Invest in Gold Coins?

Money, it's a drag wrote:

How "liquid" are these coins?

Very liquid at 1064.43 °C (1337.5801 K, 1947.9741 °F)

Invest in gold, not gold coins. The price to mint the coins is built into the cost, and is the same as a sales load on a mutual fund. Think about it; you will not get an ounce of gold for the going rate of an ounce of gold.

Not sure if commodities are exempt from cap gains taxes.

Sir,

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Pamela Anderson's Left Nipple wrote:

Invest in gold, not gold coins. The price to mint the coins is built into the cost, and is the same as a sales load on a mutual fund. Think about it; you will not get an ounce of gold for the going rate of an ounce of gold.

Not sure if commodities are exempt from cap gains taxes.

Gold bullion is gold, just in coin form. From what I read, its value is based on the actual weight of the coin - and the going rate of gold.

I'm not talking the "proof" or "uncirculated" collector sets you can buy. They are nice gifts from grandma, but that isn't what I'm referring to.

Most Americans do not understand the importance of gold as currency. Globally it is the most universal currency. you have to understand currency markets to really profit from gold and the fluctuating value of the dollar, etc.

remember the scene in Rabbit at Rest (Updike) where Rabbit and Janice are hauling gold bricks from the bank to their car? comical. but quite accurate about the paranoia at the time.

anyway you don't want gold bricks. what you want is GoldCorp, symbol GG. it is the most undervalued name in mining today.

Pamela Anderson's Left Nipple wrote:

Think about it; you will not get an ounce of gold for the going rate of an ounce of gold.

Actually, it's pretty close. In the ad, the treasury is offering an ounce of gold - 10 coins - for $610. Gold is about $590/oz right now.

I know nothing about economics and a little about investing. But I can't figure out the attraction of gold today. Isn't its value derived from supply/demand/scarcity? Historically it has been used to back the value of our currency and others, but is that really the case anymore?

The adds I hear talk about what happens if the world goes to hell ... everyone will need gold, etc. Wouldn't gas/oil be a more valuable currency (ala Mad Max)? Gold only has value if other people want it. Why would you want a big heavy, shiny metal brick if the world goes to hell?

Help me out here. Am I way off base?

Money, it\'s a drag wrote:

Actually, it's pretty close. In the ad, the treasury is offering an ounce of gold - 10 coins - for $610. Gold is about $590/oz right now.

But if you wanted to cash it in, what would they be willing to pay you for your gold coins? That is what determines its value.

Asterix wrote:

But if you wanted to cash it in, what would they be willing to pay you for your gold coins? That is what determines its value.

Agreed. That's what I meant by my "How liquid is it?" question.

green eggs and hammy wrote:

I know nothing about economics and a little about investing. But I can't figure out the attraction of gold today. Isn't its value derived from supply/demand/scarcity? Historically it has been used to back the value of our currency and others, but is that really the case anymore?

The adds I hear talk about what happens if the world goes to hell ... everyone will need gold, etc. Wouldn't gas/oil be a more valuable currency (ala Mad Max)? Gold only has value if other people want it. Why would you want a big heavy, shiny metal brick if the world goes to hell?

Help me out here. Am I way off base?

I think the logic goes something like this ... money in a bank or wrapped up in a company's stocks or bonds can disappear quickly with a market crash. Big shiny bricks stick around. Yes, the value may diminish, but over time the demand returns. It's much like being land. It's a TANGIBLE asset.

Of course I meant "buying" land.

http://www.howtodothings.com/finance-and-money/a3707-how-to-buy-gold.html

"Gold bullion, then, is the most guaranteed and, therefore, most liquid form of gold. If you want to buy gold with the idea that you’ll ultimately sell it, then you might want to buy gold bullion; it’s easy to buy gold this way and easy to sell it around the world."

Bully on, fellas. Bully on.

It's illegal to own gold bullion, but not the numismatic coins for collectors.

Govt. gets a cut of everything.

