Living a Completely Debt Free Life

Living a Completely Debt Free Life

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Discussion

afrochicken

1,166 posts

208 months

Tuesday 17th July 2012
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sideways sid said:
Buying silver bullion is ridiculous advice for the OP.

Silver and other precious metals need to be stored expensively, with fluctuating value that might not coincide with her future requirement to convert it back into cash to buy a house, and do not pay an income.
Not to mention having to pay VAT on the purchase, CGT on any profit, and the currency risk.

longone

252 posts

239 months

Tuesday 17th July 2012
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Hello Afro and Sid. I do this for my income so please I am with experience. To address your points:
- silver fluctuates, yes but the trend is strongly up, look up price charts 2005 to date and see
- CGT of course is applicable, as with equities or a second property etc. etc.
- storage costs are not high relative to the appreciation in price, look up the charts and see
- miner equities (some!) are a good bet too but come with counterparty risks (MF Global, remember?)
- precious metals have no income but it doesn't matter if compensated by capital gain
- VAT is not applicable on gold and only payable on silver if actual delivery to hand is taken, stored silver is VAT free
- what currency risk do you see? that the GBP will appreciate against the USD? really? An island against a continent?
- to hedge property price moves with property equities will require a good deal of market knowledge, our OP doesn't have it

Let's keep to the facts. Silver may be off your radar and so fine. All I would ask is look up its long term trend, its tax liability, ownership costs, and the overall mither factor of the investment. If our OP was a professional market trader then I'm sure she wouldn't ask for advice. She is, or appears to be, a young person looking for the best chance of capital gain as compensation for not buying property today. Like any investment she will need to accept ups and downs but I believe silver is an outstanding bet at today's prices and in the 2-5yr period will be a stella purchase.
I am not so naive as to think many people would say, gosh Colin really? I'm going to do just as you say. I expected a reaction but have given my advice and it's the same I've given also to my closest friends. As I suggested to our OP, lets watch silver's price action and see.
Colin.

longone

252 posts

239 months

Friday 24th August 2012
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So, all gone quiet. Are we still watching silver?