With gold at an all time high..

[stinkycheese1]

I'm not very good with the stock market or investing, so I have a few questions. Some websites where I've bought coins from such as amergold.com cater to investors. They say that buying gold or silver for investment is possible. I remember my mom telling me stories of my grandfather who would bring home stacks of gold coins for investment purposes.

 

However, I've heard that gold is not a good investment for coins. Why is this? Isn't gold a liquid investment? Perhaps someone could point me in the right direction on how to invest.

 

Also, to spice things up, how do you think gold will go? Do you think it will get an higher? Last I saw gold was in the $820's, is this an all time high for gold?

 

Finally, I remember making a post in the past about how much my gold collection was worth. I wanted to thank all the members for the help, (It was around 2.2K) but I was wondering what an NGC MS64 Saint would go for now. (no motto). Although I feel guilty about asking because I'm lazy I really should do the work myself and figure it out myself. Which I will do on ebay...

 

 

Whats your thoughts on investing in gold coins?

 

[bsshog40]

I can't afford to invest in Gold Stinky, but I have never seen a reason why it's not a good investment.

[Revenant]

Gold coins to my understanding are not always a good investment because:

1) The value of the coins is often more based on the value of gold and not the value of the coin as a collectable and the price fluctuates strongly with the gold price.

2) The coins fetch a meaningful premium over the spot price of gold and so they're not as good as bars and ingots for buying gold for the sake of investment.

 

I think the high is around 840 or 850.

[DaveG]

Perhaps you can elaborate on what you mean by "gold is not a good investment for coins"?

 

Of course websites that sell gold and silver coins say that you can buy gold or silver for investment. (There's an old saying: "Never ask the barber if you need a haircut.")

 

Whether gold is a good investment for YOU depends on your means (how much money you have) and circumstances (what you need to spend that money on).

[stinkycheese1]

Perhaps you can elaborate on what you mean by "gold is not a good investment for coins"?

 

Of course websites that sell gold and silver coins say that you can buy gold or silver for investment. (There's an old saying: "Never ask the barber if you need a haircut.")

 

Whether gold is a good investment for YOU depends on your means (how much money you have) and circumstances (what you need to spend that money on).

 

I don't know much about investing but I would like to learn more. I've heard many times that gold coins are not as good as investing as other things are better.

 

 

[stinkycheese1]

Gold coins to my understanding are not always a good investment because:

1) The value of the coins is often more based on the value of gold and not the value of the coin as a collectable and the price fluctuates strongly with the gold price.

2) The coins fetch a meaningful premium over the spot price of gold and so they're not as good as bars and ingots for buying gold for the sake of investment.

 

I think the high is around 840 or 850.

 

Aren't gold coins that have a numismatic premium (i.e pre 1933 gold) better because they are worth the amount of gold they contain plus a numismatic premium?

 

 

[rbrown4]

I have gold coins as part of our collection and I have managed my family's stock investments as well as my own for many years now. If you are talking about "investments" with a potential profit in mind, I would first determine what you, yourself expects as an acceptable return on your money/investments. Personally, if you are interested in Gold Coins, you should be looking at these as a "long term investment". Buy and hold for many years. But if it were me, my desire for the coin or interest in such may override the potential "return".

 

I think it is much safer to look at coin collecting as just that as opposed to strictly an investment option. True if you buy smart you will do good, but it is a hobby first of all for most of us.

 

Rey

[jman425]

The key is diversity. Spread yourself in stocks, mutual funds, bonds, money market and commodities (gold, silver, etc). When one sector falls, you still will be ok with the others.

I have some gold coins but don't plan any short term gains. I plan to give them to my two girls when they graduate from high school, but thats still a good 15 yrs from now. It's more symbolic and sentimental than cash, imo.

[MikeInFL]

Whats your thoughts on investing in gold coins?

 

I like gold as a hedge against the dollar. Has done very, very well for the past few years.

 

As long as you can get your gold coins for close to spot, I say that they are a good investment, but as with any single investment it shouldn't be too much of your portfolio.

