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

Yogi was a wise man, in his own way.

 

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Buy gold in 1 oz amounts. Hold it until you retire. When you are done working, take a gold coin down to the pawn shop or dealer and sell it to live on for a few weeks. Rinse and repeat as necessary. If you were lucky and got some numismatic deals in the process even better.

It's simple, you don't have goverment(s) mettling in your retirement, and IMO, the only reason for holding gold. (aside from the fun of collecting)

 

I think the manner on which it gets to $2000 by 2015 matters. We are talking 56 months from now. If gold went up $20 a month, that would put the price at $2250. Does anyone notice a $20 hike in price of gold per month.....hardly. Gold will just keep going on as it always has.

Now, if the price hung around $1200 until December 2014, and then went to $2000 overnight, sure, there would be a lot of sellers and people suspecting this price won't last.

 

Good point.

 

There would also be many people who would read it as a technical buy signal, similar to what happened to tech stocks in the 90s. It was pronounced a bubble in 1996 but continued to rise until 2000.

 

And then it popped hard. I'd rather be one that bought before 1996 and cashed out in a year or so later, then one that bought in 1996 and then the bubble popped. Timing the markets is difficult even for the so called "experts."

 

The problem is that nobody knows whether $2000 gold is the 1996 price or the 2000 price. That's why I prefer not to decide ahead of time what price I will sell at. Instead, it makes sense [to me] to stay with gold until there is some sort of indication from the market that the rise is over, and pray that I have the dicipline to sell when everyone else is still bullish. It isn't easy. It would bother me a lot more to sell at $2000 and watch it go to $10000 than to hold at $2000 and watch it go to $1000. But everyone has to determine their own tolerance for risk.

 

That is why my strategy is to only sell a portion when prices increase. If I can sell a portion, say 40% and have paid for my entire collection so that the other 60% has been gotten for free, I can then weather the storm. If price continue to rise, I still have 60% of what I originally had. Sure it will feel bad that I lost out on 40% profits. But, the 60% I still have would have cost me nothing. If the price drops, I still have 60% that I paid nothing for. It's a win-win strategy for me.....not necessarily for everyone....especially greedy people.

 

SilverSurfer -- I like that strategy. It's a reasonable balance of risk and reward. Thanks.

 

I have a different twists to contribute. I hope I don't get the "you have been had lady" response. With one of my dealers (bullion), the salesmember advised me that one of the benefits with doing business with their company is that they will always buy back from their customers, even if it means that they will be taking a loss (like the 1980 with silver). The sales member explained that when every one is selling, that not everyone is buying. The rationale included the higher premium when buying from them, because the price was loaded at the front. I am paraphrasing the best I can. This particular dealer is what I call a full service kind of dealer, not deep discount necessarily. I did not mind spending the extra money for the advice I felt I have been given. I still buy from them when I can afford more than an ounce of gold at a time, or when purchasing Canadian ML.

Frankly, if the price goes to $1500, I surely hope I will not need the money and have to sell. I like my bullion a lot. I am not as attached to them as I am the circulated isses of 100 years ago and longer, but sure do like them. I am pretty found of the SAK. Their gold coloring is pretty different than the American or Canadian bullion that I have. Singapour has pretty looking gold too. I love the thickness of their 1/10 ounces babies.

Sorry, turned off topic again down the rambling road of gold.

 

Now that is something that I have not thought of. I like the "rinse and repeat" lingo.

I wish someone would have whispered the thought of "coins as an investment" to me when I was in my twenties. I had always thought of them as a coin collection, currency collection, and hobby. They were pets, that eventually were stolen.