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 Replies: 19 / Views: 3,346 |
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Bedrock of the Community
Australia
21788 Posts |
With gold prices, I haven't got a crystal ball.
Of all listed markets, the gold market is probably the most notorious for wrongly guessing what the short term future price will be.
When investing, some people cost average buys or sells in small amounts of money to get around this problem, but that is obviously not your intention, or where you are with what you currently have.
It seems to me that your best bet is to add whatever value you get from any sale should be added to your (as hinted) mutual fund.
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Pillar of the Community
United States
3789 Posts |
Who is to know where gold goes ultimately? I dont know and really in your case do this-
You dont have any risk at all with these gold coins. So keep them, you have a huge cushion to withstand dips in the gold market since they did not cost you anything.
As far as gold in the present time, its choppy at best.
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Bedrock of the Community
United States
12057 Posts |
Invest $1,000 in Dow/blue chip stocks in 1900; by 2000 your $1000 in stock is worth almost $20m, and by 2017 a meager $38m.
Invest $1,000 in 24 kt. gold bullion in 1900; that is enough at the time to purchase 48.37ozt. As of today, that same 48.37ozt. of gold would be worth about $60.4k.
In other words, the stock market has outperformed the price of gold by a ratio of about 637:1 given an equal initial investment.
Gold is useful for some things, but as an investment, it is historically outperformed by everything from Treasury bills to municipal bonds to common stock. Its main advantage is as a physical store of value, not paper backed by fiat, but even that is of limited benefit unless the preppers get their wishes fulfilled.
Member ANA - EAC - TNA - SSDC - CCT #890 "Most of the things worth doing in the world had been declared impossible before they were done." -- Louis D. Brandeis |
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Valued Member
United States
245 Posts |
I would sell those first thing Monday morning. I had 8 of them and they are the least durable, softest coin around. The four 9's pure make them awfully prone to denting, abrasions, etc., cash em in.
I'm not a fan of those Canadian coins anyway. The forever Queen on them turns me completely off...
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Pillar of the Community
 Canada
849 Posts |
They sat in a safety deposit box for over 25 years so there is not a mark on them. Even if there was an abrasion they are not collector coins. The portrait of the queen in 1990 is not a bad one but the one from the 1950s is my favourite. By the time Charles makes it to the throne he will be so old, he will probably only live 5 years, the way the queen is hanging in there!
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Pillar of the Community
United States
4333 Posts |
I would keep, gold's value never changes.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
Canada
849 Posts |
Quote:
I would keep, gold's value never changes. It will always have value but for much of the 1990s it was trading at less than $400/oz U.S. Now it is over $1200/oz U.S. so I would not be so bold as to claim gold's value never changes. |
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Pillar of the Community
United States
3184 Posts |
Just keep it and hand it down to the kids or grandkids
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Pillar of the Community
Canada
3733 Posts |
a very nice gift indeed. and if money is not an immediate need; I would personally suggest you may want to flip one coin, into silver bullion, silver is low in price, and the trade ratio is very favorable to silver..
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Pillar of the Community
United States
4333 Posts |
Quote:
It will always have value but for much of the 1990s it was trading at less than $400/oz U.S.
Now it is over $1200/oz U.S. so I would not be so bold as to claim gold's value never changes. You are measuring gold's value in dollars. The 90's was a long time ago. It just shows how much inflation factors in today. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
Edited by fistfulladirt
12/10/2017 6:04 pm
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Bedrock of the Community
United States
94367 Posts |
If you've been in gold instead of stocks the last 12 months, you're on the short end. I don't see that changing soon.
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Pillar of the Community
United States
4333 Posts |
Quote:
If you've been in gold instead of stocks the last 12 months, you're on the short end. I don't see that changing soon. Yes, they are stuck with their gold. Gold doesn't pay dividends like an investment in stocks, because gold isn't an investment, it's a hedge. So, why not own both? Gold, a physical asset that holds value, and a performing stock, an electronic investment that builds value in dollars. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
Canada
849 Posts |
Quote:
It will always have value but for much of the 1990s it was trading at less than $400/oz U.S.
Now it is over $1200/oz U.S. so I would not be so bold as to claim gold's value never changes. Quote:
You are measuring gold's value in dollars. The 90's was a long time ago. It just shows how much inflation factors in today. Here in Canada the inflation factor from 1990 to 2017 was 1.6, not 3. (1200/oz div. 400/oz = 3). So even with inflation factored in, an ounce of gold today is more valuable than an ounce was in 1990. I am not arguing that buying/owning/dealing in gold is advisable/good/profitable. Many times it is not. All I am saying is that it is folly to say that gold's value is constant. Edited by punman
12/11/2017 11:26 am
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Pillar of the Community
United States
3789 Posts |
You guys have it all wrong, wrong and wrong.
Gold, stocks, they are different asset classes.
keeping that mind, they move in different cycles,, different trends, and sometimes they move in lock step, sometimes they diverge and sometimes you want to own one and sell the other.
so trying to compare the two is like trying to compare apples and oranges.
ALSO, one must view asset classes over many time frames, in all fairness, a VERY LONG time frame, as in years, decades, would show you that both gold and equities have had great runs and returns.
Yet, as I mentioned above, there are times when it made sense to NOT own equities nor gold but bonds instead, and sometimes they ALL run higher together... There is a time to be in markets, in certain assets and times not to be in them but rather sell them or just sit in cash.
in the case of the OP, he has really nothing to loose, he got the coins at no cost to him. He can either sit on them and ride out wild moves or he can just cash in now, either way the OP is ahead.
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Pillar of the Community
Canada
849 Posts |
I appreciate all the suggestions and advice. I have decided to sit tight for now and do nothing. Should prices start to move dramatically one way or another I can re-evaluate and maybe sell one coin but no need to make some rash decision at the moment.
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Replies: 19 / Views: 3,346 |
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Posted 12/09/2017 11:30 pm
