Not sure about Bullion investing

Just call me a Doubting Thomas, but I need someone to explain the strategy in bullion investing. I am seriously thinking of buying some AE coin bullion as a hedge against inflation or a major stock crash. Here is the dilemma. If I pay $ 18.00 for a coin that has a stated valued of $ 1.00 how do I resell in the time of crisis for spot price of silver, when no one has any money or must I just spend it for the $ 1.00 stamped value ???

Dave

 

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Buy low, sell high.

Lesson over.

Close thread.

 

You could cut it into eight pieces and call them bits and sell them for their weight in silver.

 

If no one has any money the spot price of silver would be zero, since no one would have any money to bid the price up.

You will always be able to get the spot price for silver give or take a bit, the reason the spot price is where its at is because there are close to an equal amount of buyers and sellers at that price. If there are more sellers than buyers the price goes down, if there are more buyers than sellers the price goes up.

 

The lesson is don't spend $18.00 for a $1.00 coin. Endeavor said it "Buy low, sell high, lesson over".

It's only worth what someone is willing to pay for it.

 

They had to put a stated value on the piece of metal for it to be a "coin". Collectors seemingly only want coins, not medals or rounds. The mint made medals in the early 80's and no one bought them. Put a denomination on them, so its a coin, and they have been flying off the shelf ever since. So the denomination is meaningless, its only there so they can legally call it a coin.

 

This brings to mind a coin I have. A Japanese 100,000 yen coin was issued in 1986. The exchange rate for 100,000 yen at that time was $640 although the coins only contained $345 worth of gold. This may have led to widespread counterfeiting of the coins. I have tried to find more information, but, so far, haven't been successful.

 

try not to confuse Legal Tender status with metal price, they are different terms altogether.
If everything went bust, metal prices dropped to $0.00 it would be worth face value as Legal Tender for the Country of issue, at least that is how it was explained to me.

 

I'd suggest taking a few basic economics, finance and civics courses before trying to understand and build a strategy for bullion investing.

Most of your investment strategies depend on your particular goals and timeline.

Figure out where you want to be, what the timeframe is, and what available resources you have. Then start developing a strategy.

Are you looking to preserve wealth, create wealth or maintain a lifestyle while spending wealth?

A 5 year plan is a good place to start.

Last - "bullion investing" is part of an investing strategy. To look at bullion in an isolated bubble is probably a bad idea. Markets go up and down, the key is to understand what markets you want to participate in and then use them to manage your assets.

Those looking for the "easy button" are best left to IRA's and 401k's in automatic mode (target date funds). They won't maximize earnings by any means, but they will give you some protection of principal over the long term.

Of course if you'd like, I can sell you some really nice gold bars at a high premium and convince you that the premium was for my excellent advice. In fact that goes for everyone! I'll gladly sell you an ounce of gold bullion for $1900 today. After all, it was there once and at some point in time it will go up past that mark again. YMMV

 

Ahh, someone who understands investing and capitalism. Good advice but I'll sell the same ounce of gold bullion for $1800.00 today. That way you can make a hundred dollars profit when it goes back up to $1900.00.

 

Ah yes, but I am willing to sell mine at $1700 so he can make a $200 dollar profit, and the next guy is willing to take $1600 then $1500, and you see how this works

 

Yes, I do. So let's cut to the chase and you can see me all of your gold for $.01 and I'll be happy. This eliminates all under-cutting, don't you think?

 

What's the point, 0 x whatever you want to pay him is still 0...

 

That is not exactly true Peace.....

 

I'd never ask to get them free. That's just not right.

 

Right, you collect numi coins, but hang out in the bullion section for some odd reason...

 

Actually it is true, but good to see you didn't break your streak of incorrect, inaccurate or wrong posts. How long has that been going on now???? Two? Three years?

 

Ok, I'll settle this once and for all. I will go ahead and take the gold and silver off your hands, and I will only charge a SMALL collection fee to do it. Flat rate, $1 per ounce - gold or silver - as many ounces as you need to dispose of. You must act now - this offer could expire at any time!

 

Consistency is key...

 

I try to separate three things: collecting coins for the pleasure of collecting; buying metals to hedge against inflation; and a total meltdown of society. The first one is obvious to any coin lover. The second applies in times of market volatility. But the third, a total meltdown of society is why I have my own water well, and raise chickens. At least I will have a roof over my head, water, and food for my family. This reminds me of Voltaire's Candide: be productive, live a peaceful life by minding your own business, cultivate your garden (your own little corner of the world), and trade the surplus with their neighbors. But I digress.