Small practical investment - Gold - opinions ...

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Small practical investment - opinions ...

I been thinking to buy gold.
Collect on gold bullion.

Reasons.
I find it being a good investment as gold we only get less of from the mines like oil witch make it more attractive and expensive.
The curve of golds price development is much better then founds or stocks.
You can also borrow money from you own gold "pledge" like taking a bank loan of your own gold.

It exist gold bullions in different size/weight witch fit most wallets.

Quote: AverageJOE

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The curve of golds price development is much better then founds or stocks.

Are you sure? It doesn't look like tech stocks did in 1999, or like house prices did in 2005? Gold is down from it's peak, but still trading very far over what historical pricing would dictate is reasonable. Please make sure that you aren't buying an asset that is already over-valued.

Quote: AverageJOE

It exist gold bullions in different size/weight witch fit most wallets.

Gold is $1600/ounce, and an ounce is not very large or heavy. Are you sure you want that much value in your wallet?

gold price has dropped more than $34 (2%+) just today.

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5 to 10 gram bars for around 190 to 350 Euro

Quote: WongBo

gold price has dropped more than $34 (2%+) just today.

I speak long term ... and how come the government has gold reserve if it was no good investment ...

I advise owning some gold under the right circumstances, I did very well with it but am now out. There is no need to hold the bullion or coins, IMO, then again I am a liquidity freak. The etf GLD is probably what I will buy if I get back in. I would wait until gold drops closer to $1000 an ounce. If it never does drop that low, I would never buy it ... at least that is my advice for now.

If you really think that gold is a good long term investment at $1600/ounce, then go ahead and buy. I'm with odiousgambit. $900ish-$1100ish is the level that gold "should" be at, post 2009 run-up not withstanding. I'll wait for it go fall back down to its historical inflation-adjusted trading range before buying.

I am rather bullish on gold in general and perhaps even meet the criteria for a "gold bug," as evidenced by my recent purchase of 2oz of gold from the Wiz at a spot price of $1710/oz (plus a markup for the American Gold Eagle coins). I myself even thought this was possibly foolish, but I fear economic collapse and wanted to add some gold to my portfolio at that point in time regardless of the cost. Note that I am not a savvy investor, so don't listen to my advice, I'm just justifying my actions. I do own 2 additional ounces of gold that I purchased for $906/oz (including the markup) several years ago, so if I my goal was to make a short- or medium-term profit, I would have sold those already. I also have 200 ounces of silver that I bought at $12.84/oz, so I could have sold that when silver was near $50/oz for a tidy profit, but I chose not to.

If you have spare money and are already investing in other vehicles (i.e. stocks), then maybe consider gold, but at current prices it's probably not wise, unless you're super paranoid (like me) or have some insider info about the end of the world. The utility of gold (and silver, and other metals) in a post-apocalyptic meltdown of society is also debatable, and has been discussed here before.

Quote: AverageJOE

It exist gold bullions in different size/weight witch fit most wallets.

This is a curious statement...even if you could put gold in your wallet, what are you going to use it for? Merchants don't really take gold as payment, and the places where you can exchange it for cash are not on every corner. It's just not useable as a day-to-day currency.

For reference, past threads on gold:
Will Gold 'Bubble' Burst?
Predict the price of gold on Jan 1, 2013.

You might want to ask the question - Is gold strong or is the US Dollar weak?

I bearish on gold and would like to sell my two 1-oz coins at $40 above spot. PM me if interested.

Quote: rdw4potus

Gold is $1600/ounce, and an ounce is not very large or heavy. Are you sure you want that much value in your wallet?

Converting $1600/ounce = $56.43/gram. A banknote weighs one gram, so $100 banknotes are worth roughly twice as much pound for pound.

Quote: pacomartin

Converting $1600/ounce = $56.43/gram. A banknote weighs one gram, so $100 banknotes are worth roughly twice as much pound for pound.

There are 31.1035 grams per troy ounce, so it's even closer than that: $51.44/gram, so very close to twice as much value per unit of weight in the $100 bill.

So, 453 $100 bills would weigh about 1 pound. Here's hoping I'm traveling home from Vegas next week with a pound of $100 bills...

Quote: rdw4potus

There are 31.1035 grams per troy ounce, so it's even closer than that: $51.44/gram, so very close to twice as much value per unit of weight in the $100 bill.

So, 453 $100 bills would weigh about 1 pound. Here's hoping I'm traveling home from Vegas next week with a pound of $100 bills...

A brick is 4000 banknotes and weighs 8.8 pounds. A brick of $10 banknotes would be $40K, which is only a little less than a pound of $100 bill ($45.3K). I always wanted my own brick, but not $1 bills.

The guys that owned the golden nugget said one of their patrons showed up with 3 bricks of $100's in a pillowcase.


There are 4 bricks in this photo.

Thats one of the most beautiful pictures I have ever seen :)

Quote: pacomartin

A brick is 4000 banknotes and weighs 8.8 pounds. A brick of $10 banknotes would be $40K, which is only a little less than a pound of $100 bill ($45.3K). I always wanted my own brick, but not $1 bills.

The guys that owned the golden nugget said one of their patrons showed up with 3 bricks of $100's in a pillowcase.


There are 4 bricks in this photo.

Funny to think that $1.6MM would only weigh 35 pounds and, apparently, fit in a pillowcase. I've changed my mind. That's what I'd like to return from Vegas with next week:-)

Quote: ncfatcat

You might want to ask the question - Is gold strong or is the US Dollar weak?

The better buy would be silver!!! Look at the SBSS report on youtube and judge for yourselves. At $30 it is way undervalued, way over consumed, and way more scarce for investment than gold.

Silver is for speculators, and has a higher variance than Gold, due to its low price per ounce compared to Gold.

Gold at $1600 is speculation, not investment. Investment in Gold usually has a "Pry it from my dead, cold fingers" sentiment. Are you willing to hold Gold for 7 years?
If not, Gold is not for you... Silver is.

Quote: AceCrAAckers

The better buy would be silver!!! Look at the SBSS report on youtube and judge for yourselves. At $30 it is way undervalued, way over consumed, and way more scarce for investment than gold.

I have a quantity of American Eagle Silver Dollars (One Troy Ounce) that I am ready to sell for a negotiable price above spot. PM me for details.

Sorry Teddys, I buy all my silver from William Herbert Hunt.

The thing regarding wallet statement is a misunderstanding - it was my way trying to say to buy gold some one has not have to be rich - it has not have to be so expensive witch make even ordinary people to collect gold coins or bars/bullions.

It is also interesting for other obvious reasons.
In Europa we don't have to pay tax due casino game winnings - but if we win outside Europa we have to pay tax.
And there is also known rules how much money you are allow to get in and out boarders.
Buy personally jewelery can be a solution to that among others ...

I'm looking at it, and silver. Currently the price ratio of silver:gold is 59:1 at 23.87 and 1403.87.
Historically this price ratio has be 16:1. This 59:1 ratio signals higher silver prices.

Add in the high industrial demand and consumer and investment demand and there is a definite shortage.
It's almost as if the prices are being kept low for a reason.

I've only started looking into these thing within the past 2 weeks. I'm not an expert and have read various opinions and forward thinking statements. I believe these two are a good investment and will be doing my best to hop in after the 1st of the year. I'm thinking 60 ounces Silver for every 1 ounce of Gold.