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Valued Member
United States
379 Posts |
Ok, I did not do this. While I may have have spent too much on a coin, I also got a few bargains. I have lost money on coins. I have gained money on coins. That being said...
ok, it is late 2007. rhodium is approaching $9,000 an ounce and the charts indicate a meteor-like rise to go even higher. you decide to put in your entire inheritance or life savings and pull the trigger on $9,000 and happily watch it go even higher in the weeks ahead.
fast forward a month or so. The price fell like a rock in just in a few days. you don't even have time to sell it. now you are stuck with a metal that now is not even worth a tenth of what you paid for it. your wife or girlfriend has left you for losing the family treasure. you have to inform you daughter that she is not going to Harvard after all. the big vacation to see the world is off. as the price eventually falls to below $1,000 and continues to go even lower you are almost suicidal. You cannot afford to sell it at those rock-bottom prices. Your only slim chance at best is to eagerly read every "gold-will-skyrocket-to-more than-$10,000-an-ounce" ads. It never happens.
Then, fast-forward about 10 years. Rhodium has reached record highs as far as recent history goes, to $2,135 an ounce... and rising, from basically next to nothing to the highest its been in about 10 years in only a matter of months.
So, do you sell at that price and consider the current high a semi-miracle or continue to hang on, hoping that you or the person who inherits your rhodium will have better luck?
Sell or keep?
p.s. I know some of you may suspect that this poor person is me, but it is not. However, it could have been back then and there has got to be many thousands of people who bought it back then on its rise at anywhere from $2,000 an ounce to $10,000 an ounce. Just wondering what the average joe here on this board would do.
Note that the price for rhodium has (and holding... for now) consistently in a relatively short time gone up to a present record high with only a few minor drops which recovered quickly. Currently, it has never been this high since the rising star blew up 10 years ago.
Personally, I would sell and get out now and thank the Lord. Or would you wait for it to go higher, if it does, hoping beyond hope that rhodium will once again dance at around 10k an ounce again? if you do decide to sell, at what price would it be, as compared to what you paid for it would you sell it for? like the example... you paid $9,000 an ounce. what do you do? what price would you sell it for?
I will say that I did buy SOME (not a lot) years ago at about half of what it is now. I have no intention on selling, not while rhodium is on the going up train. I intend to hang onto it until it once again drops like a stone. My twisted way of thinking is why I live in a 30 year old r.v. and divorced.
If I were smart, I would sell at least half of it now and take the profit. but I am not smart. but then again, I do not and never bought it or the coins to make money, but as insurance should the world blow up. if only I could figure out how to break it off in little pieces to buy groceries.
I can imagine a fable. You are in the deep desert, lost and without water for 4 days now. You can feel yourself slipping. You have a suitcase with a million dollars in it. You come across a nomad with water and he will sell a gallon of it for your million dollars. will you do it? Has anybody heard of the fable of the goose that laid the gold eggs? Some people think it was a chicken. The story ends up with the goose's owner killing it because of all the eggs that must be inside of it and the owner has no patience. He finds out that there are no eggs inside the goose. Ok, now for the one about the person who counted his chickens before the eggs hatched... mike Edited by 4504
07/17/2018 10:11 pm
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Pillar of the Community
United States
2023 Posts |
The money spent on the coin initially is gone. You'll never see that money again. You'll only see the money you get when you sell what you have. If this were a stock or mutual fund, or any other kind of investment where you have to pay capital gains tax, that would have a big impact on the decision -- do you want/need to claim the loss this year? Maybe wait until next year and claim the loss then (presuming it is still a loss)?
To me it comes down to two things: Do I need the money now, and do I think rhodium will go up later? The answer to the first is personal, the second is subject to research and guesswork that I haven't done.
tl;dr - It depends. Sorry, I know that's not very helpful.
Edited by Alpha2814
07/18/2018 12:19 am
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Pillar of the Community
United States
759 Posts |
Family, dogs, friends, country and some other things, including some coins at times, may deserve loyalty. Bullion rhodium does not. Sell now in both situations. Waiting for huge price recoveries rarely turns out well and even if it eventually does, there's a significant price to pay in stress (and virtually nobody would sell at breakeven, setting themselves up for a second crash). Put it behind you. Be happy. Use stops.
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Posted 07/20/2018 01:59 am
