Just bought an ounce at $1787

My mom's freaking out over coronavirus, and is considering selling all her stocks tomorrow and either cashing out in dollar bills, or buying up gold.

To that end, she's just bought an ounce (2020 PCGS first strike AGE) at $1787.

I'm not sure if this is a good or bad decision, but I sure couldn't afford to drop that much at once...

 

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Sell low!

At least she isn't putting it all into crude oil.

Is she living off these stocks now? If not, what's her time horizon?

 

She doesn't live off the stocks, they're more for "fun" (ie, there's really not that much tied up in them)

She has unlimited time horizon, and is expecting gold to double in value in the next five years.

Will I be regretting not jumping on the train? Only time will tell I suppose...

 

Just remember there is a lot of scare and hype going on right now with covid19.
Spring and summer is right around the corner. Virus's die in warm weather/ or you are just getting a lot more vitamin D to strengthen your immune system, which ever way you look at it, there will be a vaccine ready for next year virus and flu season.
My thoughts the stock market will rebound nicely, unless there is a major changes made in the upper echelons of the US.
Only my 2 cents.

 

Nobody has an unlimited time horizon.

 

"On a long enough time line, the survival rate for everyone drops to zero." - Fight Club

 

You paid over $100/oz premium on that coin? I think that is a bit high...

 

The train left the station a couple weeks ago.

I cashed out on all equities that were profitable.
Held on to everything else that wasn't to prevent stupid wash sale rules.

Cashing out now ... well, the question is
(a) is the market going to flatten out or rise
(b) is the market going to continually go down.

The current factors are:
(i) oil price war
(ii) the virus "may" continue to shut down logistics, which will impact sales, which will impact companies profitability, etc etc etc

we can look at the time of impact based upon other geographical areas that are currently impacts, ie, China.

Weather will play an important role if you looks at past outbreaks such as SARS, etc.

With Gold .. as the fear factor continues it may continue to go up.
As long as you have a REAL, Defined EXIT strategy "no matter what" then you should be all set. But if you already missed the train leaving the station I'm going to guess "emotions" is driving the buy/sell mantra. And emotions are never good for buying and selling anything.
Look at the facts, research the facts. Try to determine predictive modeling (ie, maybe guess the future) and base your decisions on that. Just don't relie upon emotions much.

Also, buying graded coins is never a good idea if you listen to PM enthusiasts. Remember, as close to spot as possible. All premiums may not be retrievable once emotions and fast moving markets are in play. After all, who want to buy it if gold is on a steady downwards trend at some point ?

 

I disagree with her decision, but it sounds like there isn't much at stake. Not looking like a great day to cash out of equities, though...

 

days like today ...

I tried to make a buy earlier to get the AM bounce then sell out ( Error: (100906) Your market order cannot be accepted right) .. but they won't allow trades right now. bummer.

 

I'd definitely not buy gold right now. The market will eventually change like the wind and prices will come down.

 

My advice is let your mom make her own financial decisions, because if you advise her and it doesn’t work out .....

 

My best choice in these situations has always been to do nothing. Ride out the storm.

 

She’s still pissed about the time I advised buying some calls on Apple, and their stock fell dramatically, and money vanished...

 

Stay out of the storm that is today.

Although I have access to buy/sell prices, volumes, shares sold by the second. So I can hopefully identify trends (watching the spread between buy/sell and the buys following the momentum), etc. I don't recommend people do this without extensive experience.

here's one of my examples today .. tracking and buying into a bounce. $1/share gain in 61 seconds.


An "no" I do not recommend any one do this if they are at all emotional or bias in their analysis, which tends to include most people. LOL

 

My statistics professor friend at Rice U. sez playing the stock market now is like 'trying to catch a falling knife'
Hope you don't get sticky fingers in so doing.
J.T.

 

Are apple stocks down?

 

yup, it's down almost $60 a share since last month!

 

Everybody selling? You should be buying..........especially in this particular situation. There are a lot of idiots bailing over the current situation.

 

Yep, and Apple doesn't go on sale very often.

On the one hand, I'm tempted to get more, because I know it's going to go back up, probably soon; on the other hand, I'm already pretty heavily overweighted in it.