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Two Gold Maple Leafs - Keep Or Sell?

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fistfulladirt's Avatar
United States
4333 Posts
 Posted 12/10/2017  6:29 pm  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply

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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punman's Avatar
Canada
849 Posts
 Posted 12/11/2017  11:23 am  Show Profile   Bookmark this reply Add punman to your friends list Get a Link to this Reply

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
Pillar of the Community
United States
3789 Posts
 Posted 12/11/2017  7:01 pm  Show Profile   Bookmark this reply Add yup7676 to your friends list Get a Link to this Reply
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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punman's Avatar
Canada
849 Posts
 Posted 12/21/2017  09:15 am  Show Profile   Bookmark this reply Add punman to your friends list Get a Link to this Reply
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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