Gold coins being sold?

I noticed at my last coin club meeting that more ppl than usual had gold coins for sale. Also there aren't that many gold commercials on tv anymore. My 3rd thing I noticed is alot more gold in the Turks and Caicos page of ebay today.

I am very comfortable holding onto my gold coins as mostly all will never be for sale anyway, at least not today. Now that gold has grabbed a new bottom of $1000 to $1050 are some ppl getting cold feet or are they simply making a profit? Anyone?

 

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I was buying gold in 2002 thru 2006...
Sold at the high in 2008 of $1022.00 have never looked back....Gold is cyclic and when you see everyone run to it is the time to sell!!

Be careful it can fall very quickly just as it can rise quickly as well!!

RickieB

 

Doug is right, bulls make money, bears make money, pigs get slaughtered!

 

You see this advice all the time, and it's counterpart -- that you haven't actually lost money until you actually sell it. It presumes that having your wealth in currency is the only reliable form. But there are many people who own huge portfolios of securities or private businesses or real estate who are securely rich. It isn't correct to believe they haven't made a cent of profit. There are also people still sitting on portfolios of internet stocks purchased in the 1990s that are now worth a small fraction of their cost. It isn't correct to believe they haven't incurred a cent of loss.

I'm not implying that gold and silver will go up, or down or that the value of the dollar will go up, or down. It's just the way it is.

 

All I can tell you is that most successful people measure their wealth in a different manner than you do. It's a very narrow viewpoint that the only profits are those recognized by the IRS because they were turned into cash. Just take one example, Warren Buffett. Until his recent donations of stock to the Gates Foundation, he's never sold a share. By your "mathematics" he's never made a profit. I'm sure the IRS agrees with you. If the guys you know saw millions of dollars in stock go to zero in less than an hour, then they are idiots, not examples.

 

Don't forget about a thing called dividends , I own stock that I don't sell but get dividends every year , and yes the IRS wants their share of the dividends of the stocks I never sold yet . I think cloud is right on this one .
rzage

 

I agree with your statements that profit is not made until you sell. This post got me wondering, so I looked up the current prices on my 2006 $ 50.00 Buffalo's.
I bought @ 800.00 on the very first issues. They are now worth $ 1600.00 according to PCGS (which I think prices are very inflated) However, the question is;
There is a $ 2,500 price listed for FS coins. Does the FS mean first strike? If so how do I prove if my coins are first strike or not?

 

I think it is too late to get the FS designation. I believe you have to have your coins submitted within 30 days of issue. Sorry, at least you got them at a good price.

 

so what about if you own a duplex rental property?
you bought it for say $61,500 and the apprasial is at $89,900
my bank payment a month is $725 and the rent I collect is $950
you think I am only making $950 or $225 anmd ownership of a rental property a month really?
I think I have more then just that personally...
in my opinion over the next 10 years I will have $114,000 which will allow me to not only own said property but have actual profit
all without selling sure in some cases you only get profit by selling but it's not the sole basis of profit


(p.s. house prices are decent here in Nebraska without hollywood or the NYSE jacking up property prices for the fact of tons of money being thrown around)

 

You are correct. A friend of a coworker of mine wanted to sell a pharmaceutical distribution business a number of years ago. He had built it from scratch over many years and the selling price was about $18 million. He was relating how the business broker he was dealing with for the closing once said to him, "After you sell this business, you'll be a wealthy man." This irritated him and he had to explain to the broker that he was already wealthy and was just converting his wealth from one form to another. I will agree that holding gold coins represent a more volitile form of wealth than a business, but for people who bought at $300 or $400 or $500, the profit is real whether you sell or not.

 

You could show the buyer a receipt of when you bought the buffalo from the US mint and other paperwork from the mint of when the release for sale was and that at least gives the buyer a good indication.

As far as getting a first strike listing on your label when having it graded the story is that they have to receive them withing the first 30 days as someone else already mentioned. Since very few ppl know this, it would be worth asking one of the TPG's if you could do it another way, like using a paper trail like I mentioned above. At this point you have nothing to lose but an email. :thumb:

 

We are speaking about Buffett, not the company he chairs. You need to check more carefully. The stocks you refer to are owned by Berkshire Hathaway, not by Buffett. Buffett is part owner of BRK and has never sold a share of HIS stock. By your calculation, he has no profit on the shares of BRK that HE owns. I don't think you'll find much support for your position no matter how you try to twist it.

Edit: Let's use a concrete example to clarify your thinking. In the June 30, 2009 quarterly report, Berkshire Hathaway reported holding shares of
Coca Cola (KO) stock with a cost basis of $1,299 million and a market value of $9,054 million. Is it your position that BRK does not have a profit on their investment because it has not been sold????

 

Not universally true. From the 80's onward, the mark-to-market accounting practice borrowed from commodities futures traders allows companies like Berkshire to book profits from market positions without selling (or buying in case of shorts). In some cases, like AIG, it is required.

See the 3rd and 4th paragraphs under "History and Development": http://en.wikipedia.org/wiki/Mark-to-market_accounting

 

I think this is a matter of semantics. When I think of the word "wealth", it means to me the present value of all my assets. My wealth will include my home equity, my 401K, stocks and any other assets that have not yet been liquidated.

However, my "wealth" doesn't really benefit me much unless I decide to borrow on it as many have done with their home equity. However, when I sell assets, I will realize a profit or loss.

Accumulating wealth provides a certain amount of security, which makes some people feel comfortable purchasing stuff. For example, when people's 401K accounts and home values were soaring, consumer spending was increasing. This is because of what is known as the "wealth effect". Even though people were not cashing in their 401K's or selling their homes.

 

Let’s try to explain it to you by example of a company that does this as a major part of their business, Goldman Sachs. If you go to the attached link to the 10Q report filed for the quarter ending June, 2009, on page 11 in the notes to consolidated financial statements you will find the following statement.

http://www2.goldmansachs.com/our-firm/investors/financials/current/10q/10q-2009-2q.pdf

“Related unrealized gains and losses are generally recognized in ‘Trading and principal investments’ in the condensed consolidated statement of net earnings.”

If you prefer a description of the accounting treatment involved, we have:

“Debt and equity investments classified as trading securities are those which were bought for the purpose of selling them within a short time of their purchase. These investments are considered short-term assets and are revalued at each balance sheet date to their current fair market value. Any gains or losses due to changes in fair market value during the period are reported as gains or losses on the income statement”

Maybe things were different when your high school teacher explained this to you, but the world has moved on to a more comprehensive definition of net income and profit. Common sense and best practice accounting both recognize that this is a PROFIT.