I paid a bit over $16,000 US on delivery for 100 one Troy Oz 1976 Kugerrands in 1977. Has that bag of gold in my safe kept up with inflation, S&P 500,Dow Avg. and bank interest?

ann .

1 oz Kugerrand on Ebay are going for around $645 a pop. (Buy it now prices). Go conservative and say $500/1 oz coin.

100 coins X $500 = $50,000.

$16,000 in 1977 ... turned into $50,000 now?

Go to an investment calculator and plug in the numbers. Based on this it looks like you earned about 4% annually - and that figures in compounding interest, which you actually wouldn't get with this.

Looks like you could've done better.

DO NOT INVEST IN GOLD. IT IS THE WORST THING TO INVEST IT. ITS OVERBLOWN, OVERVALUED, AND PEOPLE CHEAT LIKE BITCHES EXPANDING THE SUPPLY. I know...

I bought 10 1troy ounce coins that were supposedly .9999 fine. What I found out was that the gold varried from .9800-.975

I was jipped out of about 20-30 dollars. Which isn't that much on a 6000 dollar investment. THE PROBLEM IS MULTIPLY THIS 10 MILLION TIMES and you start realizing how f***ed up trading gold is. People are getting royally screwed.

-E-GOLD is NOT 100% backed in reserves like you would think, further increasing the supply beyond what it should be, altering the price.

-Jewelry continues to inflate the 'perceived' gold supply also keeping the price low.

-the arbitrage on large transactions of .999-.9999 fine gold is also potentially troublesome.

IN SUMMARY, GOLD PRICES ARE LOW BECAUSE THE WORLD IS FULL OF LYING PRICKS. YOu think a market crash or inflation would change the price of Gold to what it should be? NO! because lying bastards would jip you out of a few .0001 ounces here and there, Or lie completely and give you something thats gold plated lead. these are the problems with the GOLD industry and they are serious....thats why investing in gold is troublesome.

Also, you are heavily taxed on GOLD no matter what you make from it. Its a way the Gov't keeps track. trust me, google it. and btw, if you ever get a GOLD COIN, look at all the little knicks and knacks on it if its circulated....you know WHY? because bastards chip it and flake it to get gold off, which means you're never really getting an ounce when you buy one. Sucks don't it? YOu want to invest in a good metal? SILVER, ticker symbol SLV, is a much better investment...OR invest in Natural Gas or Oil. and if you are really creative you'd invest in Archer Daniels Midland, the largest Ethanol producer in the world. BETTER INVESTMENTS THAN GOLD.

Platinum too, can't forget about that. Real plat is like gold, but the Plat industry and cheating, bitch pricks aren't as clever with it. Its also not as malleable as gold, which is Gold's shortfall in the modern era.

Silver, stock symbol SLV

Natural Gas, Oil producers

stocks like XOM, COP, and NMX, ICE (commodities exchanges)

also, ADM for ethanol plays DO NOT INVEST IN SMALL ETHANOL PRODUCERS...they are sitting ducks for ADM and other much larger companies that can control the price of ethanol.

If you are't into stocks, try bonds for these companies, they do quite well. There you go, I just gave you enough investment advice to keep you secure through pretty much anything the world can throw at you...apart from a asteroid.

Money, it's a drag wrote:

Pamela Anderson's Left Nipple wrote:

Invest in gold, not gold coins. The price to mint the coins is built into the cost, and is the same as a sales load on a mutual fund. Think about it; you will not get an ounce of gold for the going rate of an ounce of gold.

Not sure if commodities are exempt from cap gains taxes.

Gold bullion is gold, just in coin form. From what I read, its value is based on the actual weight of the coin - and the going rate of gold.

I'm not talking the "proof" or "uncirculated" collector sets you can buy. They are nice gifts from grandma, but that isn't what I'm referring to.

their value is based on the weight of gold, however their price is not, you are paying for the weight of gold and having it coined at some factory (probably not too much, since they do it repetively, but you should check). If other words, if you were to buy and sell them at the same time, you would lose money.