 

All that said, I don't like gold at the present levels. I'd wait for it to bounce down a bit before buying any.

[MikeInFL]

p.s. for a good gauge on what NGC 64 Saints are going for, check the Heritage auction archives.

[michael]

gold is not an investment as investments usually pay dividends like stocks or money market accounts and with these type of investments they are easily liquid as in they can be easily sold/traded over the phone in a few minutes

 

with gold coins they do not pay interest and need to be kept safely and in most cases it takes some timeand a specialist to price you out

 

an ngc ms64 saint today is worth approx. $1100.00 over the phone selling sight unseen to say a large wholesaler like dillon gage

 

 

[just-john]

remember when you sell gold bullion you don't get spot price but less and you pay shipping and insurance.For 1 to 10 oz you take a hit if you start doing 20 -50 oz or more than your rich already

[Dcoin]

Stink you’re a young dude, if your really looking for an investment think long term. Roth IRA's and other tax sheltered investments are great for people who are going to have $$ there for a long time to come and you can link it to any investment.

 

Collect what you like, but most of the time collecting and investment do not go hand in hand.

 

[Raybo55]

I have a single $20 St. Gaudens in my collection because I really like the design and for no other reason.

 

The only time I might consider selling it is when the last can of beans has left my cupboard. There are collectors and there are flippers (investors), I am a collector and always will be.

 

Ray

[DaveG]

"I don't know much about investing but I would like to learn more. I've heard many times that gold coins are not as good as investing as other things are better."

 

stinky:

 

If you're an "investment beginner" and you'd really like to learn more, then I'd highly recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It's an older book, but it's an entertaining read and contains some really common-sense advice. Once you've read it, pm me and I'll recommend some other books to read.

 

As far as gold coins go, reasons they're not as good from an investment point of view as other things can include: transaction costs, storage costs and the fact that they don't pay any sort of dividend or interest.

[MunkyMan95]

Technically, Gold is not at an all-time high. Adjusted for inflation, the $800's saw in the 1980's would be more like $2,000 now (if I remember correctly)

[stinkycheese1]

"I don't know much about investing but I would like to learn more. I've heard many times that gold coins are not as good as investing as other things are better."

 

stinky:

 

If you're an "investment beginner" and you'd really like to learn more, then I'd highly recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It's an older book, but it's an entertaining read and contains some really common-sense advice. Once you've read it, pm me and I'll recommend some other books to read.

 

As far as gold coins go, reasons they're not as good from an investment point of view as other things can include: transaction costs, storage costs and the fact that they don't pay any sort of dividend or interest.

 

Thanks for the advice. I'll be sure to try and find one.

 

And thanks to everyone else for the help

I really appreciate it

[Tyrock]

Here's a thought. I started collecting in 1978 and I remember the gold and silver runup in 1979 that culminated with gold at $850.00 per ounce in Jan. 1980. I'm not too excited about the price of gold right now because when you factor in inflation, gold would have to be around $2000.00 an ounce to match the buying power that $850.00 per ounce represented in Jan. 1980. I personally see gold as a hedge against disaster as opposed to an investment. It's like a stock, it's price goes up and down. I'm content to own the gold coins in my collection and let it go at that.

[jgrinz]

Gold is and CAN be a good investment.

In my case I was a contrarian invester buying low mintage out of favor Coins.Planned on holding them for two years and sell them and move into the next investment.

The selling part is NOW as they are at Heritage ready for the February Auction.

I bought 5 Liberty Double Eagles in MS61 MS62 grades

reasons:

 

One - Liberty Double Eagles were always side stepped in favor next to the

St. Gaudens Double eagle

 

Two - The Grade I purchased was well with in a Smaller investors pocketbook.

 

Invested $2900

Expected Return $5500-6000

Time Frame 2006-2008

 

I actually had a pre-Auction Offer by Heritage to Purchase at $5400 so my auction estimate is a realistic one.