Gold and silver prices are down

[richc]

Here's an interesting prediction:

$20,000 gold price: Franco Nevada chairman makes the case

$20,000 gold price: Franco Nevada chairman makes the case

www.kitco.com

Here's the question for me. Let's say gold hits $20K/ounce because of hyperinflation. If you sell it you get a currency in return that's losing immense buying power each day.

So what the hell do you trade for that'll represent a store of value and not lose money? I mean other than a harem of gorgeous women!

But seriously, where does one place their savings in a hyper-inflationary world? Or just a plain old world with high inflation and the associated rapidly rising prices?

 

[Varmint]

Here's the question for me. Let's say gold hits $20K/ounce because of hyperinflation. If you sell it you get a currency in return that's losing immense buying power each day.

So what the hell do you trade for that'll represent a store of value and not lose money? I mean other than a harem of gorgeous women!

But seriously, where does one place their savings in a hyper-inflationary world? Or just a plain old world with high inflation and the associated rapidly rising prices?

TP, Glocks, rare cases, and primarily real estate.

Gold doesn't usually rise much in real value. So if gold hits $20k, a Glock 19 will cost $8k.

However that's if gold rises due to inflation. Gold isn't really rising right now due to inflation, since there isn't much inflation. It's rising because of growing distrust of central banks and the financial system in general. So gold might go to $10k without much inflation in consumer goods or commodities, before there's a financial reset.

After that gold might not even be legal to own. So trade your $10k gold and stocks and bonds for some real estate. They can't revalue real estate by flipping a switch.

 

[HappyHarry]

TP, Glocks, rare cars, real estate.

Gold doesn't usually rise much in real value. So if gold hits $20k, a Glock 19 will cost $8k.

However that's if gold rises due to inflation. Gold isn't really rising right now due to inflation, since there isn't much inflation. It's rising because of growing distrust of central banks and the financial system in general. So gold might go to $10k without much inflation in consumer goods or commodities, before there's a financial reset.

After that gold might not even be legal to own. So trade your $10k gold for some real estate.

I agree that real estate would be one good place to "store" money, except for the lack of quick, easy liquidity. There's no universal good answer. I guess guns & ammo if you're expecting a societal breakdown, gold if you're expecting hyper-inflation, stocks if you expect we will go through a cycle and recover.
Personslly, I am staying in stocks, with a small side of gold, guns and ammo.

 

[Varmint]

I agree that real estate would be one good place to "store" money, except for the lack of quick, easy liquidity. There's no universal good answer. I guess guns & ammo if you're expecting a societal breakdown, gold if you're expecting hyper-inflation, stocks if you expect we will go through a cycle and recover.
Personslly, I am staying in stocks, with a small side of gold, guns and ammo.

Yeah I was joking about guns, they don't retain value unless collectible. My 1994 Sig has lost half its value or more.

Stocks go up when currencies go down cause they are a share of companies with real assets. So better than cash which has no assets backing it.

 

[richc]

But... but... but...

Real estate is driven by the same supply/demand mechanism that determines most prices. The past few years demand has been high and supply low so many homes sold for over asking price.

In a hyper-inflationary period there's generally high unemployment. That generally diminishes the demand for real estate. And others who are unemployed need to sell. Those are contrary to rising real estate prices.

Hmmmm..........

 

[HappyHarry]

But... but... but...

Real estate is driven by the same supply/demand mechanism that determines most prices. The past few years demand has been high and supply low so many homes sold for over asking price.

In a hyper-inflationary period there's generally high unemployment. That generally diminishes the demand for real estate. And others who are unemployed need to sell. Those are contrary to rising real estate prices.

Hmmmm..........

Other than my own home, I've never invested in real estate, except some REIT's - probably a mistake, but I'm fine with my other choices. I don't really understand the reason housing prices have gone up so much. I would think that with a fairly stable population there would be stable demand. In fact, I think the population in Mass has been declining, so why have housing prices increased? It's also my understanding that some tax benefits of real estate, like accelerated depreciation, have disappeared. This is not an area I really follow, so maybe I'm totally wrong...

 

[DJBrad]

A lot of you guys are talking up eagles, kruggerrands, notes, etc. I can understand the collector’s angle. How do you feel about 1 Oz Buffalos and Maple Leafs?

As to EBay I’m glad I bought some way back when there were no taxes and no verification.

 

[DJBrad]

Other than my own home, I've never invested in real estate, except some REIT's - probably a mistake, but I'm fine with my other choices. I don't really understand the reason housing prices have gone up so much. I would think that with a fairly stable population there would be stable demand. In fact, I think the population in Mass has been declining, so why have housing prices increased? It's also my understanding that some tax benefits of real estate, like accelerated depreciation, have disappeared. This is not an area I really follow, so maybe I'm totally wrong...

Last year MA population grew. We’ll see about ‘19-‘20 though.

