1.) If I bought a $400 $5 Liberty gold coin today, what will the value be when the gold standards passed in Texas (or in USA)? 2.) Is it a good time to buy rolls of silver quarters and hold them until price reaches above $50 (or closer), so I can sell and buy some more gold coins. Thanks!
You may be holding for a long time. A state may decide to adopt the gold standard, but until the federal government does the same and regulates the price of gold, I don't see how it could possibly work in anyone's favor. Guy
Welcome to the Forum! First I do not believe a federal gold backed currency will occur. If it does, IMO, it would be based on a small fraction of the price of gold, too small for speculation affecting the basis. It is possible this would satisfy the worries of many who hold gold for financial "stability, wealth, etc." , and the price of your gold coin ( assuming it is mainly common, close to bullion ) might decrease. As to #2, I would not. I would just save to buy a small amount of gold if that was your end intention. Jim
It depends on how the Texas statute is worded. They could be legal tender for whatever the bullion value is at the time they are used in payment, of if the statute simply declares them to be legal tender (which they already are) then they will be worth $5.
So, do you think its worth buying a $400 $5 gold Liberty coin if we KNOW (or foresee) USA will standardize gold?
It all boils down to the price of gold. People overlook this when they ask to be put back on the gold standard. If the US and other countries did that, they wouldn't want volatility in their "standard", so I could see them banning the ownership of gold, and then fixing the price at say $1000 an ounce. Then they could rely on the stability of their stockpile. Be careful what you wish for, I could see this scenario much more likely than a gold standard with free floating gold values. It was not that long ago that gold was illegal to own in the US. If a standard was put in place OP, there is no way of knowing what would happen to the value of your purchase. I would think you have a better chance on profiting on that purchase without a gold standard than with.
No matter what is said, it is no more accurate than a coin flip. if this is the only criteria driving your decision, read equally biased opinions (pro and con) and make your decision Your main consideration is when ( if ever ) gold will hit 1600/ oz based on adjusted USD. My personal opinion is if you desire the specific coin and can afford it, take the chance. That may be the normal selling price as I haven't checked, but seem a little high for less than a quarter of ounce of gold @ 1490 if the coin is average common. IMO. Jim
When you read figures like this, don't you get the idea that they have an interest in increased gold prices? Gold is under $1500, so very few must believe that (1) a gold standard will occur in the the US, or (2) that if it happened , that gold would go up like this. Why? Because if a person believed , they would be dense not to be in gold 100%, as the gains would be tremendous. But I am not advocating that , even if a person did believe as they do, as it would most likely lead to disaster. IMO. Jim
Where are you getting $5 Libertys for $400? You'll be hard pressed to find any for less than $500 each, even in lower grades. If you're determined to own gold, you'd probably be better served to buy bullion; purchase price will be less and a standardization of gold won't hurt its value. A bit of a misconception; It was never absolutely illegal to own gold. Businesses (dentists, jewelers, etc.) and industry (radio, glassmaking, etc.) needing gold could own it with few limitations. Individuals could own up to $100 in gold coinage without fear. Additionally, and most important, individuals could own gold with little limit if it was part of a collection of "gold coins having recognized special value to collectors of rare and unusual coins." Thus, anyone holding a fair amount of gold in the form of coins, could simply assemble a collection of older coins consisting of each date and mint. The individual coins might not have been "rare [or] unusual" but the assemblage of a full set would be. These exceptions are the reason why pre-1933 coins are available on the market today. http://en.wikipedia.org/wiki/Executive_Order_6102
Yes, I know all of that, but generically gold was illegal for people to use as a hedge to currency. What if that happened again? WHY would the treasury want free floating gold prices? The answer is they wouldn't. I see no way to have a US gold standard without going back to banning private ownership of bars and bullion, and the government having an accounting value to gold in its vaults. Anything else would be suicidal to base a currency on. People also forget that most civilizations gold was the perogative of the King, and he alone could own gold bullion. They did this to set a value on gold and have control of the currency. In history, gold coinage was not a panacea of the masses, it was still controlled within that country. "The good-old days" weren't as good as many here think they were.
I agree thinking the article was written to support gold prices. Why is it the assumption that gold would go up? Why wouldn't the Treasury, if the gold standard was reimplemented, simply choose whatever number they wanted and use it? They used $35 an ounce for DECADES after the world price was different than that. Like I said, I see forced sales at below market prices in the US if the gold standard was reimplemented. Hopefully they would let you keep old coins, but that is a hope. Other countries in the past have forced them sold to the government as well.
Another factor, regarding the price of gold, is the estimated 144 tons of gold being held by Gaddafi in Libya. If things keep going against him and he has to dump this gold to buy mercenaries or private protection or a way out of the country, the negative impact on gold prices could be enormous.
lol that is so true. As for this discussion I'd say if you want some gold buy it and do not buy some silver to hold to later turn it to gold. Seems weird to even think like that to me.
