Gold is at a recent low

[mold maker]

For those that care about such things. Gold is at $1177.90. If you have extra dollars that are worth less every day, it's a good time to invest in your future.

[osteodoc08]

Thanks for the heads up. As a gold investing noobee, how does one purchase gold at that price? Or in general as far as for investing purposes as opposed to buying it off someone in the form of jewelry/coins/etc. in other words, where do you go to buy bullion.

[bangerjim]

The best way to buy gold is pre 1934 US coins and NOT bullion. Sale is not reportable and coins are not confiscatable....it that ever happened again!

You will pay more than spot bullion, but old US coins (I like $20 St. Gaudens gold pieces!) are cool.

You have to buy it thru a broker. Find on locally for easy transactions and you walk out the door with your gold rather than waiting 2-3 weeks as with all the TV gold mongers.

At least coins have a face value, are certified/rated, and can be easily traded. Bullion is not certified and cannot be easily traded.

[dragon813gt]

I'm w/ Jim on buying coins. I buy Silver Eagles. You know the exact weight and content of a coin. Not so much w/ bullion. Nothing prevents someone from "shaving" bars. Dealers will always buy coins and they carry a premium.

[snowwolfe]

I would rather buy land or another rifle or handgun than some tiny piece of metal.

[bangerjim]

I would rather buy land or another rifle or handgun than some tiny piece of metal.

You need ALL of the above! That "tiny piece of metal" may feed your family someday, as could a gun.

A well-rounded investment portfolio should contain at least 10-15% if it's overall value in gold and silver.

Buy all the land and guns you want, but have some precious metals stock-piled also. Not bullion...coins! Lead does NOT count as a precious metal....sorry.

bangerjim

[GaryN]

These guys aren't too bad.

http://www.providentmetals.com/bullion/silver/us-slv/ase.html

[seaboltm]

I use goldeneaglecoin.com. Very professional. Gold and silver prices are "spot". You will pay more for bullion, and even more for coin. There is no way to buy gold or silver for the actual spot price. Well, unless you have a bunch of cash. If you buy $25,000 worth of gold coins, you can get pretty close to spot, but you will still pay over spot. For silver, $5000 or more is your best value as far as spot price. I am in neither category, so I like silver. A 10 oz sealed silver bar is a good value, easy to move. 90% silver coins are also a safe bet.

[nvbirdman]

I am always amused at the commercials on the radio telling me that gold is about to skyrocket in price and I should buy it now. If they really thought gold was going to skyrocket, they'd be buying as much as they could, not trying to sell it to me.

[bearcove]

Gold was recently at 300. And for a long time. If you buy remember its value is now based on how popular it is as a hedge against currencies.

[bangerjim]

Gold has not bee 300 for a very VERY long time!!!!!!!! Waaaaaay back in 2001.

6-1-05 price was $436.50

Then on 7-1-10, it shot up to $1309.20! And has not come down to tripple digits since.

On 8-1-11 it hit a all-time high of $1,907.20.

The price today is a record low, only beat by $1,168.50 back on 11-1-14.

I am in the gold market extensively and track it closely.

Now is the time to buy at $1,177.90 (spot) if you want. ( YOU will NOT buy it at that price!) It may go up a lot. It may not. My crystal ball is broken at the present time.

Best thing is buy it when you have the money (a lot of it) and you feel the time is right. And plan on holding it for a looooong time. Gold is something most individual investors do not day trade with!!!!!

banger

[Hogtamer]

Mold Maker, read this very carefully and think it through....http://en.m.wikipedia.org/wiki/Junk_silver
I believe this will be the undergound currency of the future. In fact, anything I sell I will gladly take payment in pre-1964 silver coins and give you a discount. If gold rises or falls, so will silver.
Cash is highly suspect as a store of value. One of the arguments against owning silver in the past is that you could not earn a return on it. See what the bank wants to pay you on a CD now! In fact I believe cash will be phased out as legal tender as governments want to tax every $ we earn and track every $ we spend. There will be another financial crisis that will enable the govvie to provide cover for all-electronic (plastic) money. That will make those old silver dimes and quarters the ideal "underground" currency. Unlike fiat paper money, 90% silver coins will always be 90% silver, valued of course by the price of silver. I you believe like I do, look around for an old reputable local dealer and do business with them. You give them cash (a diminishing asset) and they give you silver (probably an increasing asset) in easily handled and stored form.

