It's been going on for years
Randolph Kinney said:
Neither of you seem to be aware or have any knowledge in other areas of investing. You can't make relevant comments on interest rates, inflation, supply and demand and how they relate to what you do or other investment vehicles. We believe you both, you are immune to the business cycle.
Don't try to have a common-sense conversation on any economics related material in here, Randolph. There are always promoters who believe they are immune to basic cycles... and sometimes they are. What I've noticed is that many promoters are not only self-centered (unable to see the big picture) but also very thin skinned. Whenever anyone mentions business cycles, they spout out about how much money they make... sorry guys, that doesn't change the facts. I've seen a lot of them here locally... I've seen some make big bucks and I've seen a few loose their shirts. Meanwhile, I have a balanced investment portfolio that includes some fairly risky items and some very conservative things. I probably won't make as much money investing as some of the promoters do, but I probably won't lose as much as some of them do either. To each his own....
Funny little story about silver. When I was a teenager I worked at a bank as a teller. Silver was still in circulation. I bought the silver certificates (yes, I'm telling my age) and sold them to a promoter who also worked at the bank for 10 percent over... he got a lot more than that taking them up to Kansas City where he had a buyer (maybe the Fed, I don't really remember). Anyway, I used part of my profits to buy silver coin out of my drawer. By the time I quit I had a few hundred dollars worth.
Fast forward a few years. I come home one day and my girlfriend has put all my stuff in the front yard... furniture and all (
I must have been a really bad boy) so I packed it in. A few months later, the Hunts started doing their thing. When it got pretty near the top, somewhere around $45 per oz. if I remember right, I figured "now is the time to sell." When I went to look for it it wasn't there... seems she put
almost all of my stuff in the front yard. My only consolation? If I was a betting man, I'd give ten to one odds that the dumb b*!ch sold it for $6.50 an oz. ten minutes after I was out the door (or maybe even for even money). LOL
Not a huge loss, as those things go... but, it is a reminder that one of the problems with gold, silver, or even cash is that you have to have someplace safe to keep it.
One of my smartest moves ever investing? In 1973 (twenty years before I started appraising) I bought an old run down duplex for $7,500, owner carry first. Lived in half and let the rent from the other half pay the mortgage. Never put a dime into it... sold it a few years later for $18,000. If I wanted to devote myself to making money I could do better than I have... no doubt. But, I've found out something really important over the years. You don't have to have a lot of money to be able to afford quality in your life... you just need to be able to tell the difference.
I'm not exactly a Renaissance Man, but I do have some knowledge about a few other things besides real estate. So, my answer to the question "why don't you use your knowledge to invest in what you know about" is that I do.