Gold eagles

copperhead

copperhead

Active Member
A hypothetical question
If a person had $250,000 and invested all of it in American eagles with the thought of leaving alone for
15 years - how dumb is it ?
Considering money can vanish with on paper investments
Gold looks attractive .
 
copperhead said:
If a person had $250,000 and invested all of it in American eagles with the thought of leaving alone for
15 years - how dumb is it ?
Click to expand...
It would be pretty dumb if gold was worth less at that time than what it's worth now. What I'm trying to say is that it is a gamble that the price of gold will go up. Personally I would not take that risk with 250K. Maybe a portion of it but not the whole lot but that's just me.
 
Take a look at this chart. If you bought gold in 1988 it was still worth the same of money (less fees for safe keeping) in 2006. That is 18 years of it going no where. I would not take that sort of risk myself.
Screen Shot 12-12-17 at 08.03 PM.PNG
 
If it was a sovereign collection I'd say good idea - subject to Bullion Baron's points. (Or antique Eagles)
 
Some experience's occurred that I take note from .
Last September I needed about $3200 cash at first I wanted to borrow or use some silver as collateral ( to save the stack) but the thought of utilizing $6400 in silver as collateral with a pay back of time of 60 days and $4000 or just pay interest and take longer to pay back . :eek:
I realized how smart I was that I stacked so I could borrowed from my self. I was paid $18 per ounce and lately my repurchase is low enough
So as long as silver or gold never takes a dive it's a fine storage of wealth . But heck any thing could happen .

As I'll tell you this . I have earned $$ over the years with copper . I remember when it was almost $4 per pound
good money for something you can find Free . You have it they pay. For a period of time due to the value of copper it had an effect on me
when I held it . found it . Just looked at it . It became a precious metal indeed . I experienced a gold rush of sorts . A craze . I was an excellent miner of copper from refuse .
Then the scrap market crashed , I could still make money but I re-adapted I sold copper for as low as $1.24 brass was under $1
after a period of time Copper looked different . My memory of copper was one thing the pay out was truth . I started to see it for what it was
a necessary metal for civilization but it's cash value could become nominal and the effort to find it , process it
to get it to market was getting old at a dollar and change. Copper has returned to a manageable price so I pursue it but it's days of $4 -
who knows not now thats for-sure
So is any metal not susceptible to a crash ? They all can crash and it's a long wait for that Chart to Climb .
 
copperhead said:
A hypothetical question
If a person had $250,000 and invested all of it in American eagles with the thought of leaving alone for
15 years - how dumb is it ?
Considering money can vanish with on paper investments
Gold looks attractive .
Click to expand...

Right now its a decent insurance policy like gold has nearly always been. As an investment in and of itself its always been bad imo. Gold was used as a currency for most of our time as humans, not as a stock, and to use it like a stock/investment is foolish. But if you have no gold and silver and think you are rich you are a fool. You could have a 5 million dollar property in sydney and no PMs but if a collapse ever happens the guy living out of a cardboard box with 5 oz of gold and 10kg silver is suddenly richer than you.
 
projack said:
I bought most of my gold around 2005-2006 so 2020-2021 looks fine.
Click to expand...
Excellent timing, well done. The point in question is 250K now, would you risk a lifetime of savings now at todays prices in a commodity that may or may not go up for the next 15 years or so? I certainly wouldn't put the lot in, it's too risky. Your timing is so good, wish I could do that!:D
 
Never put your lifetime savings in one basket, and the same thing with the timing like the predefined 15 years.

Gold will go up again as public confidence in government debt will decline. You just cannot borrow for ever without even any intention to pay anything back.
 
With a little focus owning 200 ounces of silver is doable the space needed for 200 ounces is no big deal
$250,000 is a good chunk of change, about 200 ounce of gold is not much space .
I feel entities want to take our cash. Gold ETF's destabilize gold as an investment
Our cash is Fiat Stock is Fiat Investments are Fiat - Gold ETF's are Fiat -
A box of 200 ounces of gold coin is not Fiat .
Gold as your only wealth is not practicable in our current information communication society .
But by gosh has proven by the standards of the human race always the final back up of wealth
Ahh - what a game life is !!
 
If you're going to bury it and forget it? I don't know but I doubt you will do that. Putting $250k into something I figure you'll check into it from time to time. If gold stays stagnant, whatever, you can re-evaluate each year. If it goes up, great. If it rockets up, well, take the premium after some years and do something else...nothing is 15yrs or bust.
 
I've been playing around a little with stock for the last 2 years (as an experiment ) about $40 per month so I have 7 holdings like about $800 in total value
2 have done well like 110% growth others worth less like minus - 25%
The purchases of each stock was from $40 to $100 over all I am up $100 If my investments were $20,000 same stock i'd be sick over it
but in 15 years who knows . I have developed a belief for me at my age . Investing is chancy , hands will open and wave at you with promising $1,600 per month with a investment of $250,000 I think there is a chance it could go sour in 5 years but for 5 years your feeling very smart . I'd trust silver or gold but you know that could be Last famous words .
 
May I ask why american eagles? and not just bars or other types of bullion?

I have only been a member here for (maybe) 2 1/2 years. I made a few purchases from SBA and ABC prior to joining. I have purchased 1oz blobs, some certicard types and gold coins (some bullion grade some not). My primary interest is to preserve a bit of spare money prior to retirement to be available on rainy days although I must say that it has been an interestingly enjoyable on and off pastime .

I could not imagine investing 250,000 in one shot on gold unless I was a trader, knew what I was doing, and was playing the market. For me, with the exception of a few items, e.g. kijang emas, pandas and a mothers day pamp, I have purchased one or two items at time when price on offer was close to/or spot.

I have not purchased much so what follows is from a small sample. On the my spreadsheet today, which updates in real time to Kitco' spot and current exchange rate at worldfirst.com, some items are up and others down all total, I'm up 1.6% on bullion and down 0.54% on coins. My coin percentage is heavily weighted downward by some of the coins purchased at high premiums. In general, the price of purchases have tracked spot and while I don't chart the percentage/profit over time I can say, whether up or down, they are usually consistent within one point. I would expect going into the future things would remain just about the same should I continue to purchase gold as I do and there are no long term global catastrophes.

Anyway..... I get a buzz out of my way of doing it. I could imagine a bit of background anxiety if I were to purchase 250,000 in one pop unless that was indeed only 10-15% of my total portfolio.

Cheers
 
True for some people it could be 10-15% Not for I ,
Possibly a simple bank money market account is safest ?
But you know If a lump sum came your way and you
purchased like 190 ounces ,
at age 75 start cashing in one per month - what a disaster is gold went $600 per Ounce
but history for gold or silver it keeps even as a hedge , My worry is could future generations
have no interest in gold or silver
Here is part of an old show it was a good one

 
It matters more what percentage of your portfolio than what dollar amount. General consensus is that around 0-10% is the right place for precious metals (depending on personal preference and market outlook).
For someone with a portfolio of 3million, 250k in gold is fine. For a 1million portfolio, 250k of it in gold is very overweighted.

copperhead said:
...Considering money can vanish with on paper investments...
Click to expand...
Money can nearly or completely vanish on any bad investment (stocks, real estate, business, gold that you brag about and it goes missing, etc).

If you are diversified in high quality company equities (ie Dow or S&P 500 index funds), that doesn't vanish... and its dividend yield and growth potential beats the heck out of gold in nearly any sample period. The same can be said for a stocks/bond balance... there have only been a few market conditions where both dropped substantially (and they definitely did not "vanish"... one or both rebounded strong fairly soon afterwards). GL
 
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