[MaryB]

www.apmex.com is one of the lower priced dealers with a very good reputation I have bough 90% US silver form http://www.gainesvillecoins.com/ I like mercury dimes myself... each one is worth $1.15 right now.

[bangerjim]

If you are into silver, pre 64 is the way to go. I bought several bags of the stuff years ago and it is now worth more than those new pure bullion coins and is only 90% silver! And that does not even account for the numismatic values!

Silver is very affordable if funds happen to be limited. You can buy a lot of older Kennedy's (non sandwich) or Standing Liberty's half dollars for $1,177! And if push comes to shove, they are always worth 50 cents face value!!!!!!!

[bearcove]

metals run inverse to the economy, the economy is turning, beware. hopefully this boom will take off. if it does gold and silver will drop.

[MaryB]

Economy is NOT turning! Wall Street is NOT the economy! We have a record number on food stamps, number out of the work force(but able to work) is at Great Depression levels... good manufacturing jobs are mostly gone... part time minimum wage jobs do not replace well paying jobs.

[bearcove]

I work as a pipefitter/welder its the start of a boom. Jobs all over the place. I got tired of working out of town came home 3 days later working at home on overtime.

Lot of guys left here to chase money. $35/hr $100+ a day per diem 6 10s to 7 12s not min wage.

[Buck Neck It]

Trust in steel, Conan. Only in steel.

[MaryB]

Forgot to mention, gold and silver are both below average production cost right now, quite a few mines idled. Chinese, Russians, Indians buying as much gold as they can get their hands on. Market is being capped and manipulated by the paper market(etf's) where they are selling 100 ounces of paper gold or silver to 1 ounce held in the vault!

[MtGun44]

In the long run, a pretty bad investment. Looked long and hard at it, mediocre
returns and high risk. If you invested $10,000 in gold in 2007, at $600 an
ounce. That is $16.667 ounces of gold. Today, at about $1180 you
have roughly doubled your money, to $19,666. That is 8 years. Not terrible,
but can be nearly matched with guaranteed investments.

I have annuities which guarantee 6% per year for 10 years, which will also
be just short of double my money - AT minimum. If the market exceeds
6% in any one year, I get the market return, locked in each year,
with a guarantee of 6% above that lock for the following year. About
90% certain to exceed 100% growth in 10 years, guaranteed.

I have made far more investing conservatively in good mutual funds
and now some good annuities.

I'm not going to convince the folks that insist that the dollar will collapse
any minute now -- of course, it is at the highest it has been in recent
memory now. Euro collapse, maybe, dollar? Not any time soon.

I have had experts telling me that paper money would become worthless
"any day now" since I was 18 years old and now about 45 years later,
paper money is still worth something - although certainly inflated a good
bit.

To each his own methods, I have resisted gold this long, probably going
to continue to cover my retirement nicely with conservative investing
strategies.

[opos]

If my money is worthless...why in the world has everyone been trying to get their hands on it since I was a teenager..and I'm 77 now?

[Handloader109]

Gold bullion is one of the worst investments you can make. You could not make a worse choice for investments unless you are daily buying and selling the stuff. If you are buying as a hoarder prepped, you darn well better be buying small coin. You don't want to be trading that $500 coin on a $10 item. And one minor thing to point out, when in our Nation's history of depressions have there been folks trading gold for food? Never. And unless you are taking possession of your purchases, you are not prepping. My opinion, invest in something else, too many trixters hawking gold,silver. Coins are pretty though.

[Petrol & Powder]

If you purchased gold in 8/2011 at $1900/oz and it is now $1177/oz........How is that a good investment?

If you purchased gold in 7/2010 at $1300/oz - DIDN'T sell it in 8/2011 when it hit $1900 and still have it today when it's worth less than you paid in 2010.....how is that a good investment?

I understand wanting to hedge against fluctuations in the economy but if you're just taking hard earned currency and turning into another form, that's not investing. That's just converting dollars into another form of money in the hope that the other form will hold its value or increase in value.
If you buy gold at $1000/oz and you sell it at $1500/oz; you've made a healthy profit. If you buy gold at $1000/oz hold onto it while it goes up in value and then continue to hold onto it when it returns to its original price or lower, all you've done is tie up capital that could have been applied elsewhere.

People that buy gold don't make money. People that sell the gold make money.

People that market gold rely or fears of devalued currency, collapsing economies, war, the end of civilization, natural disasters, locusts and anything else they can think of to get you to buy gold. It is not an investment unless you then Sell it for a profit.

If the end of the world comes I don't think I'll be any worse off if you have gold and I don't. In the meantime my retirement account is growing.

