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 Replies: 10 / Views: 1,177 |
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Pillar of the Community
United States
1626 Posts |
Hello everyone.
I have apx 5k in EE Bonds and was thinking of exchanging these into Gold Coins. These bonds still have apx 7 years to mature to face value. Does anyone think this is a bad idea? I am not really looking for financial advice, just your opinion.
Thanks,
Tim
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Pillar of the Community
United States
2335 Posts |
If you aren't looking for financial advice you must be asking if I had a spare $5K would I spend it on gold coins. I might, if I had any money left after completing my 7070.
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Pillar of the Community
United States
830 Posts |
Well, being a collector rather than an investor, I would buy coins for my collection, and other things (treasury notes, CDs, etc.) for investments.
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Pillar of the Community
United States
651 Posts |
Assuming the bonds are from around 1980 that puts their yield at 4 to 5%. Gold like any investment has some element of a gambling on growth so there is slightly more risk than your EE bonds.
It also depends on what the bonds are for. I have about 6K in bonds that I keep around for unexpected emergencies (like my furnace breaking down). Since they are so easy to cash-in they are convenient for me. If you already have an emergency fund for stuff like this and you think gold can outperform that 4 to 5% a year return then go for it.
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Valued Member
United States
455 Posts |
Tpat, I think tranferring the EEs into gold coins is a great idea. If you're serious about the investment angle (as opposed to just adding some pretty yellow stuff to your collection), you should probably average in. Maybe $1K a month for 5 months.
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Pillar of the Community
United States
1984 Posts |
I'm a little unclear on your question: you say you are thinking of exchanging the bonds into gold coins...my answer depends on what specific product you mean when you say "gold coins"?
What specifically do you plan on buying?
Also just to be clear, are your bonds 5K in face value?
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Pillar of the Community
 United States
1626 Posts |
Thanks for your answer guys. What made me think of this idea is, I was going through my safe sorting through my collection and I seen my envelope with all my bonds in it. I accumulated all these bonds thru a weekly paycheck deduction from work over the last 5 years. I started with $100 bonds and then moved to $200 bond and then to $500 bonds. I had apx 7k in bonds, but just cashed in $1500.00 to buy some plane tickets. So I have apx 5k left. This is what I would get if cashed in. I figured I still have apx 6 to 7 years for them to mature. These bonds were purchased for a safe investment. After talking with my wife and giving her the idea of buying coins with the bonds she agreed with me it would be a good idea. I picked Gold coins because Gold seems to be a safe market. I have the 2006 Proof Gold Buffalo and was thinking of getting a 2006 Uncirculated, a 2007 Uncirculated and a 2007 Proof when it comes out. That way I would have the whole series of Gold Buffalo's. With the rest I was think either the $10 Gold Liberty or the $10 Gold Indian. Now that my wife gave me the "go ahead" I seem to be expanding my thoughts on different coins.  |
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Pillar of the Community
United States
1984 Posts |
If you don't want financial advice, and you only want an opinion, I'd be happy to give you mine. My opinion is you've already decided what you want to do and are looking for validation for that decision. Based on your comments I disagree with most other responders: I say keep your money in your bonds. At least until you've done a lot more homework.
It seems you have already decided on gold. I realize that having all your money in bonds is putting your eggs in one basket, but at least with bonds you are guaranteed a return. Increasing risk calls for increased attention to diversification. Why not platinum and gold? Why not platinum gold and silver?
If it were my 5K and it HAD to be gold coinage I would want the highest quality, oldest, scarcest/lowest-mintage one that I could find. That's just me though, because I would want to be insulated by the built-in numismatic cushion, whereas you might find straight bullion products to be more attractive because your money can buy you more ounces.
Whatever way you decide to go, I wish you the best!
Edited by halfabustisbetter
04/28/2007 11:44 pm
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Rest in Peace
United States
2884 Posts |
Please do not consider this as financial advice as I do not think it is good to offer such advice and as such this is only an opinion. I would, if I had 5K to "invest" consider purchasing a key coin or several key coins with a proven track record of sustained growth rather than what are in essence bullion value coins. They are many to choose from and a little research would go a long way here. You may also take into consideration a variety that you like so if they do not perform as well as they have in the past you will still be pleased to own them! It also may be fun to do. You also do not state how long you wish to hold these, what your ultimate goals are and if you plan to continue "investing" in them over time. There are many, many factors at work here. Just my humble 2 cents worth! Good luck and keep us posted on what you decide to do!!! Mike  |
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Pillar of the Community
United States
1626 Posts |
I appreciate your comments. As stated above, I am only looking for opinions to broaden my scope on what I am thinking. As to time frame....I have about 25 more years before I can retire, so anytime after the year 2032  I do like the idea of the Key coins...  I am in no hurry and I think I was over whelmed when my wife gave me the "go ahead", so maybe I need to step back and rethink my plan... Edited by Tpatna
04/28/2007 11:48 pm
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Valued Member
United States
470 Posts |
If I had 5,000 to invest. I wouldn't buy gold. I buy enough of that already. What I would do would be to invest in high grade coins and fill up a 7070. A high grade 7070 will appreciate much faster than the bonds or those gold buffalos. Go for nothing less than AU58 on your older coins and your 5,000 will get you a nice heirloom that in 25 years will be worth a small randsome.
I'm working on my 7070 every month !!!!
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Replies: 10 / Views: 1,177 |
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Posted 04/28/2007 10:07 am