 

[HappyHarry]

A lot of you guys are talking up eagles, kruggerrands, notes, etc. I can understand the collector’s angle. How do you feel about 1 Oz Buffalos and Maple Leafs?

As to EBay I’m glad I bought some way back when there were no taxes and no verification.

An ounce of gold is an ounce of gold. The premiums can vary a bit, but if you're buying strictly for the bullion value, there's little difference. If you are interested in the collectability aspect, there can be bigger differences, especially on slabbed coins. I definitely would not recommend paying big premiums for things like MS70 or First Strike or similar designations.

 

[not new guy]

A lot of you guys are talking up eagles, kruggerrands, notes, etc. I can understand the collector’s angle. How do you feel about 1 Oz Buffalos and Maple Leafs?

As to EBay I’m glad I bought some way back when there were no taxes and no verification.

Buffaloes are my favorite. I think they’re the best looking of all.

 

[DJBrad]

An ounce of gold is an ounce of gold. The premiums can vary a bit, but if you're buying strictly for the bullion value, there's little difference. If you are interested in the collectability aspect, there can be bigger differences, especially on slabbed coins. I definitely would not recommend paying big premiums for things like MS70 or First Strike or similar designations.

So purity doesn’t matter much? I agree in not caring for grade so much but 98vs99.99 must be a consideration, no?

 

[richc]

Buffaloes are my favorite. I think they’re the best looking of all.

They are 100% gold unlike the American Eagles or Krugerrands. So they are shinier and look like one expects a gold coin to appear. I believe the Canadian Maple Leaf is the same. The American Eagle and Krugerrand contain 1 ounce of gold but contain some other metals to improve durability.

 

[HappyHarry]

So purity doesn’t matter much? I agree in not caring for grade so much but 98vs99.99 must be a consideration, no?

Very little difference. Last time it came up for me, I was paid abut $8 less per coin for .999 Maple Leafs vs. .9999 ones.

 

[richc]

So purity doesn’t matter much? I agree in not caring for grade so much but 98vs99.99 must be a consideration, no?

Old St Gaudens $20 gold coins contain .9675 ounces of gold. American Eagles, Krugerrands, Canadian Maple Leafs and US Buffalo gold coins all contain 1 ounce of gold. The Eagles and Krugerrands contain other metals too so they weigh more than 1 ounce.

At the end of the day the value comes from the total gold content.

 

[smokey-seven]

Long reply gang.....

Let's say gold hits $20K/ounce because of hyperinflation

So what the hell do you trade for that'll represent a store of value and not lose money?

A couple points. If gold hits 20K an ounce, You will not get cash for it, cash will be worthless like wheel barrows of Nazi currency in 1945. You will only get, “Stuff” for it.
You do not trade for a store of money, you trade for commodities. If you trade well, you improve your position, trade badly, you lose value.

But seriously, where does one place their savings in a hyper-inflationary world?

After that gold might not even be legal to own. So trade your $10k gold

You do not put, “savings” anywhere. You buy stuff that is in demand and sell stuff that will make money. Quick turnovers as, “stuff changes prices” hourly. If gold is illegal to own, but it, sell it for another metal. If you own “gold paper” and gold becomes, “illegal”, good luck with that paper. IN HAND metal only people.

Personslly, I am staying in stocks, with a small side of gold, guns and ammo.

I wish you well.

Yeah I was joking about guns, they don't retain value unless collectible.

Oh they do! Don’t buy junk, buy decent quality at a fair price and it will out perform inflation. If you want some examples, I will provide them. 10 - 20 years will out perform inflation or at least maintain equality.

Real estate is driven by the same supply/demand mechanism that determines most prices.

I think the population in Mass has been declining, so why have housing prices increased?

Real estate is not always supply/demand. I look back at 1980’s and saw local RE prices fall over 50%. If you sold well just prior to that, moved to a depressed locale out of state, you could have quadrupled your RE investment.

A lot of you guys are talking up eagles, kruggerrands, notes, etc.

Buffaloes are my favorite. I think they’re the best looking of all.

I passed away from gold, as it leaves too much of a taxable footprint. Cash 10 Gold 50$ eagles and you will find a 1099 in the mail. See my previous discussions on this.

The American Eagle and Krugerrand contain 1 ounce of gold but contain some other metals to improve durability.

I suggest you look at the US Tax laws on selling FOREIGN gold as opposed to US gold. Sure, small amounts can slide by but try 30K of Krugs.


.

 

[Varmint]

But... but... but...

Real estate is driven by the same supply/demand mechanism that determines most prices. The past few years demand has been high and supply low so many homes sold for over asking price.

In a hyper-inflationary period there's generally high unemployment. That generally diminishes the demand for real estate. And others who are unemployed need to sell. Those are contrary to rising real estate prices.

Hmmmm..........

