If Bank of Canada Lowers Rate This Week, Then What? | Page 4 | General financial discussion | Discussion forum

How about creating a no-lose situation by selling enough gold to recoup about 130% of your original investment?

That should recover the original money and cover a big part of inflation for the next 10 years.

Another is to guess how much longer one will live and sell enough gold to cover that period of time plus a margin of error. As a guide, the longest living person was Jeanne Calment who lived to age 122.

One is then "set for life" and what happens to the rest of the money in gold is really not that important.

Don't forget to factor in the tax cost.

So far I have decided not to sell at all, will keep everything!

I just don't trust Trudeau government, CERB mismanagement, etc.
It's hard to deal with cash, need to worry about CDIC, Manitoba insurance, below 2% interest rate and possible negative rate.

Rick said

... You did buy it to invest....didn't you?

Not at all.
I did not purchased to invest.
I just wanted to preserve my life savings, see my posts from the last year, when I did that.

Bill said
Don't forget to factor in the tax cost.  

Bill, what tax?

Bill said
... That's what I try to do, I give CRA whatever will keep them happy, i.e. away from me. ...

I will also do whatever will keep CRA happy.
When I will need some money in the future, I will sell a few ounces at that time and will report 1/2 of that as my capital gain, but because I have no income and no interest income, I will not pay any taxes.

It is time for some self-education Pooreva..... read to your heart's content.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/calculating-reporting-your-capital-gains-losses.html

It is all there. Unless you are buying and selling precious metals on the black market, or via barter, chances are the businesses you are dealing with, there will be a paper trail. Or do you advocate tax evasion?

I personally always report everything to CRA, even those transactions, that can't be traced and don't have a paper trail.

I purchased all my precious metals on the regular white market, none via barter or black market.
And, I carefully selected only those dealers, who didn't asked me for my ID's and SIN.
I purchased all my gold without a paper/electronic trail.
No, I'm not hiding anything and not doing anything illegal, but it's much better in my opinion, when nobody knows my address and that I purchased so much gold.
I'm just feeling more safe, when nobody knows, it's just me.

Rick said

the classic quandary...should I hold and hope it goes up, or sell and take my profit? Some say it could go up to 5K an ounce...or it might just as quickly drop back to sane levels. Polish up your crystal ball. Until you sell some....all you have is a pile of gold. You did buy it to invest....didn't you? Not many investments with a 50 or 60% return in a year. Unless you're saving it to barter with when the zombie apocalypse hits, take a nice healthy profit on at least some of it.  

What's that expression about bird seed (or a bird) in the hand or something? 😉

Cheers,
Doug

I'd be very surprised if CRA monitored gold transactions, they're pretty clued out and generally disinterested (unionized public sector shop). I remember being shocked to find out years ago they did zero monitoring of provincial land transfers, e.g. expensive cottage country areas and they totally relied on self-reporting of inheritances and other sales transactions. Of course, lots of Canadian aristocracy, public and private sector, might have been in that net, and CRA doesn't want to make any waves. I don't know, maybe that's changed now. My observation is they like going after the little guy, e.g. servers' tips, when we miss reporting a T5 slip, etc. I'm certainly not advocating evasion, just saying my observations and impressions.

Rick said
Maybe you should read this:
https://www.theglobeandmail.com/globe-investor/why-buying-and-storing-gold-at-home-is-not-a-great-idea/article32513183/

"Usually when you invest in something, you hope it will increase in value over time in some predictable way. But when you have an ounce of gold and put it away, you'll still just have an ounce of gold. There's no such thing as compound growth with physical gold.
  

Please read my post #42 and #66.

I did not purchased gold as an investment.
It was only intended as a form/vehicle of my assets storage.
Sorry, when I used word "investment" earlier, I did not expected any profit, I only intended as a storage, my English is quite bad.

Also, when I'm keeping my assets (cash) in Tangerine/Simplii savings accounts, I'm not investing it, it just a form of storage with guarantee and possible some interest, that is probably below inflation, so in reality I'm probably loosing my money.

hwyc said
... still cannot imagine the amount of physical gold required for making half a million dollar gain. How much weight are we talking about ? ... like one of those scenes in the movies ?  

I have 530 oz.

Kidd said
Your profits after.

You paid a commission fee to buy.
You probably paid an American to Canadian dollar exchange fee
Maybe a storage fee
Is there an inspection fee? Verify weight, purity??
You pay a commission fee to sell
You may pay another American to Canadian dollar exchange fee
Then you are taxed on your profit  

I only purchased pure gold coins and bars.
Yes, a commission always included in the price, but no sales taxes on pure gold coins and bars.
Yes, the prices in American and Canadian dollars are different depends on exchange rate.
No, there is no an inspection fee. Verification for 1 oz Maple Leaf coin and PAMP bars very easy.
No, I'm not taxed at all on my profit, please read my post #66.

Winnie said
And, I carefully selected only those dealers, who didn't asked me for my ID's and SIN.

I am surprised to hear any legit dealers (banks etc) wont ask for ID's nor SIN.
I thought they are required to collect that information for tax reason and money laundering monitoring purposes etc.