a while. I'd argue about the supply problems as most of the gold mined 100 years ago is still on this Earth. As for the miners, you must be taking a serious beating. As for the thesis that the cost of mining is going up thus prices must be going up...I'd disagree with that as gold does not trade at mining values currently.
But I could be wrong and that's what makes a market.
Goodguy
If we are printing a ton of money, about to fall off a fiscal cliff and gold and silver are still not rallying? What scenerio would cause the metals to move?
Goodguy
TFSA's are just another scam to appease the banks. I am sick of these stupid govt programs that chop your assets into tiny pools of money that incur rip off fees from banks. Why don't they just stop this nonsense and lower tax rates, and increase the CPP instead of thinking up new ways for their buddies on Bay Street to extract fees from Canadians. Fuck TFSA's as soon as the limit starts to become serious they will probably kill the program and give you the option of rolling it into your RRSP tax free or withdrawing it...some suckers will actually roll it in!!!
Velocity of the money created out of thin air by the Fed to purchase U.S. treasury bonds
have yet to pick up. Quantiitative easing has no impact on the economy without any meaninful
increase of money velocity. Money never sleep idle for long. Give it another 6 monthes to
see if inflation of consumer prices finally kick in in a big way.
My investment portfolio in my non-registered accounts and various accounts I look
after for friends and relatives are rather conservatively managed. But with my RRSP
portfolio I am betting on a rally on commoditiy stocks at some point in 2013--2014.
Of course I could be wrong.
have yet to pick up. Quantiitative easing has no impact on the economy without any meaninful
increase of money velocity. Money never sleep idle for long. Give it another 6 monthes to
see if inflation of consumer prices finally kick in in a big way.
My investment portfolio in my non-registered accounts and various accounts I look
after for friends and relatives are rather conservatively managed. But with my RRSP
portfolio I am betting on a rally on commoditiy stocks at some point in 2013--2014.
Of course I could be wrong.
the fiscal cliff amounts to austerity which is negative for gold. gold has gone up 12 years in a row, to say its been performing poorly is just wrong. back in the 1970's during the last bull market gold had a 40% correction, then rallied something like 800% the following few years. we have been in a long sideways correction which is normal its been going on for 16 months and can last up to two years. bernanke is going to print trillions more dollars, and the u.s. debt situation isnt going away so if you understnad the fundamentals you are a buyer
Hi there,
Maybe I don't understand the fundamentals but everybody in the world hasn't stopped printing money, and actually the US is trying to tackle their debt problem... wouldn't this be negative for gold?
40% decline = correction??? What do you call an absolute breakdown?
Even better, in your opinion what would be a bad scenerio for gold?
Goodguy
Yeah but each trade you make will cost 9.99 for the 20K or so in shares.. if you just leave it in a mutual fund then it makes no difference I suppose...
the u.s, isnt trying to do shit, they are all talk and no action. when they get serious they will cut 25% or more from the budget not 1%. why do you think there is a fiscal cliff "crisis" its bc congress agreed to miniscule cuts and now they want to strike a deal to avert these cuts.. a bad scenario for gold would be positive real interest rates that are above the inflation rate, basically tight monetary policy. when monetary policy is tight there are no big deficits and printing 85 billion a month. the fed would have to shrink their 3 trillion dollar balance sheet, the plan is actually to at least double it from current levels. the only time the u.s. will get serious about spending is when they have a greek style meltdown. nobody wants to tell those coming onto social security that they cant get their cheque etc
Hello there,
With all due respect, all your arguements are baked into the prevailing gold price. But even with this all going on gold has still not moved upward. Miners are performing horribly. I know you have to talk your book but if you waited to sell your precious metal assets in the above "bear scenerio" every pro would have sold 6 months ago and you would take a serious loss. (And consider you consider a correction 40%)
Goodguy
your views are too simplistic. yeah gold stocks are cheap, that means buy them. do you think the market is rational? you have stocks like facebook attracting buyers and its at 250 times earnings....oh well it must be a good stock then. if you believe fiat currencies wont lose any more value, then dont buy gold. like ive said before gold is still in its uptrend,its at the bottom range of the channel and is going to finish the year up 4% its 12th straight year of gains. if the fundamentals were baked into gold prices, we'd be at 5k not 1650
Sometimes simple makes the most sense.
A big rule I use when evaluating investing is never sell the stock to yourself. I think you might want to believe it so bad, a red flag is your 40% correction statement.
I hope i'm wrong but the goal of the game is to make money, ego can be a silent killer.
Good luck
Goodguy
Well I have to admit that I’m not a buy and hold anything and hold very little for very long. I rarely buy stocks or ETFs directly but rather use derivatives. I’ve NEVER seen any advantage to mutual funds (except to the banks and financial companies that offer them) as you get the same exposure mix you can get in an ETF at a much higher MER and can’t apply a bracket order (no stop loss orders on a mutual fund). If you are holding mutual funds you are long the market in one form or another and if the plane flies into the side of the mountain you are on board no matter what happens and you have a total lack of flexibility (to make adjustments) and no leverage to make any real gains so I have always viewed them as more expensive and riskier GICs.
The “value” I see in having a TFSA is high risk (and therefore high reward) activities although because it is a registered account there is not too much you can do with it but I suppose if you did manage a home run then at least you don’t get taxed to death like I did in 2008 by shorting the market on the way down and being long with lots of leverage on the way up. After I got killed by that I reached the conclusion that the “answer” was to not be a Canadian anymore and operate outside Canada
Sad but true.
The “value” I see in having a TFSA is high risk (and therefore high reward) activities although because it is a registered account there is not too much you can do with it but I suppose if you did manage a home run then at least you don’t get taxed to death like I did in 2008 by shorting the market on the way down and being long with lots of leverage on the way up. After I got killed by that I reached the conclusion that the “answer” was to not be a Canadian anymore and operate outside Canada
Sad but true.
Of course it holds water. If I want to make a trade with my assets, I am limited to 20K (25.5K in January which I suppose starts to make it worth while) If I want to make a bigger trade, or use options, or margin.. all not possible with TFSA plus if I want to make a >20K trade I will have to make 2 trades in 2 accounts costing me $40 instead of $20....
First off, the TFSA was probably not meant as a trading account.
Second, the 5k limit a year is a reasonable amount for those starting a new savings account which is what it is. Yes, there will be outliers like you.
Third, I don't know why anyone would keep a TFSA account that incurs $20 trading charges. If you have that much in a TFSA then you'd probably have a lot more in an RRSP not to mention a regular trading account. If you're smart all of that would be at one place and they'd waive the fees for you.
Also have my TSFA's with TD but redirected to a low mer e-series mutual fund vs the default money market fund they usually give you. Definitely a best of both worlds scenario. I also do the same with my RSP's and non RSP's.
For a low risk fund look at the TD Canadian Bond Index E-Series: https://www.tdassetmanagement.com/s...rect.asp?LFID=52676&Loc=/Download/TDB909E.pdf
