Gold as a long term investment

[BudT]

Been thinking about buying some 1 oz gold American coins as a long term inter generational investment to pass on to the kids or grand kids. I'm no expert on this investing stuff but do know that precious metals are a part of a well balanced portfolio. I don't do any stocks or bonds all I do is save or buy guns. I guess I'm concerned about this government coming after private property to so other than what I live in I don't buy. I keep trying to talk myself into a piece of hunting property but I'm resisting. Gold good? or bad? I like gold, it's purdy.

[Allen]

Don't forget silver too.

Suppose chit hits the fan and our currency becomes worthless. Merchants will only take precious metals. You go to the store to buy a loaf of bread and let's say that because of the climate of the economy that loaf of bread is $20. How you going to pay with gold? With silver you can hand them an old worn out Washington quarter (or such) and be on your way.

Just my thoughts though. If you do invest in silver just buy worn coins that have no collector value. You'll be wanting them for the melt value only.

https://www.ngccoin.com/price-guide/coin-melt-values.aspx

[Art]

Gold and silver are high now so it's not a good time for speculators. For you, it would be quite ok as a long term investment, especially a hedge against inflation and the kids and grand kids will definitely appreciate it. Allen is right about not forgetting about silver. Bullion silver coins, that is old US silver currency coins (dimes, quarters, ect) that are common dates and mint marks and worn enough they have lost their numismatic value are a good bet. The great thing about the coins is they are in actual US currency, are self proving with known silver content, and are almost never counterfeited.

[Merc]

https://goldprice.org/gold-price-history.html

Gold has always been a safe haven against inflation. Study this graph carefully. Inflation was low during the final two years of the Obama administration because he lost both houses of Congress and for nearly all of the Trump administration. Look what happened to the price of gold in 2020 and beyond. If you buy into the gold market now and the democrats lose the White House and both houses of Congress, the price could fall back to the pre-Biden level.

[dogtag]

For SHTF scenario;
Trouble with gold is that paying for a loaf of bread with even a five peso coin will need change to be made.
Try getting change from a fifty peso.
For everyday purchases silver is best, or barter with ammo or the guy next door's Wife.

[dryheat]

The 11:00 o'clock test. When you start seeing the ads on t.v. for gold,houses,frying pans after 11:00 p.m. don't do it. It's too late. Everyone who gets killed in some bubble market is a Johnny-come-lately. So, does it pass the 11:00 test? A real question. Are we in for some "interesting times"? I think so. QE. Know what that is? Quantitative Easing. It's complicated, but it's printing money. Is my house really worth $xxxxxx? Right now it might be. Maybe not next year, or maybe it will be but cars will cost $80,000 and a six pack of beer will be $18. Or not.
Want some good(boring) advice? Invest in emerging markets at the bottom of the crash. These are the companies that missed the crash and are starting out fresh. Not as much fun as buying gold.
We are mostly too old to look long term now.

[Major Tom]

The 'gold' you buy online now is inflated prices for the company to profit from. You'll never get $ for $! When the shtf, get as far away from populous cities as possible!

[Allen]

I think the larger coin collector dealers sell gold and silver bullion plus commemorative coins that emphasize on the weight content instead of street value.

Still, expect to pay a little over current melt value as these people have to make money.

About 2 years ago I bought a few silver U.S. coins from sellers on ebay to add to my small stash. Melt value at the time was just over $16 or $18oz. I paid just a little over that to cover the "free shipping" and ebay fees, etc. Some sellers were selling right at melt value obviously because they had old stock that they paid less for and held.

Today I think the value is around < $25oz. It's like gold (and real estate) going up and down but it will always have value and a lot more value than new issue coins. In that regard it is a gamble and prices could take a dip that last for years but considering how quickly our society is going to chit that doesn't look too likely to me.

Some of you may know better places to buy bullion (Franklin Mint?) and coins. Some dealers sell foreign gold coins due to the gold % content being higher.

