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 Replies: 26 / Views: 3,142 |
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Pillar of the Community
United Kingdom
616 Posts |
We all know gold can act as a hedge or insurance in your investment portfolio but I would say in general it is viewed as a in case of emergency break glass type of investment. So taking that into consideration if you were trying to build up ounces of gold over time would you stick to buying Eagles and Leafs since they are probably the most liquid and consistent in price or would you make it more of a collection with Kangaroos and Pandas and special issue Maple Leafs thrown in?
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Bedrock of the Community
United States
36710 Posts |
Do both at the same time (hoard/collection) by building a type set of both U.S. and world gold coins, both regular issue and bullion coins.
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Pillar of the Community
Canada
5417 Posts |
In my opinion don't involve special issues, commemoratives with other bullion unless thee isn't a big price difference (generally defined as 5%). Stick to Maples, Eagles and maybe a couple Krugerrands.
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Pillar of the Community
Canada
2019 Posts |
I agree with IndianGoldEagle on this although I hate spending the extra premiun on collectors coins they will for the most part hold their value and most increase in value over time(but not all will).
If you buy bullion then your stuck to what ever the spot value is when and if you go to sell, while that could be very good it also could be very bad if you bought at $1400 gold and it was down to $500 when you needed to sell, where as that $1400 gold collector coin (with less gold in it) most likely will be worth somewhere around the same price you paid for it and most likely worth alot more depending on how long you have held it and the demand for it at the time you need to sell.
I collect both but have been holding off from buying bullion as of late hoping the spot will stabilize /start back up again which may or may not happen in the near future.
Edited by Northerncoins
06/12/2013 12:12 pm
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Pillar of the Community
United States
3789 Posts |
I think going forward gold is a horrible hedge. Its best use was/is when there is panic and monetary policy is loose. Now however, going forward, rates been going up slowly, I been saying this as far back as a month now. So, if you are going to be buying gold, I would only be interested in buying PROOF gold coins. I don't want anything that is bullion or has no numismatic value. You will NEED cushion on your physical purchases going forward. I would stick to- PROOF eagles from the US Mint PROOF Buffs from the US Mint PROOF gold from the RCMOther proof gold coins would be good too but these above are the most highly liquid and you would be able to move them should you need some cash. I would only be interested in buying bullion gold, physical if was going to hedge it with options or by selling short an ETF such as GLD. Way too much risk with bullion going forward. |
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Bedrock of the Community
United States
36710 Posts |
As usual, I am 180 degrees opposite of yup. 17 trillion in U.S. debt and rising daily, digital money created daily out of thin air and gold is a horrible hedge. We shall see.
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Pillar of the Community
United States
5825 Posts |
I think I have invested too much already in PM?
Lately I been thinking is PM really a good hedge against inflation or SHTF situation? or would other type of investment be a better choice? (Blue chip Stocks, Bonds, Mutual funds that invest in natural resources? or perhaps Real Estate...)
But since this is a discussion about collecting and investing in gold coins, I would say stick to the proof coins like yup have suggested, that has both collectors base and non-collector investors.
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Pillar of the Community
United States
3789 Posts |
Well, I am solely basing my opinion on what I am seeing in the markets.
I been saying for weeks and weeks rates are going up and they are. As far as debt, non-issue, it will be issued and snapped up. Thats not open to discussion and the market place is saying that, markets in the end are always right.
So I couldn't say in good conscience that "yea keep buying gold". Its far too risky. Now, proof coins, yes I think you get some protection there. I know I havent stopped collecting proof gold despite the fall in price.
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Pillar of the Community
 United Kingdom
616 Posts |
Yup you really miss the point of my post. I don't want investment advice on whether or not to purchase physical gold, also I am talking about a long term accumulation strategy. No offense but if you are saying you can see the future you can't, neither can I. Are we in a downtrend yes, but that is irrelevant to what I am constructing or the time period I am looking at which is about macro events I expect several years out. You apparently are a trader which explains your interpretation of macro events. Some I find insightful some I find plain incorrect. We have enough threads about the price trends in PMs let's have one that stick to the issue.
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Bedrock of the Community
13014 Posts |
To me it all depends on what your purpose for buying is. If its a hedge then stick with gold that has numismatic value that gives you a cushion when spot falls.
If youre getting it for the break glass in case of emergency stick to the bullion since there would be no numismatic value to anything at that point.
Either way you go though I would stick to stuff minted from reputable mints. For the break glass in case of emergency stick to just American gold or Canadian depending which country you live in. In that instance you want the most recognizable coins that everyone would know what it is instead of having to try and convince them that the pretty panda is legit
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Pillar of the Community
United States
3789 Posts |
Well thats why I said, buy only proof coins, but stay away from bullion coins because its too much of a risk for the long term.
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Pillar of the Community
Japan
666 Posts |
I'd say make your core position, with 900 gold, 925, 999, no matter if it is bullion or proof - you need hedge! Decide what should be a share in your portfolio, and don't forget that gold and silver not only an investment but also a savings (I'd say it is savings and then investment). Then make you decision what you like the best.
I keep gold and silver at 55 Gold/silver ratio and adding no matter what happens to the spot.
When one of the worlds largest vaults - JPM, sees it's physical gold going down making record lows and when the spot is low I know that futures do not reflect reality. So why do base decision on this numbers when they can be easily cooked? That the question everyone should ask themselves
BTW, Gold numismatic value doesn't rise that much if compared to silver numis
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Pillar of the Community
Canada
2019 Posts |
But we are assuming that the numismatic coin market doesn't take a nose dive and where you cant sell the proofs etc for what you paid for them down the road. Then they might not be much better then buying bullion...  Edited by Northerncoins
06/12/2013 8:14 pm
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Pillar of the Community
United States
3789 Posts |
@Bekiz -
there is no proof that JPM has drawn down physical stock. This is only a rumor floated, these rumors are common as pennies.
I been hearing these rumors and talk for years and years and years. and if it wasn't JPM then it was another big commodity desk and on and on and on lol. same story, never changes lol
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Bedrock of the Community
Australia
21786 Posts |
If it comes to the long term investment in gold,
investment in numismatic gold has served me well over the decades.
Despite the very risky investment in bullion gold, due to it's high price volatility, it is a
'countercyclical' type of investment, i.e. when the economy goes bad, gold comes good.
A financial adviser once told me to invest about 5% of your retirement portfolio in gold / silver /art / numismatics,
but not much more than that.
Choose the category you happen to like, and especially so if you have some understanding of that particular market.
Sounds like a strategy, not a tactic, does it not?
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Pillar of the Community
United Kingdom
616 Posts |
SEL
The counter cyclical nature of Gold is one of the main things that interests me. Also I am looking at least 5 years out. I am not a zombie apocalypse kind of guy but I also have a hard time believing there will be no periods of fear and instability during the remainder of my life. Chances are if the gold I purchase from this point forward does not gain in value or losses value I will be a very happy man because that should mean my other investments would have done very well. Good on ya mate.
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Replies: 26 / Views: 3,142 |
Posted 06/12/2013 11:30 am
