My grandma-age investments

My grandma is planning on buying a 1 oz. gold coin every month from her part-time job (She has social, so shes fine) She lives with me and my family, and is going to split all the gold bullion coins she gets by 3-one third for me, one third for my cousin, and one third for my sister. Is it a good idea? (I'm letting her keep them in my sdb)

 

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Ooops, I meant to say grandmas age, no grandma-age

 

It's a good idea to make sure grandma takes good care of her health! Some people will tell you that it would be a better idea for her to invest the money in something like the stock market on behalf of her grandchildren, but I think the gold coin plan is just fine and very generous. She could also keep things more even by purchasing 3 quarter ounce coins each month as an alternative.

 

true, but she wants 1 oz. And she is still young (65) since I'm only 12 So I still got a good 20 years with her (She is very healthy for her age)

 

she could get just about any of the french 20 franc gold coins (.1867 oz gold per coin) for just over spot value in unc condition, they will only retain bullion value, but in 20 years who is to say what that will be. They are also quite beautiful.

 

can i join the family?
mike

 

As long as gold doesn't go down, and keeps going up, it's a good investment. As for the gold bullion, there's not really nuch difference in price from year to year. It's good for you guys if you get the gold, but increasing in value, I don't know about that. Some poeple say that gold will go to $1000 and ounce, but some people also said that Google would go to $600 per, who knows exactly what it'll do......Just my 2 cents............Paul

 

My grandma recently lost 3k on the stock market...she invests in all the wrong things (shes lost like 20,000 over the years lol)

 

I can understand that feeling! Gold is safe, but I don't think that it'll be an awesome investment. I mean a money market will work too. I had about 7k in my paypal account and got about $30 in one month, not bad for just sitting there.

 

psht.
Go with Platinum!



But really, thats very nice of her and it sounds great!

 

I don't-I've only been collecting since 2003...and didn't look at gold till last year

 

Not to long ago Gold was way, way up there and lots of people invested in it then. One person I know bought lots of the stuff at close to $800 and ounce. Same with Silver. I would suggest you advise your grandma to either go with an IRA, start a coin collection, buy stocks, give you the money, etc. One slight thing in the ground and there goes the metal prices.

 

I wouldn't suggest that your grandma invest in any coin.....in fact....if she wants to buy coins great but tell her not to do it for investment.

That is really not true--I've known people younger than you that have died....don't take her for just anything...spend all the time you can with her and enjoy it---I can't remember but just a tad of my one grandma....wish I could.

Speedy

 

I should of said gold is safer than some stock market stuff, but you're right, NOTHING is safe, not even keeping money hidden under your matress.

 

My grandma says she might lose her job soon since the patient is 96

 

gold is safer investment than stocks, imo. it should never loose most of its value - at least not in the next 20 years. sure, it may go down to $400 for a few months, but, trend is UP, UP, UP. if it goes down, you have an ounce of gold to enjoy. if it goes up, you can sell it and have money to enjoy. so i would say the investment is good. if stock fails, there's no use of it. ounce of gold will be ounce of gold in 20 years.

 

There is some mis-information here about the meaning of the word "safe." When the probability of gain is much greater than the probability of loss, an item or investment can be considered "safe." Anything can happen to a single investment, but when purchased on a group basis, the probability of gain becomes very very high. It should also be mentioned that Warren Buffett once said that one of the safest transactions that can be made is to purchase metal at or below the cost of production because either the price has to rise, or the metal must disappear from use by the human race. That said, gold below $300 and silver below about $8 were extraordinarily safe investments because the marginal cost to bring new deposits into existence from exploration to production were, in most cases, higher. Gold and silver are not as good investments today as they were then, but they still aren't bad. The US Geological Survey for 2005 [I think] indicated that all of the primary silver deposits on the planet will be mined out within 40 years. Most of what is left will be uneconomical to mine at any reasonable cost. You can figure out for yourself what that's going to do to the price of silver coins [eventually]. There is also the inflation factor. There hasn't been a single year in my lifetime when the price level was lower than the year before. This constant depreciation in the currency just about guarantees that gold and silver coins in the distant future will be worth more than they are today, although anything can happen in a single year or even over a decade. When I was about Morgan Dollar's age, I could purchase high grade uncirculated morgan dollars for about $1.50 for common dates [but didn't - darn]. The Dow Jones Industrial Average was about 900. Both have been reasonable holdings since then. Both have experienced long periods when they went noplace, and times when they rocketed upward. The fact that gold can be purchased now for about the same price as it could 25 years ago is certainly more of a positive than a negative. There aren't too many things in life where this is true. Everyone can make their own best guess about the future and take full responsibility for the consequences.

[Climbing down off the soapbox now...]

 

Sounds like your sweet grandma just wants to leave something for hear family. I say let her do it. Take advantage of it and spend time with her. She would probably enjoy it more than money she spends.

 

"You don't know what you got til it's gone" -Time is more precious than gold