[bob208]

ever notice how the most of the people trying to sell you gold are the same ones telling you it is the best to have. then why are they selling theirs?

[Bad Water Bill]

In 1972 when we bought this house gold was $32.00 per oz.

The house sold for $30,000.

Today the house is worth $125,000.

Sure wish I could turn back time.

[jmort]

^^^ Gold tracks the value of goods and real estate over time and this is a good example.

[StolzerandSons]

Gold is just a shiny yellow rock...by that I mean that it doesn't actually change, only the inflation and it's trade value changes around it.

Let me give you an example:
In 1920 a Ford Model T had an MSRP of $400.00 and an ounce of Gold was worth $18.25. $400.00 divided by $18.25 is 21.91, so basically you could buy a new Model T for 22 ounces of gold.
In 2015 a Ford F150 has an MSRP of $26,100.00 and an ounce of Gold is worth $1,177.00. $26,100 divided by $1,177.00 is 22.17, so basically you can buy a new F150 for about 22 ounces of Gold.

95 years and Gold hasn't changed it's still just a shiny yellow rock.
If you want something that will have the same purchasing power today, tomorrow and 10 years from now then gold is a great piece of insurance. If you want an investment with a profitable return put your money some place else.

[Garyshome]

So if the dollar becomes worthless, what will gold be worth? It won't be worth anything to me, I will need food, water and ammo, and a roof. Maybe I will trade some beans for some gold, but then maybe not, Beans will be worth more then gold.

[nvbirdman]

The commercials on the radio urging me to buy gold remind me of my standard answer to telephone solicitations. "If your product was as good as you say it is, you wouldn't have to call me, I'd be calling you."

[StolzerandSons]

So if the dollar becomes worthless, what will gold be worth? It won't be worth anything to me, I will need food, water and ammo, and a roof. Maybe I will trade some beans for some gold, but then maybe not, Beans will be worth more then gold.
http://upload.wikimedia.org/wikipedia/commons/thumb/3/3e/Zimbabwe_%24100_trillion_2009_Obverse.jpg/800px-Zimbabwe_%24100_trillion_2009_Obverse.jpg

Ask a Zim national who had gold in 2008 what it was worth, they can probably give you a pretty good answer. Of course if you were caught with gold in Zim in 2008, Uncle Bob's(Robert Mugabe) men probably shot you and took your gold then raped your wife and daughter.

[bangerjim]

Many investment consultants I talk to (they do NOT sell gold!) do recommend 10-15% of your total portfolio to be in precious metals....physical metals YOU own and have....not thru a 3rd party storage funcion. Gold IRA's in my book are NOT a good idea because you cannot have the gold and pay a continuous fee for someone to hold it for you. I have total control over my IRA's and can trade/sell stocks, bonds, funds at will. If all you have is a few guns and 300# of lead, you definitely can hunt, but you really should not mess with physical gold or silver. But if your portfolio is 6 or 7 digits (or more!), consolidation of that small % into gold, silver and platinum is a good idea overall.

It is a personal choice. The money I have in metals I do not need for everyday things, so it is not missed or needed. If one is buying it to "turn a quick buck", look into day trading of stocks with an on-line brokerage account that charges $12 or so per trade. Using a FtoF stock broker will make you even "broker" many times, especially on smaller trades.

Having a variety of $5, $10, and $20 US gold pieces is a nice mix. Foreign gold is not as liquid here as good old USA minted pre-1934 coins. Bars of gold/silver make good door stops.

Do your homework and determine your financial status, immediate needs, and future plans.

OP......good luck on your investment decisions! If you have never held your OWN real old gold coins in your hands, you are in for a thrill. There IS a reason why gold was/is the metal of choice for kings and queens.

The precious metals investment stragety is definitely not for everyone, as evidenced by the wide variety of negative comments that always pop up in threads on this subject.

[Charley]

Gold is just a shiny yellow rock...by that I mean that it doesn't actually change, only the inflation and it's trade value changes around it.

Let me give you an example:
In 1920 a Ford Model T had an MSRP of $400.00 and an ounce of Gold was worth $18.25. $400.00 divided by $18.25 is 21.91, so basically you could buy a new Model T for 22 ounces of gold.
In 2015 a Ford F150 has an MSRP of $26,100.00 and an ounce of Gold is worth $1,177.00. $26,100 divided by $1,177.00 is 22.17, so basically you can buy a new F150 for about 22 ounces of Gold.

