Assume $2000 gold in 2015: How Do You Sell It?

This came to mind while reading the 800 ounces of silver thread.

Let's just assume gold hits $2000 in in 2015 (Amount and year totally random, though Elaine might go for it ).

If someone had, say, 100 ounces in GAE's, how much below spot do you think he would have to settle for, generally? To whom do you sell it?

Just curious because I'm wondering about future security, etc., for my small (fraction of 100 ounces) investment.

I hope this isn't too general or to elementary a question ... I'm still only a grasshopper at all of this.

Bill

 

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I've seen places like AMPEX that pay above spot for bullion coins. Coins require no authentication. If you are adding to a stock of bullion slowly then government bullion coins are your best bet. All of the recognized goverment bullion coins as well as historical gold (US pre 1933 Eagles) sell at premium and are liquid worldwide.

 

Billincolo:

There are many factors to consider, but I guess we start general on topics and wait to read all the replies that will help to fill in the cracks... I feel, in general, that it completely depends on what's going on at the time you are ready to sell, the available supply in the market then and the willingness of dealers and buyers out there at that time.

If the factors are like those of today, then maybe the 2-3% below spot price at the time you are selling to a dealer. To an individual buyer of bullion maybe something closer to spot minus your costs of any auction listing, shipping or insuring the bullion if mailed to a buyer. If things are different in the future scenario, real good times or really bad times, you will have to weigh the value of the offer(s) you are given. Not all dealers nor individuals are always set up the same way, nor same frame of mind (bulls/bears) when it comes to buying despite what's happening in the market/world. If just prior to your proposed price and sell date (year), the price was way up or way down then suddenly idles or finds a base at $2k when you wanted to sell, try to figure what the market/buyers are thinking/feeling or reacting to at the time you are trying to sell, so that you understand the amount you are being offered from them at that time. What if the current laws have changed or new special taxes are introduced by 2015... you can't say today what will be the situation come that time but you can certainly set up a list of What if... scenarios so that you are better prepared to know when and how to react if you see things leaning to a particular scenario.

I'm curious to read what others feel about the OPs inquiry, but I doubt you'll see much rationale explained from elaine...

 

Thats a big assumption! There has to be ceiling where it starts leveling
Off and even falling, Iam not sure where that will be in five years
I guess it really depends on the economy, If i had a crystal ball i guess
I could tell you for sure...LOL

 

Dealers around me will typically buy AGEs and ASEs at or slightly over spot [because they can sell them for more]. I don't see that changing.

 

New guy, here. Wouldn't you generally get a better price selling directly to another individual through, say, ebay or bulliondirect? That's how I've figured on selling mine if I ever need to dump my cash for federal reserve notes.

 

I don't know anything about bulliondirect, but ebay takes 9% off the top. Then you have paypal fees.

 

Welcome to CT!

One would be in yet a better position if able to cut out the eBay/bulliondirect middle man entirely.

The issue with selling on eBay is the fees and length of time your item(s) take to sell. When you are ready and on the day you most wished to sell your PMs you may not have a live auction running and buyers willing to buy at your price(s) such that you recoup listing fees, shipping and insurance fees and make a profit from your PM sales. It can be a lot harder than you think so if you haven't done so yet, you might try to run a few test auctions to see how it works and how much it costs, how difficult it can be to realise a profit with bullion sold in online auction hosting sites.

 

if gold hits 2000 an ounce i think you will see a sell off and a huge plunge.

most people will sell off their bullion at that point. people will pre 1933 coins will probably hold them for value as their value will sky rocket.

i don't see it hitting 2000 anytime soon. the dollar is making a strong come back which is going to affect gold prices. we will see how strong a rally the dollar gives.

of course the only reason it is rallying is because the euro just got trashed between greece, spain and several other countries out there.

there is a major point of resistance at the last high it would have to break through first. right now it keep bouncing between 1000-1150 i do believe.

for it to get to 2000 some major economic factors are going to have to get pushed into play. if it does hit 2000 then we are looking at the top of the bubble.

if it got that high i would sell personally.

 

When gold prices hit a certain level, folks will sell it off like it was radioactive. Just like silver back in the Hunt bros. days. I wish I knew the magic number, but back in the silver hayday, I sold (which I seldom do) and rebought later for less then a third of the cost. Sometimes it's just like Atlantic City - LOL

JMHO - I think fractional gold will be the best resale items.

 

I'm quite sure the same question (or similar) was asked by people some years ago when gold was under $500... I can imagine it: "Assume $1000 gold in 2010: how do you sell It?"... lol

 

if you adjust prices for inflation, gold has already been over $2000/ounce in todays dollars when it ran up back in the early 1980s. Sure, there were plenty of folks selling off then, but for every seller there was a buyer...

When I'm selling some of my gold, if I want fast cash, i go to the local coin shop and they give me 2% under spot for generic stuff and they pay melt or better for Eagles or .9999 gold like the First Spouse coins. If I don't need the cash that day, I'll list it for sale on the message boards and deal with collectors directly. But I wouldn't try that with a major quantity given the dollar amounts involved. For that sort of transaction I'd probably go right to APMEX or call up a few coin dealers I trust and take their advice of how best to liquidate.

 

I sell my precious metals to Silvertowne. They have always treated me fairly.

 

You are exactly correct. There were many posts by people indicating they intended to sell gold at $500, $800, $1000 and silver at $7, $10, $15 etc. I don't know if they did, but in every case it was the wrong thing to do for a long term holder of gold and silver. $2000 may turn out to be another one of those imaginary important price points.

 

The $2000 price point I used was completely random -- who knows, it might ony go up $100 in the next couple of years!

Something else I was wondering was, if the price rises extremely high, will it be more difficult to sell?

What if it should hit a spot price of $6000 in ten years? Would its high price make it more difficult to sell for that, or would dealers still be offering the same 2-3 percent more or less?

 

??? If the price of something rises, that is because more people want it. Supply and demand.

So why would it be difficult to sell?

 

Maybe some people won't think it will retain its value. Maybe they think the bubble is popping and want to short the sale, etc. because they think it can't stay that high (and they'll probably be right). Maybe resources to trade for it or to buy it are in short supply. It's never as simple as we think.

I probably should have said, "difficult to sell for the spot price or close to it."

Thanks --
Bill

 

That sort of logic reminds me of Yogi Berra's famous quote, "That bar is so crowed nobody goes there anymore."

 

Gold carries a premium currently $50-$75 over spot for ounce coins. I have been selling low grade saint augdens for 1400/1500 and I'm averaging one a day. Compared to before where they would stay around for a couple months.
Silver is harder to find than gold currently but that's a good time to buy. Wait for the dip and stock up.

 

if gold can hit $2,000.00. then it can go $5,000.00 and $10,000.00 and more. right now. most american will be selling when gold hit those prices. because american most likely becoming poorer and poorer. american need money so badly. but remember. india and china. most populous countries in this planet. they will become richer and richer. and those are the people who really like gold, love gold, keep gold for next generation. and they are continue to do so. check the recent billionaire. see china and india rich people increases and produced a lot of billionaire. while american the opposite. decreasing.

well. don't imagine too much. i analysis is gold will eventually go up year after year. around 10% to 35% each year depending on the actual situation. i should said just like the s & p index. that is my opinion.