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Honored Contributor
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@Snowpuppy wrote:

Read what happened to Oxford Gold last summer. That'll open your eyes. Investors lost everything. One product the company offered was holding gold in an IRA. 

 

The first rule of investing is never invest what you can't afford to lose. 

 

What is his goal in purchasing precious metals? Keep in mind the gold prices you see today are actually a contract for gold futures.

 


@  Thank you for your post.  You reminded me why I didn't invest in gold years ago.  It's the futures thing.   At my age I just don't want to invest in anything I have to depend on future prices.  At 77, I have seen the Savings and Loan collapse, the tech bust, 2008 housing bust, and stock market fragility.  I would rather make a smaller profit that is sure deal, than a larger return on something I might loose. Too old for that. Lol

“sometimes you have to bite your upper lip and put sunglasses on”….Bob Dylan
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@rockygems123  Thank you! That is good advice and what I was looking for. Smiley Happy

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My relatives "think" I have it buried in the yard.   I am NOT joking.   

♥Surface of the Sun♥
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One thing that has kept me from buying physical gold is if Poo Hits The Fan, where do you go to cash it in?

 

Say you need $5k to pay property taxes, you can't go to the county office with $5k in gold coins. 

 

As @rockygems123  mentioned you may only get scrap gold value for most jewelry and some coins. Graded coins may fetch more but a local coin shop may or may not be interested.

 

FWIW, legendary investor Warren Buffet's Berkshire Hathaway is sitting on a record amount of cash. He may just know something we don't. 🤔

 

 

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@Snowpuppy wrote:

...One thing that has kept me from buying physical gold is: If the Poo Hits The Fan, where do you go to cash it in?

 

That has always been my question...

 

What happens when "paper money" is no longer viable?

 

Does one take a few gold bars to the grocery store - And how will they cash it and make change, etc. Smiley Frustrated

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@LavernLuvsShoes wrote:

@Snowpuppy wrote:

...One thing that has kept me from buying physical gold is: If the Poo Hits The Fan, where do you go to cash it in?

 

That has always been my question...

 

What happens when "paper money" is no longer viable?

 

Does one take a few gold bars to the grocery store - And how will they cash it and make change, etc. Smiley Frustrated


I think it's only women that think of those things.  Occasionally I do have to give into him and reluctantly agreed to buying some but I did say that to him.  We go to the grocery store with a gold coin and then what?  All I got was a shrug of his shoulders.

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@KittySoftPaws wrote:

@jackthebear  No, nothing like that, it's just there are some salespeople that are very good and saavy and you get caught up in the excitment. He didn't make the move, as he obviously needed to talk to me first. He asked me if I would do more research on the company, which I did, and they seem to have a stellar reputation. But I don't like the idea at all. As for not investing what you can't afford to lose, we all do that to some degree if we have stocks etc. you can't make money if you don't spend some and assume some risk. And interest rates in banks are a joke. But my thought is what happens when you may need the liquid asset from those gold bars and no one wants to pay you for them, or pay you what it's really worth? It reminds me of my late Uncle who collected a lot of very valuable antiques for many years. He would always say "this piece is worth thousands" to which I would reply, it's only worth what someone is willing to give you for it. 


there are some online banks that will give you a good rate on savings and CDS


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Re: Gold as an investment

[ Edited ]

@KittySoftPaws 

 

 

Before you BUY physical gold....make sure you understand about SELLING it should you decide to or need to now that you've tied up your money in physical gold.

 

There are tax implications.....Gold is a "collectible"  to the IRS, with a 28% capital gains tax rate.. and falls under thier specific rules on taxation.

 

So if it goes UP and you want to sell it....you better understand those rules!!!

 

Also understand HOW many coins you can sell at each time without the sale being reported to the government, at which time they KNOW you just sold an asset with a 28% capital gain tax rate.

 

The "ten thousand dollar limit" on American Eagles for instance.....you can sell up to 10000 dollars in Eagles without a report to the government, but UNDER 10000 dollars in American Eagles, they do NOT have to report...

 

So....guess what? The dealers KNOW you don't want a sale reported to the government, so on sales UNDER 10000 dollars, they give  you less per coin.

 

And if they are NOT American Eagles ( like Maple Leafs ( Canada) or Mexican gold or Austrian Philharmonics ( both beautiful)...they MAY have MUCH lower reporting requirements per coin sold)...

 

Understand that you generally can NOT buy gold at what you see it trading for per ounce on the stock ticker. There is generally a "premium" per coin, some places now it's up to 150 dollars per coin, and on E-bay, some are up to 300 dollars per coin.

 

When you SELL...you also pay a premium. If gold is selling for 2000 an ounce and you go to sell it ( coins) you will probably get less per coin....because the dealer takes a cut for buying it from you.

 

It's tricky if someone ( like a grandparent) "gives" someone gold coins with no record. Now you don't have a cost basis to report what the gold what purchased for if they didn't give you a reciept. If the coin has a date on it...that will be the cost basis. Gold used to sell at one time for 400 an ounce.....imagine the gain!!!

 

Otherwise, if you INHERIT the gold coins in a will, the coins are valued the date of the inheritance.

 

Total pain in the arse if you ask me.

 

Better to invest in index or ETFs and hold for the long run. INSTANTLY liquid for the dollar amount you see on the statement.

 

This is NOT financial advice and I am NOT a financial advisor.

 

And..don't EVER buy anything advertised on TeeVee entertainment programs or the back pages of magazines without doing your homework.

 

They ALL leave out the part about SELLING the coins if you have to......and that's the whole purpose of accumulating assets in the first place..to sell them if you need to!!!

 

Go to the IRS website and type in "Selling GOLD and collectibles" and you will find a list of the IRS Publications that deal with the subject.

 

Irs Dot Gov.

 

Hope this helps. Keep in mind you can NOT buy a loaf of bread , a bag of groceries,  a car or a lawn mower with gold coins.

 

You'd have to SELL them first to raise the cash and that's where it gets ridiculous.!!!!

 

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@Othereeeen  Well done, makes perfect sense. We are not buying gold! Thank you!

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Gold and silver are good investments.  Buy small gold coins, sterling silver and it will all hold some value.  Unlike paper money.  And there will all be money changers.  

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