[Art]

For SHTF scenario;
Trouble with gold is that paying for a loaf of bread with even a five peso coin will need change to be made.
Try getting change from a fifty peso.
For everyday purchases silver is best, or barter with ammo or the guy next door's Wife.

Correct on silver. One of the justifications for silver bullion coins is just that. A silver dime is of relatively low silver value, $1.73 today. A silver quarter is $4.35. If it gets really bad people will just start chopping up those gold coins just like they did with the old Spanish 8 Real.

I personally would be extremely selective about the use of ammunition as a barter item. By trading ammunition you are giving the recipient the means to victimize you.

How metals can be used as a hedge against inflation depends on the situation. Is everything just real expensive and you convert the metals to cash as needed or are you in a post apocalypse where you are actually spending metals.

I know people who bought large amounts of silver back in the '80s and early '90s when it was $5.00 an ounce who could do quite well converting it to cash as needed at the current $25.00 an ounce, even minus the 5%-10% "handling charge" to do a commercial transaction.

[mike9905]

Regarding gold as an investment: keep in mind that when you sell there is a 28% tax on the capital gain. All dealers in gold are required to report purchases in excess of (I think) $500. Something to think about.

[Johnny P]

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

[Art]

https://www.nerdwallet.com/article/t...ains-tax-rates

I wonder how much the 'gubmint actually collects on sales of chattel items like collectables. I bet it is a tiny fraction of actual sales.

Of course it's 100% if you're the one who gets caught.

[jon_norstog]

One of my old GFs (from S. Idaho!) told me she wouldn't bother with gold, she'd store up potatoes. Better yet have a piece of ground where you can grow potatoes and trade them.

In the 2008 crash I bought gold and Swiss francs. The gold didn't do much good, I lost money in fact, but the Swiss, it was a fund and it is till running strong.

But I ma teaching my grandchildren how to garden and how to preserve food, I took them clamming a few seasons before the plague shut everything down, their dad haS got them fishing and I think we'll teach them how to hunt when they get older.

We are set up pretty good here but I think Ima put in a cistern and start harvesting rainwater, also develop some water and an Indian garden on our North Dakota place.

jn

[dogtag]

There's never a shortage of gold or silver, but other items often vanish from shelves,
notably food. Note how quickly food vanishes when people panic. They don't rush out
to buy gold or silver but food guns and ammo. Precious metals preserve your wealth.
Food and firepower preserve your life,
Just a question of priorities. Nice to have a goodly supply of both which I'm sure
all here have.

[Allen]

There's never a shortage of gold or silver, but other items often vanish from shelves,
notably food. Note how quickly food vanishes when people panic. They don't rush out
to buy gold or silver but food guns and ammo. Precious metals preserve your wealth.
Food and firepower preserve your life,
Just a question of priorities. Nice to have a goodly supply of both which I'm sure
all here have.

Yep, always need to have a stash of food on hand and rotate it but if it disappears off the shelf then you only have a limited window before yours is consumed or goes bad at home and you can only store so much. You don't want to live 6 months on macaroni and rice. Canned goods may last a year or so. Having a garden would be important but how many these days have enough land to have a sizeable spread?

Some people feel if they have guns they can obtain what others have and thus don't need to worry. Just one more reason that everyone needs to be armed.

Stock market? During times like this most all stocks will be zero.

Land: On the long haul good investment if it can be bought at the right time for the right price but we have no guarntee's of being able to keep what is ours. The gov't on any level can offer you pennies on the dollar for it if they decide they want it. If refused they can and do take it for nothing. Then there is property tax which can be raised to the point where you have to give up your land. During times of SHTF people won't be buying land unless they can get it super cheap.

Gold bullion and coins: often faked. You may have to go to lengthly lengths (?) to prove it is real.

Silver coins, as mentioned before, hardly ever if ever faked and even then it wouldn't be the common or worn coins. Easy to obtain and recognized by every one.