should I break down and buy a gold coin?

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should I break down and buy a gold coin?

Yes
13
24%
No
14
25%
I dont care, but do care enough to actually mark the dont care box.
28
51%
 
Total votes: 55

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LH
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should I break down and buy a gold coin?

Post by LH » Tue Aug 07, 2012 1:34 am

[restarted thread, check post dates before responding - admin alex]

should I break down and buy a gold coin?

LH

Johm221122
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Re: should I break down and buy a gold coin?

Post by Johm221122 » Tue Aug 07, 2012 2:19 am

If because you just want one,yes
If because you think it is the best investment, maybe
If you think you will feed your family if Armageddon happens ,no
Seriously ,why?Go for it if you really want to,it is better than a time share or whole life.For some people it may actually be the right thing. :sharebeer
Good luck
John

Dude2
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Re: should I break down and buy a gold coin?

Post by Dude2 » Tue Aug 07, 2012 6:29 am

I've got nothing against you buying them, but now is probably not the time. Wait until gold takes a dip. It has been hovering in the $1600 range. Maybe target the $1000 range. Otherwise, don't bother. That's one man's opinion, nothing more. I have a position in PRPFX, so I don't worry about it. However, my precious metal allocation is still below 10% overall.

exoilman
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Re: should I break down and buy a gold coin?

Post by exoilman » Tue Aug 07, 2012 6:36 am

If it is to enjoy, absolutely!

Sam

carolinaman
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Re: should I break down and buy a gold coin?

Post by carolinaman » Tue Aug 07, 2012 6:57 am

I am no expert on gold but have read from credible sources that historically it is not a good hedge for inflation. Do others agree on that?

Dude2
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Re: should I break down and buy a gold coin?

Post by Dude2 » Tue Aug 07, 2012 7:11 am

johnep wrote:I am no expert on gold but have read from credible sources that historically it is not a good hedge for inflation. Do others agree on that?
I think the point is that it is another unique assest class that is differently correlated with stocks, bonds, etc. In a sense gold is the reference frame. One might consider that gold prices have not quintupled over the last few decades but that the dollar has weakened by five times. It seems to be something that "holds value".

Grt2bOutdoors
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Re: should I break down and buy a gold coin?

Post by Grt2bOutdoors » Tue Aug 07, 2012 7:37 am

If you like looking at shiny things, much like a woman who adores her diamonds, then by all means......
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

glock19
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Re: should I break down and buy a gold coin?

Post by glock19 » Tue Aug 07, 2012 7:39 am

LH wrote:should I break down and buy a gold coin?

LH
Tell us why you want/need one and maybe we can voice an opinion. Is it calculated part of an investment plan?

Tom_T
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Re: should I break down and buy a gold coin?

Post by Tom_T » Tue Aug 07, 2012 7:43 am

A gold coin? You mean one?

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nisiprius
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Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: should I break down and buy a gold coin?

Post by nisiprius » Tue Aug 07, 2012 7:48 am

"A" gold coin?

For me, a single $1,600 gold coin would not change my financial situation materially if it tripled in price, and would not change my financial situation if it became worthless. That's the problem with protection against low-probability black-swan events. It doesn't come cheap. If there are a hundred black swan scenarios, and each of them requires a 10% resource allocation to provide meaningful protection...

I vote no, because for me, considered as a financial proposition, this would clearly be a lose-lose situation.

a) The price goes down. I feel lousy because I lost money, and because I feel the ego sting of being wrong about gold.

b) The price goes up. In fact the dreams and nightmares of the goldbugs come true. All my other assets are vaporized. I'm left with one shiny Canadian maple leaf, now worth $5,000. Heck, $10,000. Heck, $20,000. I feel lousy because it isn't enough to rescue me. In fact I feel even worse because I was right about gold but didn't have the courage of my convictions. My pessimistic friends warned of rain and bought big umbrellas, and when they finally convinced me to buy one--

Image

If you're buying it as a curio, evaluate it like any other purchase--like the poster who was asking about buying a $20,000 motorcycle. Figure it's an easily marketable item that can probably be resold for at least half its purchase price, so your effective cost is half what you paid for it. Then factor in:

--How much pleasure will I get from pride of ownership?
--How long will that pleasure last once I get used to the idea of owning one?
--How much pleasure could get spending that money in some other way?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

nolabogle
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Re: should I break down and buy a gold coin?

Post by nolabogle » Tue Aug 07, 2012 8:35 am

I've got nothing against you buying them, but now is probably not the time. Wait until gold takes a dip. It has been hovering in the $1600 range. Maybe target the $1000 range. Otherwise, don't bother.
I agree.

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LH
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Re: should I break down and buy a gold coin?

Post by LH » Mon Apr 28, 2014 11:04 pm

nolabogle wrote:
I've got nothing against you buying them, but now is probably not the time. Wait until gold takes a dip. It has been hovering in the $1600 range. Maybe target the $1000 range. Otherwise, don't bother.
I agree.
still waiting on the 1K : )

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LH
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Re: should I break down and buy a gold coin?

Post by LH » Mon Apr 28, 2014 11:06 pm

johnep wrote:I am no expert on gold but have read from credible sources that historically it is not a good hedge for inflation. Do others agree on that?
It is not a good hedge for low inflation, or even moderately high inflation, say 5, or maybe even 10 percent.

