Gold Bullion

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  • IntensiveCareBear IntensiveCareBear 
    Status: Physician
    Posts: 243
    Joined: 12/22/2018

    …Gold is a semi-reliable store of value, but you have to keep it secure…

    Click to expand…
    Gold will always be around. It has been a compact store of wealth for thousands of years. There is a reason that every central bank in the world buys PHYSICAL gold and that you can sell gold for a good chunk of local currency everywhere in the world that you might go. It is not simply “tradition” for central banks, as the FED answered when asked about the 1970s end of the gold standard. Explaining gold in world finance is beyond the scope of this thread, but most who do their research and understand it will want some in their portfolio for various reasons. Gold will never be the actual currency in people’s pockets and wallets again, but it has its role and utility nonetheless. Regardless of what the ignorant might say, gold is not simply survivalist stuff (although it certainly could help for that) or nut job stuff. If it is, the world’s biggest hedge fund is pretty damn nutty since they are around 5% gold.
    I view gold as basically a pile of money which represents all ForEx currencies and keeps up with inflation (not day-to-day, but generally in the long term). A handful of gold coins right now buys a decent new car, and the same was true 100 years ago and will be true in 100 years. There is also the old adage of 1oz gold always buying an outfit (Roman toga + belt + sandals or today suit + tie + shoes). Gold does nothing, but paper currencies deflate their buying power by printing… always have, always will. I own a fair amount of gold both physically in coins and in GLD in accounts. I don’t see security of the physical coins as much of an issue for gold (silver gets very heavy and big very fast though). If you could hide a roll or a few rolls of half dollars in your house, you can therefore hide more gold than you’d probably need to ever buy.
    …to the OP question (I know this thread is old, but he still posts regularly), I would say do whatever meets your goals. Nobody can predict the future, and gold is merely a wealth store… no dividends or gains (“gains” when USD loses buy power). Right now, I’d hold the coins since, as you can see on gold price graphs, gold spiked a ton after the GFC in 2008 but hasn’t been doing much in the last 5 years or so, and gold typically performs well with bear stock markets, market fear, and stimulus of paper money (all of which are likely upcoming at some point). If you want to liquidate for max value, consider waiting until about a year after next market correction… expect around $2000-3000 per oz.
    There is almost no downside risk to holding gold for awhile or a lifetime; it never goes down significantly (except after times it’d just spiked way way way up in price). Gold cannot be made in a lab or taken from oceans or asteroids on a cost-effective basis… people have been trying those types of schemes since the dawn of civilization. Gold can definitely go sideways in value for awhile, but it still fares much better historically in terms of buying power versus sitting on paper currency or low interest cash saving long term. The only real risk to holding gold is lack of growth and therefore opportunity cost… but that growth is not what it does in the first place. Gold doesn’t pay dividends or replicate itself or invent things or manage a company. That’s why Buffet’s quote is correct… yet short-sighted at the same time. You trade growth prospects for a stable store of value when you buy gold instead of stocks or RE or other things. That is the whole point of it. I hope my gold never goes up in value (since that would mean most of my other stuff is probably struggling with value loss via market crash and/or inflation of USD), but gold sure softens the pain of the portfolio body blows when it does spike.
    If you do sell your gold, accept no less than spot value for gold on your gold eagle coins. They are well recognized and should be easy to get spot price from at least half your local shops… just confirm by making a few calls before driving to sell. There will be no paperwork since it is AGE coins; precious metals tax info is widely available online. You are responsible after any sale for reporting any capital gains on the transaction. There is probably no record of what you paid for those coins or even that you have them, but don’t forget to do that tax stuff if it applies to you. Also don’t forget to read between the lines. GL

    "Hmm, that sounds risky." - motto of the middle class

    #209512 Reply
    FunkDoc83 FunkDoc83 
    Status: Physician
    Posts: 224
    Joined: 04/12/2018

    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).

    I had to look up what that even meant LOL.  I’ll keep my precious metals next to the depleted uranium bullets in the safe….

    #209535 Reply
    Avatar Dont_know_mind 
    Status: Physician
    Posts: 987
    Joined: 11/21/2017

    I am pretty tempted to buy uranium currently. It is quite cheap. Gold, not so much.

    #209651 Reply

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