Which Gold 1/10oz Coin to Get

I bought a proof tenth oz. AGE in 2006 for $90.
I sold it last summer for $146.
I have another I bought on a bidboard for about $165 when gold was high. I guess I'm stuck with that one.

 

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You realize the bid-ask on fractional gold coins means you are going to pay a HUGE PREMIUM to the underlying gold content, probably about 30% or so ? Compared to 4-6% on a 1 ounce coin.

 

In other words, if you pay $150 for a 1/10 ounce coin, you're paying the equivalent of around $1,500 per ounce. Gold is around $1,230 per ounce today. A one-ounce coin can be had for under $1,300.

 

I haven't gone to my LCS lately, but I think even the 1/4 oz. coins had 20% premiums. The 1/10th and 1/20th's could sometimes be 35-40%.

 

I got a couple tenth oz. AGEs about ten yrs. ago on eBay for $75 each. One ad in Coin World had them for $65 each.
I got 2 of those. Later I sold a couple for $125 ea.
Wish I had bought more.
Safe deposit box fees are taking the potential profits.

 

Lots of banks offer free safe deposit boxes with your account. Google search some of those options. I think if i ever put mine in a bank, that's the route I'd take.

 

The banks where I live are discontinuing safe deposit boxes, none of which are free. New branch locations don't even have them.

 

Chase and Bank of America offer free safe deposit boxes. Do you bank with either of them?

 

Chase is here, though only a small number of offices. BOA is a no-show.

 

A few years ago when silver and gold were driving up people were selling their PMs for ... Cash.

Ever see those signs "Cash for your gold/silver" ?

I collect PMs not as an alternative to paper money, but as an stable physical investment for part of my portfolio (it's like my silver and gold coins).

I didn't sell any when silver was at $30/oz. Why? I'd just get cash and no idea what else to put that cash into, other than just to keep the cash as you don't want to buy new Silver/gold that you just got out of.

Cash hoarding is another part of my investment portfolio, thus no reason convert PMs to cash.

People collect / invest / hoard PMs for various reasons which may include for when the dollar blows up.

But one main reason gold <> dollar anymore is foreign countries were converting out $$ to gold and exporting it as exchange rates, etc made it more valuable.

 

Both gold fractionals and silver. None were rare dates nor graded. I held them for about 15-20 years. I wasn't selling to dealers either which may have helped.

 

We have BOA here but I don't trust them. They screwed my girlfriend's son on their mortgage. He took over a mortgage when he bought a house. Things were ok for about a year. All of a sudden BOA said they did a review and wanted $17,000 cash right away. He had to give up the house.

 

BOA did a lot of that type of stuff during 2008-2010
String people along and then foreclose on them all along saying that every thing is okay, just keep making payments. They probably knew they were going to foreclose on that house before the mortgage transfer but wanted to get more cash out of it before foreclosing.

I don't trust BOA nor Chase.

 

"foreign countries were converting our $$ to gold..."

And that's when things began to get crazy. Glad someone else recognizes that turning point, courtesy of Nixon, circa 1971.

 

Yes, all you need is one country that has any type of inflation issue.
They'll convert their money to USD then convert it to US gold.

Then keep all their "cash" in gold. then when they want to buy something then convert it to their local currency, then buy.

you get a gigantic sucking sound of gold from Fort Knox of foreigners getting USD and converting it to gold.

What you get is USD traded in for gold. Then the US would have to buy gold at what rate now?? to maintain M1/M2? Money supply? Or simply demonitize the traded USD, which would shrink the money supply and cause massive other problems. Imagine how derivatives would affect this gold backed scenario.

With increased populations, global trade, currency exchanges, etc it made no sense.

If people think cash is worthless then they can keep it in PMs and simply trade it for USD when they buy something. Then there are no problems.

 

Woo Woo

 

There must be something up.

They just don't foreclose or demand more $$$ unless something was open-ended at the closing.

 

Nixon ended it but it was a result of the imbalances of Bretton Woods.

The Reserve Currency nation is going to supply dollars and run a trade deficit -- it's an economic truism. Under a gold standard, this meant running perpetual gold deficits unless you were willing to surrender control of monetary policy and/or suffer deep recessions.

 

sounds like he "assumed" a mortgage. Not a new mortgage but an existing one.
Few people read every line of a mortgage document.

 

Hold it.....

If their currency DEPRECIATES vs. the U.S. $$$, then it takes MORE of their currency to buy a Dollar and a fixed price (let's say $35 to 1 ounce of gold) to get gold. There's no Free Lunch where they get to print money and "steal" gold by converting their depreciating currency into the stable/appreciating U.S. $$.

It was the U.S. in 1971 that needed to inflate, not other countries.

There was a drain from the U.S. of gold but it was because as the Reserve Currency the U.S. would be expected to run a trade deficit AND a current account surplus and to balance the books it required a gold exodus under a gold standard (today we have the current account surplus).

It wasn't the loss of gold per se that was the issue (though it was the face of the issue to the average Joe), it was the inability of the Treasury/Fed to control U.S. economic fortunes as per the Treasury-Fed Accord of 1951.

The whole problem is that if you want to "fix" the currency then something else will have to fluctuate to absorb shocks. It's like building a car with small tires and no shocks or struts. It's great on a flat level road that is smooth, but not so with bumpy roads.

An economy has to be able to have shock absorbers. These shock absorbers can either be INTERNAL (GDP, labor, prices of goods/service) or EXTERNAL (currency, inflation rate). In the Eurozone, their is no independent monetary policy at the national level so the adjustments have to be internal only (hence the pain and revolt against the ECB and EU).