When a currency collapses, one of the few things that retains its value is land. You want to own anything the government can't devalue by printing money.

 

[Varmint]

A lot of you guys are talking up eagles, kruggerrands, notes, etc. I can understand the collector’s angle. How do you feel about 1 Oz Buffalos and Maple Leafs?

They're all roughly the same value - a government coin like a Maple, Eagle or Kruggerand is a bit more recognizable and less likely to be a fake than a round or bar, but value is not much different.

 

[Varmint]

So purity doesn’t matter much? I agree in not caring for grade so much but 98vs99.99 must be a consideration, no?

It can definitely affect the color. Kruggerands for example are more copper colored.

 

[boatman]

Other than my own home, I've never invested in real estate, except some REIT's - probably a mistake, but I'm fine with my other choices. I don't really understand the reason housing prices have gone up so much. I would think that with a fairly stable population there would be stable demand. In fact, I think the population in Mass has been declining, so why have housing prices increased? It's also my understanding that some tax benefits of real estate, like accelerated depreciation, have disappeared. This is not an area I really follow, so maybe I'm totally wrong...

MA population has been increasing.

RE prices just a matter of supply and demand. Not a lot of buildable new lots within 495, which is where the majority of the population is and wants to be. My town of 30k people has 12k houses, just 70 new ones built last year. Boomers are not selling houses like expected, not as much downsizing as has been expected.in many towns 50% of the houses are owned by people over 50. Millenials who want houses just can't find enough inventory on the market.

 

[HappyHarry]

Oh they do! Don’t buy junk, buy decent quality at a fair price and it will out perform inflation. If you want some examples, I will provide them. 10 - 20 years will out perform inflation or at least maintain equality.

In my experience, guns hold value better than almost any other consumer product, such as jewelry or other "valuables", but don't do well as actual "investments". I have some nice guns like a Colt Detective Special, Colt Lawman, SW Model 41, some Berettas, etc, that I bought in the late 70's/early 80's that are worth maybe 2-4 times what I paid, not accounting for inflation. Money invested in the market back then would have far outpaced the return on the guns. Obviously, truly collectible guns might be a different story.

 

[Win]

I like old gold myself but for the investor this is hard to beat: Buying and Selling Rare Coins at Northeast Numismatics
$1,675

 

[HappyHarry]

I like old gold myself but for the investor this is hard to beat: Buying and Selling Rare Coins at Northeast Numismatics
$1,675

I doubt they'll fill that order at that price. They reserve the right to adjust prices on bullion related items. That company is owned by a guy named Tom Caldwell - he has been around a very long time and is a reliable, honest dealer. He's not dopey enough to sell gold at below spot.

 

[Win]

I doubt they'll fill that order at that price. They reserve the right to adjust prices on bullion related items. That company is owned by a guy named Tom Caldwell - he has been around a very long time and is a reliable, honest dealer. He's not dopey enough to sell gold at below spot.

I've bought a bunch of coins from them through the years although I never knew them personally. I have always liked them as a company - reliable and quick to ship. I didn't know that they reserved the right to adjust prices on bullion even after someone purchased something? Do you see that in writing or you know from dealing coins that dealers have the right to do that?

 

[HappyHarry]

I've bought a bunch of coins from them through the years although I never knew them personally. I have always liked them as a company - reliable and quick to ship. I didn't know that they reserved the right to adjust prices on bullion even after someone purchased something? Do you see that in writing or you know from dealing coins that dealers have the right to do that?

Click on the item to add to your cart, then hit checkout. You'll get the notice.

 

[Win]

Click on the item to add to your cart, then hit checkout. You'll get the notice.

Ah - thanks! I've appreciated your insight on this issue as well as several previous issues/posts. Thank you!

 

[Freddy Q]

I have bought several things from Northeast Numismatics and agree that they are an excellent company - but how are they selling 1 oz gold for LESS than spot??

 

[HappyHarry]

Click on the item to add to your cart, then hit checkout. You'll get the notice.

Ah - thanks! I've appreciated your insight on this issue as well as several previous issues/posts. Thank you!

I have bought several things from Northeast Numismatics and agree that they are an excellent company - but how are they selling 1 oz gold for LESS than spot??

They won't really sell it at that price. They reserve the right to adjust the price of bullion related items due to market changes. Click on the item to add to your cart, then hit checkout. You'll get the notice.

 

[Freddy Q]

So what did it adjust to?

Spot is like $1700 and change so I would assume it would be at least $1775 or $1800

 

[HappyHarry]

So what did it adjust to?

Spot is like $1700 and change so I would assume it would be at least $1775 or $1800

I didn't go any further than seeing the notice, so I don't know how it would be handled. In the current market, it would be a pretty good deal to retail at even $100 over. This is a buy ad a dealer posted this afternoon.

 

[DJBrad]

Few samples