This seems to be happening more and more.
People come into the local coin shop wanting to buy gold and
silver, because they are worried about the economy, government
or the banks.
A customer came in yesterday, he had taken all his money out
of the bank. He said it was no longer insured and he want to
put all his money into gold bars.
We tried to explain to him that gold eagles are more trusted
than bars. And tried to explain how gold and silver are bought
and sold. Many customers think ...for example .. if gold
is at $1200 dollars per oz. then he should be able to buy
or sell it at $1200 per oz.
He seem to hate the government so much he did not want gold
eagles ... because they were government coins. Asked if he should
melt them down ....
All some think is .. I will buy gold and someday it will be worth more.
In reality if you buy a lot of gold and silver you will have
to be okay with the value taking swings in value .. up and down.
Your 1oz gold coin might be $1200 today .. it might be $1600
next year ... but it might be $800 in two years ..
You should not put all your money into this type of investment.
The United States may not be perfect, but it is the best
country in the world. At least to me. If you don't like how things
are going, work at changing it. But the game of life in the
United States is what we have. Learn all the rules and
work to get ahead.
gold bars vs gold U.S. coins vs old gold vs foreign gold.
It not just what you can buy it at, you have to learn what you
can sell it at. Dealers in bullion
buy and sell all forms
at different prices.
What I am saying, they might sell you the 1oz gold bar a little closer
to spot gold price, but they buy it further, back of spot,
when they buy it back from you.
Plus .. from state to state, sales tax might be different
from bullion vs
US coins.
A person really should not putting a large part of their saving
into bullion with out learning how it works .. in most cases
they should not do it at all.
Work at getting debt free should be a number one goal.
That means paying off home and cars.
Establish a stable retirement income. Reduce unnecessary
spending.
Buying gold and silver over decades, only in addition to the above.
As I write this ... I think there is no way to convince
someone that dumping a lot of money into gold, is not
going to solve their problems and worries.
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Posted 10/20/2016 11:38 pm