95 years and Gold hasn't changed it's still just a shiny yellow rock.
If you want something that will have the same purchasing power today, tomorrow and 10 years from now then gold is a great piece of insurance. If you want an investment with a profitable return put your money some place else.
Tend to agree. The dollar floats (another Nixon screwup), gold doesn't as much. An ounce of gold will generally buy 15-20 barrels of oil as well. When interest rates are down, whether artificially held down, or market fluctuation, people tend to put their money in "real" holdings...real estate, metals, and so on. Little return, but relatively safe.
oldest son works for American Funds...he had bought gold for several years while in the military. Once on the investment world, he ended up selling it, and investing in things with a better return.

[mold maker]

Had no idea there were as many of us who followed or cared about gold as an investment or even a hobby.
I have gold bought at less than $38./oz. I have some bought at $86./oz. I have still more at ~ $300./oz It is all in specimen form that rich collectors pay up to 4X spot for.
Tell me how I wasted my investment.
I also cashed my check for years, (pre 1969) in coins and picked silver and collector coins, before returning the rest for spending money.
No, I'm not expecting the world to collapse in a thimble, but how many of you can give your Grand Kids Gold that Paw Paw prospected for, or pounds of silver coins that were collected before their birth?
My Parents left me a nice home and a good reputation. I've made sure each grandchild has a piece of land suitable for building, and something they can keep as a remembrance of me, or save as a hedge against a rainy day. That and a family name they can be proud of, are the best I can do.
As far as investing for profit, I did that many years ago, and am living off the fruits of my labor. At 73 I can be sure I wont die in poverty or alone since I made sure both my kids have homes NEXT DOOR.
I never made big wages during my 53 years working, but I always found a way to pay me first, and never over extended my credit.

[Blacksmith]

Precious metals are a poor investment but a good hedge against inflation. Think the premiums paid and capitol gains treatment. Gold is a lot more portable than land if you are a refugee. Silver coins are easier to trade if prepping. "Junk silver" has the lowest premium. Everyone should have some just in case. Think of it as compact storage of wealth that has an intrinsic value.

[Bad Water Bill]

well if you are thinking about packing around goodies consider precious and semi precious gem stones.

They weigh a lot less and are easier to conceal.

Now down to my lapidary shop and start working on some opals rubies and sapphires.[smilie=s:

[Blacksmith]

Yes Bill but they are a little less liquid than junk silver when selling. Really need some of everything. Don't put all your eggs in one basket.

Of course since you are buying rough and doing the value added finishing precious stones make a relatively low cost investment and if you don't count your labor then a high return.

[Bad Water Bill]

Of course since you are buying rough

Now you know I b a prospector and I have been digging and hoarding goodies for many years.

[Blacksmith]

When digging your own the cost curve is even better.

[MaryB]

Assets on paper are just that, paper... they can disappear at the push of a button or via theft(MF Global, etc etc etc etc...) My small store of silver in my safe won't go anywhere unless they take the safe... and that would destroy most of the house getting it out. Gold and silver are a hard asset that cannot easily be taken. When government demanded people turn in gold it was estimated that maybe 20% complied... and I would not be one of them! But I prefer silver(I do have some 1/10oz gold pieces just in case). 90% US silver coinage is cheap to acquire, fun to sort through for the occasional collectible I can quadruple(or better) my money on... most of what I have is referred to as junk silver, worn enough to have no collector value. To figure the value take .715 x price of an oz of silver to get the value of $1 worth of old coins. Then divide by ten for dimes etc. Lot of what I have collected has came in change, or in barter for doing some work...

[jaysouth]

As observed above, precious metals are good insurance, but to me they are not an investment. I buy "scrap" (well worn pre-64 silver coins) for insurance and give money to an investments advisor for so called paper investments. So far the paper outpaces silver by huge multiples, but again, I bought the silver as insurance and not an investment, and will continue to do so.

That said, if you are active, and looking at the long term, nothing beats real estate. (houses and buildings not land)

[quilbilly]

Take a look at the website of Northwest Territorial Mint as they are the ones who actually do the minting of a lot of the gold and silver coins. I have visited their shop and they are quite reasonable. Personally, I prefer silver to gold as it is more liquid (spendable when needed) than gold such as a one ounce coin has generally been worth about 1/2 a tank of gas even when gas was only about 20 cents a gallon (yes i am old enough).

[bob208]

if you really want to survive a money melt down. learn trades carpenter, blacksmithing, machining [ yes I can run my small shop off the grid ]even auto repair.

