Gold

CoachKandSportsguy · 05-04-2023, 05:36 AM

For people wanting a bit of a banking / inflationary hedge in case the banking system gets overly stressed at the moment, GOLD at a 5-10% portfolio weighting is a good short term investment

DYODD

two months to go future former finance guy

dewilson58 · 05-04-2023, 06:31 AM

"inflationary hedge"????

But since inflation has jumped (December 2020 thru today), gold is DOWN double digits.

ThirdOfFive · 05-04-2023, 06:40 AM

Quote:

Originally Posted by dewilson58

"inflationary hedge"????

But since inflation has jumped (December 2020 thru today), gold is DOWN double digits.

I love those TV commercials of people touting the investment value of gold. My thought has always been: if gold is that good, why are they trying to SELL it?

retiredguy123 · 05-04-2023, 06:58 AM

FYI, I once called a gold coin dealer who advertises on television and asked the question, "if I buy $1,000 worth of gold coins, and then sold them back within a few days, with no change in market value, how much money would I receive? He said I would end up with $920, or 8 percent less. So, if you buy gold coins, the market value would need to increase by 8 percent in the first year just to break even. I don't know if there are more efficient ways to buy and sell gold.

dewilson58 · 05-04-2023, 07:07 AM

Quote:

Originally Posted by retiredguy123

fyi, i once called a gold coin dealer who advertises on television and asked the question, "if i buy $1,000 worth of gold coins, and then sold them back within a few days, with no change in market value, how much money would i receive? He said i would end up with $920, or 8 percent less. So, if you buy gold coins, the market value would need to increase by 8 percent in the first year just to break even. I don't know if there are more efficient ways to buy and sell gold.

ouch!!

MrFlorida · 05-04-2023, 07:16 AM

Gold is only good if you can find somebody to buy it when you need it. Otherwise its just fishing weight.

Stu from NYC · 05-04-2023, 07:58 AM

Quote:

Originally Posted by retiredguy123

FYI, I once called a gold coin dealer who advertises on television and asked the question, "if I buy $1,000 worth of gold coins, and then sold them back within a few days, with no change in market value, how much money would I receive? He said I would end up with $920, or 8 percent less. So, if you buy gold coins, the market value would need to increase by 8 percent in the first year just to break even. I don't know if there are more efficient ways to buy and sell gold.

Or buy stock in a gold mine.

charlieo1126@gmail.com · 05-04-2023, 08:10 AM

Quote:

Originally Posted by ThirdOfFive

I love those TV commercials of people touting the investment value of gold. My thought has always been: if gold is that good, why are they trying to SELL it?

I wish Gordon Liddy was still around , his financial wisdom was priceless

retiredguy123 · 05-04-2023, 02:23 PM

Quote:

Originally Posted by charlieo1126@gmail.com

I wish Gordon Liddy was still around , his financial wisdom was priceless

My favorite is William Devane. I also liked him in Space Cowboys. Best movie ever.

CoachKandSportsguy · 05-04-2023, 06:42 PM

Quote:

Originally Posted by dewilson58

"inflationary hedge"????

But since inflation has jumped (December 2020 thru today), gold is DOWN double digits.

because that was not the time to buy. . gold is not a buy and hold and hope for a reserve currency meltdown . . its for situations when currency meltdowns have a higher probability.

GLD, or IAU are gold proxies you can buy without buying physical, but closely relate to the physical

Velvet · 05-04-2023, 06:54 PM

I thought about gold. In Europe during hyper inflation, I mean as a true story (probably where the story came from); my grandmother went to the chicken coup, pulled out 2 eggs and paid off her mortgage. So people invested in items, especially gold. My mother bought gold bars which she put in safety deposits box, 99.98 % pure. Too heavy, too much trouble for me. I thought, well gold is good, so why not wear it at the same time? Now I have beautiful, heavy 24k gold bangles, rings, necklaces etc. But it’s awfully soft for jewelry. You have to be careful not to dent it, but it’s fun! For weddings etc too much trouble for the pool or something. So there it is in the safety deposit box to be admired when I want to and ready for sale (by weight) when I want to. Uncle had gold krugerrands for similar reasons.

retiredguy123 · 05-04-2023, 07:35 PM

When I lived and worked in Saudi Arabia, they had huge gold jewelry markets where they sold 18 karat gold. Unlike this country, you just picked out the jewelry you wanted, they put it on a scale, and you paid by the gram. It didn't matter whether you were buying a necklace, a ring, or a bracelet. It was all the same price.