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  • Gold Bullion

    Does any one invest in this?

    I have acquired some as a gift.  It is not a life changing amount but not insubstantial.  About 15K value last check.  What would you do with it?  Keep it?  Sell it to buy something in line with my IPS?  Save it to give to grand kids in a few decades? Apocalypse fund?

    I already have the means to store it safely.  Selling it would incur taxes.  It makes me feel like a pirate

    I would love to hear your comments and advise.

    No I will not give it to you!

  • #2
    No one invests in gold bullion.  It is a possession, not an investment.  It doesn't increase in quantity or productivity over time.  It costs money to store, to insure, to transport.  If you had a troy ounce a century ago you have troy ounce today (and you're pretty old).

    See Warren Buffett's thoughts on gold in his 2011 letter to shareholders.  http://www.berkshirehathaway.com/letters/2011ltr.pdf

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    • #3
      Interesting question.  I'm guessing the wishes of anyone who would gift gold are for you to hold onto it in case of financial (or run of the mill regular) apocalypse.

      I am no gold bug but the perpetually increasing debt load of the human race argues for holding something of durable value.

      Here is an interesting chart to chew on:

      https://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-historical-chart

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      • #4


        Sell it to buy something in line with my IPS?
        Click to expand...


        I'm going to guess that most advise on this forum will be along these lines.

         

        May I ask how much tax you'd be expecting to pay on the sale? From my quick google search, it seems your cost basis equals the lower of: the market value on the date the gold was purchased or the market value the date it was gifted. Short term gains would be taxed at your marginal rate, while long term gains would be taxed at marginal rate but capped at 28%. Ouch. But I guess gains are better than losses.

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        • #5
          I was shocked to see this thread wasn't started by Crixus. 

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          • #6
            I have a small stash of non-numismatic gold/silver/palladium, less than 0.5% NW. There’s not much harm in keeping some precious metals around (in the bank safety deposit box).

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            • #7
              @Hank-  I agree.  I would not buy it.  But now that I have it I am trying to figure out what to do with it.

               

              @Rxor- I figured it would be.  I really do not know the tax implications.  I would have to research that if I decided to actually sell.

               

              @portlandia- I did pause before submitting this because I was afraid I might resurface Crixus

               

              @vagabond- I am leaning towards this.  I do not plan to buy any more so it will decrease in percentage of my NW as time goes on.

               

              Thanks for the comments!

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              • #8
                I'd probably just keep it and pass it down the line. Is it made up of multiple small bars/coins or is it one big bar? One big bar is probably not going to be preferred in an apocalyptic scenario (besides trying to hit someone in the head with it).

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                • #9
                  1 oz american eagle coins.

                   

                  Not enough to dive into like scrooge mcduck but plenty to pass down.

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                  • #10


                    Does any one invest in this?
                    Click to expand...


                    Yes, typically investors that watch TV advertisements.


                    Selling it would incur taxes.
                    Click to expand...


                    Gift taxes are the responsibility of the donor. Your basis is the FMV when received.


                    It makes me feel like a pirate ?
                    Click to expand...


                    Nothing wrong with being eccentric! Buried treasure with a map in your will would be a nice touch. It's less than a pound, so don't miss place them.

                    You will never use them nor will any one else. A bowl with 7,500 two dollars bills for taking would be eccentric too.


                    Sell it to buy something in line with my IPS?
                    Click to expand...


                    Note to self, remind Drop it into MD to sell the dang bars. I know you mute the  Rosland Capital TV Ads. Get well soon.

                    Geez

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                    • #11


                      I would love to hear your comments and advise.
                      Click to expand...


                      Yes, but as a possession, as Hank alluded to.  (I also possess several insurance policies which are also not investments....)

                      I recently sold a palladium coin, just to see what it was like.  It's kind of trippy walking into a coin shop with a one ounce coin in your pocket and then walking out with a bunch of bills that you could use to pay for rent/food/gas.  Or a Balvenie 30yo.  Another silly thing to possess, let alone consume....

                      I find the whole gold/anti-gold debate so amusing.  As long as someone will trade you a thing for another thing, it has value...whether it be gold, palladium, federal reserve notes, or an old whisky.  Heck, folks can even sell their insurance policies.

                      Even though your gold is not an investment, it has a long history of value.

                      As a grandkid, I would rather have 15k invested in VTI in a UTMA.  It might work for apocalypse fund, but it is unlikely you could use one ounce to buy $1200 of food.  Unless it is giving you significant angst, just keep it and count it as part of your E-fund.

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                      • #12
                        I would just keep them.  I have several inherited silver dollars. I also have all my mothers silver.  I would not "invest in metals" but a small amount is ok.

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                        • #13


                          I have several inherited silver dollars. I also have all my mothers silver.
                          Click to expand...


                          Keepsakes are of an emotional value. Sometimes you keep it and wonder why you do.

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                          • #14
                            I personally would sell it after taking lots of photos with it in various costumes from robber baron to 80s rappers. I would fear not cashing in on its value as the generation that saw it as money gradually fades.

                            You could put it by the bed as well to give to intruders to slow them down so the cops can catch them.

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                            • #15
                              I feel pretty confident in stating that were I to be gifted any real amount of gold (e.g. not a gold watch or something like that) I would immediately sell it.

                              The great Mr. David Ramsey of Tennessee puts this quite well, to paraphrase we have several recent examples of total societal/economic collapse (Iraq, Venezuela) and in no case did said economy revert to trading precious metal.

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