[GOPHER SLAYER]

In the 1970s when silver hit record values I saw on television people in England standing in line to sell family heirlooms made of sterling silver. The people in the shop had this large melting pot going and you could see beautiful jewelry boxes disappear into the melt. I thought at the time that it was stupid to melt something that later had to be tested for purity when you could leave it as is and simply read the hallmark. They did the same thing with silver coins. If left as is the coin speaks for itself. In a coin shop some years ago I saw an old gold coin about the size of a dime. It had the image of some long forgotten emperor. The coin dated back to a time before Moses. The shop owner took the coin out of the case a placed it in my hand. I couldn't help but think, what else but gold could hold it's value down through the centuries?

[mold maker]

That's really good advice for anyone young enough to use the skills. Even folks with degrees need some of life's essential skills, if for no other reason than, to know when their being ripped off.
That said, I'm at an advanced age physically, that says I have to pay for what I need, instead of just doing it myself. The polls here have shown, I'm not in the minority. Having assets that don't just shrink every time the sun goes down is imperative. I am forced to live off what I put aside during my working years, or depend on SS to stave off collectors.
As we age, our needs are much simpler, but nature has a way of sending us a surprise, that is always expensive.
All my life I dreamed of a Summer, prospecting in Alaska. I knew the costs and saved looking forward to the day when i could afford it in time and money. Well there was always a water heater, transmission, or something, that stole the dream from me at almost the last moment.
Was it fate? Or was it life showing me what was really important? That savings was finally spent on trusts for the grandkids. Their education is now more important, than the "just memories", that would be all that remain, if I had taken that trip.
The gold I have found, and bought, along with the silver coins I saved, have been a simple pleasure to me. And unlike a stamp collection, will be appreciated, and can be expected to continue gaining in value for who ever holds them.
At least temporarily they have now shown they do, still make more land. They can stamp more coins from whatever cheap metal. They daily print more worthless paper money.
Gold and silver will always hold long term value, as long as folks like me have a need for things, we can no longer do for ourselves.

[Bad Water Bill]

Learn to be a true handyman and everyone will come calling till you are to old to do the work anymore.

Then you pick and choose the jobs you can do and who you want as an assistant (apprentice handyman) to help you out.

[dtknowles]

...................They can stamp more coins from whatever cheap metal. They daily print more worthless paper money.
Gold and silver will always hold long term value, as long as folks like me have a need for things, we can no longer do for ourselves.

That paper money is not worthless yet, you can still use it to buy gold, silver, ammo, bread, guns, land, a house. Paper money and good credit still work in this country and probably will for decades.

Tim

[MaryB]

I don't have it all in gold/silver. I own my house free and clear, grew up fixing things so wiring, plumbing, drywall, carpentry I can do all. Am I master at them? Nope but I get by!

[JSnover]

That paper money is not worthless yet, you can still use it to buy gold, silver, ammo, bread, guns, land, a house. Paper money and good credit still work in this country and probably will for decades.

Tim
Ironic, isn't it? "Your money is worthless, you should give it to us!"

[dragon813gt]

How many people physically hold their money? Most of it is just ones and zeroes. The banks hold very little paper anymore. I get what people are trying to say. The US dollar is far from worthless. But for a good portion of the country their money just sits in the banks computer database.

[MaryB]

A database that the government could seize leaving you holding what? A database subject to hacking. If you must have cash make it physical cash and not a bank deposit. Besides US banks are heading towards a fee for deposits! Chase is starting a 1% fee this month on some deposits.

[Bad Water Bill]

Perhaps it is time we demand these mega banks be split up like the Bell system was?

[mold maker]

Would it make everyone agree if I had written it as worth less in stead of worthless? At the current rate of inflation how long will it be before worth less, becomes worthless?

[dtknowles]

Would it make everyone agree if I had written it as worth less in stead of worthless? At the current rate of inflation how long will it be before worth less, becomes worthless?

That depends on your rate of return. My money grows almost every month. I am not happy just keeping up with inflation, I try to do a little better than that.

Tim

[bangerjim]

Yes, you must keep well ahead of inflation. And that is NOT just setting in a bank account! WELL divested stocks and funds is the way to see real growth.

I remember the (sort of) goode olde daze back in the 70's when I could take my quarterly bonus, buy a $10K 6 month CD and get 18% return! SWEET.

But the only way you can make a buck is sell at the correct time. I personally hold. And buy ONLY GOOD stocks that pay GOOD dividends. Nice income on a regular basis! Day trading becomes a job very fast if you try that route.