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re: Can someone explain the pros and cons of gold?
Posted on 4/17/24 at 8:05 pm to OccamsStubble
Posted on 4/17/24 at 8:05 pm to OccamsStubble
quote:
Companies can, and do, go to zero. Gold never has.
Neither has the DJIA, S&P500, Russell 2000.
There are plenty of ways to hedge.
0
Posted on 4/17/24 at 8:33 pm to charliemurphy69
quote:
I smoked crypto one time got me messed up for a couple days
with Johnny Hopkins?
Posted on 4/17/24 at 8:47 pm to tgerb8
I haven't read the responses to your question at this point but my O2c, in what I have been doing since the early 1990's is this:
If you have disposable income buy tangible gold bullion coins in any size and measure.
I have a cousin who buys gold stocks it just doesn't make sense to me.
I also buy gold bars.
I buy all my gold from a very reputable dealer who if needed I can sell back too. Spot price, and resale amount agreed upon market conditions. But they will buy back.
I bought most of my gold in the 1990's but bought at chunk in 2016 at which I felt sick about for over two years buying gold buffalos at $1346 each.
Today, I don't feel so bad about the move.
The problem with tangible gold is once you buy it and hold it you covet it. I can't sell an ounce of it as the Midas touch is a real thing.
buy some and you will see.
If you have disposable income buy tangible gold bullion coins in any size and measure.
I have a cousin who buys gold stocks it just doesn't make sense to me.
I also buy gold bars.
I buy all my gold from a very reputable dealer who if needed I can sell back too. Spot price, and resale amount agreed upon market conditions. But they will buy back.
I bought most of my gold in the 1990's but bought at chunk in 2016 at which I felt sick about for over two years buying gold buffalos at $1346 each.
Today, I don't feel so bad about the move.
The problem with tangible gold is once you buy it and hold it you covet it. I can't sell an ounce of it as the Midas touch is a real thing.
buy some and you will see.
Posted on 4/17/24 at 9:16 pm to tgerb8
In a SHTF scenario, I don’t think there would be any demand at all for gold as a currency for producers (farmers, ranchers, craftsmen). I think that common ammunition (.22lr, .308, 9mm, and 12ga) would be preferred as well as liquor. The liquor won’t need to be the good stuff!
Posted on 4/17/24 at 9:22 pm to uncommon sense
quote:
Most financial advisors don't "like" it because if you buy physical gold, they're by and large cut out of the action. No other reason.
You guys have given some great advice and made some good points. I sincerely appreciate it..
So what is a good, trustworthy source?
I saw eBay mentioned. Costco... does it necessarily matter?
what would be a good amount to buy if you were trying to diversify a (completely made up for this thread) amount like 1 million? 50k? 100k? or just "whatever you feel comfortable with?"
I tend to be more conservative with my portfolio anyway and gold seems to follow those lines.
Posted on 4/17/24 at 9:50 pm to Nosevens
quote:
It rises and falls with stability of the world but who really is expecting to use it in exchange of goods anymore
The person that understand history.
Posted on 4/17/24 at 9:57 pm to tgerb8
Choices include owning and storing your PM - you can put 1M into a small safety deposit box, it’s 26 pounds. You can own PM and have others store it for you, such as the (former) Central Fund of Canada, which reapportions their storage at the end of every day based on amount owned, and deals in a 50 50 mix of gold silver. You give them dollars, they hold PM for you, and when you want give you back dollars. Unlike paper gold, the investment is in physical, and is third party audited.
You can buy coins or bars in many coin and bar types from multiple sources, who ship UPS. I’ve used APMEX, which worked well.
My exposure is 5% of NAV.
You can buy coins or bars in many coin and bar types from multiple sources, who ship UPS. I’ve used APMEX, which worked well.
My exposure is 5% of NAV.
Posted on 4/17/24 at 10:02 pm to tgerb8
It’s only worth anything if you believe the entire US economy collapses. If this happens, I doubt having physical gold will make much of a difference. You’d be better off with chickens, guns, and bullets.
Posted on 4/17/24 at 10:04 pm to tgerb8
quote:
So what is a good, trustworthy source? I saw eBay mentioned. Costco.
I’ve looked consistently at Costco for it and have never seen it available.
Posted on 4/17/24 at 10:05 pm to REB BEER
quote:
It’s only worth anything if you believe the entire US economy collapses.
If so, how do you explain the gains gold has seen over the last decade?
Gold has been and always will be a world recognized currency.
Posted on 4/17/24 at 10:08 pm to REB BEER
quote:.
It’s only worth anything if you believe the entire US economy collapses. If this happens, I doubt having physical gold will make much of a difference. You’d be better off with chickens, guns, and bullets.
Those who bought gold in 1971, and have seen it gain just under 8% yearly on average since then, don’t recall your ‘entire US economy collapse’ scenario during that time.
Posted on 4/17/24 at 10:16 pm to OccamsStubble
Also. why does 1 oz of gold vary in cost (looking at APMEX)? wouldn't the cheapest one ALWAYS be the best one in this case?
Posted on 4/17/24 at 10:36 pm to tgerb8
quote:
Also. why does 1 oz of gold vary in cost (looking at APMEX)? wouldn't the cheapest one ALWAYS be the best one in this case?
all things being equal, yes. But coins have numismatic value above and beyond the simple weight of gold. People collect, so some coins are more rare, so may cost more but are worth more to some.
If you’re strictly looking for store of value, keep it simple and buy bars or American Eagles sold in coinage as small as .1 oz. If you’re making a large purchase, call them direct, and get a bulk price
Posted on 4/19/24 at 8:38 am to tgerb8
I like to buy online, from apmex. Ships with insurance to your door.
Posted on 4/19/24 at 9:00 am to tgerb8
Start out by thinking of gold as just another foreign currency. For economic functionally that's what it is.
Long term if you invest in a company whose assets are mostly denominated in a solid currency you get the benefit of appreciation against the US dollar and any dividends and stock price increases. For example, a solid Swiss company.
Some years ago I compared historical prices of three solid, but stodgy US companies against gold. If I recall correctly I started at January 1, 1980 with Johnson & Johnson, Exxon-Mobile (Just Exxon until the merger), and Three M against gold. Even ignoring dividends the companies did better than gold over a thirty year, or so, period.
If you like the feel of gold coins, want to keep them for a long time, and don't mind paying a bit extra for the numismatic value, I recommend coins from the US mint. They offer silver and platinum as well as gold.
Long term if you invest in a company whose assets are mostly denominated in a solid currency you get the benefit of appreciation against the US dollar and any dividends and stock price increases. For example, a solid Swiss company.
Some years ago I compared historical prices of three solid, but stodgy US companies against gold. If I recall correctly I started at January 1, 1980 with Johnson & Johnson, Exxon-Mobile (Just Exxon until the merger), and Three M against gold. Even ignoring dividends the companies did better than gold over a thirty year, or so, period.
If you like the feel of gold coins, want to keep them for a long time, and don't mind paying a bit extra for the numismatic value, I recommend coins from the US mint. They offer silver and platinum as well as gold.
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