But hyperinflation, yes. where the delineation is I do not know.

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cfs
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Re: should I break down and buy a gold coin?

Post by cfs » Mon Apr 28, 2014 11:08 pm

Yes

I marked yes, because you can, come on now, you know you want it, you know you just can't wait to get it . . . go for it.

Do Great Things! And thanks for reading this note.
~ Your Money, Your Portfolio, Your Decision ~

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cheese_breath
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Re: should I break down and buy a gold coin?

Post by cheese_breath » Mon Apr 28, 2014 11:12 pm

I wouldn't buy one as an investment. But if you want one because you want one, go ahead. Just don't leave it in your loose change, or it might end up as a tip for the bartender.
The surest way to know the future is when it becomes the past.

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ogd
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Re: should I break down and buy a gold coin?

Post by ogd » Mon Apr 28, 2014 11:57 pm

LH - knowing you a bit from a bunch of threads and posts, I'd say go ahead and do it. It will buy you peace of mind and some time not spent agonizing over the gold price, no doubt.

Some of us spend more than that on vacations to de-stress, and all we have to show for it afterwards is a bunch of lousy amateur pictures.

(I'm only half joking)

Valuethinker
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Re: should I break down and buy a gold coin?

Post by Valuethinker » Tue Apr 29, 2014 3:00 am

ogd wrote:LH - knowing you a bit from a bunch of threads and posts, I'd say go ahead and do it. It will buy you peace of mind and some time not spent agonizing over the gold price, no doubt.

Some of us spend more than that on vacations to de-stress, and all we have to show for it afterwards is a bunch of lousy amateur pictures.

(I'm only half joking)
But OP should buy 10, not 1. Maybe phased over a period of time like 2 years. To actually have an investment in gold which is worth something and useful if it all hits the fan.

BigTom
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Re: should I break down and buy a gold coin?

Post by BigTom » Tue Apr 29, 2014 5:53 am

I actually looked in the pm market . It seems most don't do it as an investment . It's either a hobby or they believe it will be the only for of currency when the world goes to shit . I though maybe it would be a good long term investment is why I looked into it . But having one coin I wouldn't think is all that big a deal and may pay off . IMO if you just trying to gain big there would be more upside potential from silver at a much lower cost . I was thinking of buying 20 American silver eagles would cost $500 for 20oz . If that price ever jumps significantly it would be a good return if it tanked it's still worth $1 lol .

Another thing to consider is it seems you put yourself at risk for robberies . When I was looking into it there seemed to be lots of robberies from people collecting PM. Again not an issue if you are only buying one coin.

Flashes1
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Re: should I break down and buy a gold coin?

Post by Flashes1 » Tue Apr 29, 2014 6:24 am

I view my silver and gold coins as works of art, and historical treasures.

Dude2
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Re: should I break down and buy a gold coin?

Post by Dude2 » Tue Apr 29, 2014 7:54 am

Gold coins have an attraction. Tax-wise they aren't doing anything harmful while they just sit. Basis record keeping is on you as buy/sells at gold shops aren't sent to the IRS. Folks probably get caught up in the "what's mine is mine" aspect, and you can certainly store a good deal of wealth in a small space.

Our problem is how to legally get gold into your portfolio to take advantage of its unique factors. We want to have control of the allocation and be able to rebalance -- to treat it all very unemotionally and mathematically and stick to a plan.

To do this I suppose we have to have rebalancing bands, and we have to buy and sell our coins to maintain that. In the accumulation phase, you're probably going to have to go through an annual purchase/sell activity. This will involve a local shop or insured mailing to dealers from the Internet. I would be so paranoid to have to do this as even a medium-dumb criminal could get my scent. In retirement I would be even more apprehensive.

I have toyed with PRPFX to let them take care of the rebalancing for me, but the high expenses and active management factors have driven me away. PERM is there. It is still relatively new, but perhaps an option.

I don't understand how you successfully and realistically fit gold coins into the equation. On the other hand, you can buy all the jewelry you want.

Valuethinker
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Re: should I break down and buy a gold coin?

Post by Valuethinker » Tue Apr 29, 2014 8:21 am

BigTom wrote:I actually looked in the pm market . It seems most don't do it as an investment . It's either a hobby or they believe it will be the only for of currency when the world goes to shit . I though maybe it would be a good long term investment is why I looked into it . But having one coin I wouldn't think is all that big a deal and may pay off . IMO if you just trying to gain big there would be more upside potential from silver at a much lower cost . I was thinking of buying 20 American silver eagles would cost $500 for 20oz . If that price ever jumps significantly it would be a good return if it tanked it's still worth $1 lol .

Another thing to consider is it seems you put yourself at risk for robberies . When I was looking into it there seemed to be lots of robberies from people collecting PM. Again not an issue if you are only buying one coin.
Where I live (UK) Asian (south Asian) families have been targetted at home by criminals. India is the largest buyer of gold retail in the world-- for jewelry. It is known/ believed that Asian families in the UK keep a lot of gold (some do, some don't). These are 'home invasion' type crimes, often.

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